Retail banking service development: Convenient for people, beneficial to the bank

(LSO) – In recent years, commercial banks in the province have been focusing on expanding their operation network, implementing many solutions to develop retail services. With this type of service, used product packages are delivered to customers. This is a development strategy of many banks to diversify revenue sources, minimize risks and bring business efficiency.

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) is one of the prestigious banks with 5 consecutive years winning the award “Best Retail Bank in Vietnam”. Accordingly, BIDV Lang Son has always focused on developing retail services, with a network of 9 transaction offices located in the center of Lang Son city and districts.

Mr. Tran Lenh Hung, Head of Individual Customer Division, BIDV Lang Son said: that BIDV was currently providing products and services for individual customers in such main groups as credit, capital mobilization, payment, insurance, guarantee, treasury with many retail products including salary payment via account; credit package supporting loans with preferential interest rates in business activities, buying houses, buying cars, consumption etc.

Customers transact at Joint Stock Commercial Bank for Investment and Development of Vietnam, Lang Son Branch

Up to now, BIDV Lang Son has nearly 40,000 customers opening their ATM accounts; over 3,300 borrowers with a total outstanding loan of over 3,800 billion VND. In particular, the branch is promoting the development of unsecured consuming overdraft and collateralized with assets, the number of cards issued from the beginning of 2020 to now has been 640 cards, an increase of 5% compared to 2019.

At the Bank of Agriculture and Rural Development, Lang Son Branch (Agribank Lang Son), in order to develop retail services, the branch has implemented many solutions to exploit and improve products. In particular, it focused on developing the provision of card services to all types of customers. Notably, from 2019, the branch has implemented the “Project to develop card services in the agricultural and rural market”, targeting customers who are farmers.

Ms. Dinh Thi Hong Giang, Head of Service and Marketing Division, Agribank Lang Son said “In order to effectively issue overdraft cards, the unit has established a Steering Committee and promptly implemented the project to all branches, transaction offices, actively reporting, coordinating with the Party committees and authorities from the provincial to communal levels to propagate and advertise the service. Up to now, after 1 year of implementation, the branch has issued 7,332 agricultural and rural overdraft cards.”

Currently, the province has 15 commercial banks, most of which are prioritizing the development of retail services. The banks target groups of individual and family customers as be “the key” to access to introduce products and services suitable to their needs. In addition to the two core activities of deposit and credit, card products, money transfers, e-banking, bill payment, and insurance are also researched by banks and they launched many programs, policies and promotions to attract customers. At the same time, all banks are promoting the application of information technology, increasing convenience for customers when making transactions. Up to now, the province has 82 ATMs, up 5 compared to 2019; 332 POS machines, up 2 compared to 2019.

Mr. Nong Trung Phuc, Chi Lang ward, Lang Son city said: “Currently, I am paid by my work office through the account of Joint Stock Commercial Bank for Industry and Trade of Vietnam, Lang Son Branch. Because of the high spending needs, I was instructed by bank officials to make salary overdraft cards with a loan of 25 million VND with the preferential loan interest rates, the interest rates increases as I spend, thus, the interest calculation is so convenient, especially for shopping and consumption.”

Ms. Truong Thu Hoa, Director of the Provincial State Bank said: “Retail banking services exploited by banks in the province in recent years have brought benefits to both customers and banks. With its own advantages, each bank strives to come up with suitable utilities, programs and policies. Such competition brings practical benefits, timely meeting the needs of the people, not only contributing to promoting consumption, promoting production and business but also promoting non-cash payments in the province.”