Vietnam's Digital Banking Sector Exeperincing Massive Growth

Banking CIO Outlook | Tuesday, November 02, 2021

63% of consumers in Vietnam are now likely to open accounts digitally, which is very important for any country.

FREMONT, CA: The digital banking sector in APAC, especially in Vietnam, has witnessed significant growth in the past couple of years and has caught up with developed markets. The driving force behind this rapid development is the change in consumer behavior, who are now expecting personalized services and innovation, and value propositions from the financial services industry. The number of active digital Bank users skyrocketed in Vietnam, at a rate much higher when compared with other countries in the region. In the aftermath of the covid-19 pandemic, the Vietnamese population is expecting a seamless banking experience in financial services, and 40% of consumers are expected to readily drop out if asked more than five questions while opening a bank account via a mobile app or website.

63% of consumers in Vietnam are likely to open accounts digitally now, which is very significant for any country. The majority of the population also expects to complete their bank-related documentation in less than ten questions. This number is significantly higher than in other countries. This indicates the fact that Vietnamese consumers are looking for frictionless and convenient digital experiences. Considering that inefficient operations provide opportunities for innovation, financial service providers improve their competitiveness in the market by formulating solutions for such challenges. Consumers nowadays expect banks to find answers to applications questions with the help of technological approaches such as improved identity checks, open banking, government databases, and transaction history analysis. Considering that majority of Vietnamese consumers are multi-channel banking users, financial service providers could leverage this and employ a combination of digital banks and physical branches. To cope up with the ever-increasing consumer expectations, financial institutions must transform their business model to a digital-first or omnichannel engagement model. They also need to deliver innovative value propositions and personalized services to ensure a positive consumer experience and gain access to a larger consumer ecosystem.

Weekly Brief

Read Also