Transactions in progress at a VPBank branch (Illustrative image) (Source: VNA) Hanoi (VNA) - The application of digital technologies in providing bankingservices has proven effective, not only bringing better experience to urban customersbut also helping banks introduce their services to low-income households.
Statistics from the Ministry of Information and Communications show that Vietnamnow has 123.91 million mobile subscribers, up 4.3 million compared to that inearly this year.
Thisis said to be a good chance for banks to develop mobile banking services, thusexpanding their customers’ group, especially poor households and women.
Speaking at a recent workshop on mobile banking for the poorand women held in Hanoi, Luu Thi Thao, deputy director of the Vietnam Bank for SocialPolicies (VBSP)’s Centre for Informationand Technology, said the bank has piloted SMS services for its borrowers in allbranches nationwide.
The service has helped save time and costs for both customersand banks.
According to the VBSP, the bank provides the SMS service to its customers in allthe 63 cities and provinces nationwide since 2016, helping them save more than42.8 billion VND (over 1.84 million USD). The service costs the bank 250 VNDper SMS, thus reducing their operation costs by 12 times.
The service helps households regularly get updates on theloans, such as payment deadlines and term deposits through texts on theirmobiles.
The VBSP has identified SMS services as one of the effective tools to help poorhouseholds get acquainted with digital technologies, help the bank diversify itsproducts and services, and improve its operation efficiency, Thao noted.
The bank plans to apply the mobile banking service to 850 loanand savings groups with 30,000 borrowers, she added.
With the advantages brought about by mobile phones, many banks in Vietnam havebeen promoting the development of mobile banking services, making the access tobanking services easier for people living in remote areas.
Dinh Xuan Ha, Head of the Division of Research and Development of Financial Institutions of the Banking StrategyInstitute under the State Bank of Vietnam (SBV), said the digital technology wouldhelp banking services become acceptable for low-income customers, thus increasingthe number of users.
The technological application will also create a momentum topromoting comprehensive finance, he added.
Ha Hai An, Deputy Director of the International Cooperation Department underthe SBV, said the application of digital technology in providing bankingproducts and services has helped reduce costsand increase utility and convenience for customers.
Banks in general and the VBSP in particular have welldeployed policy credit programmes to help poor households and policy beneficiariesaccess preferential capital sources, contributing to promoting sustainable povertyreduction, ensuring social security, and creating strong changes in advantagedand ethnic minority areas.
The SBV is building a national comprehensive financial strategy which valuesdigital technologies of banks and credit institutions. The ultimate target isto popularise access and use of financial products and services, especially topoor people.-VNA
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