70% of VN adults use banking services but many lack access to credit
According to the State Bank of Vietnam, by 2020, 70% of adults in Vietnam had a bank account, but nearly half of them did not have access to credit.
The Vietnam Bank for Agricultre and Rural Development (Agribank) said that more than 70% of the population is concentrated in rural areas, but access to modern banking services in these areas is very limited.
A recent survey by Mambu financial-banking technology services system shows that demand for awareness and understanding of financial services of customers is increasing globally, and Vietnam - an emerging economy - is no exception.
Cashless transactions in Vietnam increased by 75.2% in the first nine months of 2020 year on year. Online shopping in Vietnam grew exponentially, ranking third in Southeast Asia in terms of visits to online shopping apps in the second quarter of 2020.
The Vietnamese Prime Minister approved a comprehensive financial strategy with the goal that by the end of 2025, at least 80% of adults would have a transaction account at a bank.
At the same time, the PM allowed to pilot the Mobile Money program for two years, starting from 2021, to stimulate the cashless economy and improve financial capacity for millions of people. Data from the State Bank of Vietnam also shows that 94% of banks in Vietnam have implemented or plan to go digital.
New technology solutions that are changing the financial services landscape in Vietnam include new forms of online payment, such as e-wallets and QR codes; and digital banking products that combine AI, data analytics and cloud computing to personalize the customer experience, all through smartphones.
But Mambu research shows that both individuals who use and do not use banking services feel they are not being served as expected, with 56% of banking customers believing that there are other types of services that should be served.
Mambu's survey also shows that the difference between those who use and not use banking services is quite clear, but there is still a gap in financial access between the two groups.
Accordingly, up to 81% of users of banking services thought that the situation would improve if they were more knowledgeable about financial services and 58% of those who do not use banking services gave the same answer.
Sixty-five percent of people who do not use banking services are not satisfied with their current financial situation. Among those who use banking services, 25% of respondents are not satisfied with the level of understanding of personal finance and the options they are being approached.
As many as 57% of users of banking services and 36% of those who do not use banking services rely on the internet to find financial information, and learn about the benefits associated with each financial product, instead of through a bank.
Forty percent of respondents who do not use banking services said that they would use a bank if there were many specialized services offered on phones or websites.
The Covid-19 pandemic has severely affected almost all business and economic activities in Vietnam, and valuable and qualified human resource has taken a serious toll with several employees being laid off or having to accept large pay cuts.