Vietnam-based financial institution Sacombank has partnered with cloud banking platform Temenos to boost its digital banking services. Sacombank has selected the Temenos Infinity platform, an omnichannel, multi-experience platform-based product enabling a comprehensive 360-degree customer view, which is believed to help the company to acquire, service, retain and cross-sell to customers on a multitude of channels and devices through the use of native features.

The platform offers pre-composable banking services that are built on microservices and made accessible via APIs, enabling Sacombank to develop products that bring benefits to consumers and businesses alike in a quick manner. Furthermore, Temenos’ open and composable platform will support Sacombank in connecting with ecommerce providers, social networks, and other online services to help accelerate a cashless ecosystem, something that is a priority for the Vietnamese government. Speaking on the announcement, Sacombank officials have stated that the implementation of an omnichannel platform marks an unavoidable step in the company’s goal of making a breakthrough in digital business.

Sacombank believes Temenos to have the best capacity and technology in omnichannel, and with a consultant team that is experienced with the implementation of similar projects at other banks and financial institutions, Temenos is seen as having the ability to support Sacombank with its digital business strategy implementation to further innovation. Temenos representatives have stated that Vietnam is a strategic market for the company, having over 20 Vietnamese banks already running on their core banking technology, and with adding Temenos Infinity to the bank’s technology stack, they are hoping to help Sacombank’s development and open new opportunities, while simultaneously delivering an improved experience to their customers. Digital financial services in Vietnam and consumer readiness The digital banking space in Vietnam is seeing continuous development following a rapid fintech adoption, a booming ecommerce industry and the impact of the pandemic.

Digital financial services’ revenue in Vietnam is expected to reach USD 3. 8 billion by 2025, and mobile transactions in the country are believed to increase by a 300% between 2021 and 2025. Vietnam has some of the least bank branches and ATMs in the ASEAN region, with only a 30% of the population being banked and 2% of the adult population having a credit card.

However, an approximate of 72% of the adult population owns a smartphone, and internet penetration is at 66%, with the country having more than 4. 2 million digital wallet users spread over roughly 20 digital wallet brands. A wide majority of Vietnamese banks have implemented or are developing digital transformation strategies, with 93% of banks investing in technology innovation looking to expand to digital banking, as per an SBV survey.

Vietnamese incumbents are increasingly partnering with fintech to support said innovation, as the country has emerged as a startup hub for fintechs. For Vietnamese banks, the top two priorities are the modernisation of their core banking and payments system. When talking about digitisation transformation in banks, major developments to be done include introducing online real-time trading systems, robotic process automation, AI applications, and third-party data in risk management.

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