Vietcombank will officially increase service fees for ATM cash withdrawals from 1,100 VND to 1,650 VND for each transaction in its system from July 15. (Photo: plo.vn) Hanoi (VNS/VNA) - After two months postponing the increase in service feesfor ATM cash withdrawals as required by the central bank, some commercial bankshave now resumed the plan, announcing that a new service fee framework willapply from the middle of this month.
Three big banks Vietinbank, Vietcombank and BIDV will officially increase servicefees for ATM cash withdrawals from 1,100 VND to 1,650 VND for each transactionin their system from July 15.
Earlier, commercial banks had to cease their plans to hike service fees asrequired by the State Bank of Vietnam (SBV). The central bank on May 9 directedcommercial banks to stop increasing ATM cash withdrawal fees at that time afterthe public expressed their disagreement over increased fees on ATM transactionsand e-banking services at many banks.
According to the SBV, it regulates a fee framework for ATM cash withdrawals andcommercial banks must follow it to set their own fees. The banks’ recent feehike doesn’t violate the SBV’s regulation.
The central bank’s Circular 35, which came out in 2012, allowed banks tocollect ATM fees from March 2013. The maximum fee of 3,300 VND for eachtransaction has been permitted since 2015 but most banks have kept their feesat either 1,100 VND or 1,650 VND.
However, the SBV noted, for any fee adjustments, besides making informationtransparent, banks should look into the interests of customers to ensure abalance between the two sides.
As banks have hiked service fees on ATM withdrawals as well as online andmobile banking, e-wallet service providers are applying free services toattract customers.
Nguyen Anh Hong in Hanoi said that she used e-wallet Vi Viet to pay online forutilities, internet, and her mobile phone bills every month. She even used thisapp to pay when going out with friends or family.
Recently, as numerous banks had moved to adjust service fees, she had used thee-wallet more frequently.
Local media have quoted leaders of some banks confirming that customers areturning towards e-wallets to pay bills, shop, and transfer money. E-walletsalso provide some extra services to compete with banks’ internet and mobilebanking services. Notably, it is very easy to register new accounts viasmartphone.
Bui Quang Tin, a banking expert, told vietnamnet.vn that the 132million cards issued by banks did not mean banks can control themarket. To date, 25 non-bank institutions had been providing intermediarypayment services.
While Vietnamese banks were still busy collecting fees, payment companies werenot, because they strove for a long-term business strategy, Tin said, addingthat they had calculated thoroughly when accepting losses in the first phase ofoperation.
If payment companies could attract more users, they would have huge capital touse which could bring bigger benefits than the fees they collect from services.
“The competition in the payment market is getting fierce. If banks don’t changetheir strategy, they will lose their share in the home market,” Tin warned.
There are now about 20 e-wallet service providers in Vietnam, includingwell-known names such as Momo, Ngan Luong, VTC Pay and Payoo. However, there isno official report from the SBV about the number of Vietnamese e-wallet users.Service providers estimate that 10 million e-wallets are in use in Vietnam,which is a modest figure compared with the great potential of the market, analystssay.-VNS/VNA
