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COVER STORY

ment in information technology projects is still quite common, especially in rural,
and training. Mr. Roy noted that electronic remote, and isolated areas. With digital technology,
marketing applications have allowed OCB Experts have said it is necessary to reaching new customers
to reach a large number of customers. speed up the enactment of laws to enable or serving existing customers
“But since every bank can do this, the cost banks to keep pace with the development
of acquiring new customers is increasing of the finance and technology sectors. through physical channels is
because many banks have access to the Long-term plans and vision are needed no longer a barrier.”
same customer data,” he added. “A better on investing in technology, regular improve-
way to reach potential customers is to ments and maintenance, and systems, to MR. ANIRBAN ROY,
have a customer segmentation strategy enhance their competitiveness. They also Deputy CEO in charge of OCB’s Technology
and use the benefits of the ecosystem to need to have good training programs, since and Digital Banking
target specific segments. After acquiring digital banking is a relatively new field in
customers from the target segment, the the country and human resources are
bank will have to meet all of their financial mostly recruited from traditional banks
needs with the same digital platform if with banking and finance expertise or era, building communities and putting the
they want to retain them.” from technology companies. customer experience first, especially given
The preference for using cash remains An expert at consultants Ernst & Young Covid-19. This plays a key role in a bank’s
widespread around Vietnam, and changing (EY) recently recommended that banks be development strategy, from which it is
people’s habits is a challenge for Vietnamese encouraged to step up digitization to com- forced to change to adapt to the new situ-
banks in implementing digital banking. pete with fintech companies and e-wallets ation, in transforming business models,
As of the end of 2020, the proportion of and mobile money. However, the develop- customer experiences, and product systems
cash in total payment methods was 11.05 ment of digital banking must take advantage and services, restructuring the organization,
per cent. As of the end of April 2021, this of new technologies, meet the growing and forming a new mission department.
had increased to 11.53 per cent, equal to expectations of consumers, and prevent “Vietnam currently has a low banking pen-
about VND1.43 quadrillion ($63.5 billion). the risk of cyber attacks by bad actors. etration rate, but technology and internet
The target by 2020 in Decision No. The “Digital banking application in accessibility are high, and the percentage
2545/QD-TTg from the Prime Minister, Vietnam when taking customers as the of the population using smartphones is
issued on December 30, 2016, was less core” report released by MBBank in June increasing rapidly,” Mr. Nguyen said. “Now
than 10 per cent. In an announcement, said that a digital bank can only be suc- is the ‘golden’ time for Vietnam’s banking
the SBV acknowledged that even though cessful when it defines the concept of cus- and financial services industry to make
e-payments are booming, the use of cash tomer and takes care of them in the digital breakthroughs and innovations.” %

www.en.vneconomy.vn NOVEMBER 2021 | VIETNAM ECONOMIC TIMES | 13