Banks adjust service fees to boost retail banking segment

Commercial banks have adjusted their service fees to individual customers since the beginning of the year in order to focus on the retail segment.

For money transfer services in the same banking system, some commercial banks, such as VIB, VietinBank and Techcombank, do not charge for individual customers when using electronic services.

These banks charge VND8,800 for the maintenance of their accounts.

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Commercial banks are focusing on the retail segment by adjusting their service fees to individual customers since the beginning of the year. - Illustrative image (Source: Vietcombank)

In addition, the fee for money transfer services among different banks is  VND9,900 or higher per transaction, or as a percentage of the transaction amount ranging from 0.1% to 0.3%.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has increased its service fees since the beginning of this month.

The monthly fee of its SMS banking service increased from  VND8,800 to  VND11,000, including VAT (value-added tax).

Vietcombank has begun charging VND2,200 per transaction from Vietcombank account holders via its mobile banking app from March 1.

For internet banking service, Vietcombank’s customers will have to pay 2,200 VND for each transaction worth less than  VND50 million (US$2,196) and  VND5,500 for each transaction worth more than  VND50 million.

The fee for an inter-bank transaction of below  VND10 million is  VND7,700, and when the amount is more than  VND10 million, it charges 0.02 percent of the total amount per transaction.

Financial expert Bui Quang Tin said that the competition among bank service fees was quite fierce as some banks offered free of charge inter-bank money transfer services in order to attract more customers.

"The recent increase in banking service fees at several commercial banks is understandable as the banks must invest more money to ensure security systems meet stricter requirements from customers," he said.

According to the State Bank of Vietnam, commercial banks issued 132 million cards as of the end of last year.

Last year, the number of transactions, including withdrawals and transfers, via ATMs was over 206 million transactions valued at  VND563 trillion ; while there were 43.5 million POS and EDC transactions with a total value of VND95 trillion.

As for domestic transactions for non-cash payments, bank cards ranked second in terms of the number of transactions.

Individual deposit account balances increased by  VND42.6 trillion to  VND325 trillion in the fourth quarter of last year.

With a population of more than 93 million and rising consumption, Vietnam is considered a destination in the retail banking segment.

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