With more than 90% of transactions now conducted online, a major state-owned bank has shut down over 100 physical branches. Technology has also helped the banking sector block 390,000 suspected scam transactions worth nearly USD 61 million in the first nine months of 2025.
Deputy Governor of the State Bank of Vietnam Pham Tien Dung
VietinBank closes over 100 branches as 98% of clients go digital
At the Smart Banking 2025 event held on September 25 in Hanoi, Deputy Governor of the State Bank of Vietnam (SBV), Pham Tien Dung, revealed that VietinBank had closed more than 100 branches in a short span, as 98% of its customers now use digital banking services.
Among Vietnam’s “Big 4” banks, VietinBank has taken the most aggressive approach in branch closures. In the first half of 2025 alone, the bank shut down 66 branches nationwide, reducing its total number to 887 as of June 30.
Deputy Governor Dung noted that in the past, the banking sector aspired to reach 88% of adults having a bank account as the digitalization benchmark - but that figure has already been far surpassed. Each day, the Vietnamese banking system handles over 30 million transactions, processing approximately VND 900 trillion (USD 40 billion) daily.
He emphasized that the industry now possesses a vast and valuable data warehouse. Every aspect of data collection in the banking sector is strictly regulated, including statistical reporting systems, remote supervision, the Credit Information Center (CIC), and anti-money laundering efforts.
Deputy Governor Dung stressed that Vietnamese banks must not only create smart applications for customers but also ensure strong support systems that safeguard their rights and interests.
“Circular 50, effective from July 1, 2025, requires all banks to develop apps that meet rigorous standards. We cannot accept mobile banking apps that allow random photos to be matched with ID cards and still be validated,” he said.
He further emphasized that it’s critical to harness data effectively. Many banks have now established Data Departments with operational status equal to their core business units.
“A banking app must be smart, feature-rich, and user-friendly. We cannot just chant slogans without delivering truly excellent applications,” Dung noted.
Today, many banks allow customers to lock their cards instantly via the app instead of calling customer service. They also let users set daily spending limits to reduce potential loss if a card is stolen.
“Customer-centricity means making things easy and secure for them. Safety and uninterrupted operation are paramount for banking apps,” he added.
Data: A new frontier and challenge for the industry
Also speaking at the event, Major General Nguyen Ngoc Cuong, Director of the National Data Center under the Ministry of Public Security and Vice Chairman of the National Data Association, stated that data is critical to the banking sector, from customer profiles and transaction history to macroeconomic and market data.
Major General Nguyen Ngoc Cuong, Director of the National Data Center, Ministry of Public Security. (Photo: SBV)
He emphasized that accurate and comprehensive data analysis is the foundation for credit approval, risk management, and new product development.
However, Cuong also pointed out that data utilization remains challenging. Data often comes from multiple sources, leading to inconsistencies. Connectivity and data sharing are still underdeveloped. Moreover, using large-scale datasets raises concerns about security and personal privacy.
390,000 scam attempts blocked thanks to banking tech upgrades
Pham Anh Tuan, Director of the SBV’s Payment Department, stated that Vietnam’s interbank electronic payment system operates seamlessly, and financial products offered by banks are increasingly diverse.
Cross-border payments are now possible with Thailand, Laos, and Cambodia. By the end of 2025 or early 2026, outbound payments to China and South Korea may also become available.
Tuan shared an impressive figure: cashless payment volume grew by 30-40% year-on-year in the first nine months of 2025.
Many credit institutions have invested in upgrading storage and data management systems to enhance service quality. Banks are also applying new technologies to personalize offerings and better meet customer needs.
“Beyond building data warehouses, data cleansing is essential. By September 2025, the entire banking system had 128.9 million customer accounts matched with biometric data. All customers using digital services have had their biometrics collected,” Tuan said.
He added that the SBV is piloting a fraud prevention information-sharing system, currently deployed at five banks: VietinBank, BIDV, Agribank, Vietcombank, and MB. Full rollout is expected by the end of 2025.
As of September, these five banks had helped over 390,000 customers receive scam alerts and cancel suspicious money transfers, with a total value of over VND 1.5 trillion (USD 61 million).
