DongA Bank plans to launch 150 Auto Banking zones, which help customers enjoy all the bank's services, by the end of 2015. — VNA/VNS Photo Hoang Hai

HCM CITY (Biz Hub) — Domestic commercial banks need to give top investment priority to information technology if they want to develop better retail banking strategies, according to independent market watchdogs.

Analysts said that most commercial banks in the country have implemented strategies to develop retail banking but they need to create an adequate technological infrastructure to reduce risks.

Senior banking expert Dr. Can Van Luc said by 2020 most commercial banks would still distribute their products and services through branches and transaction offices.

"To ensure the effectiveness of these facilities, the banks should restructure and allocate them in a more proper way," Luc told Dau Tu Chung Khoan newspaper.

"Strong technology development has encouraged people to use modern devices such as mobile phones, the internet and social websites to access financial and banking services. So, investing in information technology is necessary for the banks to develop retail banking activities," he said.

Luc said that banks should outline digital banking strategies and they must also apply digital technology to the current business model and develop measures to improve the value of services.

He advised lenders to be aware of the importance of managing risks as well as protecting customers' private information. Risk management capability at banks was still low, he said.

Tran Cong Quynh Lan, vice general director of Vietinbank, said the retail banking market had many different segments so the banks should invest in technology to diversify products and services to meet customer demand.

The country's deeper global integration and the participation of more overseas banks in Viet Nam require that domestic commercial banks use modern technology to improve their competitiveness.

The CEO of Infobip Pham Gia Dan said domestic banks needed to diversify distribution channels in order to expand retail banking services.

"To do this, modernising technology infrastructure is necessary. Customers would be easier to get access to financial and banking services thanks to the latest software," Dan said.

However, banks' technological capability was not uniform and as a result customers can encounter risks.

According to a report from the World Bank, only 31 per cent of the country's population of more than 90 million have bank accounts, nearly half of the world's average rate.

As such, the Vietnamese retail banking market has great potential with many opportunities to develop.

To tap the market, banks must place customer experience as a top priority in order to ensure the long-term development of the retail banking sector, experts said. — VNS