‘Hunting’ individual customer files, LienVietPostBank accelerates digitization, retail race

Retail grows impressively thanks to rural customers

Retail is the lucrative pie that all banks aim for. According to banking experts, the retail segment of Vietnamese banks will grow exponentially in the next 5-10 years, opening up opportunities for all banks. Banks that are pioneers in each market segment, customer segment, and best deal with customers’ personal financial needs… will have many advantages to gain market share.

In big cities, competition among banks in retail segment is very fierce. The piece of retail banking cake in the countryside is “difficult” because of the high cost. But for that reason, pioneering banks in rural areas have more room for growth, because this is a large and very potential market.

Currently, in the joint stock commercial banking sector, LienVietPostBank is the bank with the largest network, mainly located in rural areas. By taking advantage of this network, LienVietPostBank has had an impressive retail credit growth rate.

By the end of 2021, this bank’s retail credit increased by 30% compared to 2020, accounting for 74% of the total credit growth of the whole line. Looking at the retail credit structure, it can be seen that the rural retail credit segment of LienVietPostBank has the best growth: Business and production loans grow 43%, real estate loans grow 36%, loans rural agriculture increased by 61%.

Possessing a diverse customer base and having an outstanding advantage in rural areas compared to other banks, LienVietPostBank has helped LienVietPostBank maintain its impressive retail growth even during the two years of the Covid-19 pandemic.

While many banks have networks mainly concentrated in cities that have been heavily affected by the epidemic (due to social distancing), LienVietPostBank’s extensive district-wide network has helped the bank to exploit customers. products in all areas, especially in rural areas. Therefore, the long-term social distancing in some provinces does not have a great impact on the Bank’s operations.

Not only that, in the past two years, the COVID-19 epidemic has significantly changed the habits of rural people, the trend of cashless payment in rural areas has increased sharply.

Over the past time, LienVietPostBank has made good use of its network to deploy a variety of products, especially personal loans for production and business, loans for agriculture and rural areas, and loans to customers. State budget wage earners have stable incomes.

In addition to maintaining the rural retail market, LienVietPostBank also actively provides a wide range of products and services to more than 30,000 corporate customers, signing comprehensive cooperation agreements with many large corporations to open a wide range of products and services. great potential for retail growth.

To stimulate customers to use the products, from 2021, LienVietPostBank will deploy a product package that combines many comprehensive incentives with the goal of increasing the number of products and services used per customer, improving the experience. customers, thereby bringing profits from better service activities for the bank…

In 2021, LienVietPostBank’s “Super preferential combo” campaign, after 6 months of implementation, increased the number of customers using 3 or more products, increasing 3 times compared to before.

Accelerate digitization to boost retail

According to economists’ comments, Vietnam’s economy is showing strong signs of recovery in 2022 thanks to optimistic signals starting from the end of the first quarter of 2022. People are starting to spend heavily again on shopping, entertainment, tourism, etc. This will help the retail banking segment to grow even more strongly.

However, in the context that consumers increasingly tend to consume digitally and make digital payments, network advantages alone are not enough. Banks that both have network advantages and promote digital transformation are the perfect combination to take advantage of all retail locations.

LienVietPostBank leaders said that, understanding the importance of digital transformation in the development of retail banking, in order to increase diversified utilities for customers, the Bank pays special attention to diversifying the digital ecosystem by cooperate with a wide range of service providers.

Currently, most bill payment services for collection and payment to serve the payment needs of customers from urban to rural areas and remote areas can be performed on LienViet24h.

With strong investment in digitization, the launch of many new products and services, the number of new customers of the bank continuously increased sharply, making a great contribution to growth.

From the end of October 2021, LienVietPostBank has piloted a smart digital transaction room with digitized procedures. In addition, the bank also continuously upgraded and added many new utilities and expanded the ecosystem of LienViet24h digital banking application.

Not only meeting the needs of shopping and payment, customers can also: save online, mortgage online passbook, borrow from credit card limit, buy insurance online… right on the app.

In 2021 alone, the whole system develops nearly 650,000 LienViet24h users, of which the number of users associated with payment accounts reaches over 70%, bringing the total number of users on the Digital brand platform to over 3. ,5 million.

Also in the past year 2021, the number of customers using LienVietPostBank’s cards also increased sharply. Currently, credit card product is one of the main products of the Bank. Specifically, in 2021, LienVietPostBank issued more than 86,000 credit cards of all kinds, becoming one of the top banks that issue and activate the most credit cards in 2021 in Vietnam.

The combination of both traditional and digital banking networks is helping LienVietPostBank to build a comprehensive financial ecosystem, in line with the digital transformation strategy towards the goal of becoming the leading retail bank in Vietnam. .