Cash withdrawals at ATMs plummeted

On March 25, the International Data Group in Vietnam (IDG Vietnam) cooperated with the Vietnam Banks Association (VNBA) to organize the Vietnam Retail Banking Forum event.

Nguyen Quoc Hung, General Secretary of VNBA, said that the Covid-19 pandemic has prompted commercial banks to quickly implement the digital transformation process to adapt.

Banks have had many policies and solutions to develop retail banking services on digital platforms such as developing a variety of modern banking products and services from Mobile banking, Internet banking, QR code, using electronic identification technology (eKYC)… helps customers easily access, easy to use anywhere, anytime, limiting contact.

Statistics show that in 2021, the proportion of retail lending by the group of medium and large banks will account for 40% – 50%, especially with banks up to nearly 90%.

Unused payment activity cash achieved a high growth rate via Internet channel, increasing by 48.8% in quantity and 32.6% in value; via mobile phone channels increased by 76.2% and 87.5%; payment via Qrcode grew up to 200% over the previous year.

Customers experience the service at Agribank’s booth within the framework of the Retail Banking Forum

Notably, the proportion of cash withdrawals via ATM out of total transactions processed through NAPAS’s system dropped sharply from 26% in 2020 to 12%.

“With nearly 50% of the population using e-commerce, especially the young generation with new consumption behaviors, a large percentage of people have not yet accessed banking products and services, the market potential for banks is limited. Retail sales in Vietnam are huge,” said Mr. Nguyen Quoc Hung.

As in the field of e-wallets alone, the average growth rate in the period 2017-2021 has increased to 80.43% in quantity and 71.86% in value.

Mr. Le Anh Dung, Deputy Director of Payment Department, State Bank of Vietnam, said that after a short time, 3 operators including VNPT, Mobifone and Viettel deployed Mobile Money service, so far there have been nearly 1 million accounts. Open new to use this service.

At the same time, there are about 3.37 million payment accounts of banks opened using electronic identification (eKYC) method.

However, there are still difficulties and challenges in the development of the retail banking segment.

For example, at Bank for Agriculture and Rural Development (Agribank), Mr. Linh Duc Hoang, Head of Personal Banking Department, said that over the past time, Agribank has developed the retail banking segment with nearly 20 million talented customers. payment deposits, nearly 17 million customers using ATM cards, nearly 15 million customers registering to use payment services via Agribank E-Mobile Banking, Internet Banking, SMS Banking…

The number of customers who are households and individuals in agricultural and rural areas accounts for nearly 80% of Agribank’s total customers. This is a traditional customer in capital mobilization and credit investment, as well as a potential customer to develop payment services via electronic channels.

However, there are still people’s fear of switching when accessing modern payment methods, concerns about security and safety when using online payment methods…

“High-tech crimes are increasing, tricks are increasingly sophisticated, taking advantage of customers’ information to perform fraudulent and fraudulent acts on customers’ accounts, so many customers are still afraid when perform electronic payment transactions,” said Mr. Linh Duc Hoang.

In fact, concerns about security and safety in electronic payments were also mentioned by Dr. Can Van Luc, Chief Economist of BIDV, at the forum because there has never been a rapid increase in network security and financial crimes. and as much as last time. This trend requires banks to strengthen security and safety measures to create peace of mind for users.