Retail banking services become a trend among commercial banks | Business


A transaction at Vietcombank (Photo: VNA)

Hanoi (VNA) – Many Vietnamese commercial banks have decided to develop
retail banking, seeing it as a strategy to reduce risk and optimize their business results, according to insiders.

Retail banking, also known as consumer banking, is the typical mass banking with services available to individual customers including savings and chequing accounts, mortgages, personal loans, credit cards. debit / credit and certificates of deposit.

Indeed, investing heavily in retail services has become a inevitable trendin Vietnamese financial market because they are essential to achieve a sustained and stable profit for the banking sector. This type of service also helps to disperse the risks due to a large network of clients while contributing greatly to the expansion of the market and the improvement of the competitive capacity of commercial banks.

“Retail banking is playing an increasing role in the development of the banking sector,” said Nguyen Quoc Hung, head of the credit department for economic sectors at the State Bank of Vietnam (SBV).

Statistics from the central bank showed that the outstanding debt of small and medium-sized enterprises represented 18.7% of the total outstanding debt, up 12.9% from the end of 2018, while that of households accounted for 45.4%, up 12.19% year-on-year. year, he said.

Meanwhile, VNDIDRECT Securities Corporation (VNDIRECT) believed that retail banking would continue to become a primary motive for the development of commercial banks.

“Attractive retail services and good human resources are two main factors that help commercial banks gain a competitive advantage in the field. The ability to distribute products also determines the market share of banks in this segment; therefore, any bank with a strong customer database will have a better advantage, ”said experts from VNDIRECT.

Besides traditional services, commercial banks are investing heavily to promote retail sales on digital platforms, which has resulted in strong results in terms of revenue growth rate, business results and quality of service, among others.

Vietnamese Banks Association General Secretary Nguyen Toan Thang said digital transformation is important for commercial banks to diversify their service profile, save time and costs for themselves and their customers.

Hung said that in order to approve the retail services of commercial banks, the SBV has implemented a wide range of measures to stabilize the macroeconomy in order to curb inflation, support the market and create conditions for businesses and residents to have access to banking services. services and products.

In addition to stimulating non-cash payments through internet payment, mobile payment, QR code, tokenization, contactless payment and mPOS, the SBV will study and complete the legal framework to support retail banking services. , as well as to encourage the expansion of credit institutions in mountainous regions. and remote areas, added Hung./.

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