Online payment system challenges domestic bankers
Domestic banks are struggling to compete with foreign banks, which are powerful in online payment technology, and with businesses applying online payment methods.
Le Thanh Tam, CEO of IDG ASEAN, said at the 2015 Retail Banking Forum held some days ago that his order via the internet with the card issued by a big commercial bank was turned down. However, it was accepted when he made payment with Google’s e-wallet through Google Wallet portal.
An IDG survey showed that while the number of payment transactions at banks’ branches is on the decrease, the payment via e-banking and mobile devices is on the rise.
What customers are most interested in now are the time it takes them to make payments and the payment method. They tend to choose online payment methods – mobile banking or internet banking -- because the methods take them less time.
Online payment apps such as Apple Pay, Samsung Pay and Facebook payments have helped create a new payment tendency in Vietnam.
Tran Cong Quynh Lan, deputy CEO of VietinBank, admitted that commercial banks are not only apprehensive about competing banks, but also of the businesses which apply online payment methods.
Philip Finnegan, a senior executive of FIS, banking tool provider, noted that some years ago, customers came to bank branches to make transactions. Businesses using modern payment technologies have attracted customers from banks.
It is not by chance that a series of global big technology groups have flocked to Vietnam recently to offer payment and security solutions: they can see the increasingly high demand for solutions in the market.
Belgium Open Way is one of them. It provides development platforms to commercial banks, payment companies, and telcos and petroleum companies, such as card & booking agent management, financial switching, prepaid cards, mobile payment and e-wallets.
In fact, the companies can only gather strength in some market segments, while they cannot compete with banks’ diversified services. However, analysts say, the tendency of using modern payment technologies will force banks to improve service quality.
Eximbank has decided to join forces with Infosys to deploy Infosys Finance Core Banking which will gradually replace existing Core Banking to provide wholesale and banking services, manage capital sources and trade, and support online transaction processing.
Meanwhile, Tien Phong Bank has applied EasyLink and eBank 6.0 versions which connect all customers’ payments and saving and credit accounts so as to flexibly adjust lending limits.
BIDV has developed Business Online which helps business customers manage their accounts online and make transactions via the internet.
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