(Source: Retail banking Department of VCB)
The two oldest MobiFone and VinaPhone network providers are starting to step into the race to develop payment services on mobile banking with the promotion of payment services deployment via USSD. It is expected that the service will be introduced to customers in early 2014.
Thus, we can see the development of mobile banking services in Vietnam is generally still at an early stage . Vietnam market has many advantages such as high economic growth and stability, a young population, the high-tech equipment preference, popular mobile communications. However, the legal framework is still limited, economic growth is not uniform across regions, differences in literacy levels among strata as well as the banks have not provided a solution mobile
banking that is really attractive and useful are the reasons why the number of customers using the service is still relatively modest. Some banks are increasing their investment in research and development Mobile Banking Services such as Tienphong Bank , VIB , VietinBank , Vietcombank. With these efforts from banks , more likely in the near future , mobile banking services in Vietnam will grow more prosperous as predicted by many experts.
2.2 Current situation of mobile banking deployment at Vietcombank 2.2.1 Overview of Vietcombank
JSC Bank for Foreign Trade of Vietnam, formerly known as Bank for Foreign trade of Vietnam, was established on 01/04/1963 from the Foreign Exchange Bureau (of the State Bank of Vietnam). Being the first state commercial bank chosen for pilot privatization by the Government, Joint Stock Commercial Bank for Foreign Trade of Vietnam officially came in to operation on 02/06/2008, after successfully implementing the equitization plan through IPO. Vietcombank (stock code: VCB) officially listed on the Ho Chi Minh Stock Exchange (HOSE) on 30/06/2009.
During more than 50 years of development, Vietcombank has contributed significantly to the stability and growth of national economy, upholding the role of a major foreign trade bank in facilitating efficient domestic economic growth as well as influencing considerably on regional and global financial community.
Originated as a specialized bank for foreign trade, Vietcombank nowadays has become a, providing customers with a wide range of leading financial services in international trade; traditional services such as capital trading, capital mobilization, credit, project financing…etc., and modern banking segment such as forex trading and derivatives, card services, e-banking and so on.
Vietcombank has many advantages of applying advanced technology into the automatic banking system, products development, e-banking services, based on its high technology foundation. Products such as Internet Banking, VCB Money, SMS Banking, Phone Banking have always attracted a great deal of customers by its convenience, promptness, safety, efficiency, creating the habit of non-cash
payments amongst the mass.
After more than a half-century operating in the market, Vietcombank currently has almost 14,000 employees, more than 400 branches/ transaction offices/
representative office/ affiliates both in Vietnam and abroad, including Head Office in Hanoi, 1 Operation Center, 1 Training Center, 79 branches, over 330 transaction offices all over the country, 2 subsidiaries in Vietnam, 2 subsidiaries and 1 representative office in other countries, 6 joint ventures. In addition, Vietcombank has also developed an Autobank system with about 2000 ATMs and more than 43,500 Points of Sale nationwide. Bank’s operations are supported by a network of more than 1,700 correspondent banks in 120 countries and territories.
Vietcombank’s team of professional employees with excellent ability in banking and finance have a good sense for modern and integrated business environment…Thanks to their contribution, Vietcombank remains the primary choice for large corporations, domestic and foreign enterprises as well as millions individual customers.
For more than a decade, Vietcombank has continuously rated as "Best Bank in Vietnam" by prestigious institutions around the world on many important operation fields.
With wisdom and enthusiasm, every generation of Vietcombank’s employees has been and will always be endeavoring to establish a sustained development with ambition to became a bank has a wide range, great admin ability, working scope that could influenced the region and overseas in the near future.
2.2.2 Overview of electronic banking services of Vietcombank
As a pioneer bank and having many advantages in the development of electronic banking services, Vietcombank was soon introduced VCB-iB @ nking to customers in 2001. After suspending the provision of services to complete legal documents and database clients, up to 2006, Vietcombank introduced a wider variety of gadgets on VCB-iB@nking and constantly increased features to serve the needs of customers. Also in 2006, Vietcombank launched services via mobile messaging VCB-SMS B@nking, allowing customers to query information from the
switchboard 8170. By 2012, Vietcombank consecutively introduced two new services developed in mobile platform which are VCB-Mobile B @ nking and BankPlus.
Figure 2.1: Development timeline of Mobile Banking at VCB
(Source: Retail banking Department of VCB)
Being defined as the service platform for the group of electronic banking services, VCB - SMS B @ nking services have the highest penetration rate with 35% individual customers at Vietcombank register by the end of 2013. The penetration rate of VCB-iB@nking services maintained 50% of VCB - SMS B @ nking regularly. Meanwhile, due to the new implementation from 2012, the total number of customers using two services - Mobile B@nking and new BankPlus consist of only 2% of the bank's individual customers.