Illustrative image (Source: VNA) HCM City (VNA) - Nguyen Thanh Truc inDistrict 1 has just paid her monthly electricity bills via internet banking.
“I have used the service for more than one year. This is a very convenient service and helps mesave time from going to electricity bill collection points,” she said.
In fact, more and more Vietnamese consumers are turningto computers, smart phones and tablets to do business with their banks. Theyhave opted to make deposits online or online payments of electricity and waterbills and even buy gold on their smart phones, according to experts.
There is hugepotential to develop digital banking in Vietnam.
According to a reportdiscussed at a workshop held recently in HCM City, Vietnam posts an internet growthrate of 9 percent a year, ranking 15th in the world. The numberof internet users accounts for 52 percent of the country’s population.
About 44 percent ofcustomers at commercial banks have used digital services.
The fourth industrialrevolution and Government policy to encourage credit card payment instead ofcash have enlarged digital banking potential in the country.
In the past, along withgrowth in internet and mobile device use, commercial banks in Vietnam have beenexpanding and developing internet banking on mobile devices to offer betterservices to customers.
To attract customers touse the Internet and mobile banking services, banks have launched promotions.
LienVietPostBank, forinstance, discounts 30 percent of the transaction value to customers who paybills for TV services or discounts 20,000 VND to customers who pay electricityor water bills using Vi Viet app until January 31.
Similarity, at VietCapital Bank, customers using the Payoo app to pay their TV bills of HanoiCaband MyTV Can Tho will be given back 30 percent of the transaction value untilJanuary 31.
Many banks, includingVietinBank and VPBank, are offering bonus interest rates to customers who makeonline deposits.
Banking finance expertCan Van Luc said technology is the key to shorten the distance between banksand customers as well as help save big costs compared to traditionaltransaction methods.
"Banks themselvesalso understand that if they do not invest in digital technology, they will beleft behind. Customers today can actively perform transactions anytime,anywhere, via computer or smart phone with all types of products and servicesthat they can conduct at a traditional banking branch," Luc said.
A general director of ajoint stock bank, who did not want to be named, said: “A digital bankingproject can cost some millions of US dollars, but in the long-term, thisinvestment is still cheaper than expanding branch networks.”
Faster, more convenientand more secure electronic payment transactions were the targets thatcommercial banks were aiming for in the digital banking competition, he said.
Luc said digital bankingwas certainly going to be a new way of banking for all banks.
Transactions usingdigital technology would contribute 40 percent of banking revenue in 2018, up32 percent compared to 2014, he said.
"One of the factorsin developing digital banking is to build trust and confidence among consumersabout the security of online transactions," he added.
Online shopping has beenpopular worldwide and Vietnam is keeping up with the trend thanks to its activeInternet use, according to a recent KPMG International’s survey.
Chong Kwang Puay,managing partner and consumer markets lead of KPMG in Vietnam and Cambodia,said with its high Internet penetration rate, Vietnam would see online shoppingsurge soon.
According to the survey,18 percent of consumers in Vietnam and Cambodia purchased goods from anonline-only retailer, such as Amazon, Lazada and Nhommua. Some 10 percentpurchased from the website of a retail shop, and only 3 percent purchaseddirectly from a manufacturer or brand’s website.
The number one reasonconsumers gave for shopping online is the convenience of shopping. This isfollowed by having the ability to compare prices, or to find online sales orbetter deals.
To gain consumer trust,companies and brands are recommended to improve online security and privacyprotection. Most respondents (26.5 percent) consider customer data andinformation protection to be of utmost importance, and 20.4 percentconsider food and product safety as the most important attributes.-VNA
“I have used the service for more than one year. This is a very convenient service and helps mesave time from going to electricity bill collection points,” she said.
In fact, more and more Vietnamese consumers are turningto computers, smart phones and tablets to do business with their banks. Theyhave opted to make deposits online or online payments of electricity and waterbills and even buy gold on their smart phones, according to experts.
There is hugepotential to develop digital banking in Vietnam.
According to a reportdiscussed at a workshop held recently in HCM City, Vietnam posts an internet growthrate of 9 percent a year, ranking 15th in the world. The numberof internet users accounts for 52 percent of the country’s population.
About 44 percent ofcustomers at commercial banks have used digital services.
The fourth industrialrevolution and Government policy to encourage credit card payment instead ofcash have enlarged digital banking potential in the country.
In the past, along withgrowth in internet and mobile device use, commercial banks in Vietnam have beenexpanding and developing internet banking on mobile devices to offer betterservices to customers.
To attract customers touse the Internet and mobile banking services, banks have launched promotions.
LienVietPostBank, forinstance, discounts 30 percent of the transaction value to customers who paybills for TV services or discounts 20,000 VND to customers who pay electricityor water bills using Vi Viet app until January 31.
Similarity, at VietCapital Bank, customers using the Payoo app to pay their TV bills of HanoiCaband MyTV Can Tho will be given back 30 percent of the transaction value untilJanuary 31.
Many banks, includingVietinBank and VPBank, are offering bonus interest rates to customers who makeonline deposits.
Banking finance expertCan Van Luc said technology is the key to shorten the distance between banksand customers as well as help save big costs compared to traditionaltransaction methods.
"Banks themselvesalso understand that if they do not invest in digital technology, they will beleft behind. Customers today can actively perform transactions anytime,anywhere, via computer or smart phone with all types of products and servicesthat they can conduct at a traditional banking branch," Luc said.
A general director of ajoint stock bank, who did not want to be named, said: “A digital bankingproject can cost some millions of US dollars, but in the long-term, thisinvestment is still cheaper than expanding branch networks.”
Faster, more convenientand more secure electronic payment transactions were the targets thatcommercial banks were aiming for in the digital banking competition, he said.
Luc said digital bankingwas certainly going to be a new way of banking for all banks.
Transactions usingdigital technology would contribute 40 percent of banking revenue in 2018, up32 percent compared to 2014, he said.
"One of the factorsin developing digital banking is to build trust and confidence among consumersabout the security of online transactions," he added.
Online shopping has beenpopular worldwide and Vietnam is keeping up with the trend thanks to its activeInternet use, according to a recent KPMG International’s survey.
Chong Kwang Puay,managing partner and consumer markets lead of KPMG in Vietnam and Cambodia,said with its high Internet penetration rate, Vietnam would see online shoppingsurge soon.
According to the survey,18 percent of consumers in Vietnam and Cambodia purchased goods from anonline-only retailer, such as Amazon, Lazada and Nhommua. Some 10 percentpurchased from the website of a retail shop, and only 3 percent purchaseddirectly from a manufacturer or brand’s website.
The number one reasonconsumers gave for shopping online is the convenience of shopping. This isfollowed by having the ability to compare prices, or to find online sales orbetter deals.
To gain consumer trust,companies and brands are recommended to improve online security and privacyprotection. Most respondents (26.5 percent) consider customer data andinformation protection to be of utmost importance, and 20.4 percentconsider food and product safety as the most important attributes.-VNA
VNA
