According to the program "Reaching Vietnamese Enterprises" broadcast at 8:45 p.m. every Friday on VTV1, Vietnam has reached the finish line early in the cashless payment revolution when 87% of adults own payment accounts, exceeding the target of 80% set by the end of this year.
This data reflects a strong change in people's financial behavior, when with just a smartphone, every transaction from a cup of sidewalk coffee to expensive branded items can be done in a snap.
Efforts to promote digital payments
One of the outstanding milestones promoting digital payments in Vietnam is Techcombank 's bold decision nearly a decade ago, when it was the first bank to waive all electronic transfers, accepting to give up a large source of revenue in service fees (about 500-700 billion VND/year) to create a boost for the market.
Techcombank leaders said that after implementing "Zero fee", the number of new accounts opened and transactions continuously increased exponentially, an average of 23.5% per year for 5 consecutive years.
More importantly, after Techcombank pioneered the implementation of “Zero Fee”, a series of banks in Vietnam then also began to apply this strategy, creating a positive effect on the entire market at that time.
At present, when the trend of free money transfer transactions has spread throughout the banking system, Techcombank continues to affirm its pioneering role with "automatic profit-making" products - a solution that helps millions of people save and be flexible in spending.
With just 1 click, customers no longer have to worry about choosing what to optimize the yield for idle money, everything is automatically set up so that the account always reaches the highest yield, up to 4.4%/year.
“I find this feature very useful. When not in use, the money still generates interest, and when needed, it can be withdrawn flexibly without worrying about losing interest,” said customer Trieu Nguyet Minh (Dong Da, Hanoi ).
Technology - Breakthrough Platform
To achieve these impressive results, Techcombank has invested heavily in technology infrastructure. Specifically, the bank has spent up to 5,000 billion VND to build a Core Banking system that meets world- class standards, capable of processing hundreds of millions of transactions per day, with a speed 50% higher than the industry average. In addition, in the 2021-2025 period, Techocmbamk has also invested 500 million USD in technology, joining hands with the world's leading technology companies such as Amazone, Adobe, optimizing customer experience through digitalization.
Mr. Jens Lottner - General Director of Techcombank emphasized: “Techcombank's system stores about 8 billion data points per day on the AWS cloud platform, combining artificial intelligence to provide personalized financial, insurance, and Blockchain solutions with high security standards. This is the basis for us to continue pursuing our vision: Transforming the financial industry, improving the quality of life for people in the next 5 years”.
Banking industry accompanies the nation
The banking sector is the mainstay of capital mobilization in the economy, accounting for 50% of total social investment capital. According to data from VTV1, in the first quarter of this year alone, the banking system attracted more than VND400,000 billion in deposits from residents, bringing the total amount of deposits to about VND7.5 million billion, despite the deposit interest rate decreasing by about 1%/year. In addition, the total value of non-cash payments in 2023 reached VND295 million billion, equivalent to nearly 26 times the country's GDP, demonstrating the spectacular breakthrough of Vietnam's digital economy.
According to Dr. Nguyen Quoc Hung - General Secretary of the Vietnam Banking Association: "Banks that want to invest in the economy must attract idle money, mobilize money from economic organizations, socio-political organizations, businesses as well as people. In the coming time, businesses will benefit from appropriate interest rates when the banking industry has changes."
Policy breakthroughs such as Resolutions 57 and 68 are considered “unprecedented boosts” in history, opening up opportunities for private enterprises, including the banking sector, to become pioneers in innovation, creativity, and raising the country's position.
Ms. Nguyen Thi Thu - Deputy Director of the Payment Department of the State Bank commented: "When payment services are safe, fast, convenient and secure, people's trust will increase. All information is clearer and will help state management agencies."
Vietnam’s banking sector is demonstrating its pioneering role, not only in supporting businesses and the economy to recover, but also in creating solid financial foundations so that Vietnam can confidently integrate and shape the future of the region.
Bui Huy
Source: https://vietnamnet.vn/nganh-ngan-hang-viet-nam-but-pha-chuyen-doi-so-tien-phong-kien-tao-tuong-lai-2417754.html
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