Clearly identifying the focus of difficulty as retail lending, Vietcombank has simultaneously implemented many lending policies that are timely, effective and consistent with the principle of Discipline.
In 2023, in the context of the general difficulties of the global economy, the socio-economic picture of our country recorded a dominant gray tone when GDP growth was estimated to increase by only more than 5% compared to 2022, recovering slowly compared to the period 2020-2022 under the heavy impact of Covid-19. It was not until the end of the fourth quarter that the growth drivers of consumption and investment showed signs of escaping the decline. Production activities were widely stagnant, and businesses were still cautious in the direction of narrowing investment.
In such conditions, the banking industry faces many major challenges. The economy's demand and capital absorption capacity are still weak, the real estate market with prolonged sluggish transactions are the main factors causing slow credit growth and far from the target of 14%. Many problems with credit quality and difficulties in debt collection are also widely exposed. Income from service business activities is low. In particular, the crisis of confidence in insurance products has caused a sharp decline in insurance sales of the entire market, including the insurance segment distributed through the bancassurance banking channel. Meanwhile, comprehensive digital transformation is increasingly urgent for commercial banks to meet the general trend of the economy, ensuring transaction needs and customer experience on digital channels...
Steadfast in adversity
Clearly identifying the focus of difficulty as retail lending, right from the first months of the year, Vietcombank has simultaneously implemented many lending policies that are timely, effective and consistent with the principle of Discipline.
On the one hand, maintain growth in the home buying segment, cooperate with reputable investors, exploit real estate projects with legal conditions, strictly control the purpose of loan use and strengthen credit quality management. On the other hand, operate sensitively through the interest rate mechanism to increase lending for production and business, prioritizing sectors such as trade, goods, consumption, short-term loan products, unsecured loans, focusing on customer groups in the business chain and existing borrowers. In addition, promote cooperation with automobile partners, partners who pay salaries to sell in batches, perfect processes and regulations to promote overdraft loans and invest resources to complete the lending journey on digital channels...
With close and flexible management measures and the spirit of a leader, by the end of 2023, Vietcombank spectacularly surpassed the milestone of 650,000 billion VND in outstanding retail loans, an increase of nearly 4% compared to 2022, credit quality was guaranteed, the loan structure remained reasonable, creating a premise for sustainable development in the following years.
Pioneering for customer experience
In 2023, Vietcombank made a remarkable mark with many new payment solutions, including the VCB Digicard digital card product, which allows card services to be integrated when customers open an account and register for VCB Digibank via eKYC. With VCB Digicard, customers can immediately enjoy payment utilities without having to wait for physical card issuance or go to the bank to activate the service as before. Therefore, after a short time, VCB Digicard digital cards have been especially popular with young customers with more than 2 million cards issued.
In August 2023, the market witnessed an explosion when Vietcombank - the first State-owned commercial joint stock bank in Vietnam introduced the modern payment solution Apple Pay to Vietnamese people, bringing an extremely modern and convenient card-no-card experience. With Vietcombank Visa cards, customers can use iPhone, iPad, Mac and Apple watch to enjoy a simple service experience, from setup to use. Transactions using Apple Pay are secured by leading authentication methods such as Face ID, Touch ID or device password, along with one-time dynamic security codes. The successful implementation of Apple Pay once again affirms the position and potential of the leading bank in Vietnam and on par with the region and the world.
Digital transformation and the realization of customer-centric orientation are also synchronized by Vietcombank in capital business areas, which are considered very "traditional" such as credit and at physical transaction channels. Closely following the recommendations and advice of the RTOM1 project, in 2023, the project to deploy the RLOS retail loan origination and approval system was successfully implemented, ensuring quality and progress, creating a foundation for a centralized approval model, freeing up branch resources to prioritize sales and customer care. In addition, training, coaching and direct support activities are carried out extensively, helping branch staff promptly grasp and proficiently use the system, improving work efficiency.
2023 also witnessed a major change with the successful implementation of the Sales & Services model at nearly 100 branches across the system. The new, modern transaction space and the arrangement and assignment of personnel to serve customers at the point of sale were implemented by Vietcombank on the principle of giving the highest priority to customer experience. The retail branch model based on the results of the RTOM2 project has initially proven its effectiveness through improving business indicators, sales performance, shortening transaction waiting time, and making a good impression on customers.
2023 is especially exciting with specialized events and products, enhancing the experience for Vietcombank Priority customers. In March, for the first time, Vietcombank honored its high-end customers with 2 music nights with the theme Masterpiece of Time in Hanoi and Ho Chi Minh City, bringing wonderful, unique moments of relaxation with music and painting. In December, Vietcombank created a big buzz when launching the most premium credit card product on the market, Vietcombank Visa Infinite, exclusively for Diamond and Diamond Elite customers. The product with the beautiful design duo Diamond Shine and Diamond Charm, made from titanium through unique and sophisticated sculpting techniques, immediately conquered connoisseurs. Vietcombank Visa Infinite card also affirms its position through exclusive privileges in health care, cuisine, resorts, golf, travel, etc., worthy of being a starting point, outlining Vietcombank's journey towards Private banking services in the near future.
2024: Ready to Break Through to Succeed
Closing 365 days of continuous efforts, steadfast in its strategic development goals, Vietcombank's retail operations have steadily overcome difficulties, leaving their mark with many important highlights, contributing positively to the bank's overall success in 2023. A series of prestigious awards have partly reflected the recognition and evaluation that the market and customers have given Vietcombank: 12 awards according to Visa Awards 2023, Excellent Bank of 2023 from Napas, Outstanding Retail Bank, Outstanding Digital Transformation Bank, Bank Accompanying Small and Medium Enterprises from the Vietnam Banks Association and IDG.
In 2024, the market is forecast to continue to be sluggish, the socio-economy cannot fully recover, the banking industry will have to face many challenges, especially in key business areas such as credit, service business, insurance. But for Vietcombank, 2024 is a particularly important year, a pivotal year, a sprint to the finish line of the 2020-2025 strategic period. Ahead are challenges, huge pressure from business targets, from a series of important transformation projects, strategic initiatives preparing to enter the implementation phase, digital transformation requirements are becoming more profound and comprehensive to better meet customer needs, in line with the general changes of the domestic socio-economy and major global trends.
Ms. Doan Hong Nhung - Director of Vietcombank Retail Division shared: "It is clear that there will be many challenges, but we believe that there are also opportunities ahead. Vietcombank's retail activities will follow the signal of the lighthouse, which is the Vision and Strategic Goals set out in Vietcombank's Operational Orientation to 2030 to enter the new year 2024 with a proactive mindset and a consistent management perspective of "Customer is the center - Digital transformation is the core". With the intelligence and courage forged through a journey of more than 60 years of history, with the strength originating from the trust and expectations of tens of millions of customers across the country, Vietcombank Retail is ready to BREAKTHROUGH FOR SUCCESS!".
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