Digital banking surges due to Covid-19

M n Nhi en

The Covid-19 pandemic has caused a serious effect to the economy, but it has helped accelerate the race for banks to go digital.

With many people looking for new options to deal with their financial affairs, digitalisation of services and e-payments are becoming crucial.

“Covid-19 has been a catalyst that helps Vietnam accelerate digitalisation of the economy, businesses, banks as well as e-commerce,” Vu Tien Loc, president of Vietnam Chamber of Commerce and Industry (VCCI) said.

BIDV iBank - an app for business customers

Surveys showed that banks opt to use more e-banking services during and after the social distancing. According to BIDV’s statistics, number of customers registering for BIDV iBank – an app for corporate customers – has been sharply increasing, particularly small and medium enterprises, with more than 10 percent increase monthon-month.

Mobile banking applications have been integrated with more utilities, meeting most of the needs of users instead of just focusing on basic transactions such as managing account information, balance checks and transferring money as before. BIDV launched BIDV SmartBanking and BIDV Pay+ to make customers’ transactions easier than ever. Now, with just a smartphone and a banking application, users can save, borrow money online, pay bills for electricity, water, television, and the internet, as well as for entertainment such as movie tickets, airplane tickets and hotel reservations, or even to buy vegetables and meat.

Statistics showed the country now has 70 credit institutions and intermediary companies such as e-wallets providing payment services online and through cell phone apps. The total value of digital financial transactions topped VND7.3 quadrillion (USD313 billion) and 300,000 transactions via mobilephone so far.

BIDV has been well prepared for digital transformation through establishing a digital banking center, signing an agreement on digitalization strategy consultation with EY; implementing process automation; collaborating with Fintech and Bigtech companies to diversify its ecosystem, thus providing more high-tech banking products and services to customers.

In efforts to create favorable conditions for small and mediumsized customers to conduct electronic transactions, BIDV has offered refunding of transfer fees totaling VND500 million (USD21,500) for them when registering for new BIDV iBank service in three months until 7 August this year. The transaction fees will be refunded to customers' account at the end of the program.