Pioneer in digital transformation

Huyen nHung

With banks offering a similar range of products and services and comparative fees and promotions, competition within the banking sector has become a race in technology.

GREAT STRIDES IN DIGITAL TRANSFORMATION

The Fintech and Digital Banking 2025 Asia-Pacific report released by IDC and Backbase shows that the eight largest banks in Vietnam have defined Core banking and payment system modernisation as the current top two priorities, expecting 50 percent growth in new accounts thanks to the smart account generation.

Many banks have quickly launched new services on a modern technological platform, triggering the digitalisation race. A number of outstanding banking apps in operation include BIDV SmartBanking, VCB Digibank, VietinBank iPay Mobile; TPBank’s LiveBank; VPbank’s Yolo, Zero fee and ACB mBanking. Each bank has a different digital banking development strategy, from improving infrastructure to expanding ecosystems or offering attractive fees. For SmartBanking, BIDV defines that customers are central to all digital transformation decisions. This move is considered a strategic step to retain customers given the unpredictable development of Covid-19, and to quickly increase the number of new customers from the younger generation.

The SmartBanking app features outstanding advantages and utilities such as instant and automated account opening through e-KYC, user personalisation, and seamless experience on four platforms (unique in the market): website, mobile, smart watch and smart keyboard as well as a comprehensive ecosystem of more than 2,000 diverse services.

As of Q4.2020, services on SmartBanking grew strongly with more than 1,300 types of payment transactions conducted, accounting for over 85 percent of total transactions on BIDV's electronic banking channels, processing 20 million transactions per month on average, with a total value of over VND13,000 billion (USD565 million).

DEVELOPING THE BEST DIGITAL PLATFORM

BIDV is set to become the bank with the best digital platform in Vietnam. This goal is built on three factors: preparedness for strong digital transformation, market potential for high-tech services, and a clear and effective business strategy.

BIDV has different strategies in positioning the new generation SmartBanking service, identifying it as a core product to provide customers with the best value and experience. Instead of racing for fees, BIDV has determined to maintain a stable and powerful operating system with the most diversified utility system in the market, maximising added value and customer experience on BIDV's digital channels as important tasks.

Before launching the new generation SmartBanking, BIDV had prepared solid strategic foundations. According to the Vietnam ICT Index 2019 report (ICT Index 2019), BIDV continued to rank first in the ICT Index among commercial banks from 2017 to 2019, and ranked first in the readiness for IT development and application. BIDV’s ICT Index in 2019 was 0.75 points, followed by Techcombank, TPBank and MBBank.

In a press release in August 2020, Mr. Phan Duc Tu, board chairman at BIDV emphasised: “Digital transformation is no longer a concept, but a specific action, which decides the survival of any organisation, including banks. Digital transformation requires strong will and relentless determination as well as courage of the whole system in discarding the old and creating the new. BIDV defines efficiency as the first goal and modern technology as a breakthrough, with customers as the centre of business and human resources as the core.”

According to VnEconomy newswire, Vietnam saw a growth rate of 200 percent in Mobile Banking and currently about 30 million people are using a banking payment system every day with young people the main user group. The value of financial transactions via Internet channels reached over VND7 quadrillion (USD304 billion) and VND300 trillion (USD13 billion) via mobile phones. The market still has great potential for growth and the digital race is entering into a highly competitive stage for improving quality and user experience. Currently, more than 50 percent of BIDV’s individual customers are aged 35 and below - the gold segment for high-tech services.

BIDV is a typical example of a large business leading the digital race, continuously being honoured as the Best Retail Bank in Vietnam (as voted by The Asian Banker); and Outstanding Retail Bank and Digital Transformation Bank (as voted by Vietnam Banks Association and IDG). BIDV sets a vision to 2030 to become a leading financial institution in Southeast Asia, to have the best digital platform in Vietnam, and to be among the Top 100 largest banks in Asia.

The launch of the new generation BIDV SmartBanking is a big step in the bank’s comprehensive digital transformation process, which lays solid foundations for the bank to move faster and further in the coming time.