Internet Banking: Much Potential Untapped

11:23:34 AM | 7/29/2014

Over 20 banks in Vietnam are offering services like paying electricity bill, telecommunication bill, taxes on behalf of enterprises and individuals so that they can save time and costs.
According to Vietnam Banks Association (VNBA), by the end of 2013, the number of internet-banking users increased 45 percent compared to that of 3 years ago. About 90 percent of banks are deploying internet banking and half of the banks are offering mobile banking.
The number of enterprises paying through internet banking has sharply increased for the last years. Ho Chi Minh city branch of Vietnam Electricity (EVN Ho Chi Minh) has cooperated with 24 banks to develop the service of collecting electricity bills, raising the rate of paying through banks in 2013 to 44.9 percent of total revenues, up 12.8 times over the pilot year of 2007. EVN plans to discount electricity bills for any person paying bills electronically 5 days before due time to encourage individuals and enterprises exploiting the service.
At the beginning of 2014, General Department of Taxation informed that there were 366,000 enterprises declaring taxes through the internet. They have cooperated with banks to offer service of paying taxes electronically to 15,000 enterprises to the end of this year. Besides electricity and taxes, many enterprises in other fields accept transactions by internet banking. Remarkably, there are projects of collecting and managing tuition through “SSC school card” and E-Banking service of Ho Chi Minh City Education and Training Department.
Seeing many potentials of the market, many large banks like Vietcombank, Techcombank, VPBank, ACB, Tienphongbank, etc have diversified their service. VPBank has concentrated on developing internet banking since 2009 and chosen it the major business. The bank has completed a range of functions for “VPBank online” service, coordinated with enterprises in fields of electricity, water, insurances, aviation, consumption, etc. At the same time, it has also developed high class facilities like giving deposits online to enjoy attractive interest rates, collecting iCash to obtain gifts.
VPBank has also participated into a system of the first 9 banks to provide inter-bank super-express money transferring of Smartlink, helping customers transfer money intermediately 24/7 with high limit and at low costs. For enterprises alone, VPBank has signed with Vietnam Customs, Vietnam Treasury, and General Department of Taxation to implement services of collecting money for the State Budget, guaranteeing taxes for import – export goods electronically.
Therefore, with the participation of banks in collecting electricity bills, communication bills, taxes, enterprises and individuals have saved not only time but also many other costs, as well as have enjoyed various benefits.
Statistics of the SBV has revealed that Vietnam is a potential market for internet banking service, when there is only 22 percent of population that possesses bank accounts; 42 million ATM cards have been issued (94 percent of which are for domestic usage, 6 percent for international usage); 13,5000 ATM stations and 500,000 electronic purses.
Mai Mai