Hien Thi Thu Hoang
-
1 publications
-
0 downloads
-
12 views
- 126 Views
-
0 books
-
What is the future of the bank branch in the midst of the 4.0 industrial revolution? Answers from Vietnam
Thuy Thu Pham , Hien Thi Thu Hoang , Ha Thi Thu Do doi: http://dx.doi.org/10.21511/bbs.17(2).2022.17Banks and Bank Systems Volume 17, 2022 Issue #2 pp. 199-208
Views: 610 Downloads: 238 TO CITE АНОТАЦІЯDigital channels (websites, bank apps, mobile banking) are incrementally improving as a result of technology innovation and changing customer behavior. The unprecedented Covid-19 pandemic has just added to this trend by urging people to work and make all financial transaction through the Internet. In this context, the question arises of whether banks should revive their physical branches or take the opportunity to shift to mainly digital platform? This research focuses on the branch network trend of Vietnamese commercial banks during the period 2012–2019 to answer the question, what is the contribution of bank branch networks to the banks’ profits. Panel data from 22 largest Vietnamese commercial banks in terms of owners’ capital has been analyzed, using Random Effect Model (REM) regression models. The results show that Vietnamese banks are still expanding their branch networks, despite the fact that bank customers are increasingly engaging in digital bank services. The number of branches has a positive correlation with the banks’ profits, although there is a disparity between large network banks and the rest. The research suggests some implications that can help optimize the branch network in the context of digitalization in an emerging market.