October 26, 2020 Vietnam ICT/Financial Inclusion

Mobile Banking in Vietnam – Partnership Impact Study

Financial Inclusion and Economic Empowerment for the Low-Income Population and Women 

Although 72 per cent of Vietnamese adults have smart phones, many don’t use them for digital financial transactions. Cash transactions remain a popular payment method. To help improve affordable mobile banking access for Vietnam’s low-income communities, a BPP partnership between the Australian Government, Mastercard, The Asia Foundation and The Vietnam Bank for Social Policies (VBSP) is digitising essetential banking services and growing VBSP’s customer base.

The partnership’s phase one ran from 2016 – 2018, while phase two commenced in 2019 and will continue until 2021. Phase one exceeded planned targets, reaching 5.1 million clients (51 per cent of whom were women) across 63 VBSP branches with SMS banking notifications. Notifications included alerts for services like repayment schedules and monthly account balances.

The partnership continues to retain a strong focus on women’s empowerment. With the introduction of new mobile banking technologies and SMS notifications, female clients reported being able to better manage their household finances and their businesses. The partnership is now developing a mobile banking platform and prioritizing female access and financial literacy training. It is expected that more than 2,000 people will adopt the mobile banking platform by the end of 2021, while 51,000 people will benefit from the financial literacy training.

Read more insights and results in the Vietnam Impact Report.

Partners

The Vietnam Bank for Social Policies

The Vietnam Bank for Social Policies (VBSP) is a government-owned bank, taking the lead in policy and the microfinance field in Vietnam. It enables financial inclusion of the poor and policy beneficiaries through grassroots networks, appropriate infrastructure, socialised procedures and skilled staff.

The Asia Foundation

The Asia Foundation is a nonprofit international development organization committed to improving lives across a dynamic and developing Asia. Informed by six decades of experience and deep local expertise, our programs address critical issues affecting Asia in the 21st century—governance and law, economic development, women’s empowerment, environment, and regional cooperation. In addition, our Books for Asia and professional exchanges are among the ways we encourage Asia’s continued development as a peaceful, just, and thriving region of the world.

Headquartered in San Francisco, The Asia Foundation works through a network of offices in 18 Asian countries and in Washington, DC. Working with public and private partners, the Foundation receives funding from a diverse group of bilateral and multilateral development agencies, foundations, corporations, and individuals. In 2014, we provided more than $108 million in direct program support and distributed textbooks and other educational materials valued at over $11 million.

Mastercard

MasterCard is an American multinational financial services corporation. Its principal business is to process payments between the banks of merchants and the banks or credit unions of the purchasers who use MasterCard.

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