Mobile banking transactions in Vietnam were expected to increase by 400% by 2025, according to a report on fintech and digital banking in the Asia Pacific.
The report predicted a 50% growth in new accounts by the top eight banks, using intelligent automation in account origination. In addition, 25% of banks in Vietnam would actively pursue modern digital core platforms.
A news agency reported that accelerating innovation through fintech partnerships is important; fintech partnerships, both locally and regionally, can add a competitive edge.
In a digital world, the bank is no longer the sole creator of value for its clients. Today, competitive strength comes from having good connections with other players and from adding or sharing value, the report said.
The top two priorities among the eight biggest banks of Vietnam for 2025 are core banking and payments systems.
Joint-stock banks, in particular, are poised to win a larger market share thanks to enhanced features in their mobile offerings, including gamification, improved data security, and customer journey designs for integrated omnichannel customer experiences to crack the psyche of customers.
The country is strengthening the development of fintech companies as well as digital banking.
This is evident by the rising number of fintech companies; up from 40 to 150 in the past four years.
The country is also focusing on developing cashless payments and providing new services which targeted the group of customers who had no or little access to traditional banking services.
The 2020-25 period would be a period of accelerated pursuit of digital-first banks across the Asia Pacific. Digital-first banking is even more important now as the COVID-19 situation has intensified customers’ needs for availability, access and control of digital channel interactions, it said.
The Minister of Information and Communications (MIC) recently said that COVID-19 offers a hundred-year opportunity for national digital conversion and a push for this process.
At a conference, the Minister asked the information and communications industry to seize this opportunity to make breakthroughs and take the lead in the nation’s digital transformation.
The IT sector, by utilising technologies, newspapers, and communications, has contributed a lot during the previous waves of COVID-19, helping Vietnam to gain initial control of the epidemic.
With socio-economic activities to be resumed, the industry must contribute to a successful restart. The information and communications sector should join in both the epidemic prevention and economic development processes to achieve the government’s goals.
The minister noted that the industry has recently developed quite a lot of software applied in preventing and fighting COVID-19, with some open-source software having been shared with the international community.
In August, the first Vietnam Open Source Congress will be held aimed at building the strategy for national open-source development. This is an opportunity for the Made-in-Vietnam initiative to use digital transformation platforms for each industry and each field.
He asked Vietnamese digital businesses to accelerate the development and mastery of digital platforms as the mastery of Vietnam’s digital transformation platform is considered the most important factor in the transformation process.
Regarding 5G deployment, it is expected that Vietnam’s 5G equipment will be tested on the network in June and the country will commercialise 5G with Vietnamese equipment at a defined scale by October.
