Transactions at HDBank. People education is said to be vital to retail banking development. ― Photo nld.com.vn

HA NOI ― The most important element in developing retail banking is to educate people about the sector.

This was an opinion provided by the ANZ director of Retail Banking, Asia Pacific, Sanjoy Sen during a working visit to Viet Nam on Wednesday.

He said that although education on retail banking and its new investment products took time, when customers understood what was available they would appreciate the products.

"Operating in emerging markets means a long-term commitment," Sen said. The competition was not with other banks, but with cash. When people borrow big amounts of money to purchase high value properties, it helps develop retail banking services alongside with the non-cash payment method, because of people's habit to use cash and not borrow.

In developed countries, before they start to earn they borrow money, and this is one of driving factors for retail banking to develop.

Meanwhile, Viet Nam's potential for the sector was high, with around 90 million population, increasing income and improving technology.

When switching to retail, banks would achieve a greater market share and potentially reduce risks in doing business, Mekong Bank CEO Tay Han Chong told the Securities Investment.

State Bank of Viet Nam-HCM City branch deputy director Nguyen Van Dung said "Eighty per cent of banks operating in HCM City chose retail banking as their strategic development."

Commercial banks could succeed in retail banking by selecting the right strategy to achieve growth, Sen said.

Meanwhile, he urged the Vietnamese Government to make all economic and business activities transparent and ensure that everything, such as taxes, flows through the banking system. ― VNS