Business

Local banks drawn to retail banking

Seeing the potential from a population of 96 million and the 2018 per capita GDP of 2,590 USD, Vietnamese banks are racing to develop retail markets.
Local banks drawn to retail banking ảnh 1At a Vietcombank transaction office (Photo: VNA)

Hanoi (VNA) – Seeing the potentialfrom a population of 96 million and the 2018 per capita GDP of 2,590 USD,Vietnamese banks are racing to develop retail markets.

Retail banking is closely associated withconsumer lending. In 2008, total outstanding loans for consumer lendingaccounted for only 3.8 percent of all outstanding loans, but now it accountsfor roughly 19.4 percent.

In recent years, Vietnamese banks havefocused on the retail sector, a step in line with development trends and theState Bank of Vietnam’s policies. At some major banks, the segment hascontributed more than 40 percent of total revenue.

The Vietnam International Bank (VIB), whichreeled in pre-tax profit worth 810 billion VND (34.83 million USD) last year,saw its 2018 retail banking revenue grow 90 percent from 2017. The bank said itis capable of competing in the sector and will make it a business priority.

Currently running 163 branches andtransaction offices nationwide, VIB unveiled its plans to annually open between10 and 20 new ones within the next five year and to develop its onlineapplication My VIB, which was reported to process transactions of 80 – 90percent of its customers.

Meanwhile, leaders of the Vietnam's HousingDevelopment Bank (HDBank) expected to make it a leading retail bank in thecountry via online banking services and digital technologies.

The Vietnam Prosperity Joint StockCommercial Bank (VPBank) affirmed consumer lending will be its focus this year.It considers VPBank Finance Co., Ltd (FE Credit) and individual clients asdriving forces behind the bank’s realisation of growth targets in the future.FE CREDIT is the first in the local market to implement a 100 percent digitallending process in granting loans for the purchase of digital devices andhousehold appliances.

The Joint Stock Commercial Bank for ForeignTrade of Vietnam (Vietcombank) has also joined the trend. The bank regards theretail banking segment as a vital part of its business strategy and is aimingat the potential of car finance, said general director Pham Quang Dung.-VNA 
VNA
#retail banking #Vietnamese banks #consumer lending #State Bank of Vietnam #Vietnam International Bank #VIB #Vietnam's Housing Development Bank #HDBank #Joint Stock Commercial Bank for Foreign Trade of Vietnam #Vietcombank #Vietnam News Agency #vietnamplus
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