Retail market has become more competitive as foreign banks have also joined the race to expand network and attract customers.
US giant, Citibank on October 15 expanded its presence in Vietnam by opening a retail site and inaugurating high-ranking individual assets management services in Hanoi. Citibank would not only focus on only large-scale enterprises, but its plan to invest heavily in the retail segment has started to create additional pressure on the capital market segment that is very competitive.
Previously, many foreign banks establishing their subsidiaries in Vietnam such as Hong Kong Shanghai Banking Corp (HSBC), Standard Chartered or ANZ announced this is key business segment in their long term development strategy. For example HSBC, after more than a year of operation as a 100 percent foreign invested bank in Vietnam, it continuously opened 12 branches and transaction sites in Hanoi, HCM City, Da Nang and Binh Duong to improve accesses to individual customers. After launching the credit card services, Internet Banking, the bank recently deployed the HSBC Premier service for high class customers. HSBC Vietnam's general director, Tom Tobin, said his bank would continue to invest heavily in retail banking service after having achieved many successes.
Before establishing a 100 percent foreign invested bank in Vietnam, Standard Chartered has launched retail services. And in order to strengthen its position, this lender is planning to increase retail staff to 500 people, install hundreds of ATM and open dozens of branches across the country. On October 11, Standard Chartered has launched its first priority banking service centre in Hanoi, allowing customers to communicate with a longer time, and be cared for by experienced staff and consultants.
While domestic banks developed retail services in toto, the foreign banks mainly focus on some customer groups, particularly high income earners.
At newly inaugurated retail site, Citibank arranged two separate zones. A site is for young customers, preferring new technology, which is equipped counters and new technology. In addition, the bank also arranged separate rooms equipped with videoconferencing equipment to customers to meet and consult with experts from other places across Asia. Meanwhile, Citigold centre is designed exclusively for high end customers with a separate meeting room and dedicated attendants.
"This is the starting point of Citi Group's plan to expand the business in Vietnam. In the next few months, Citi will continue to open more services and high quality products and increase transaction sites with customers. And with the approval of the authorities, we will confirm our commitment via establishing a 100 percent foreign invested bank" said Brett Krause, general director of Citibank in Vietnam.
According to assessment of Krause, the Vietnam's retail banking market has great potential due to a young population, a large consumer demand, high economic growth, while banking services cannot meet. Currently, only about 20 percent of Vietnam's population actively are using banking services.
US giant, Citibank on October 15 expanded its presence in Vietnam by opening a retail site and inaugurating high-ranking individual assets management services in Hanoi. Citibank would not only focus on only large-scale enterprises, but its plan to invest heavily in the retail segment has started to create additional pressure on the capital market segment that is very competitive.
Previously, many foreign banks establishing their subsidiaries in Vietnam such as Hong Kong Shanghai Banking Corp (HSBC), Standard Chartered or ANZ announced this is key business segment in their long term development strategy. For example HSBC, after more than a year of operation as a 100 percent foreign invested bank in Vietnam, it continuously opened 12 branches and transaction sites in Hanoi, HCM City, Da Nang and Binh Duong to improve accesses to individual customers. After launching the credit card services, Internet Banking, the bank recently deployed the HSBC Premier service for high class customers. HSBC Vietnam's general director, Tom Tobin, said his bank would continue to invest heavily in retail banking service after having achieved many successes.
Before establishing a 100 percent foreign invested bank in Vietnam, Standard Chartered has launched retail services. And in order to strengthen its position, this lender is planning to increase retail staff to 500 people, install hundreds of ATM and open dozens of branches across the country. On October 11, Standard Chartered has launched its first priority banking service centre in Hanoi, allowing customers to communicate with a longer time, and be cared for by experienced staff and consultants.
While domestic banks developed retail services in toto, the foreign banks mainly focus on some customer groups, particularly high income earners.
At newly inaugurated retail site, Citibank arranged two separate zones. A site is for young customers, preferring new technology, which is equipped counters and new technology. In addition, the bank also arranged separate rooms equipped with videoconferencing equipment to customers to meet and consult with experts from other places across Asia. Meanwhile, Citigold centre is designed exclusively for high end customers with a separate meeting room and dedicated attendants.
"This is the starting point of Citi Group's plan to expand the business in Vietnam. In the next few months, Citi will continue to open more services and high quality products and increase transaction sites with customers. And with the approval of the authorities, we will confirm our commitment via establishing a 100 percent foreign invested bank" said Brett Krause, general director of Citibank in Vietnam.
According to assessment of Krause, the Vietnam's retail banking market has great potential due to a young population, a large consumer demand, high economic growth, while banking services cannot meet. Currently, only about 20 percent of Vietnam's population actively are using banking services.
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