Hanoi (VNS/VNA) - Banking apps on cell phones are helping peoplein rural areas manage their finances, said Pham Xuan Hoe, deputy directorgeneral of the Banking Strategy Institute at the State Bank of Vietnam (SBV) atthe launching ceremony of the i3 programme held in Hanoi on November 14.

The i3 programme launched by MicroSave, MetLife Foundation and Vietnam Bank forSocial Policies (VBSP), which stands for Innovate, Implement and Impact, aimsto help these communities by supporting financial institutions that aredeveloping their digital transformation initiatives on this particular segment.The programme is expected to impact around 400,000 low-and-middle incomepeople.

“The SBV aims to leverage the accomplishments of the Fourth IndustrialRevolution with regards to digitalising activities in the banking sector tocreate quick access to financial resources for the people and businesses,” Hoe said.

Experts said despite a low rate of access to formal financial institutions, thebanking sector in Vietnam has witnessed a revolution.

Vietnam is projected to have the fastest growing retail banking market in Asia,with an expected compounded annual growth rate of 25 percent from 2016 to 2018.

However, more than 90 percent of payments remain cash-based because, he said,people still believe more in cash transactions.

“In order to change that habit, first of all it is necessary to give peoplegreater confidence in new forms of payment, then to take into account thefinancial services,” he said.

He added that the application of financial technology has had a great impact,especially for low-income people. However, there are still many things to do.

Manoj Sharma, managing director, Asia, MicroSave said: “While basic access tobanking services and products remains a challenge in Vietnam, the Governmenthas shown firm commitment through conducive policies that aim to advancefinancial inclusion.

“Through the i3 programme, MicroSave aims to work with strong and capablefinancial services and fintech institutions to design and deliver financialproducts and services that meet the needs of low and moderate income people,who aspire to lead financially healthy lives.”

Gaurav Sharma, CEO and general director, BIDV MetLife Life Insurance LLC said:“Vietnam is undergoing a historic and exciting growth phase, making this theright time and perfect opportunity to ensure the growth is inclusive andequitable. MetLife Foundation is very well aligned with the VietnameseGovernment’s priority of improving financial health of low- to moderate-incomepeople, and the i3 programme is a great example of that. We hope to create apositive impact on the financial lives of two million people across Vietnamwith this initiative.”

“With the goal ’Not let the Fourth Industry Revolution ignore the poor’,through the co-operation with MicroSave at the i3 programme, we expect to raisedigital financial literacy for the poor, help increase and improve access tothe full range of digital financial services to those who lack access totraditional banking services, accelerating economic opportunities forlow-income households and women-led microenterprises,” said Bui QuangVinh,VBSP’s Deputy General Director.

At the launching ceremony, Vietnam Bank for Social Policies and MicroSavesigned a memorandum of understanding for cooperation.

Under the MoU, the bank would continue implementing the second phase of themobile banking service project designed to improve access to a full range offinancial services for low-income households, especially women-ledmicro-enterprises that lack access to traditional banking services. TheMicroSave would provide technical and consultancy supports worth 50,000 USD toVBSP.

The project which was implemented in cooperation between VBSP, Mastercard andthe Asian Foundation over three years sent account-related information via SMStexts to clients, thus improving transparency and reducing delinquency rates. -VNS/VNA