Poor people lack access to mobile banking
| |
At the workshop on mobile banking for the poor and women in Vietnam - Photo: VNA |
Statistics from the World Bank showed that only 8 percent of adults in Vietnam use mobile phones to access their bank accounts compared to 40 percent in China, 33 percent in Malaysia and 17 percent in Thailand. In addition, many poor people in Vietnam have not accessed mobile banking services.
Speaking at the workshop on mobile banking for the poor and women held in Hanoi last week, Pham Xuan Hoe, Deputy Director of the Banking Strategy Institute under the State Bank of Vietnam, said poor people faced two big difficulties in accessing and using financial products and services.
“Firstly, the financial channels for people in remote and mountainous areas have been limited. In addition, products and services of financial institutions including banks have not been simple and suitable for them,” Hoe said.
Kieu Kỵ village in Hanoi’s Gia Lam district has 39 households borrowing loans under the Vietnam Bank for Social Policies (VBSP) credit programs. Most of them are women using the loans to invest in gold-laminating craft and leather making.
The households regularly get updates on the loans, such as payment deadlines and term deposits through texts on their mobiles. No one faces overdue debt thanks to the mobile banking service, despite the total outstanding loans of 1.5 billion VND (US$64,937).
Vu Thi Thanh Huyen from Kieu Ky village said the households received texts relating to the loans regularly thanks to VBSP’s mobile banking project. Banks did not have to meet them to remind them about their debts.
Luu Thi Thao, deputy director of VBSP’s Center for Information and Technology, said the bank would continue to pilot mobile banking services with more than 30,000 borrowers to help poor people access their services.
“With more than 130 million mobile phone subscribers nationwide, the use of VBSP’s mobile banking would contribute to complete the national overall financial strategy. The central bank is building the strategy and will submit it to the Government for approval by the end of this year,” Thao said.
She also said the strategy would provide favorable conditions for adults and businesses to access and use financial products and services conveniently at a reasonable cost.
The State Bank of Vietnam is building a national overall financial strategy which values digital technologies of banks and credit institutions. The ultimate target is to popularize access and use of financial products and services, especially to poor people.
“SMS services would be one effective tool to help poor households get acquainted with digital technologies. It would also help banks diversify their products and service,” Thao added.
She said the SMS service had affected customers’ awareness and responsibility in debt payment and saving accounts.
According to the VBSP, the SMS service provided to its 856,608 customers in 10 localities helps them save more than 42.8 billion VND. The service costs the bank 250 VND per SMS, thus reducing their operation costs by 12 times.
The bank has provided SMS through mobile phones to its customers in 63 cities and provinces nationwide since 2016. It has sent more than 6.9 million SMSs to customers.
The workshop was under the cooperation of VBSP, Mastercard and the Asian Foundation with supports from the Australian government to increase access to a full range of financial services for low-income households, especially women-led micro-enterprises.
See also

Seeking driving force for 2023 economic growth
06:00 | 01/02/2023 Economy

Intertwined opportunities, challenges for Vietnam’s economy in 2023
07:00 | 30/01/2023 Economy

Industry and trade sector drives development
06:00 | 22/01/2023 Economy

The right direction for Lam Dong to break through into the global supply chain
08:58 | 10/01/2023 Economy

Nghe An Province increases local content of industrial products
06:00 | 06/01/2023 Province

Vietnam records best-ever performance in digital economic development
16:51 | 03/01/2023 Digitalization
See more news

Vietnam looks to market forces to boost growth
06:00 | 02/01/2023 Economy

The path to fostering green exports
06:00 | 30/12/2022 Trade

Mastercard Economics Institute: Economic Outlook 2023
11:04 | 27/12/2022 Economy

Ba Vi, the place to buy Hanoi specialties
15:00 | 26/12/2022 Metropolis

Rural products fall short of potential
10:00 | 24/12/2022 Industry promotion

Mitsubishi Power to upgrade two gas turbines at Tuas Power
09:45 | 20/12/2022 Energy

Trade deals: The good, bad and unpredictable
06:00 | 20/12/2022 Trade

Industry-trade sector eases regulation
06:00 | 15/12/2022 Economy

Two 2023 growth scenarios for Vietnam
06:00 | 13/12/2022 Economy

PM: Green economic development a top priority
06:00 | 12/12/2022 Economy

Garment, footwear exports aim to reach US$80 billion by 2025
07:00 | 02/02/2023 Major exports

Vietnam pursues green foreign trade
06:00 | 02/02/2023 Foreign trade

Hanoi eyes 950 firms in support industries this year
06:00 | 02/02/2023 Support industries

