Increase in Bank Branch Networks Anticipated to Drive Vietnam Banking Industry: Ken Research
by Ashish Kumar Market ResearcherVietnam
banking industry is an industry that handles credit, cash, and other financial
transactions. The industry provides a safe place to store extra cash &
credit. They offer certificates of deposit, savings accounts, and checking
accounts. This industry uses these deposits to make loans. These loans include
business loans, home mortgages, and car loans. In Vietnam, there are two tiers
in banking sector: the first tier is State Bank of Vietnam (SBV) which is
responsible for financial policy and supervision or regulation of the banking
system in country. The second tire consists of financial companies, credit
co-operatives, commercial banks, people’s credit funds, and insurance
companies.
According
to study, “Vietnam Banking Comprehensive
Report Q4/2019” the key companies operating in the
Vietnam banking industry are Vietnam Joint Stock Commercial Bank for Industry
and Trade (VietinBank), Bank for Investment and Development of Vietnam (BIDV),
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Asia
Commercial Bank (ACB), TienPhongBank (TPBank), Vietnam International Commercial
Joint Stock Bank (VIB), Vietnam Maritime Joint-Stock Commercial Bank (MSB), The
Vietnam Technological and Commercial Joint Stock Bank (Techcombank). The key
players are mainly focusing on association with baking institutes to gain the
market share. The players are also adopting both organic and inorganic growth
strategies to capture the market share and increase their customer base. The
banking institutes and multinational companies are acquiring fintech start-ups
to develop their own omni-channel digital banking products to attend their
clients and reduce the churn rate.
Based
on type, Vietnam banking industry is segmented into private banking sector and
public banking sector. Based on services, market is segmented into savings
& checking accounts, mortgages, personal loans, debit & credit cards,
and certificates of deposit. Based on solution type, market is segmented into
software solutions and hardware solutions. Automatic Teller Machines (ATMs)
encompass hardware solutions for retail banking. Whereas, card processing,
cheque electronic commerce solutions, and payment processing are few of the
standard software solutions offered by retail banks. Based on service line,
market is segmented into domestic banking and international banking. Based on
channel, market is segmented into in-person banking, telephone, online, mobile,
and video banking. In addition, based on banking sector, market is segmented
into commercial banking, retail banking, investment banking, central banks and
others.
The
Vietnam banking industry is driven by growth in digital payment system,
followed by rise in disposable income, growth in entrance of the foreign banks,
easy availability of loans, growth in demand for retail or corporate loans
& government initiatives, rise in demand for streamlining business
processes, rapid urbanization and increase in bank branch networks. However,
rise in threat of cyber-attacks and lack of regulatory framework may impact the
market. Moreover, growth in adoption of various innovative technologies in
order to minimize operating costs is a key opportunity for market.
In
Q4/2019, the total assets of Vietnam banking industry increased by 6.77% and
the total equity & charter capital of the whole system increased by 7.44%.
Additionally, the liquidity of the banking industry remained relatively stable.
In upcoming years, it is predicted that the market will be reached at rapid
pace on account of growth in adoption of online & mobile banking platforms
and increase in need to provide improved customer experience during the
forecast period.
For More Information,
click on the link below:-
Vietnam Banking Market Research
Report
Contact Us:-
Ken
Research
Ankur
Gupta, Head Marketing & Communications
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Created on Feb 25th 2020 00:04. Viewed 325 times.