A transaction branch of Vietcombank.— File photo Despite a slowdown this year, bancassurance and payment fees are expected to rise and help banks’ service revenue increase in 2021. According to Viet Dragon Securities Company (VDSC), service revenue growth at listed banks slowed significantly in the first half of 2020, to only 9.9 per cent from 42.1 per cent in the same period last year. Most listed banks reported a low service fee growth of below 10 per cent in the period, except Techcombank and VPBank which maintained a high growth of more than 40 per cent thanks to their diversified service fee structure. VDSC attributed the slowdown to a decrease in bank services including bancassurance, trade finance and foreign exchange. Besides, the reduction was also due to banks’ decision to offer some free payment service fees to aid customers amid the COVID-19 pandemic. However, VDSC forecast the banking services segment would still have a great growth potential next year. Accordingly, bank income from payment and card fees are expected to maintain growth momentum in 2021 due to the trend of encouraging non-cash payments, along with the orientation of banks to focus on retail and digital transformation investment. Statistics from the… Read full this story
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