Faced with a rapid change in payment trends, banks risk losing market share to competitors if they don’t change their strategy to approach customers, according to a recent seminar in Hanoi.
The seminar, held jointly by OpenWay Group and the Vietnam Banking Association (VNBA) to discuss modern payment trends, was attended by representatives of many banks, financial institutions and enterprises which provide banking-financial solutions in Vietnam.
Many orators from The State Bank of Viet Nam, VNBA, Russia, Kenya, Singapore also participated in the seminar.
Presentations at the event pointed out customers’ shift from using personal computers to hand-held devices for online payment demands. Major technology firms such as Google and Apple have joined the competition for modern payment solution through convenient online, high security services.
In Vietnam, however, the expansion of modern payment methods still faces many obstacles, mainly due to customers’ low confidence, according to experts at the seminar.
While there were more than 72 million ATM cards in Vietnam in 2013, only 19 percent of them was used for online payments, according to a survey.
Local banks have even more reasons to worry. With Vietnam opening its economy by signing multiple free trade agreements, the latest being the Trans Pacific Partnership, more foreign banks are expected to enter Vietnam. With their strong financial and technological resources, they can outdistance domestic banks, especially in providing modern payment solutions to customers, experts said.
At the seminar, OpenWay Group introduced Way4, a modern payment solution that the company said can provide the development foundation for banks, payment firms, telcos and fuel retailers.
Ha Manh Nguyen, who is in charge of Vietnam market of OpenWay Group, says the company has for 10 years provided services for eight local banks. Its solution in payment software is among the world's best, Ha claimed.