In 2022, non-cash transactions in Vietnam rose by 86% compared to 2021, accompanied by a significant 31.39% increase in their corresponding value. Why do you think that is?
Vietnamese banks have been on the cusp of digital transformation, but the sudden surge in cashless payments could be attributed to various factors. It could be the pandemic that nudged the general population towards the digital revolution. It could be the new policies that have been actioned by the government.
It’s all of the above and more!
Generation Z (GenZ), currently encompassing about 13 million people, accounts for about 19% of Vietnam’s population. This is expected to make up about one-third of the country’s employment by 2025. We can imagine how having many digitally savvy customers can impact the country’s digital transformation.
But it takes a clever bunch to crack the code and tap into this fascinating group of people. And here’s how Vietnam delivered.
Vietnamese consumers are showing a growing appetite for digital banking. And why wouldn’t they? They can also expect their country to transform when the world around them evolves.
In 2021, 70% of finance application users across the six APAC markets, including Vietnam, preferred mobile apps as their means of banking and interacting with financial service providers, as reported by ThinkWithGoogle. In Vietnam alone, there was a 33% increase in financial app downloads.
This new trend encouraged several banks in Vietnam to take the leap and start offering digital-first solutions. Many banks have incorporated electronic Know Your Customer (KYC) functionality to tap into the younger consumer demographic. This gives customers a convenient and secure method for obtaining financial products online, as simple as taking a selfie.
Some banks have started offering digital wallets as a product.
Imagine having no worries about carrying a thick wallet or never stressing about your money being stolen or misplacing it. Vietnamese customers began enjoying facilities that promised them a stress-free life. With digital wallets, paying vendors’ bills or sending cash to friends was fast and reliable. This was another home-run that brought the Gen-Z home!
What’s astounding is that some neobanks have emerged that continue to challenge traditional banks by exploring the deep seas of AI and machine learning. One such neobank that has disrupted the industry is Timo Bank. And what did they achieve, you ask?
Vietnam’s first digital bank, Timo, partnered with 7-Eleven and Mcdonald’s in 2020 to host product ‘hangouts’. Hangouts were the first-ever experiential banking product that allowed customers to bank with their service provider inside the retail space.
It’s time that traditional banks pick up the pace to offer what the new crowd demands while staying relevant!
It’s clear that Vietnam is seeing tremendous growth in digital transformation. While banks are already working hard towards attracting the new digitally-savvy group, it’s evident that traditional banks can undoubtedly do more to stay competitive and deliver.
Think. If you were a bank, what would you do?
Here’s what.
Start with an end-to-end customer-centric model. Delivering a seamless customer experience across different channels while meeting your customers’ needs. It seems fairly simple, but a lot of banks are currently facing challenges while executing this.
What they lack can be your secret sauce – a digital vision.
For banks in Vietnam, the main focus has to be to be innovative but obviously, that’s not the only thing on their plate. While they scope to climb high, they need a digital banking partner that tailors solutions that fit their client base.
Transform your banking institution with innovative and personalised digital banking solutions from Clayfin. We harness cutting-edge technologies like open banking, APIs, agile methodologies, and data analytics to cater to the growing needs of your growing customer base. Our digital banking solutions are built on reliability, seamlessness, user-friendliness, and an inherent curiosity that resonates with those from 20 to 80!
We craft customised experiences for both retail and corporate clients. Our comprehensive banking platform ensures effortless access to financial services through various channels, including web, mobile, wearables, and APIs, creating an exceptional banking journey for the digitally savvy. Millennial corporate partners can now enjoy swift and dependable banking services, guaranteeing uninterrupted access to their financial assets from anywhere, around the clock—whether they’re digital nomads or CEOs.
By applying advanced analytics, Clayfin’s Personal Finance Management (PFM) application adeptly comprehends consumer trends, behaviours, and spending patterns. Younger generations are actively encouraged to save, which helps them stay financially stable.
What are you waiting for? Let’s talk transformation!
