Banks urged to invest in brand development

Hanoi (VNA) - Three joint stock banks, BIDV, Vietcombank and VietinBank, are now the country’s most valuable banking brands.

However, despite being the country’s largest banks by far, their brand value in monetary terms is very low.

For instance, for Vietcombank, it made up only 4 percent of its total assets of around 576.53 trillion VND (25.3 billion USD) by October 2016.

It is slightly higher for Vietinbank and BIDV at 10 percent and 11 percent, respectively.

The comparable figures are 25 percent globally and 16-18 percent in Southeast Asia.

Why are Vietnamese banks unable to add value to their brands?

The first and obvious reason is that they, including the major ones, have not paid much attention to investment in building their brands.

They have only managed to grow in the last few years of their familiarity with the marketplace and relationships.

Another reason is that Vietnamese banks still prioritise customers aged 40 and more thinking they have a stable income and accumulated savings.

But it is young people who are familiar with and avid users of digital technologies, virtually a pre-condition for promoting brands.

Experts urge Vietnamese banks to invest in building brands, especially if they want to expand abroad.

Obviously, it will not be clever of the lenders to venture into other markets if they are completely unknown there.-VNA