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Three banks in Vietnam have raised their SMS fees at the start of this year to encourage customers to switch to digital banking apps to get notifications for free.
January 3, 2024
Three banks in Vietnam welcomed the new year by raising their SMS fees to encourage customers to switch to digital banking apps to get notifications for free, according to the Vietnam News Agency.
Beginning this week, Vietcombank is charging 10,000 Vietnamese dong (US$0.41) per phone number for less than 20 messages per month. After 20 SMS notifications, the bank will charge VND700 ($0.029) per SMS (excluding VAT). Previously, the bank charged a monthly fixed fee of VND10,000. Vietcombank will also stop sending SMS notifications for transactions below VND50,000 ($2.05).
Asia Commercial Joint Stock Bank (ACB) is charging VND15,000 ($0.62) per month for the first 20 SMS and VND700 for each SME from the 21st one. Meanwhile, the Cooperative Bank of Vietnam (Co-op Bank) increased its SMS fee to VND16,500 ($0.68) per month (including VAT) and stopped sending SMSs for transactions below VND20,000 ($0.82).
All three banks are encouraging customers to download their respective digital banking app where notifications are sent at no extra charge. At present, banks used SMS via telecom operators to send notifications to customers.
Vietcombank, ACB and Co-op Bank are not the only Vietnamese banks to increase their SMS fees in recent months. In September last year, Sacombank, VPBank and VietinBank adjusted their SMS charges and stopped sending SMS for transactions of modest sums.
Telcos' SMS charges are too expenses
According to media reports, Vietnamese banks do not earn profits from SMS banking services because of high charges from service providers.
Nguyen Quoc Hung, general secretary of the Vietnam Banking Association (VBA), reportedly said banks pay higher fees for delivering their SMS messages at a rate of three times higher than the normal SMS charge.
An estimate by the VBA showed that the country's banking system is paying hundreds of billions of đồng per month in telecommunications service fees. Hung said banks have suffered losses and they have been urging service providers to reduce these fees.
"Now, banks were promoting digitalization and encouraging customers to install digital banking apps to get notifications for free," Hung said.
Read more about:Asia
Senior Editor, APAC, Light Reading
Gigi Onag is Senior Editor, APAC, Light Reading. She has been a technology journalist for more than 15 years, covering various aspects of enterprise IT across Asia Pacific.
She started with regional IT publications under CMP Asia (now Informa), including Asia Computer Weekly, Intelligent Enterprise Asia and Network Computing Asia and Teledotcom Asia. This was followed by stints with Computerworld Hong Kong and sister publications FutureIoT and FutureCIO. She had contributed articles to South China Morning Post, TechTarget and PC Market among others.
She interspersed her career as a technology editor with a brief sojourn into public relations before returning to journalism joining the editorial team of Mix Magazine, a MICE publication and its sister publication Business Traveller Asia Pacific.
Gigi is based in Hong Kong and is keen to delve deeper into the region’s wide wild world of telecoms.
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