Vietnam’s digital banking sector is experiencing rapid growth which is marked by several significant trends and developments. Vietnam’s fintech sector is the second-fastest growing in the ASEAN region after Singapore. The country is expecting a digital valuation of $18 billion by the end of 2024. Vietnamese commercial banks are actively developing digital strategies to leverage this transformation over the next three to five years. In early 2024, non-cash payments continued to rise, with cashless transactions increasing by 57.11% in number and 39.49% in value.
Vietnam launched its National Financial Inclusion Strategy in 2020. The inclusion aims to increase the percentage of adults with bank accounts to 80% by 2025. This strategy focuses on providing access to essential financial products and services—such as payments, money transfers, savings, credit, and insurance. It especially centers on low-income individuals, vulnerable populations, and micro, small, and medium-sized enterprises (MSMEs).
Through the National Financial Inclusion Strategy, Vietnam will focus on establishing financial service offices in at least 50% of communes nationwide. It will also ensure that 25-30% of adults have savings accounts at credit institutions. Additionally, the strategy is aiming to boost non-cash transactions by 20-25% annually and to raise insurance premium income to around 3.5% of gross domestic product by 2025. Overall, these efforts reflect Vietnam’s commitment to enhancing financial accessibility and inclusivity for its citizens. Vietnam had opened approximately 4 million mobile money accounts in 2023. Over 70% of these accounts opened in rural and disadvantaged areas.
List Of Digital Banks In Vietnam
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Here is a list of digital banks of Vietnam that are transforming the banking landscape for Vietnamese.
Timo Bank
Timo Bank is a digital bank in Vietnam. It provides a variety of services, including online account opening, payment processing, ATM card issuance, financial management and goal-setting for savings. Timo was developed by VietNam Prosperity Joint Stock Commercial Bank (VP Bank) and Global Online Financial Solution. Its name reflects the concepts of “Time and Money.”
The bank has received several awards, such as “Fastest Growing Digital Bank” and “Most Innovative Digital Bank” at the 2020 Global Economics Awards as well as “Best Digital Bank in Vietnam” in 2021. Timo has partnered with well-known retailers like 7-Eleven and McDonald’s to simplify the sign-up process for new users. It has collaborated with Amazon Web Services (AWS) to enhance its IT staff’s training. Overall, Timo stands out as a pioneering digital bank in Vietnam. It is recognized for its innovation and customer-centric approach.
Live Bank By TP Bank
LiveBank is a digital banking platform in Vietnam. It provides automated banking services 24/7. Its stations offer a variety of functions, which includes ATM services, new account openings, debit card issuance and cash deposits and withdrawals. Customers can also access quick loans and use thumbprint scanning for transaction verification.
LiveBank uses advanced technologies such as eKYC, optical character recognition (OCR), QR codes, cash recyclers and biometrics. These technologies help LiveBank to operate more cost-effectively than traditional bank branches with operational costs 28% lower and transaction costs 75% lower.
LiveBank was launched by TPBank in 2017. LiveBank has made it possible for the bank to offer remote account opening and cardless transactions. These services made a significant milestone in Vietnam’s banking sector. Additionally, LiveBank serves as a collaboration platform that enhances customer interactions with financial institutions and streamlines sales and customer service across all channels.
VCB Digibank
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank). It was originally established as a foreign trade bank. Vietcombank has transformed into a versatile financial institution which offers a wide range of services. Vietcombank successfully implemented the VCB CashUp project in collaboration with Intellect Design Arena as part of its digital transformation strategy to become Vietnam’s leading digital bank.
VCB CashUp presents a comprehensive suite of transaction banking products. These products include Digital Payments, Enhanced Liquidity Management, Supply Chain Finance, Virtual Accounts and more. These services are designed to meet the needs of Vietcombank’s corporate clients, such as large enterprises and financial institutions.
Since the launch of VCB CashUp, Vietcombank has seen significant improvements in revenue generation, operational efficiency and customer satisfaction. The bank’s monthly revenue reached VND 55 trillion, which reflects a remarkable 500% increase in overall revenue since 2021. This success underlines Vietcombank’s commitment to adopting advanced banking practices and technologies in its digital transformation journey.
Orient Commercial Bank (OCB)
Orient Commercial Joint Stock Bank (OCB) is enhancing its digital banking capabilities by partnering with Backbase to modernize its omnichannel banking system. The bank aims to create a personalised digital experience for customers across all platforms. It is fully digitizing every customer journey to provide seamless services via mobile and computer applications. OCB is expecting to double its retail banking monthly active users in the first year. It is estimated to reach 10 million users by the fifth year with the implementation of the Backbase Engagement Banking Platform (EBP),.
OCB has shown impressive growth by expanding its OCB OMNI platform to over 200 products and services in 2022 as the top private bank in Vietnam. The number of OCB OMNI users and transactions increased significantly, alongside a 178% rise in deposits through digital channels. OCB continues to offer a range of financial services to retail and commercial customers through its nearly 200 trading units across the country. OCB’s focus on digital transformation positions it as a leader in Vietnam’s competitive banking sector.
Conclusion
Vietnam is constantly working to improve its digital banking sector. Several digital banking companies are already contributing to Vietnam’s economic growth. Vietnam’s main focus is on digitizing the banking sector so that more people can enjoy the benefits of having a bank account. Additionally, the State Bank, in collaboration with other ministries, is working to enhance the security and safety of the payment system. They are also promoting financial education to improve public knowledge and skills in using financial and banking products. Overall, these developments highlight Vietnam’s commitment to advancing its digital banking landscape.
