Illustrative image (Source: vnexpress)

HCM City (VNA) – With the Government encouraging noncash payments, e-banking service is promising in Vietnam, experts said at the Vietnam Retail Banking Forum 2016 in Hanoi on December 1.

According to a 2015 research of the Business Monitor International, Vietnam’s Internet users grew at an average annual rate of 9 percent, ranked 15th worldwide.

The country has a younger population compared to other nations in the region, with Internet penetration rate reaching 52 percent of the population. Local banks said some 44 percent of their customers use banking services, which are expected to account for 44 percent of total banking revenue by 2018. 

Tran Nhat Minh, Deputy CEO and Chief Digital Officer of the Vietnam International Bank (VIB), said major challenges facing digital banks relate to a change from the traditional business culture, running costs and technology foundations.

Sujeeth Samrat, a banking senior adviser, said the point is how to attract customers to online services and to better meet their demand.

Each bank need to develop a business strategy that work best for its technologies, database and business model, he noted.

He also suggested cooperation between banks and retailers to boost the diversity, convenience and safety of their products.-VNA