Insights
Nha t Nam
The future of bancassurance in digital era In recent years, bancassurance in Vietnam has seen strong growth, significantly contributing to banks’ non-interest income. Current state of bancassurance in Vietnam
dramatically, and by necessity, by the pandemic. The long-standing concerns and debates about the need to digitize distribution were resolved because digital was the only available channel. According to BIDV Training and Research Institute, in 2020 despite the impact of the Covid-19 pandemic, listed commercial banks posted PBT growth of 15.8 percent; with main
Digital transformation today has become an inevitable trend of the economy and the banking sector in particular. Vietnamese commercial banks are racing to set up digital banking branches or centers, invest in information technology and apply cutting-edge technologies such as cloud computing, artificial intelligence, Blockchain. The vibrant development of Fintech companies, and financial service provision by Bigtech and telecommunications companies pressed banks to quickly change to compete with. The insurance industry is no exception as insurers have been strongly digitalising to meet the needs of customers. According to EY's 2021 Global Insurance Outlook report, 84 percent of customers prefer working with an insurance advisor/agent either by phone or online, 69 percent of customers prefer buying automotive policies online. Insurance companies, therefore, have defined digital transformation as their key strategic goal in the coming time. Insurers have been moving - in some cases, boldly - in the direction of agility, digitization and customercentricity for the last several years. Those efforts were accelerated
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drivers being non-interest income (including Bancassurance which contributed up to 30 percent to new premium revenue) and cost reduction. For Bancassurance, while insurance companies can access a larger number of customers, banks also diversify their service ecosystem and earn a significant amount of income. This activity has become more vibrant in
