Online transactions were increasingly dominant, which was why banks were also actively promoting the exploitation of products and services on electronic platforms.
Although the deposit interest rate decreased, the pressure on the gold price increased sharply (as of 14:00 on August 6, 2020, the price of SJC gold pushed up to 62,320 million dong/tael), the total capital mobilisation in Hanoi and Hochiminh City still had positive growth. Hanoi Statistical Office said that the mobilised capital of credit institutions in the city by the end of July 2020 reached 3.668 quadrillion dong, 1.6 percent higher than the previous month and an increase of 4.6 percent compared to the end of 2019. Also, according to the report in July 2020 of the State Bank of Vietnam (SBV) Hochiminh City branch, total mobilisation of credit institutions in the city as of 31/7/2020 was about 2.648 quadrillion dong, increased by 0.6 percent over the end of last month, 3.96 percent compared to the end of 2019 and 11.06 percent over the same period.
It could be seen that, with the return of Covid-19, gold prices rose sharply, stocks fluctuated continuously, but these investment channels were potentially risky and only for knowledgeable investors. Many people with idle money still chose savings. Especially, in the context of limited exposure due to epidemics, banks were actively promoting online savings channels with many incentives such as high interest rates, convenience, time constraints, increasing utility. People were also gradually getting acquainted and switching to the form of saving more online than before. According to Tu Tien Phat, deputy general director of Asia Commercial Joint Stock Bank (ACB), in 2019, the bank could only mobilise more than 3 trillion dong through online savings. However, only in the first three months of 2020, the amount mobilised from this channel had reached 4 trillion dong, accounting for 40 percent of total deposits.
Sharing with reporters, Ms Thu Ha (30 years old, an office worker) said that previously, she had no habit of sending savings online because she thought the interest rate was lower than depositing at the counter. Still, there was more and more convenience when just by Internet Banking or mobile banking, users could perform all transactions like at the counter, including opening a savings book, anytime anywhere. Having the same thought, Hai Dang (Chua Lang, Hanoi) also found that in the period of the increasingly complicated Covid-19 epidemic, he had prioritised all activities that could be traded online. While with sending online savings then, interest rates were also very good, even higher than transactions at the counter.
From the beginning of July 2020, Saigon Hanoi Commercial Joint Stock Bank (SHB) had launched a flexible online savings product. One of the concerns of most customers was when there was an unexpected need for money, even a part of the deposit amount, they would have to settle the entire savings book, affecting the accumulation plan of customers. SHB’s flexible Online Savings product allowed individuals depositing online savings on SHB online or SHB Mobile to flexibly withdraw a portion of their deposits ahead of time when the need arose. The remaining amount would continue with the correct interest rate at the time when customers deposited money. Not only that, but customers could also use this account to pledge or mortgage when in need of a loan. Orient Commercial Joint Stock Bank (OCB) had also introduced ‘Flexible Savings’ (Omni Flex) on its OCB Omni app, allowing customers to choose the number of days to send money according to their needs, instead of having to be a full month or year like other savings products. Usually, the interest rate was 0.1 percent to 0.2 percent higher than depositing at the counter.
National Citizen Commercial Joint Stock Bank (NCB) also said that the bank had updated to add new features on the NCB iziMobile app to help customers quickly open online payment accounts. With NCB iziMobile, customers could add 0.2 percent interest rate compared to depositing at the counter when depositing online. Like at Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), Asia Commercial Joint Stock Bank (ACB), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), depositors could use Internet Banking or Mobile Banking to deposit online savings with higher interest rates than deposited at the counter from 0.2 percent to 0.3%. Deposit online savings at Viet Capital Commercial Joint Stock Bank (Viet Capital Bank), customers could deposit flexible term from one month to 60 months and enjoy higher interest rates at the counter by 0.2 percent to 0.5%. Or, in Nam A Commercial Joint Stock Bank (Nam A Bank), the interest rates for six-month, nine-month and 12-month terms if deposited at the counter were only 6.3 percent per year, 6.4 percent per year and 7.1 percent per year. However, when sending online for the same period, the interest rate would reach 7.2 percent per year, 7.4 percent per year and 7.6 percent per year. Customers sending online from 15 months or more would enjoy the interest rate of up to 7.7 percent per year.
According to experts, online transactions were increasingly dominant, which was why banks were also actively promoting the exploitation of products and services on electronic platforms. Orienting customers to a more online environment along with incentives and utilities was also a way to gradually change their habits from the simplest transactions, which would be very beneficial when banks developed other products and services in the digital transformation process, this expert commented.
Besides, with online savings deposit without the intervention of bank staff, all transactions were done automatically by the system through multiple layers of authentication and security. Online savings deposit or withdrawal orders were performed by customers themselves, so these transactions could not be counterfeited. Therefore, banks had to improve its technology regularly, increase authentication and security measures to ensure the interests of customers, from which customers also gradually removed concerns for peace of mind to trade online more.
