Banking services shift sharply to rural areas

The development of retail banking networks and services, non-cash use in rural and remote areas still faces difficulties, but this is an area that owns the growth potential for financial and banking services.

Disbursement of loans to customers at Sacombank Ben Cat branch.

Network development

In 1997, Credit Group (now is transaction office) of Sacombank was the first commercial bank to be present in Lai Uyen commune, Ben Cat district (now Lai Uyen town, Bau Bang district). With the advantage as a pioneer, Sacombank took advantage of the opportunity to connect with professional administrative units, companies and individuals to promote their banking and financial services, such as deposit mobilization, loans, money transfer, issuance of ATM card, salary transfer through bank account, social insurance payment, payment of electricity and water ...

Since the opening of this transaction office, locals have been convenient and assured as using Sacombank's services, because they do not have to go to the town center to make transactions. Tran Thai Khanh Linh, Director of Sacombank Ben Cat branch, said that since its establishment, their business growth has been increasing beyond expectations, averaging over 10% per year. The bank has developed three more transaction offices in Dau Tieng district, Phu Giáo district, and Hoa Loi ward of Ben Cat town. Up to now, Sacombank Binh Duong has developed seven more transaction offices. "Sacombank has achieved its goal of meeting the demands of depositing, borrowing, providing banking utility products and services, and are highly appreciated and supported by the authorities and local people," Linh said.

In An Tay ward of town Ben Cat, for nearly two months, Nguyen Ta Thanh Thao, accountant of Yong Sheng Funiture Style Company, no longer has to spend a lot of time going to banks in the town center to carry out currency transactions. "Since BIDV established An Tay transaction office, the withdrawal, deposit and payment of wages to workers of the company has become more convenient and easier. The use of banking services is not only convenient in payment and transfer, but also brings many other utilities," Thao said.

Dinh Phuong Tung, Director of BIDV My Phuoc branch, said that in recent years, the rapid pace of urbanization and industrialization in Ben Cat town had contributed to attracting many businesses and individuals to invest in production business activities. In order to meet the demand for network development to improve competitiveness, market share expansion is always a central task in this branch's business plan. BIDV My Phuoc branch was established in December 2010, its total assets was just over VND 600 billion; after 10 years, the total assets reaches nearly VND 8,000 billion, an average growth of 25% per year. "In 2021, pre-tax profit of the branch reached more than VND180 billion, contributed nearly VND40 billion to the State budget. This shows that the bank has achieved many good results in the development of retail network and services in remote areas of the province," Tung said.

To enhance activities and operations

Due to the imbalance between urban and rural areas, limiting people's access to banking services, to implement the policy of the State Bank of Vietnam (SBV), commercial banks have expanded transaction office network in rural areas.

Vo Dinh Phong, Director of SBV Binh Duong branch, said that banking service network in the province had continuously developed, especially in 2021, SBV Binh Duong branch had approved the eligibility to open 2 branches, 4 transaction offices. In the coming time, SBV Binh Duong will establish 6 new transaction offices in Binh Duong province. Up to now, the province has 78 credit institutions, financial companies and microfinance institutions, including a network of 185 transaction offices. The diverse network of credit institutions, operations covering throughout the province, have met the demand for currency and credit of the economy.

An overall assessment shows that at present, commercial banks continue to consider network development as an important task in heightening their position as well as competitiveness, bringing many benefits to customers. However, the banking network and retail services in rural and remote areas have untapped potential. In particular, due to consumption habits, the proportion of people in remote areas using cash payment is still popular, storing cash at home still exists... In addition, people's fear of transformation as approaching modern forms of payment, concerns about security and safety are also a drag.

According to Tran Ngoc Linh, Director of BIDV Binh Duong branch, to develop retail banking activities in rural and remote areas, many solutions need to be developed. In addition to constantly innovating operations, providing diverse new products and services, commercial bank needs to guarantee banking security and safety in all aspects of operation; further strengthen the dissemination of information and signs of crimes to avoid fraud, counterfeit money, credit fraud.

Reported by Thanh Hong – Translated by Ngoc Huynh