Malaysia's CIMB greenlit to increase charter capital for Vietnamese bank arm

CIMB from Malaysia aims to capitalise on Vietnam's growing banking sector

Accordingly, the State Bank of Vietnam (SBV) promulgated Decision No.1241/QD-NHNN amending the charter capital in the bank’s licence. Over the past two years, CIMB Vietnam has continuously increased its charter capital, reflecting its long-term commitment in the country.

Thomson Fam Siew Kat, CEO of CIMB Vietnam, said: “Vietnam is deemed as one of the most dynamic finance and banking markets in Asia as well as one of our priority markets. The increase of charter capital will facilitate CMIB to expand our investment, focusing on providing Vietnamese customers with modern finance and banking products as well as improving their experiences with high-quality products and services. CIMB has also signed partnership agreements with some strong partners in Vietnam to complete our digital banking ecosystem.”

CIMB Group is one of the biggest investment banks in Asia with more than 34,000 staff, providing services to over 16 million customers worldwide, including Vietnam.

CIMB Vietnam officially received a licence in 2016. The bank has two branches in Hanoi and Ho Chi Minh City. It focuses on developing a modern and creative digital banking model.

Vietnam's young, digitally-savvy population is growing fast and showing huge demand for digital financial and banking services. The young generation with access to mobile devices and upcoming 5G technology are willing to use their disposable income beyond traditional banking. The government also targets the banked population to increase from 40 to 80 per cent in the near future. Therefore, there will be huge potential for digital banking service providers to thrive in Vietnam.

According to the Fintech & Digital Banking 2025 Asia-Pacific report published by Backbase and IDC, mobile transactions in Vietnam are expected to increase by 300 per cent between 2021 and 2025, led by an upsurge in mobile payments. With shifting demands for financial solutions amid an increasingly digitally savvy consumer banking segment, banks are faced with an urgent call to reinvent their banking infrastructure to provide their customers with value-added services and alternatives across multiple engagement touchpoints, including mobile.