Free ATM cash withdrawals help ANZ expand retail segment

ANZ Vietnam has just announced ANZ Visa debit cardholders would enjoy free cash withdrawals across the Visa network, why did the bank decide not to charge cash withdrawals at 13,000 ATMs of 19 banks as this could affect revenue of the bank?

This is part of our efforts to bring greater benefits and convenience to our clients when they transact with ANZ and use the bank’s services. Specifically, for this case, ANZ Visa Debit cardholders can easily withdraw cash from 13,000 ATMs free of charge without having to come to an ANZ branch or an ANZ ATM. Greater convenience will enhance the banking experience satisfaction and deepen the relationship, which in turn will be mutually beneficial for both the customers and the bank in the long run.

Recently, some local banks have even charged cash withdrawals from their ATMs, but ANZ Vietnam is likely to go against this trend as allow cardholders even withdraw cash from ATMs of other banks without fees. Is that a part of ANZ Vietnam's strategy to expand business in retail segment?

Our ultimate objective is to build a meaningful banking relationship with our customers. The above initiative is aimed at improving accessibility and convenience for our customers, which is aligned with the ultimate objective. Also, while access to a physical branch network is important in driving share of banking relationship, banks need a prepare for a more multichannel environment; examples of alternative channels include internet banking, mobile phone banking, contact centres, and ATM. What we do is enhance our multichannel infrastructure to be able to better respond to our customers. This is an important component in our retail banking strategy.

You once said this would bring greater benefits and convenience to ANZ Vietnam's clients. However it will encourage people to use cash but not card for their payments. So how can you encourage people to use debit cards for payment when they can withdraw cash from their Visa debit cards without being charged?

The key here is to bring the meaningful convenience to customers when they use banking services. ANZ Visa Debit indeed allows customers to transact online, for example flight or hotel booking, dine at restaurants, or shop at shopping malls. For customers using cards instead of cash, we do have programs like ANZSpot which offers discounts for ANZ Card holders at hundreds of merchants across Vietnam, or 5 per cent additional discount on prepaid hotel booking at agoda.vn/anz using ANZ Visa Debit cards.

At the same time, we can’t deny the fact that cash use will remain. It will go down, but it will not disappear. Then the question is when a customer wants cash, how can we help him or her have it in the easiest and most economical way? Waiving cash withdrawal fee at 13,000 ATMs in Vietnam is the answer to the question.

Most Vietnamese still have habit of using cash for transactions, how do you access the potential for card services Vietnam?

It’s true that cash use remains popular in Vietnam, and the proportion of the population having bank accounts and cards is still very low. This also points to the growth potential of debit cards and credit cards in Vietnam. This is evidenced by the high growth of card penetration in Vietnam in the last few years. To give an example, our ANZ Visa Platinum Credit Card base has doubled in the last 10 months. The potential upside is significant.

>> Free ATM cash withdrawals for ANZ Visa debit cardholders