Vietnamese banks favour ATM alliance to minimise costs
Despite the growing number of banks cards in issue in Vietnam, domestic banks have been slow to expand their ATM networks. May 31, 2013 | Magessan RajIn 2013, growth of Vietnam’s ATM transaction value was estimated at $29.9 billion, a 6.4% YoY increase compared to 2012. The single-digit growth could be indicative of the effect of State Bank of Vietnam’s (SBV) draft circular which was made public last year, stipulating that banks would be allowed to collect charges from banks customers on ATM transactions starting March 1, 2013, causing a stir among the public, especially low-income folks who receive their salaries through ATM cards. Currently, ATM card holders bear a number of banking charges, including a one-time issuance fee, an annual membership fees, inter-network cash withdrawal fees, remittance fees, PIN granting fees, checking fees, and fees charged to replace or regain swallowed cards. Vietnam’s ATM growth experiences slump in 2012 Figure 1. Vietnam - Retail Distribution Please click to view enlarged image
Under the new rule, banks were given permission to charge $0.05 for every cash withdrawal, with the fee subsequently rising to $0.10 in 2014 and $0.15 in 2015. In addition, SBV also allowed charges on printed statements at ATMs, as well as an annual cardholder fee. After blocking earlier attempts by banks to charge customers fees on ATM transactions, SBV moved in favour of lenders, saying that the new fee structure would provide banks with the necessary incentives to keep investing in card services, essentially promoting a non-cash payment culture in the country. Banks initially appeared reluctant to collect fees for ATM transactions. Ac... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: ATMs & Kiosks, Databook, Retail Banking, VietnamATMsKiosks,Databook,retail,Vietnam, ATMs & Kiosks,Databook,Retail Banking,Vietnam, Keywords:SBV, Vietnam Bank Card, Smartlink, Vietnam National Financial Switching Joint Stock Company, Sacombank, ANZ Vietnam SBV, Vietnam Bank Card, Smartlink, Vietnam National Financial Switching Joint Stock Company, Sacombank, ANZ Vietnam
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