Thanks to many drastic and practical solutions, the non-interest income of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has shown positive results. In the first 9 months of this year, the net service income reached more than VND 3,667 billion, increasing by 21.5% (net increase of VND 648 billion) year over year. Especially, during the COVID-19 pandemic, the demands for and revenue from BIDV's e-banking services increased sharply, in line with the contactless payment trend.
BIDV has actively invested in building and digitizing its banking ecosystem for corporate customers with a variety of services. Specifically, BIDV has established a new online payment gateway connecting the accounting system of corporate customers with the BIDV iBank e-banking system.
Through BIDV iBank, customers can synthesize real-time data, update account information, including deposits, loans, guarantees, etc. Enterprises can easily and flexibly manage centralized cash flow, make the automatic capital transfer to suit their cash flow management needs.
BIDV iBank provides solutions for corporations to separately manage revenues through the nominal account system, 24/7 domestic remittance, and international remittance. Besides, BIDV iBank will provide a diversified statistical reporting system, designed to suit corporate needs so that they can easily control their financial situation. Trade finance transactions are also supported on BIDV iBank, helping corporations to optimize their supply chains.
Besides the e-banking application, BIDV's professional processes are also digitized, in connection with the payment and global partner systems. BIDV is one of four banks involved in the implementation of the ACH (Automated Clearing House) payment system with NAPAS.
Recently, BIDV has become the first Vietnamese bank to successfully apply blockchain in trade finance by issuing a cross-bank Letter of Credit (LC) on the Contour network - an international trade finance network consisting of many large banks and corporations.
Blockchain technology brings banks many benefits, such as significantly improved transaction speed, enhanced liquidity for both parties. With consistency and transparency, all parties involved can control and supervise the transaction process.
Thanks to the application of digital technology, BIDV's services are increasingly gaining trust from corporate customers. BIDV has deployed comprehensive financial service packages for major corporations and enterprises in Vietnam such as Airports Corporation of Vietnam - JSC (ACV), Vietnam Posts and Telecommunications Group (VNPT), Vingroup, Masan Group, etc.
BIDV's efforts in the digital application in trade - commercial transactions have received recognition from domestic and international organizations. Recently, BIDV has become the only bank in Vietnam to be named "Best Transaction Bank in Vietnam" and "Best Cash Management Bank in Vietnam" in 2020 by the Asian Banker, thanks to its effective payment solutions and cash management.
This award recognized a significant increase in both the volume and value of transactions in the cash management criteria, with the estimated domestic market of 40 percent in 2019. The revenue from cash management in the same year increased 36 percent to approximately USD 32 million, with more than 1,000 transaction points nationwide as well as a commercial presence in 6 countries and territories. Also, BIDV has established partnerships with 2,300 global financial institutions, creating the basis to support customers in conducting business and payment activities worldwide.
The representative of The Asian Banker emphasized that BIDV has promoted technology investment to develop digital banking, providing customers with comprehensive cash management solutions in the context of a heavy cash-dependent economy.
In 2018, BIDV iBank also won the "Top 10 SAO KHUE" title. This award is for excellent products of the software industry and information technology services. Along with the BIDV iBank product, BIDV was among 50 businesses to be given the "Outstanding digital transformation" award at the Vietnam Digital Award 2019 held by Vietnam Digital Communications Association. This annual award honors organizations and individuals for their achievements and contributions to digital economic technology development.
Compiled by VietnamCredit
