BIDV’s retail banking business posted strong growth in 2021, on the back of increased digital banking usage and digital sale of products and services
Singapore, 24 March 2022 – BIDV was recognised as the Best Retail Bank in Vietnam at the Vietnam Awards 2022 presented by The Asian Banker.
Financial Performance: BIDV’s retail banking business contributed almost half of total income
BIDV posted a retail revenue of $1.03 billion (VND 23.5 trillion), up 19% year-on-year (YoY). It has a compound annual growth (CAGR) of 5%. The bank commanded a healthy return on equity (ROE) of 21%, a 16% YoY increase in the previous year which stood at 18%. The bank managed to improve its cost-to-income ratio (CIR) which stood at 41%, compared to the previous year of 43%. It maintained its market lead and increased its shares in retail loans at 15% and deposits at 19%. Retail banking revenue made up 48.50% of total income, supported by a 14% growth in its retail customer base.
TPBank, meanwhile, posted modest retail revenue growth and improved return on equity (ROE) and cost-to-income ratio (CIR). Vietcombank also recorded significant retail revenue growth while ROE and CIR remained stable.
Customer Experience: Number of SmartBanking users reached 7.5 million
BIDV launched several initiatives to support its customers in the wake of the pandemic. In March 2021, the bank introduced BIDV SmartBanking to replace and integrate its previous internet and mobile banking services into a single online platform. It features electronic know-your-customer (eKYC) technology that enables customers to open an account 100% digitally. The number of digital banking users grew 31% YoY to 7.5 million, of which 400,000 were new customers. Around 143,000 of these new customers were acquired through financial transactions via referral links.
The bank also waived all transaction and service fees on its digital channels for funds transfer, maintenance, and account management. It also waived annual fees for the issuance of virtual cards for all SmartBanking accounts. Total fees exempted amounted to about $78 million (VND1.8 trillion) in 2021.
TPBank has partnered with Mitsubishi Motors Vietnam (MMV) to introduce MMV Auto Finance (MAF) which is available for customers buying Mitsubishi cars. Vietcombank introduced several initiatives to reduce transaction costs to ease financial difficulties among its customers. Incentives and fee support programs were implemented on payment counters, ATMs, web, and mobile applications.
Corporate Strategy: Online sales through SmartBanking grew 226% YoY
In 2021, the number of transactions on BIDV’s SmartBanking platform increased by 84% YoY while sales grew by 226% YoY. The bank connected with 35 out of 46 licensed fintech companies for digital payments. More than 1,000 organisations were onboarded for its bill payment services across 200 categories, that include across telecommunication, shopping, ticket booking, securities, tuition, insurance , and e-wallet top-up. Service partnership with fintech firms increased by 72% with transaction value of $6.57 billion (VND 150 trillion)against estimated total market value of $18.09 billion (VND 411.25 trillion). Revenue from delivery services grew by 95% with 92 million transactions. Net fee revenue reached $13 million (VND 300 billion), up 32%. The bank also introduced a home loan application t called BIDV Home. The number of projects listed on BIDV Home grew 200% and the number of downloads rose 300%.
TPBank, meanwhile, focused on managing risk through the flexible use of big data and advanced authentication methods such as eTokens and biometric. Vietcombank introduced VCB Digibank, a mobile banking app that perform bank transfer, QR pay, funds top-up, bill payment, card services, online shopping, and savings related transactions.
About The Asian Banker
The Asian Banker is the region’s most authoritative provider of strategic business intelligence to the financial services community. The global research company has offices in Singapore, Malaysia, Manila, Hong Kong, Beijing, and Dubai, as well as representatives in London, New York, and San Francisco. It has a business model that revolves around three core business lines: publications, research services and forums. Visit the company website at www.theasianbanker.com
You may also visit the Excellence in Retail Financial Services page at http://awards.asianbankerforums.com/retailfinancial/
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For further information, you may get in touch with:
Mobasher Zein Kazmi
Head of Research
Tel: (+61) 452 514 145