Digital Banking Trends Vietnam
MOBILE ONLINE INSURANCE LOANS
2
About IFM Digital Banking Trends Vietnam
Digital Banking Trends Vietnam is an amalgamation of multiple Infocus Mekong Surveys covering over 2,700 consumer interviews.
Data Collection
2,752 interviewsIFM Mobile Panel
100% IFM Mobile Panel Data collection
Infocus Mekong Research Digital Banking Trends Vietnam makes no warranty, expressed or implied, as to the results obtained from the use of the information on this document. Infocus Mekong Research shall have no liability for the accuracy of the information and cannot be held liable for any third-party claims or losses of any damages. The user shall have the right to view the information and usage for the purpose for which it is intended and disclosed.
Disclaimer
Location Sample
Hanoi 512
Rural North 403
Danang 304
Rural Central 312
HCMC 510
Rural South 409
Can Tho 302Total 2,752
Research Objectives
3
Market shares of main Digital Banks & main Banks
Vietcomank with its 13 million plus costumers leads Vietnam in terms of overall bank share.
Techcombank and TIMO (only 100% Digital bank) follows in third.
Most banks are trailing far behind in terms of a digital footprint, which should erode their overall share in the future.
24%
14%
10% 9% 8%6% 5% 5% 5%
11%
29%
8%
0%
11%9%
8%5% 4%
26%Main Digital Bank
Main Bank
Sample: N = 1,776 users
Mobile payment & E-commerce are becoming ubiquitous in Vietnam, while Internet, mobile app and gateway payments are catching up, rapidly changing the way consumers interact with banks and specifically bank Branch visitation.
Research Objectives
4
Incidence of Digital Banking Usage – Urban Past 6 months
4
Sample: N = 976 users
ATM/branch
Home/Auto Loan
Digital only banking
Payment gateway
Mobile banking APP
Online Banking
E Commerce
E Wallet/Mobile Payment
Consumer Loan
Urban past 6 months
DIGITAL BANKING INCIDENCE
already using E Wallet to make their payments3 in
every 4 people are
02
03
04
01Better Rates than CompetitionLow interest rates
Fast loan processApplication to bank decision
Reputation For Safety and Security
Online and MobileBanking features
05
Simple needsEasy application and documentation
SME
RETAIL
17%
18%%SME
RETAIL
14%
13%
SME
RETAIL
10%
13%
SME
RETAIL
7%
11%
SME
RETAIL
12%
10%
06
Flexible CollateralEasy acceptable terms
SME
RETAIL
11%
7%
Main Factor when choosing a Bank for a Loan
Both Private citizens and SME’s key deciding factors hinges on best rates and fast loan processing.
However, Private loan applicants are more swayed by Bank Reputation and On-line / Mobile banking capabilities.
SME’s are more driven by Simple applicating processes and Flexible collateral terms.
SME
RETAIL
Sample: N = 976 users
Online transfers &Bills and payment
3% 45% 60% 55%3%
Digital BankingTriggers and Barriers
Bank fees Security Trust Privacy Tax
29% 23% 16% 13% 8%
6%
Online shopping
8%
Articles
19%
Interviews
24%
Resources
28%
Resources
Online shopping
Bill Payment
Bank a/c Management
Mobile payment
Online transfer
TRIGGERS
BARRIERS
Bank FeesTrust &Security
Sample: N = 1,776 users
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 0.5 1 1.5 2 2.5 3
FUTUREOnline shopping
Bill Payment
Online savings
Online investment
chatbot
Monthly auto payment
Money transfer
Online/mobile payments
Bank A/c Mgmt
Messenger
Usage frequency
7
Driving future growth of Digital Banking Le
vel o
f im
po
rtan
ce o
f Fe
atu
res
(%)
High frequency & High importance
High frequency & Low importance
Low frequency & High importance
Low frequency & Low importance
Money transfer, On-line mobile payment & account mgmt. are Hygiene factors, a MUST have.
FUTURE GROWTHON-LINE
SHOPPINGBILL
PAYMENT ONLINE
SAVINGS MOBILE
ONFROM
Sample: N = 976 users
8
Urban Vietnam Rural Vietnam
8
Average distance willing to travel to a bank
5.5 KMS
DIGITAL BANKING SHALLREDICE THE RELIANCE ON BNAK BRANCHES AND
IMPROVE PRODUCTIVITY
7.9KMS
Sample: N = 976 users
2
1
3
4
46% digital banking incidence is expected to growth by 20-30% year on Year
5
6
Banks with the biggest digital footprint shall gain share and value over time
Mass competition for on-line payment systems shall drive overall banking usage
Better rates & simple application process are key drivers for gaining share
Key barriers to overcome – high fees and Trust
Mobile banking will be the key growth driver
In a nutshell
IF YOU ARE MOBILE / DIGITAL FOCUSED TODAY,YOU CAN COMPETE IN THE LONG TERM
Wish to explore the future of Vietnam’s digital banking consumer behavior?
10
73,000 Plus Panelists
35,000 Bank Account holders
30,000 Digital Banking consumers
15,000 High Net Income earners
96%
79%
53% 51%
37%30%
12%
ATM Card Insurance Bank Account PrivateInsurance
Credit Card Debit Card Investmentfunds
IFM Panel : Banking Product Usage
ALLOW IFM TO SHOW YOU THE FUTURE OF BANKING
IFM Panel ResearchVietnam’s 1st dedicated
mobile panel
February, 2019
73,000+Only SMS activated Mobile consumer
access panel
30% Response Rate in 24 hours
Three Tier Quality control
Full demographicsAgile
Accurate
Actionable
VIETNAM’S LARGEST MOBILE PANEL
ACTIVE PANELISTS
73,537
16% 28% 23% 20% 12%
18-24 25-29 30-34 35-44 45+AGE
EDU
13% 23% 14% 43% 7%
Highschool> Highschool Vocational Unigrads Uni/Post grads
52 48
Gender
Single Married
43 57
Status
LOCATION IFM PANEL BREAKDOWN
URBAN TIER 2 CITIES RURAL
55,429 7,249 10,859
75% 10% 15%
SEC
19 7 9 15 12 12 26
A B C D E F
<10
M
10
-15
M
15
-20
M
20
-25
M
25
-30
M
30
-40
M
40
M+
data inclusion
Personal Data Ownership Consumption
Name Family Income Smartphone Spirits
Email / Mobile # Personal Income Desktop Tobacco
Gender Employment status Operating system Dairy
Age Company Type Vehicle / Cars / Motorbike
City / District Employee’s Position Private Insurance
Marital status Employee Industry Bank account
Number of Kids Education
3%8%
12%15%
9% 8% 9%5% 6% 7%
4%
16%10%
8%7%
10%8% 7%
4%7%
8%
4%
Agriculture Education IT Sales Retail Finance Construction Hospitality Healthcare HR Marketing
Urban Rural
Industry
100% of all information for entire data base
15
Ralf Matthaes | Managing Director
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