The banking sector globally has been under immense pressure in 2023 as it has to maintain its usual businesses while supporting the global economic recovery in the post-COVID period. Then you have instances of American financial institutions like First Republic Bank, Signature Bank and Silicon Valley Bank collapsing like ninepins. The UBS’ takeover of the 167-year-old banking giant Credit Suisse has dampened the mood further.
However, talking about the banking sector, things are bright in Vietnam as the Vietnam Public Joint Stock Commercial Bank (PVcomBank) hit the headlines recently for choosing appropriate strategies in order to maintain its business growth and contribute to the sector’s sustainable growth.
PVcomBank’s investment in technology, human resources and the speed of the digitalization of processes, products and services has been acknowledged by many prestigious organizations.
In the recently concluded International Finance Awards, PVcomBank was recognized with honours like ‘Fastest Growing Omni Channels Bank – Vietnam 2022’ and ‘Best Work Place Environment – Vietnam 2022’. The bank also got honoured with the ABF Wholesale Banking Awards under the category ‘Digital Transformation of the Year’. In 2022, IBM also recognized the Vietnam-based financial institution for being the ‘Best Bank for Customer Services in Vietnam 2022’.
With profit being its main destination, PVcomBank is also prioritizing on financial safety
Despite the global economy coming back to full-fledged normalcy in 2023 after the COVID disruptions since 2020, it’s not out of the woods yet.
Talking about Vietnam, after overcoming the COVID challenge, the Southeast Asian country’s economy is now growing rapidly and has already exceeded the assessments of the International Monetary Fund, World Bank and Asian Development Bank, with an 8.02% growth rate in 2022.
In 2023, the key mission of the country’s banking sector and especially PVcomBank is to support this fast-paced growth express, apart from attending to the concerns of businesses and customers to overcome financial obstacles.
While PVcomBank has still kept profit as its ultimate goal, it also faces the questions like: How can banks ensure safety and efficiency for themselves and the whole financial system of Vietnam?
Any attempt to answer the above questions means that Vietnamese banks will have to go for measures like cutting overhead costs, and accepting lower profit growth rates to focus on launching new, convenient products and services.
Aware of the current business environment, PVcomBank has set objectives that fit with the organisation’s overall operational goals and vision.
PVcomBank has implemented comprehensive business and management solutions, apart from closely monitoring market changes, keeping a flexible interest rate policy and diversifying sources of capital mobilization in order to guarantee its business growth.
The financial institution has also continued to follow the policy of growth in parallel with maintaining quality, efficiency and controlling risks in accordance with the State Bank of Vietnam directives. PVcomBank regularly checks with its customers having outstanding debts so that it can provide these individuals/entities with timely support.
As of 2023, PVcomBank has implemented a number of management solutions like completing a hierarchical organizational structure that suits both the development direction and the actual business situation. The financial institution is also undertaking comprehensive modernization services on its technology platforms to offer convenient and enhanced customer experiences.
Safety and efficiency are essential elements in the business operations of PVcomBank
PVcomBank has adopted a proactive and flexible business strategy and this has brought positive results for the financial institution in many areas. The success was achieved mainly due to the business growth in retail banking and small-and-medium enterprise (SME) development, along with diversified and modern product development.
PVcomBank also closely followed the market and quickly captured the customer demand in order to develop suitable and personalized capital management, contributing to the capital mobilized from both organizational and individual customers reaching over VND 181,511 billion in total by the end of 31 December 2022, of which demand deposits reached 7.63% on average.
Digital Transformation To Develop PVcomBank’s Competitive Advantages
While focusing on maintaining a business strategy prioritizing efficiency, stability and sustainability, PVcomBank also keeps a tab on human and financial resources to realize its digital transformation goals.
In recent years, PVcomBank has been actively boosting digitization and digitalization in its operations, thus allowing the creation/modification of business processes, helping the Bank catch up with the latest market trends and the increasing demands of various customer segments, saving up overhead costs and improving the serving capability.
PVcomBank has also prepared its advanced information technology platform in order to implement the venture’s digital transformation/digital business in parallel with risk management and conventional business promotion.
By 31 December 2022, the average spending via PVcomBank credit card increased 30.3% compared with 31 December 2021
Customer requirements for financial transactions are becoming more dynamic and sophisticated as technology gets more advanced, due to the presence of two elements called speed and availability.
Understanding the reality, PVcomBank has quickly implemented the digitalization of its traditional products and services, especially the tools that help customers perform financial transactions via online banking.
PVcomBank’s Digital Banking enables customers to perform basic needs like utility bill payment, shopping, tuition fee payment, opening a savings account, etc. through a connected device. The Bank has been launching promotion campaigns on a periodic basis, campaigns that fit the customers’ financial preferences and needs.
PVcomBank’s total value of digital transactions stood at VND 432,604 billion by the end of 31 December 2022, thus registering an increase of 56.8%, compared with the end of 2021.
Also, in the same period, the number of PVcomBank credit cards successfully issued and average spending transactions via these cards increased by 27.4% and 30.3% respectively compared with 31 December 2021.
The Road Ahead
Talking about 2023, the year is likely to be a challenging one for the global as well as Vietnam’s economy. Businesses have now been shifting their focus from growth to cost-cutting. The situation is also likely to boost the process of these businesses’ digital transformation.
Given the context, sustainability has become a new priority in the global economy. For PVcomBank, market challenges require the Bank to focus more on innovative strategies in order to meet growth goals while ensuring sustainability and supporting customers to overcome financial difficulties.
So, PVcomBank is all set to continue with its customer-centric approach, as it continues implementing digital transformation, building user-friendly working models and launching new, convenient financial products and services, steps which will help the bank to boost its comprehensive digitalization and achieve long-term goals.