Banks expand networks to attract more customers

Along with promotion programmes, banks have been expanding their networks in an aim to reach their annual targets.

In recent months, more bank transaction offices and branches have opened to welcome both individuals and enterprises as customers.

For instance, the An Bình Commercial Joint-Stock Bank has opened 11 branches and transaction offices in Đà Nẵng and the provinces of Lạng Sơn, Nghệ An, Bình Dương and Gia Lai.

Bắc Á Bank, by the end of last quarter, had expanded to include 100 transaction offices in 20 province and cities. TP Bank also plans to open more offices in provinces and cities nationwide.

A leader from An Bình was quoted as saying in Người Lao Động (The Labourer) newspaper that expansion was one of the most important steps in becoming a leading bank in the retail market.

An expert told the newspaper that estimated growth of the national credit market this year would be 17-18 per cent against last year, if growth increases by 3 per cent per month in the last few months.

He said this was a good time for banks to expand and introduce promotions to reach their year-end targets.

As the banking system is too small to fully meet demand, expansion would improve service quality at banks, he added.

The representative from An Bình Bank said there was strong demand for bank expansion, as this is a traditional channel to approach customers in all regions of the country.

Morever, demand for lending at the end of a year is very high, prompting banks to expand to serve more customers.

However, with the opening of more branches and transaction offices, risks can increase as customers worry that service quality and technology will be inadequate. Human resources and management skills may not be ensured as well.

Experts, however, said there was no need for concern as regulations on controlling expansion in the banking sector, in which banks must show profits and have no more than a 3 per cent bad-debt ratio, would lower the risks.

Bank expansion will help improve quality and competitiveness as well as increase each bank’s market share, according to experts.