2 out of 5 Vietnamese consumers will abandon lengthy online bank account inquiries

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The pandemic is spawning a digital-first mindset around financial services

Ha Noi, Vietnam, September 8, 2021 /PRNewswire/ —

The pandemic is driving a digital mindset in Vietnam when it comes to opening bank accounts.

Strong points

  • 2 out of 5 Vietnamese expect to answer 10 questions or less or they will give up an application

  • 63% of consumers are more likely to open an account digitally than a year ago

  • 25% of Vietnamese say financial institutions ask too many questions

FICO’s 2021 Digital Banking Survey shows that people in Vietnam expect a seamless banking experience when opening an account through a mobile app or website, with two in five expect to answer 10 or fewer questions or they will abandon the process. One in six Vietnamese will give up if asked more than five questions.

“The pandemic is driving a digital-centric mindset in Vietnam with 63% of consumers more likely to open an account digitally than a year ago,” noted Aashish SharmaSenior Director of Decision Management Solutions for FICO in Asia Pacific. “The number of consumers who prefer to open bank accounts digitally has risen to 44% and continues to rise, which is significant in a country with a strong branch culture.”

More information: https://www.fico.com/en/solutions/account-opening

Turn friction into momentum

The survey found that consumer patience with account requests varied by product. Vietnamese had the highest expectations for completing applications in 10 questions or less, for savings accounts (53%), transaction accounts (51%) and Buy Now Pay Later products (47%).

Interestingly, this expectation was significantly higher than in the other countries in the survey. For example, just 41% of UK consumers and 51% of Australian consumers should answer 10 questions or less when opening a trading account.

Overall, Vietnamese consumers want digital experiences that reduce friction and inconvenience. They expect their main bank to know them, 70% want prove your identity online and 25% of Vietnamese say financial institutions ask too many questions.

“Where there is friction there is opportunity, as the quote says,” Sharma said. “Either you solve it for your customers today or a competitor will do it tomorrow. Consumers want banks to find answers to application questions through technology approaches such as enhanced identity checks, transaction history, open banks and government databases.”

Mortgages deserve more attention

The survey showed that increased friction and security is deemed appropriate by consumers when it comes to applying for and onboarding specific high-value financial products.

Despite relatively high levels of ease and confidence in applying for everyday online financial products such as checking accounts, savings, loans and credit cards, more than half (61%) of customers surveyed s expect greater rigor in mortgage applications.

Research has shown that only 31% of Vietnamese would apply for a mortgage digitally, compared to the survey average of around one in three (34%). In all countries except United States and in the UK, branch openings are preferred to online methods. South Africa was a modest outlier with 43% of customers preferring online mortgage applications.

More than one in two Vietnamese respondents (56%) said they were willing to answer 11-20 or more questions when it came to applying for a mortgage online.

Don’t change channels

Vietnamese who open an account digitally prefer to complete the process entirely through their channel of choice, be it a smartphone or a website. If customers are asked to leave the channel to prove their identity, many of them will abandon the app, either by completely renouncing the opening of an account, or by going to a competitor. Among those who do not give up immediately, until a Another 20% will delay the process.

The investigation revealed that any disruption is significant. Asking people to scan and email documents or use a separate identity portal results in almost as many app dropouts as asking them to visit branches or send documents by mail.

This survey was conducted in January 2021 by an independent research company adhering to the standards of the research industry. 1,000 Vietnamese adults were interviewed, as well as 13,000 consumers in the United StatesUK, Canada, South Africa, Australia, New Zealand, Indonesia, Malaysia, The Philippines, Thailand, Brazil, Colombia and Mexico.

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