Việt Nam currently boasts the second-highest banking app penetration to its population globally. — Photo fintechmagazine.com
Up to 55.7 per cent of chief information officers (CIOs) in Việt Nam have expressed a preference to embrace the 'adopt and build' approach in their digital banking transformation, which is above the APAC average standard of 48 per cent, a Backbase report has revealed.
The report which drew insights from 125 banks and 316 CIOs in APAC, offering a regional perspective on digital transformation found out that among mid to large-sized banks in APAC, 65 per cent chose to develop their engagement banking platforms in-house for digital transformation.
However, out of these projects, build strategy for banking platforms resulted in 70 per cent of failed digital transformation for banks in APAC due to the costly and lengthy in-house efforts.
Case studies from the report showed out that a Tier 1 bank in Việt Nam opted to build its platform at a significant cost over two years, while another bank in a similar tier achieved a similar use case in half the time by leveraging the adopt & build strategy.
It also outlined cost (57 per cent), country infrastructure (39 per cent), and data security (34 per cent) as the top three challenges organisations in Việt Nam face on their digital transformation.
“Việt Nam currently boasts the second-highest banking app penetration to its population globally," said Riddhi Dutta, Regional Vice President, Asia of Backbase.
"With approximately 30 million digital banking users in the country and 90 per cent of banking transactions managed via digital channels, it is very compelling for banks to not only innovate digital banking around the customer, but to also be able to innovate at pace and at scale.
"We see banks starting becoming more and more strategic in the way they approach technology."
Founded in 2003 in Amsterdam, Backbase is a privately funded fintech company. It operations in Australia, India, Indonesia, Malaysia, Philippines, Thailand, Việt Nam, Latin America, and the UK.
Backbase has created the Backbase Engagement Banking Platform – a unified platform with the customer at the center, empowering banks to accelerate their digital transformation. — VNS