VBA general secretary Nguyen Toan Thang addresses the Vietnam Retail Banking Forum 2018 in HCM City (Photo: IDG Vietnam) Hanoi (VNA) - The retail banking segment has contributedsignificantly to banks’ revenue this year.
At some major banks in Vietnam, the segment has contributed more than 40 percentof total revenue, head a forum in Ho Chi Minh City on November 28 – 29.
The Vietnam Retail Banking Forum 2018, themed “Optimising Retail BankingChannels in the Branch Network, Adapting to the Digital Age”, co-organised bythe Vietnam Banks Association (VBA) and IDG Vietnam, brought together banking,financial experts and leading technology experts to work towards solutions tohelp bank branches optimise services and attract more customers with the aim ofensuring sustainable development.
In recent years, Vietnamese banks have focused on the retail banking segment, astep in line with the current development trend and the State Bank of Vietnam’spolicy, VBA General Secretary Nguyen Toan Thang told the forum.
Furthermore, with non-cash payments trending along with the appearance of severalfintech companies, Vietnamese commercial banks must focus on investing and cooperatingon developing modern payment services to ensure safety and convenience forcustomers, he said.
Ha Huy Tuan, Vice Chairman of the National Financial Supervisory Commission,said Vietnamese banks regard the retail banking segment as a vital part oftheir development strategies. However,he added there are still issues that need to be addressed, especially in termsof technology such as data mining and processing, product and servicesdevelopment, and risk analysis and management.
The Fourth Industrial Revolution has made a considerable impact and isanticipated to create opportunities and motivation for Vietnamese banks toimprove the retail banking sector, especially enhancing the application ofinnovative solutions and breakthrough technologies with the aim of leveragingbusiness administration, automating business process and offering seamlessexperiences for customers, said Can Van Luc, chief economist of the Bank forInvestment and Development of Vietnam.
The development of retail banking must focus on the synchronisation ofdatabases and infrastructure, enabling banks to apply high technologies andcatch up with market trends domestically and internationally.
In HCM City, the banking sector has experienced rapid growth over the pastdecade in terms of expertise, quantity and quality with diversified productsand services.
The city has the largest banking network nationwide with over 2,200 transactionpoints and 49 head offices, according to the National Financial SupervisoryCommission.
Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam’s branch in HCMCity, From 2008 - 2018, the city’s retail banking market had capital mobilisationgrowth and outstanding credit growth of 25 percent and 24 percent,respectively, higher than the national average.
Retail banking is closely associated with consumer lending. In 2008, totaloutstanding loans for consumer lending accounted for only 3.8 percent of totaloutstanding loans, but now it accounts for roughly 19.4 percent.
However, according to experts, interestrates applied by some financial companies under banks are quite high, posingmany risks.
The 6th annual Vietnam Outstanding Banking Awards 2018 (VOBA) was also held atthe forum. The ultimate purpose of the awards is to select and recognise banksreaching significant achievements in driving business growth and contributingto the development of the banking and financial sectors. - VNA
At some major banks in Vietnam, the segment has contributed more than 40 percentof total revenue, head a forum in Ho Chi Minh City on November 28 – 29.
The Vietnam Retail Banking Forum 2018, themed “Optimising Retail BankingChannels in the Branch Network, Adapting to the Digital Age”, co-organised bythe Vietnam Banks Association (VBA) and IDG Vietnam, brought together banking,financial experts and leading technology experts to work towards solutions tohelp bank branches optimise services and attract more customers with the aim ofensuring sustainable development.
In recent years, Vietnamese banks have focused on the retail banking segment, astep in line with the current development trend and the State Bank of Vietnam’spolicy, VBA General Secretary Nguyen Toan Thang told the forum.
Furthermore, with non-cash payments trending along with the appearance of severalfintech companies, Vietnamese commercial banks must focus on investing and cooperatingon developing modern payment services to ensure safety and convenience forcustomers, he said.
Ha Huy Tuan, Vice Chairman of the National Financial Supervisory Commission,said Vietnamese banks regard the retail banking segment as a vital part oftheir development strategies. However,he added there are still issues that need to be addressed, especially in termsof technology such as data mining and processing, product and servicesdevelopment, and risk analysis and management.
The Fourth Industrial Revolution has made a considerable impact and isanticipated to create opportunities and motivation for Vietnamese banks toimprove the retail banking sector, especially enhancing the application ofinnovative solutions and breakthrough technologies with the aim of leveragingbusiness administration, automating business process and offering seamlessexperiences for customers, said Can Van Luc, chief economist of the Bank forInvestment and Development of Vietnam.
The development of retail banking must focus on the synchronisation ofdatabases and infrastructure, enabling banks to apply high technologies andcatch up with market trends domestically and internationally.
In HCM City, the banking sector has experienced rapid growth over the pastdecade in terms of expertise, quantity and quality with diversified productsand services.
The city has the largest banking network nationwide with over 2,200 transactionpoints and 49 head offices, according to the National Financial SupervisoryCommission.
Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam’s branch in HCMCity, From 2008 - 2018, the city’s retail banking market had capital mobilisationgrowth and outstanding credit growth of 25 percent and 24 percent,respectively, higher than the national average.
Retail banking is closely associated with consumer lending. In 2008, totaloutstanding loans for consumer lending accounted for only 3.8 percent of totaloutstanding loans, but now it accounts for roughly 19.4 percent.
However, according to experts, interestrates applied by some financial companies under banks are quite high, posingmany risks.
The 6th annual Vietnam Outstanding Banking Awards 2018 (VOBA) was also held atthe forum. The ultimate purpose of the awards is to select and recognise banksreaching significant achievements in driving business growth and contributingto the development of the banking and financial sectors. - VNA
VNA
