Banknetvn mergers with Smartlink

The two largest banking card networks in Viet Nam, Banknetvn and Smartlink are merged in a move to develop infrastructure for retail banking and non-cash payments in Viet Nam. - File Photo

Banknetvn and Smartlink agreed on their merger in November 2012, as directed by the Governor of the State Bank of Vietnam, when their charter capital reportedly reached approximately VND130 billion ($6.19 million) and VND50 billion ($2.38 million), respectively.

Banknetvn was founded in 2004 and now has 28 member banks. Meanwhile, Smartlink was established in 2007 and currently links more than 50 banks and financial institutions as well as aviation and telecommunications enterprises.

After the merger, the new organisation will retain the name Banknetvn.

The prime minister signed Decision No2327/QD-TTg approving contrentrated economic exemption after the merger. The exemption period is set for five years and will be automatically renewed if both parties joining the concentrated economic do not violate the exemption’s conditions and obligations.

The granted exemption is said to create a national retail payment infrastructure and promote socio-economic development for the benefit of Vietnam’s citizens.

SBV will become the governing body and the largest shareholder in the company after the merger. The organisation will carry on reviewing and organising commercial banks’ ATM and POS systems to enhance investment efficiency, reduce costs, improve service quality, develop and diversify value-added services via the unified system.

In addition, it also makes a commitment to maintain and improve the quality of services during and after the merger and maximise its effort in the development of advanced payment services and non-cash payment in Vietnam.

Pham Tien Dung, Banknetvn’s chairman shared that after the merger, both parties would be technically unified. Customers can make transactions via any ATMs in the Banknetvn’s alliance.

“Our commitment is to ensure the merger will not affect our customer services. We will have a plan for the transition to take place smoothly and not to disrupt banks’ operation,” stressed Dung.