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Pandemic Makes 85% of Vietnamese Consumers More Likely to Use Digital Banking

Around 85% of Vietnamese banking consumers are more likely to use online and digital banking services compared to 18 months ago, according to a recent report. Globally, nearly two-thirds (61%) of consumers have made greater use of digital banking services over the last 18 months. Two in five (41%) have started using digital banking services for the very first time because of the COVID-19 pandemic.

In Vietnam, these numbers are higher, at 70% and 54%, respectively. Approximately 90% of respondents use online and digital banking services mostly to pay bills, transfer money, and check account balances. These statistics will help banks understand customers habits and behaviours to create more effective online services.

The report surveyed 4,500 consumers globally, including Vietnamese consumers (accounting for 11%). It identifies five emerging financial “tribes” that banks need to know about in a post-pandemic world. These consumer groups include techcelerators, ethical bankers, convenience cravers, covidpreneurs and neo asset hoarders. Techcelerators are recent converts to the world of digital banking who have adopted digital services amid physical branch closures.

Vietnam was most likely to identify with techcelerators, with 33% of respondents showing the traits of this group. Ethical bankers are young, purpose-driven savers that want to make a positive impact in the world. Some 76% of Vietnamese consumers agreed that they are willing to pay a premium for financial services if a cut goes towards helping the environment or local communities.

Convenience cravers are one-stop shoppers who want all-in-one services at their fingertips, and no extra cost. Covidpreneurs are entrepreneurs who have set up their own business during the pandemic, in need of easy-to-use and reliable business banking services. 14% of Vietnamese respondents belong to this group. Neo asset hoarders are new asset owners who want to use financial services to buy, trade, and hold assets. This group is the smallest, but a rapidly growing tribe globally.

An industry expert explained that each tribe shows something significant about the way consumer behaviour is adapting and what banks must do to stay ahead of the curve. Traditional audience segmentation in financial services is broken. The one-size-fits-all model, in which customers are divided based on how much they earn, or simple demographics, is redundant in a world of open finance. If banks want to survive, they must think about how to affiliate themselves with the new groups within society and appeal to them with products and experiences that meet their shared values and user needs.

Digital transformation in banking has accelerated in Vietnam and the report shows that 87% of local banking customers agreed with the importance of online and digital banking services in a bank or financial institution. Over 80% of respondents prefer to save or invest rather than spend money – the highest rates of all surveyed markets, and more than 74% are willing to pay a premium for financial services that save their time and offer greater flexibility.

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