There is an increasing preference for digital banking and new payment modes such as mobile banking apps, e-wallets, QR code-based payments, e-commerce payment platforms and mobile wallet debit or credit cards among Vietnamese consumers, the United Overseas Bank (UOB) said in its report “ASEAN Consumer Sentiment Study" (ACSS) which was launched on November 1.
Paul Kim, Head of Personal Financial Services at the bank, stressed that as the Vietnamese consumers become more digitally proficient, there is a surge in the use of mobile apps; however, when it comes to complicated transactions such as high-value transactions, restructuring of bank loans and insurance purchase, they prefer offline channels.
Every four among five consumers use e-wallet at least once a week and introduce the wallet to others. Momo was the most used e-wallet by Vietnamese, followed by ZaloPay and VNPay.
Regarding the sentiment of the Vietnamese consumers, Paul Kim said strong economic growth has made them feel more upbeat about the current and future economic situation in the country.
Although rising inflation and increased expenses have fueled fears of an economic downturn across ASEAN, consumers in the region have given a warm welcome for a new era of digitalisation.
The UOB expert said Vietnamese consumers are more upbeat about the financial future than those in other countries. Some 76% of the respondents expect to be better off in June next year, while the figures in Indonesia and Thailand are 74% and 68%.
The report also said that eight out of 10 Vietnamese consumers are concerned about their finances. They are most worried about not being able to save, afford essential items, maintain their current lifestyle, and take care of their parents’ financial and healthcare needs. Therefore, they are more cautious about their investment.
Meanwhile, II Dong Kwon, the Vietnam lead at Boston Consulting Group, highlighted that with the boom of the Internet, Vietnam has posted a dramatic increase in online shopping and e-commerce which experience an annual growth of 41% in the past three years.
Online payment has surged as a result, he said, adding the trend will maintain and grow stronger in the time ahead./.
