In recent years, income, awareness, and life quality of people provincial rural areas have been continuously improved, so the demand for banking services is also increasing. Therefore, banks are trying to exploit the potential from the rural market.
More potential
Previously, bank transaction offices were often concentrated in densely populated areas, near Ho Chi Minh City such as Thu Dau Mot City, Thuan An Town, and Di An Town. Now banks are expanding their transaction offices to rural areas. It is noted that, at present, the banking network in central areas of the province is quite dense, namely on Binh Duong Boulevard, there are 4 - 5 bank transaction offices located near each other. Having too many banks on such a road makes the competition to attract customers fiercer.
Clients make transactions at Minh Hoa Transaction Office (Minh Hoa commune, Dau Tieng district) of Agribank - Dau Tieng district branch.
In the last 3 years, banks have actively expanded rural markets in the province to exploit its potential. Specifically, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) - Binh Duong branch opened a transaction office in Tan Thanh, North Tan Uyen district. In 2018, the transaction office was very active; the number of money transfer, money receiving transactions, deposits and loans increased by over 10% only one year after its establishment.
The representative of Sacombank - Binh Duong branch said that although the population density in rural areas was not much, the income level and life quality of people were improved quickly, so the demand for banking services increased. At the same time, infrastructure in this area is being invested and upgraded strongly. These are important factors for the bank to boldly open a transaction office here.
Le Van Chuc, in Lai Uyen town, Bau Bang district, said that since the bank expanded its network to his town, many people like his family had been able to access convenient banking services, such as deposit, money withdrawal, transfer. In the future, these services shall be expanded so that people have better opportunities to use banking services.
To enhance appropriate products
The recent opening of many banks in rural areas in the north of the province has recently received agreement from local authorities and people in the province. Besides creating favorable conditions for people in rural areas to borrow loans, the establishment of transaction offices in rural areas will contribute to diminish "black" credit. This trend is also included in the policy of State Bank of Vietnam (SBV) to improve credit institutions’ capability to provide services and access to banking services for rural people.
Vo Dinh Phong, Director of SBV - Binh Duong Branch, said that in the past, banks had only focused on opening branches in populated areas, creating large gaps in rural areas. At present, intellectual standards and incomes of rural people in the province are greatly improved, so the potential of this market for banks to exploit is huge. In recent years, SBV has a policy to encourage credit institutions to expand their network in places that have not meet people demand for bank loans, especially in rural areas. This is the basis for credit institutions to create good conditions and opportunities, help people in rural areas access and use banking services more quickly and efficiently.
In order to increase capital supply capacity and operate effectively, credit institutions need to increase accesses and linkages to bring appropriate banking products and services to customers in rural areas. This is a practical solution for banks to expand their networks and provide the most suitable financial services for rural customers today.
Mr. Phong said that the current idle capital source among rural people is very potential. Therefore, credit institutions need to diversify and improve the quality and forms of products, services. Besides, credit institutions also need to implement some other solutions such as developing distribution network (both traditional and online channels such as ATM, POS, mPOS, Mobile Banking, Internet Banking...), improve customer service quality in rural areas...
Reported by Thanh Hong – Translated by Ngoc Huynh
