Moving customers to digital

Kieu Oanh

BIDV is speeding up its digital transformation in order to improve customer experience.

On 12 August, BIDV kicked off a campaign themed “BIDV Digi Up – Change to lead”. This marks a bold step from the bank in endeavoring to digitally transform its banking business with the aim of better serving its customers.

Following the main event, BIDV held a talk show entitled “Engage customers with the BIDV ecosystem and digital platforms”. Guest speakers including representatives of the Payment Department under the State Bank of Vietnam, BIDV management and Ernst & Young and Vietnam Payment Solution Company (VNPAY) delivered and exchanged solutions for BIDV to build an ecosystem of consumer finance and payment facilities for customers.

Mr. Le Ngoc Lam, senior executive vice president in charge of the BIDV Board of Management, stressed: “Digital transformation at BIDV does not stop at data digitisation but goes beyond that, focusing on improving the customer experience. By putting itself in its customer's shoes, BIDV has understood their needs and is striving to provide a superior digital experience. Customers are at the centre of BIDV’s digital transformation decisions.”

BIDV boasts potential for moving customers online with 50 percent of its individual customers being 35 years and under. With this great advantage in terms of customer base, IT application capacity and determination to lead change, BIDV is aiming for 80 percent of its customers to access and use its products and services via digital channels by 2025.

According to Mr. Tran Phuong, BIDV's senior executive vice president, between 2015 and 2019, total budget BIDV invested in information technology projects was over VND1,200 billion (USD51.7 million), with digitization projects accounting for 2/3 of the total budget. In the next phase, 27 projects with expected budget of over VND1,400 billion (USD60.3 million) will continue to be deployed to serve the digital transformation and customer engagement.

According to statistics, in 2019 there were 154 Fintech companies, twothirds of which provide consumers

with online payment tools, money transfers and peer-to-peer loans. Vietnam now has 70 credit institutions and payment intermediaries such as e-wallets providing payment services online and through phone apps.

Mr. Tran Tri Manh, the leader at VnPay - the number 1 payment intermediary firm in Vietnam, affirmed: “It is impossible to embed technology in an old model. Digital platform should be accompanied by a diverse ecosystem, operating in a new way. Banks have the advantage of their products and services but they also need to cooperate with companies or fintech with large ecosystems and large customer base.

However, obstacles remain such as the deeply entrenched habit of using cash that exists

Leadership of BIDV with their signatures at the digital transformation campaign in Hanoi

in Vietnam. This is the biggest barrier to digital banking development and according to Pham Tien Dung, director of the State Bank of Vietnam’s Payment Department, there is a need to change people's mindsets.

Mrs. Nguyen Thuy Duong, president of EY Vietnam, said besides the changes in technology and working culture, the main pillar for BIDV to achieve the goal of the best bank with digital platform is the smooth and balanced combination between business goals and technological solutions, providing customers the fastest and most flexible experience.

With a customer base of 11 million individuals and 321,000 corporates, BIDV has a greater advantage in customer data than other banks and Fintech companies in the market. The effective exploitation of this data source is of great significance, enabling BIDV to transform digitally and improve its competitiveness, potentially creating more breakthroughs.