Facing the 4.0 era, while many big players were still worrying about their position in the new age, BIDV quickly restructured and became one of the pioneers of digital banking transformation to keep up with contemporary business trends.
An overview of BIDV - Joint Stock Commercial Bank for Investment and Development of Vietnam
The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) was the country's largest commercial bank by assets in 2019. That year, the bank's total assets reached 1,458,740 billion VND, up 13.7% on the previous year. Known as one of Vietnam's big 4 banks (along with Vietcombank, Agribank and VietinBank), BIDV has been striding tirelessly along the path of integration and development.
The modern infrastructure of the Joint Stock Commercial Bank for Investment and Development of Vietnam
With more than 63 years of history, BIDV's long tradition is closely tied to building and defending the Socialist Republic of Vietnam. BIDV currently has a network of 190 domestic branches, 871 transaction offices and 57,825 ATMs and POS terminals in 63 provinces and cities across the country. Its overseas presence includes 1 branch in Myanmar and 5 representative offices in Laos, Cambodia, the Czech Republic, Taiwan and Russia. BIDV has also established correspondent relationships with more than 1,700 banks in 122 countries and territories worldwide.
In 2018, BIDV was in the top 10 of the list of 1,000 companies paying the highest corporate income tax in the country - the clearest proof of the business's management capability over many decades. Prestigious awards have further strengthened the reputation and capability of this leading national bank, such as the title of Hero of Labor in the Renovation Period, the Ho Chi Minh Order and Labor Orders of various classes...
Where did BIDV stand in the digital banking transformation revolution?
The wave of the 4.0 industrial revolution is comprehensively changing how products and services are delivered in every industry in general and in finance and banking in particular. Against this backdrop, quickly restructuring and replacing traditional business methods with digital banking transformation is an inevitable need. It helps banks overcome today's challenges, increase their competitive advantage and adapt proactively to develop sustainably in the future.
The wave of the 4.0 industrial revolution is strongly shaping the banking industry
Applying technology in banking operations helps the sector improve in many respects, such as business models, operational management, and better understanding of customers through analysis of their behavior and habits. Banks can then research and develop more suitable products and services.
Along with these benefits, organizations in this sector also face many difficulties in digital banking transformation, such as large capital investment, large implementation resources and the complexities that can arise in risk management.
Digital banking transformation brings benefits in many areas
BIDV Chairman Phan Duc Tu believes that digital banking transformation is a strategic action that decides the survival of any organization in this sector. That is why, in July 2017, BIDV issued a Resolution on its digital banking development direction. This is a component of the bank's overall business development strategy for 2017-2025 with a vision to 2030.
The Joint Stock Commercial Bank for Investment and Development of Vietnam has focused resources on accelerating digital transformation in various areas, such as:
Building and developing a synchronized set of technology distribution channels, including Internet Banking, Mobile Banking, SMS Banking, Web Chat and social networks such as Facebook and YouTube...
Thanks to digital banking transformation, BIDV successfully built self-service channels (e-zones) at its transaction offices.
Converting traditional manual processes into digital banking channels for transfers, payments, credit repayments...
Mobile Banking is increasingly widely used across banking systems
Working with many other organizations to launch new products such as Samsung Pay, QR Pay, a chatbot in the Mobile Banking app, SWIFT GPI and ATM cash withdrawals via mobile phone.
Successfully developing the BIDV Home app, blockchain, and new robotics and artificial intelligence technologies.
Building models for exploiting Big Data and unstructured data, and applying analytics models to assess customer lifetime value, marketing and cross-selling products to the right customers...
The initial successes BIDV “reaped” from the digital banking transformation revolution
Through decisive direction and action, digital banking transformation at BIDV has achieved many positive results:
- Thanks to digital banking transformation, the bank has achieved a strong shift toward cashless online payments. BIDV has not only contributed positively to the domestic shift in payments but has also played a positive role in COVID-19 prevention as the pandemic becomes ever more complex.
- By the end of Q2 2020, the number of individual customers registered for BIDV's e-banking services reached 5.12 million, up from 32.4% (2018) to 42.4%.
- The number of transactions via digital channels by the end of June 2020 reached 88.4 million, 50% of all transactions, compared with 38% in the same period the previous year.
- Transaction value via digital channels in June 2020 reached 1.34 million billion VND, equal to 67.1% of the whole of 2019.
- Bill payment transaction value in the first half of 2020 was more than half that of 2019, and 24/7 money transfers surged...
Banking transaction value grew dramatically compared with the same period last year
- Successfully applying an online payment gateway for level-4 public services on the national public service portal.
- Successfully deploying the BIDV SmartBanking online registration system and researching the application of OCR technology.
- Successfully connecting its API architecture with MISA, letting business customers carry out all financial transactions easily.
- Providing virtual account services and 24/7 online disbursement, helping retail and FinTech businesses manage cash flow effectively.
- Building Machine Learning/AI applications to research models predicting customer churn...
>>> The role of technology transfer in the 4.0 era
Clearly, the constant rise among different economies drives every sector to develop in a stable, advanced and integrated direction. BIDV has proven its mettle by boldly accepting risks and transforming step by step into a digital bank to meet the challenges of the times and seize opportunities for long-term growth.
BIDV's success in digital banking transformation is a shining example for all businesses to follow and learn from. Let Sbiz.vn accompany your business with advanced technology solutions that help your organization develop comprehensively in the new era. Contact Sbiz.vn today for detailed advice!