Deputy FM highlights role of economic diplomacy in service of national development
11:05 | 01/02/2023 Policy

73rd anniversary of Việt Nam-Russia diplomatic ties marked
11:00 | 01/02/2023 Vietnam and EU
Multimedia

Vietnam plans to attract Chinese tourists
07:00 | 01/02/2023 Tourism

Dutch diplomat donates Vietnamese paintings to national museum
06:00 | 01/02/2023 Lifestyle

Key missions, solutions to socio-economic development in 2023
07:00 | 01/02/2023 Infographic

Cuc Phuong National Park among leading national parks in Asia
09:50 | 31/01/2023 Infographic

Tet impressive in foreign ambassadors' eyes
14:49 | 30/01/2023 Lifestyle

Deputy FM highlights role of economic diplomacy in service of national development
11:05 | 01/02/2023 Policy

Việt Nam supports expansion of UN Security Council
06:00 | 30/01/2023 Policy

Prime Minister assigns tasks to Deputy Prime Ministers
07:00 | 17/01/2023 Policy

Taking advantage of growth opportunities: Party leader
09:18 | 04/01/2023 Policy

Hanoi eyes 950 firms in support industries this year
06:00 | 02/02/2023 Support industries

Vietnam to reduce environmental impact of textile-garment industry by 2030
06:00 | 01/02/2023 Industry

Binh Lieu mountain region powers up
06:00 | 28/01/2023 Province

Steel industry to gradually recover in 2023
15:48 | 27/01/2023 Industry

January FDI nears US$1.7 billion
14:46 | 31/01/2023 FDI

Viet Nam calls for more investment in green growth
16:52 | 22/01/2023 FDI

Hanoi attracts nearly US$1.7 billion in FDI in 2022
17:43 | 03/01/2023 Metropolis

FDI disbursement exceeds US$20 billion
06:00 | 01/01/2023 FDI

State-owned banks under capital increase pressure
10:52 | 01/02/2023 Finance-Banking

Positive prospects for Vietnam’s stock market this year
14:48 | 31/01/2023 Stock Market

Positive 2023 securities market forecasts
06:00 | 20/01/2023 Stock Market

Banking sector stable, but challenges abound
06:00 | 16/01/2023 Finance-Banking

Vietnam looks ahead to 2023 climate summit
06:00 | 25/12/2022 Environment

Preserving nature, facilitating business
06:00 | 10/12/2022 Environment

AkzoNobel Vietnam protects Cu Lao Xanh lighthouse against harsh weather
11:40 | 24/11/2022 Environment

JTI Vietnam commits to net zero greenhouse gas emissions
16:25 | 15/11/2022 Environment

Managed security provides IT talent gap solution for businesses in SEA
16:34 | 30/01/2023 Information technology

Headquarters of Vietnam-Korea Institute of Science and Technology inaugurated
09:23 | 30/01/2023 Science - Technology

WHO to share mRNA vaccine technology with VietNam
09:14 | 30/01/2023 Science - Technology

Welcoming the year of digital data for Vietnam
16:57 | 22/01/2023 Digitalization

PM inspects national key transport projects
09:36 | 31/01/2023 Society

A great chance to invest in commercial property
10:46 | 30/01/2023 Property

Prime Minister launches New Year tree planting festival
15:36 | 27/01/2023 Society

Vietnamese celebrate Tet overseas
09:00 | 26/01/2023 Society

Nestlé Vietnam and the journey to sustainable development
13:00 | 10/01/2023 Companies

VIMC embarks on strong recovery
06:00 | 10/01/2023 Companies

MM Mega Market launches a new modern Giá tốt business model
16:18 | 30/12/2022 Vietnamese Brands

PVCFC develops experts’ system
08:00 | 25/12/2022 Vietnamese Brands

Dutch diplomat donates Vietnamese paintings to national museum
06:00 | 01/02/2023 Lifestyle

Tet impressive in foreign ambassadors' eyes
14:49 | 30/01/2023 Lifestyle

Norwegian Ambassador experiences Vietnamese Tet traditions
06:00 | 28/01/2023 Lifestyle

Chau Ma brocade lives on
06:00 | 27/01/2023 Lifestyle

Vietnam plans to attract Chinese tourists
07:00 | 01/02/2023 Tourism

The lure of Pu Luong
06:00 | 31/01/2023 Entertainment

Tourism is back, big time
06:00 | 30/01/2023 Tourism

Trang A Chu’s unique homestay
06:00 | 29/01/2023 Entertainment