Retail - a new direction...

(Baonghean) - In line with the general trend, in recent years, many commercial banks in the province have been promoting the development of retail banking services. Grasping this trend early, many branches have expanded their operations, reaching closer to potential customers.

Ms. Duong Thi Le's family in Nghi Phu commune (Vinh city) has 2 children studying at university in Hanoi. On average, each month, the family has to provide 8 million VND for their studies and daily consumption needs. Ms. Le said: "The first year my children passed the university entrance exam, my family did not participate in electronic banking services, so the monthly money transfer for the two children was mainly sent by bus to Hanoi. Since the bank staff approached me and advised me to participate in some modern banking services, now the exchange of information between customers and banks is simplified to just one click on the computer mouse or transferring money to children is also simply through operations on smartphones".

Techcombank Nghe An staff advise customers on using electronic banking products.

Retail banking is in its early stages of development, with great growth potential. Many people, especially in rural areas, have not had access to banking services. Therefore, some commercial bank branches have decided to invest comprehensively in scale, model and product system to anticipate this trend. Vietnam International Bank (VIB) has just received the "Fastest Growing Retail Bank" award from Global Banking & Finance Review based on the recognition of the unit's efforts in providing banking services and its commitment to support the business community. Currently, VIB Vinh has 1 branch and 4 transaction offices, not only focusing on wholesale, the branch also focuses on the retail segment towards customers.

Ms. Ho Thi Thanh Nga - Director of VIB Vinh Retail Bank shared: We apply advanced technology to provide services and support customers such as: online consulting on the website, legitimate loan website and facebook address... thereby implementing a clear and transparent pricing policy to customers. Customers can "chat" with VIB to ask for information. In particular, the branch has just launched My VIB (banking on the phone), customers can view all personal transactions and all managed accounts. Modern electronic banking services allow customers to sit at home to transact with the bank such as depositing phone bills, paying all bills.

VIB demonstrates its customer-oriented goals and enhances the experience with innovative products and services through various distribution channels in diverse card products, with many incentives for customers to use easily such as MC cards, global payment cards with cashback when paying for all transactions or preferential and stable interest rate loan packages; convenient on ATM and Post payments. Thanks to promoting customer-oriented retail banking activities, the branch has increased its market share, to date the branch has attracted 20,000 customers, including 14,500 quality retail customers. Retail loans reached VND800 billion, retail capital mobilization was about VND1,100 billion. Retail credit increased by 30% compared to the previous year, and customer development increased by about 15%.

Bank for Investment and Development of Nghe An (BIDV) has also promoted the retail model since 2013 to target customers and provide after-sales customer care. Especially since equitization, BIDV Nghe An has changed its business processes, the customer care center operates 24/7, and offers many products to meet diverse customer needs. Previously, the bank only focused on wholesale, now it is promoting retail activities, retail packages such as car loans with the lowest competitive interest rate of 6%/year; home loans with the lowest interest rate of 7%/year... Along with that is the policy of free non-credit parts: card products, online money transfer, phone and electricity payment services.

Ms. Nguyen Kim Yen, Head of BIDV Nghe An Personal Customer Service Department, said: Previously, during the sales process, the capital disbursement procedure lasted a whole week, now within just 1-2 days, customers receive loan disbursement, not only fast disbursement, customers also receive after-sales care from the bank. BIDV seeks out customers, advises them on the best way to manage their finances... Thanks to promoting retail activities, paying attention to after-sales customer care, in the first year of implementation (2013), net income from retail activities increased by 20%, in 2014 it grew by 64%, making net income from retail activities the first in the North Central region.

Dien Chau Social Policy Bank transaction office disburses program capital to customers

Vietnam Prosperity Bank (VPbank) was also honored with the award for Most Innovative Retail Bank in Vietnam in 2013. To receive this recognition, VPbank fully met the criteria for brand value, financial efficiency, feasibility of retail strategy, sales capacity, risk management capacity, diversity of products and services, ability to penetrate the retail market, human resources, etc.

With a strategy focusing on the individual customer segment, VPbank brings customers good products and services. Currently, VPbank has a promotion program of free use of the first year of electronic banking services Internetbanking, Mobilebanking, successfully activated customers will receive 30,000 VND in their account. With a strategy of promoting electronic banking for individual customers, VBbank always focuses on providing modern banking services to best meet the needs and benefits of customers such as Internetbanking, Mobilebanking, SMS banking,...

Mr. Cao Van Hoi, Deputy Director of the State Bank of Vietnam, Nghe An Branch, commented: Currently, all commercial banks are developing into multi-functional, modern banks, especially the trend of developing retail banking is being interested by joint stock commercial banks in the province because it brings stable revenue, limits risks from external factors, because this is a field that is less affected by economic cycles. Along with that, retail banking plays an important role in expanding market share, improving competitiveness, creating proactive medium and long-term capital sources, contributing to helping commercial banks operate more stably and sustainably.

However, besides the advantages of retail banking activities in recent times, there are still limitations such as: lack of synchronization in the development of retail banking activities, products and services are still traditional, low utility, modest service quality; the level of technology application in service development is still limited, distribution channels are not diverse and ineffective... Therefore, in order for retail banking activities to develop more professionally and effectively in the following years, credit institutions in the area need to focus on comprehensive investment in scale, model and product system to increase convenience for customers and increase the efficiency of retail banking activities in socio-economic fields.

Quynh Lan