Global management consulting firm McKinsey recently announced a report on the attitude and point of views of Vietnamese, especially the youth, as for banking services. The report is a part of the firm’s recent study on retail banking market surveyed over 13,000 customers living in 11 Asian nations and territories such as China, India, Taiwan, Thailand, Philippines and Malaysia.
Although performing a strong growth during some recent years, Vietnam’s retail banking field remains small against regional countries. Total asset of Vietnamese banks up to 2006 only reached about US$75 billion equalling to 123% GDP while the figure in Thailand was US$226 billion or 110% GDP and Malaysia US$302 billion (195% GDP). In addition, only nearly 10% of Vietnamese population used banking services.
However, according to McKinsey’s specialists, the turnover of Vietnam’s retail banking filed could grow by over 25% annually over next 5-10 years, bringing the country to become one of retail banking markets with the highest growth in Asia thanks to strong economic growth, an increase in households’ incomes and non-deep enter of banking services in the local market.
McKinsey’s survey showed that there now are over 70% of Vietnamese urban households with a yearly income of more than 57 million dong. As compared with previous generations, Vietnamese youth currently look opener for banking services in general and modern banking services in particular. The generation gap in Vietnam is larger than all other surveyed markets.
Therefore, McKinsey said that, Vietnamese people aged 21 to 29 will play an important role in shaping the retail banking market here.
Regarding Vietnamese people’s point of view on banking services, McKinsey found out five interesting points as follows:
Firstly, the young in Vietnam use banking services more than elders. The survey showed that each customer aged between 21 and 29 access 2.3 banking services while elders 1.9. Up to 91% of the young have saving accounts while only 55% of people aged over 30 have saving accounts. In addition, 89% of the young have credit cards against the 40% ratio of people aged over 30.
Secondly, the Vietnamese young also appear more enthusiastic for distance banking services via mobile phones or internet if banks can ensure security issue. As being questioned whether should use banking services via internet in the future or not, the generation gap between those aged 21-29 and elders is 34 points while that of China is only six pts and India seven pts.
Thirdly, Vietnamese young are more interested in services of borrowing bank loans as well than previous generations.
45% of surveyed young people said that the capital borrowing could help them improve life style while only 31% of elders agreed with the point of view. Less the young did not think that borrowing bank loans is dangerous or unwise.
Fourthly, Vietnamese young seems to be opener for foreign banks. 60% of Vietnam’s surveyed people said that the enter of foreign banks into Vietnam will benefit them, of which 73% is young. This showed that investment opportunity of foreign banks in Vietnam is higher than that in other countries and territories. The ratio is 22% in Taiwan and 54% in Philippines. But, surveyed people in Vietnam still appreciated the role of domestic banks. Thus, Vietnamese willingly use services of any bank despite of domestic or foreign ones providing that those banks bring the best products and services.
Lastly, Vietnam has differences in terms of areas and region in the points of view on banks. Southern people are opener than northern ones. 42% of HCM City people undergoing the survey said that they would use banking services via mobile phones while the ratio of Hanoi is 24%.