Mr. Sabbir Ahmed, Head of Retail Banking and Wealth Management at HSBC Vietnam, talks with VET about Vietnam's digital banking development. We launched a mobile banking app optimized for tablet users in 2013 as we had observed an increasing trend of customers using iPads when visiting HSBC Vietnam's website. Over a three-year period, before the launch, the number of iPad users visiting the website increased ten-fold and the volume of visits by all mobile devices grew eight-fold in the same period. Now it seems other banks in Vietnam have seen what we saw. In the last three years, along with growth in internet and mobile device use, banks in Vietnam have been expanding and developing internet banking on mobile devices to offer better services to customers. I believe that effective digital banking involves taking advantage of innovative technology to facilitate non-cash payments and streamline transfer processes. That is certainly is going to be a new way of banking that all banks … [Read more...] about Digital banking certain to evolve in Vietnam
Why digital banking
"For instance, the government's continued push for lower interest rates is perhaps fanning inflation, especially if cheap credit is allocated to inefficient use" Accelerating inflation this month will prove a fly in the ointment for local lenders trying to bring down market interest rates. The consumer price index (CPI) in Vietnam accelerated more than expected in October, fast approaching familiar double-digit territory. The index surge in October hit 9.7 per cent year-on-year compared to 8.9 per cent recorded in September. On a monthly basis, the CPI in October rose 1.5 per cent against September. Sherman Chan, HSBC's regional economist for ASEAN, said the jump in inflation would have shaken investor confidence. In September, the government continued calling local lenders to further cut mobilising rates toward 10 per cent, per year level and lending rates to 12 per cent, per year. In early October, the Vietnam Banking Association (VNBA) called on banks to continuously lower … [Read more...] about Inflation still a thorn in the side of banks
Going digital has become the tactical approach for many global and domestic banks, driven largely by customer needs, technological advancements, and ambition of regulators. Banking clients now have access to easier, faster, and better banking products and services, equipped with security features that reduce risk and enhance the overall banking experience. Trang Nguyen reports. The cutting edge of trends Transferring money or checking your outstanding balance has never ever been easier. Ho Chi Minh City-based resident Nguyen Tan Nhat Quang, a Citi account holder, can now access his bank account through a smartphone. No passwords are required; his fingerprint is the only key required to open the door to his financial world. In 2016, Citi introduced Touch ID, a technology that uses customers’ fingerprints for verification when conducting business on their smartphones. According to Citi, its customers no longer need to memorise username and password information – they simply … [Read more...] about Banks embrace their digital destiny
So we've left Thailand for our life in Bangkok. It was easy. Everything we own fits in two backpacks so it was just a matter of booking tickets, packing and getting a taxi to the airport. Leaving was easy, but it took us some time to decide where we wanted to go. Asia is big, and so we had a lot of options. We wanted to find a place that would match all our needs and expectations, the perfect destination for my digital nomad lifestyle and a good start for Kristina’s new (temporary) teaching career. Hanoi attracted us… From the start it felt like it was pulling us in like a magnet, the perfect logical next step in our journey, but we also had to think of cost of living, safety, surrounding areas, visas – even if in the end it was more about our feelings and choosing a place that felt right for us. Visas rules – or the lack of them… I’m really looking forward to the day when Asian countries will issue a special digital nomad visa. I’m … [Read more...] about Why we chose to move to Hanoi
VnExpress International had an exclusive interview with executives of India-based information technology company Tech Mahindra, who are in Hanoi to attend the Asian Banker Summit 2016, to discuss the importance for banks to stay on top of the competition through technological innovation. New entry on data warehousing Commercial banks in Vietnam have just embarked on the journey of adopting technologies. The roadmap starts with upgrading core banking, then building data warehouses to enhance business intelligence capability, and internet and mobile banking. Niraj Vedwa, senior vice president of Tech Mahindra, described the process of technology adoption by Vietnamese banks. “Banks in Vietnam, in recent years, have focused on strengthening their core banking. At least 14 -15 banks, that we know, have invested with speed in core banking, transforming their old legacy system into a new one with best of breed technologies. An integrated core banking system will make it faster for … [Read more...] about Vietnamese banks under mounting pressure to adopt technological advancements
In Vietnam, we talk about salaries as a matter of fact. Everyone knows how much everyone else earns and what company-sponsored holiday you are taking, even when they don't know what you do for a living. Sometimes it seems to be all about who you are, not what you know, and so the pay slips become the office politics when you think you are as qualified as someone else to do the same tasks that arrive with double the paycheck. But the same doesn't apply to the dual salary system for Vietnamese and expats. The fact remains that in certain industries, top-level jobs are often reserved exclusively for foreigners, while some are paid more than locals for doing essentially the same work. And it takes courage for employees to simply raise the question: Why? An international issue? An ESRC-funded research paper published last year in the Guardian – Addup found that wages for international staff in humanitarian aids and development sector in developing … [Read more...] about Why should foreigners earn more than locals in Vietnam?
