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By Jhoo Dong-chan
The nation's major banks are strengthening their mobile platforms to take the upper hand in Vietnam's financial market.
According to Shinhan Bank, it recently concluded a digital business partnership with Vietnam's largest messenger app Zalo and started introducing various financial products to Vietnam this month. About 80 percent of the Vietnamese people reportedly use Zalo via their smartphones.
Shinhan Bank acquired the retail financial business of Australian-based banking firm ANZ Vietnam to introduce Shinhan Vietnam Bank in April last year. The bank is now the country's largest foreign bank with assets worth a combined total of $3.3 billion. It also has more than 900,000 customers.
Under the partnership with Zalo, Shinhan Vietnam said it will be able to offer various financial products and digital services via the messenger app used by about 100 million Vietnamese people.
Other commercial banks are also using their digital platforms to expand their presence in the Southeast Asian country.
Following Shinhan Bank's entry into the Southeast Asian county, Woori Bank also established its corporate body in Vietnam, January last year. While expanding its branch network, it started providing its internet mobile banking service, Global Wibee Bank, last March. The app offers banking, loan and payment services.
KEB Hana Bank said it will introduce its banking app Vietnam 1Q Bank in the country by the end of this year. Not only basic banking services but also corporate payment services are available through the app, the bank official said.
NH Nonghyup Bank's banking app All One Bank is also going through the approval process in Vietnam.
"Vietnam is an emerging economy with a huge portion of 20s and 30s making up its population. They tend to use smartphones for banking over physically visiting a bank," said a NH Nonghyup Bank Official.
"The nation's commercial banks are expected to use a similar marketing strategy to attract more customers in other Southeast Asian countries."
According to the Korea Trade-Investment Promotion Agency, the smartphone penetration rate in Vietnam is about 55 percent while only 35 percent of Vietnamese people have a bank account.
