Will the application of technology help Masan transform the financial sector in Vietnam? Financial and banking products have yet to meet the demand of a large proportion of the Vietnamese population. The traditional banking model is currently incapable of growing its network over the entire country. It is estimated that two-thirds of Vietnamese consumers do not have a bank account. This gives rise to informal consumer lending channels with loan interest rates being 3-5 times that of traditional banks. Merely 2.4 per cent of the population has access to insurance goods, while only four per cent of people use credit cards. Due to hurdles in registration procedures and income proofs, consumers find it difficult to use formal banking channels, which explains the low penetration rate. Masan intends to overcome these complex difficulties by leveraging an online-to-offline distribution network and digitalising customer records through credit ratings based on AI and machine learning … [Read more...] about Will the application of technology help Masan transform the financial sector in Vietnam?
Cashless payments gain ground throughout the world Strong growth Banks have devised many solutions to develop retail banking services on digital platforms, such as mobile banking, internet banking and QR codes. With digital solutions, customers do not need to go directly to transaction offices, but are able to use the bank’s products and services. They can also make quick and convenient payments. According to the State Bank of Vietnam (SBV), as of now, more than 1.8 million accounts and 1.5 million cards have been opened by the electronic Know Your Customers (eKYC) system. In addition, cashless payments through e-channels have grown strongly in the past five years, with transactions via mobile devices increasing by 50-80 percent a year and via the internet increasing by 35-40 percent a year. The percentage of adults with payment accounts at banks has reached 66 percent. In 2021, transactions via the internet and mobile devices increased by 48.8 percent and 76.2 percent in … [Read more...] about Vietnam’s dong goes cashless