Digital Banking Heats up in Vietnam Amid COVID-19
In Vietnam, digital banking development is accelerating on the back of rapid fintech adoption, a booming e-commerce industry and the COVID-19 pandemic.
Social distancing measures put in place to prevent the spread of the virus have pushed consumers towards online commerce and digital payments, two trends experts believe are here to stay.
In Q1 2020, electronic payments increased by 76% with the total value of transactions jumping 124% compared to Q1’19, according to a report by Vietnam Times.
M-Service, the operator of mobile wallet MoMo, said payments have doubled since February 2020. Vietnam Payment Solution Company (VNPAY) said it saw a 600% increase in payment transactions on its VNPay – QR Payment Gateway in February.
These rapidly changing customer behaviors are forcing banks to ramp up their digital transformation. Last month, Vietnam’s Tien Phong Commercial Joint Stock Bank (TPBank) announced a partnership with digital-first banking platform Backbase to provide the bank’s customers with digital-first products and services. The Joint Stock Commercial Bank for Foreign Trade Vietnam (Vietcombank) launched its new digital bank service, VCB Digibank, in July, integrating its online trading platforms.
