Foreign banks, including HSBC Vietnam, ANZ, and Standard Chartered, have recently moved deeper into the retail-banking sector by launching several credit products for individual customers.
The retail banking market has major potential in Vietnam because only a few local commercial banks have focused on individual customers out of fear of risks, said Matthew Martin the Deputy General Director of HSBC Vietnam.
On August 3, HSBC introduced a very attractive promotion program for individual customers, whereby customers when applying for credit cards prior to September 30 will enjoy no annual fee charges for the first year.
In addition, depositors with dong deposits of VND30 million and higher will receive an additional interest rate of 0.5 per cent per year, and deposits valued at US$2,000 will enjoy an additional deposit rate of 0.2 per cent.
Those who want to borrow capital to buy a house, car or for consumption will also be exempt of the lending rate for three months.
Standard Chartered, meanwhile, established advisory groups to market its services to enterprises, trade centers and conferences in order to attract more individual clients.
The Vietnamese subsidiary of Malaysia Hong Leong Bank, recently allowed to operate by the State Bank of Vietnam, will also emphasize retail banking, mainly targeting the country’s middle-income earners, said Yvonne Chia the bank’s general director.
Standard Chartered Bank previously predicted that the retail banking service in Vietnam will grow sharply in the next five years.
In terms of asset management services, its growth will exceed 30-35 per cent because more and more individuals and small to medium sized enterprises have opened bank accounts, according to the U.K.-based bank. (Vietnam Law, Vietstock)
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