IBK Enterprise Bank is building a non-face-to-face channel and remittance system for its local branch in Vietnam. The strategy aims to transition from the existing sales system centered on Hanoi and Ho Chi Minh branches to a local branch system and expand financial support for domestic and local small and medium-sized enterprises in Vietnam.
According to the financial industry, IBK Enterprise Bank is developing a non-face-to-face financial transaction screen for use in its local branch in Vietnam. The screen will link the input information to the bank's transaction system and handle deposit and loan transactions.
This development marks a shift from IBK Enterprise Bank's preparation for establishing a local branch in Vietnam to actually implementing operational functions. While efforts have been made to establish a data center, disaster recovery system, and security infrastructure, the focus is now on implementing core business systems to handle customer deposit and loan transactions.
The non-face-to-face channel is expected to broaden the initial scope of operations for the local branch. Currently, the operational hubs in Vietnam are limited to Hanoi and Ho Chi Minh, but the non-face-to-face channel can expand the reach to various regions, complementing the physical branch network and increasing interactions with dispersed corporate customers.
The remittance system serves as a foundation for IBK Enterprise Bank to apply its accumulated financial capabilities for small and medium-sized enterprises in the Korean market to the Vietnamese market. With the local branch equipped to handle deposit and loan transactions, the strategy to expand the customer base to not only Korean companies but also local Vietnamese small and medium-sized enterprises can be realized through actual financial services.
IBK Enterprise Bank's strategic focus on the Vietnamese market is increasing. It is reported that IBK Enterprise Bank plans to invest $280 million in operating funds for the establishment of a local branch. This amount considers minimum operating funds, establishment costs, and expanding the local network. The proportion of local business loans in Vietnam has increased from less than 5% in 2020 to around 23% by 2025.
With over 10,000 Korean companies operating in Vietnam, IBK Enterprise Bank plans to expand its operational network around major industrial complexes following the establishment of the local branch. The bank aims to significantly increase financial support for Korean and local Vietnamese small and medium-sized enterprises.
In April, IBK Enterprise Bank acquired approval for the establishment of a local branch from the Central Bank of Vietnam, approximately nine years after applying for the license in 2017. The bank is preparing for an official launch in October, with the existing Hanoi and Ho Chi Minh branches set to be absorbed into the local branch.
A financial industry official stated, "The approval for the local branch lays the institutional foundation for expanding operations, while the establishment of the non-face-to-face channel and remittance system is the process of connecting this to actual customer transactions." They added, "This lays the groundwork for IBK Enterprise Bank to apply its financial capabilities for small and medium-sized enterprises in the Korean market to the Vietnamese market."