National Assembly deputies raised 46 questions on the restructuring of banks to Governor Nguyen Van Binh of the State Bank of Vietnam (SBV) by morning of Nov 25, who stated that by 2020 the country will have 4 international standard banks. Earlier on the afternoon of November 24, Governor Binh answered 36 questions raised in the session. He replied to some deputies who asked the governor about the number of weak banks that needed to be strictly supervised and the bank restructuring plan. Deputy Truong Trong Nghia from HCMC questioned Binh if in real life does discredit lead to social chaos in big banks as it does in small banks. The governor condoled with Nghia that he understood that even big banks can fall and reviving them is far too expensive and would cost much burden on the state budget. However, he assured that in Vietnam there is no potentially colossal bank like in foreign countries and the possibility of a big credit bankruptcy is negligible. Explaining SBV measures to … [Read more...] about Restructuring banks, a complicated task: Governor Nguyen Van Binh
Compiled by Thiên Lý Three joint stock banks, BIDV, Vietcombank and VietinBank, are now the country's most valuable banking brands. However, despite being the country's largest banks by far, their brand value in monetary terms is very low. For instance, for Vietcombank, it made up only 4 per cent of its total assets of around VNĐ576.53 trillion (US$25.3 billion) by October 2016. It is slightly higher for Vietinbank and BIDV at 10 per cent and 11 per cent, respectively. The comparable figures are 25 per cent globally and 16-18 per cent in Southeast Asia. Why are Vietnamese banks unable to add value to their brands? The first and obvious reason is that they, including the major ones, have not paid much attention to investment in building their brands. They have only managed to grow in the last few years of their familiarity with the marketplace and relationships. Another reason is that Vietnamese banks still prioritise customers aged 40 and more thinking they have a stable … [Read more...] about Banks urged to invest in brand development
Nearly two years after the Public Certificate Authority Services (CA) were put into use, the systems have shown the lack of connectivity. Meanwhile, Vietnamese digital certificates have not been recognized in the world. Agribank said that it is connecting customs agencies by using CA service provided by the Vietnam Post and Telecommunication Group (VNPT) - VNPT-CA. Meanwhile, the A individual, who makes transactions at the bank, is using Viettel-CA. When A needs to pay tax to customs agencies, A's files are transferred to the bank which cannot be directly sent to the customs agency, because the customs agency now cannot verify the certificate provided by Viettel-CA. Problems still exist This is one of the big obstacles that hinder the application of digital signature in public administrative agencies, enterprises and among people, which could serve as the lever to create a market for service providers to develop. To date, 5/6 enterprises have provided services, while it … [Read more...] about Vietnam still facing too many difficulties with digital signature
An intellectual property market has not existed in Vietnam yet. However, such a market is taking shape and it is believed to become bustling in the near future. This is the patent database with the information about the inventions in Vietnam and in the world being stored in the server of the Ministry of Science and Technology. Pham Hong Quat, Deputy Director of the National Agency for Technology Entrepreneurship and Commercialization (NATEC) said at a workshop on building up and developing an intellectual property in Vietnam in early May that the digitalized database contains 39 million Vietnamese and foreign inventions. However, Quat said, the “treasurer” still does not catch the interest of Vietnamese enterprises. A survey conducted by the World Bank on 350 Vietnamese enterprises shows that only six percent of inventions has been commercially developed or utilized in reality. Vietnam still does not have an intellectual property market. According to NATEC, there are … [Read more...] about Intellectual property market in Vietnam, why not?