Digital Banking Trends Vietnam

MOBILE ONLINE INSURANCE LOANS

2

About IFM Digital Banking Trends Vietnam

Digital Banking Trends Vietnam is an amalgamation of multiple Infocus Mekong Surveys covering over 2,700 consumer interviews.

Data Collection

2,752 interviewsIFM Mobile Panel

100% IFM Mobile Panel Data collection

Infocus Mekong Research Digital Banking Trends Vietnam makes no warranty, expressed or implied, as to the results obtained from the use of the information on this document. Infocus Mekong Research shall have no liability for the accuracy of the information and cannot be held liable for any third-party claims or losses of any damages. The user shall have the right to view the information and usage for the purpose for which it is intended and disclosed.

Disclaimer

Location Sample

Hanoi 512

Rural North 403

Danang 304

Rural Central 312

HCMC 510

Rural South 409

Can Tho 302Total 2,752

Research Objectives

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Market shares of main Digital Banks & main Banks

Vietcomank with its 13 million plus costumers leads Vietnam in terms of overall bank share.

Techcombank and TIMO (only 100% Digital bank) follows in third.

Most banks are trailing far behind in terms of a digital footprint, which should erode their overall share in the future.

24%

14%

10% 9% 8%6% 5% 5% 5%

11%

29%

8%

0%

11%9%

8%5% 4%

26%Main Digital Bank

Main Bank

Sample: N = 1,776 users

Mobile payment & E-commerce are becoming ubiquitous in Vietnam, while Internet, mobile app and gateway payments are catching up, rapidly changing the way consumers interact with banks and specifically bank Branch visitation.

Research Objectives

4

Incidence of Digital Banking Usage – Urban Past 6 months

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Sample: N = 976 users

ATM/branch

Home/Auto Loan

Digital only banking

Payment gateway

Mobile banking APP

Online Banking

E Commerce

E Wallet/Mobile Payment

Consumer Loan

Urban past 6 months

DIGITAL BANKING INCIDENCE

already using E Wallet to make their payments3 in

every 4 people are

02

03

04

01Better Rates than CompetitionLow interest rates

Fast loan processApplication to bank decision

Reputation For Safety and Security

Online and MobileBanking features

05

Simple needsEasy application and documentation

SME

RETAIL

17%

18%%SME

RETAIL

14%

13%

SME

RETAIL

10%

13%

SME

RETAIL

7%

11%

SME

RETAIL

12%

10%

06

Flexible CollateralEasy acceptable terms

SME

RETAIL

11%

7%

Main Factor when choosing a Bank for a Loan

Both Private citizens and SME’s key deciding factors hinges on best rates and fast loan processing.

However, Private loan applicants are more swayed by Bank Reputation and On-line / Mobile banking capabilities.

SME’s are more driven by Simple applicating processes and Flexible collateral terms.

SME

RETAIL

Sample: N = 976 users

Online transfers &Bills and payment

3% 45% 60% 55%3%

Digital BankingTriggers and Barriers

Bank fees Security Trust Privacy Tax

29% 23% 16% 13% 8%

6%

Online shopping

8%

Articles

19%

Interviews

24%

Resources

28%

Resources

Online shopping

Bill Payment

Bank a/c Management

Mobile payment

Online transfer

TRIGGERS

BARRIERS

Bank FeesTrust &Security

Sample: N = 1,776 users

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 0.5 1 1.5 2 2.5 3

FUTUREOnline shopping

Bill Payment

Online savings

Online investment

chatbot

Monthly auto payment

Money transfer

Online/mobile payments

Bank A/c Mgmt

Messenger

Usage frequency

7

Driving future growth of Digital Banking Le

vel o

f im

po

rtan

ce o

f Fe

atu

res

(%)

High frequency & High importance

High frequency & Low importance

Low frequency & High importance

Low frequency & Low importance

Money transfer, On-line mobile payment & account mgmt. are Hygiene factors, a MUST have.

FUTURE GROWTHON-LINE

SHOPPINGBILL

PAYMENT ONLINE

SAVINGS MOBILE

ONFROM

Sample: N = 976 users

8

Urban Vietnam Rural Vietnam

8

Average distance willing to travel to a bank

5.5 KMS

DIGITAL BANKING SHALLREDICE THE RELIANCE ON BNAK BRANCHES AND

IMPROVE PRODUCTIVITY

7.9KMS

Sample: N = 976 users

2

1

3

4

46% digital banking incidence is expected to growth by 20-30% year on Year

5

6

Banks with the biggest digital footprint shall gain share and value over time

Mass competition for on-line payment systems shall drive overall banking usage

Better rates & simple application process are key drivers for gaining share

Key barriers to overcome – high fees and Trust

Mobile banking will be the key growth driver

In a nutshell

IF YOU ARE MOBILE / DIGITAL FOCUSED TODAY,YOU CAN COMPETE IN THE LONG TERM

Wish to explore the future of Vietnam’s digital banking consumer behavior?

10

73,000 Plus Panelists

35,000 Bank Account holders

30,000 Digital Banking consumers

15,000 High Net Income earners

96%

79%

53% 51%

37%30%

12%

ATM Card Insurance Bank Account PrivateInsurance

Credit Card Debit Card Investmentfunds

IFM Panel : Banking Product Usage

ALLOW IFM TO SHOW YOU THE FUTURE OF BANKING

IFM Panel ResearchVietnam’s 1st dedicated

mobile panel

February, 2019

73,000+Only SMS activated Mobile consumer

access panel

30% Response Rate in 24 hours

Three Tier Quality control

Full demographicsAgile

Accurate

Actionable

VIETNAM’S LARGEST MOBILE PANEL

ACTIVE PANELISTS

73,537

16% 28% 23% 20% 12%

18-24 25-29 30-34 35-44 45+AGE

EDU

13% 23% 14% 43% 7%

Highschool> Highschool Vocational Unigrads Uni/Post grads

52 48

Gender

Single Married

43 57

Status

LOCATION IFM PANEL BREAKDOWN

URBAN TIER 2 CITIES RURAL

55,429 7,249 10,859

75% 10% 15%

SEC

19 7 9 15 12 12 26

A B C D E F

<10

M

10

-15

M

15

-20

M

20

-25

M

25

-30

M

30

-40

M

40

M+

data inclusion

Personal Data Ownership Consumption

Name Family Income Smartphone Spirits

Email / Mobile # Personal Income Desktop Tobacco

Gender Employment status Operating system Dairy

Age Company Type Vehicle / Cars / Motorbike

City / District Employee’s Position Private Insurance

Marital status Employee Industry Bank account

Number of Kids Education

3%8%

12%15%

9% 8% 9%5% 6% 7%

4%

16%10%

8%7%

10%8% 7%

4%7%

8%

4%

Agriculture Education IT Sales Retail Finance Construction Hospitality Healthcare HR Marketing

Urban Rural

Industry

100% of all information for entire data base

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Ralf Matthaes | Managing Director

Tel: +84-8 2262-7627Mobile: +84-903-949-531Website: www.ifmresearch.comifmpanel website: www.ifmpanel.com

Email: Ralf.matthaes@infocusmekong.com

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