Banks Compete in Online Loan Disbursement

Customer identification technology is increasingly improving, enabling many banks to deploy "tailored" services that meet customer needs quickly, cost-effectively, and conveniently.

According to experts in the banking sector, the strong competition among commercial banks (NHTM) to develop online loan products and disbursement services indicates that the customer verification and identification technologies of many financial institutions have become quite advanced. This improvement allows banks to manage online loans more securely. Additionally, the legal framework regarding the loan application process, asset appraisal, and customer verification, which has been updated by the State Bank of Vietnam (NHNN), provides a solid foundation for digitizing data. This has encouraged banks to boldly apply online loan disbursement services, even for loans that require collateral.

Banking experts suggest that the trend toward personalizing financial services based on customer data analysis and management is receiving significant attention from commercial banks. This helps banks grow their retail sector and directs substantial resources toward customer identification, which includes knowing who the customer is, what they need, and when they need it.

This approach is similar to how fast-moving consumer goods (FMCG) companies develop networks and maintain customer care and after-sales services. Therefore, the development of services like online loan disbursement is a way for banks to enhance their competitiveness by offering convenience, user-friendliness, and meeting the increasing expectations of customers.

According to TPBank's leadership, the transition from the traditional model to a customer-centric service model, similar to FMCG business strategies, is a trend that many modern retail banks are likely to adopt. In early November, TPBank upgraded its digital document feature and modified the digital approval flow on its TPBank Biz application.

The update of these new features allows the bank’s customers to conduct loan transactions, disbursements, and online guarantees in compliance with NHNN regulations and the 2023 Electronic Transactions Law. It also helps the bank manage loans and securely handle customer data in a very tight and professional manner, minimizing risks related to capital use and debt collection.

Experts suggest that, in the context of the fast-paced digital transformation in the banking industry, data cleaning, system integration, and the application of artificial intelligence (AI) and machine learning will become more widespread in the coming years. As a result, the trend of "tailoring" products and services to customer needs will attract more financial institutions. Banks are well aware that their competitiveness and customer appeal now depend greatly on convenience, targeting the right audience, fulfilling the right needs, at the right time, and under the right conditions. This is no longer simply about traditional credit relationships based on habits, family ties, or proximity to a branch.