2 in 5 Vietnamese consumers will give up lengthy online bank account applications

Pandemic is driving a digitally driven mindset around financial services

Hanoi, Vietnam, September 8, 2021 / PRNewswire / –

Strong points

• 2 in 5 Vietnamese expect to answer 10 questions or less or they will abandon a request

• 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 people in Vietnam expect a smooth banking experience when it comes to opening an account through a mobile app or website, with two in five expect to answer 10 questions or less or they will abandon the process. One in six Vietnamese give up if asked more than five questions.

“The pandemic is driving a digitally driven mindset in Vietnam with 63% of consumers more likely to open an account digitally than a year ago “, noted Ashish sharma, Senior Director of Decision Management Solutions for FICO in Asia Pacific. “The number of consumers who prefer to open bank accounts digitally has grown to 44% and continues to rise, which is important in a country with a strong branch culture. “

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

Turning friction into momentum

The survey found that consumers’ patience with account apps varied by product. The Vietnamese had the highest expectations of 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 transaction account.

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

The story continues

“Where there is friction there are opportunities, 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 enforcement questions through technological approaches such as enhanced identity checks, transaction history analysis, open data stores, and government databases. “

Mortgages deserve a closer look

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

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

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

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

Do not change the channel

Vietnamese who open an account digitally prefer to complete the process entirely in whatever channel they want, be it a smartphone or a website. If customers are asked to leave the channel to prove their identity, many of them will drop the request, either by waiving the total opening of an account, or by contacting a competitor. Of those who do not immediately give up, up to one 20% more 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 causes almost as many application drop-outs as asking them to visit branches or post documents.

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

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FICO SOURCE