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ATM cards rarely leave wallets
Half of the more than 32 million ATM cards issued by banks in the country are not used, according to the Viet Nam Bank Cards Association (VBCA).
An official from the State Bank of Viet Nam's HCM City office said on the condition of anonymity that the number of cards issued could be even higher since a large number of unused ones may not be counted.
Yet the number kept growing as banks continued to issue plastic, especially ATM cards, he said.
Nguyen Ha Linh of HCM City's District 1 said she had three ATM cards but only used one regularly. She got one for free under a promotion when she was a student and one each from her two subsequent employers since her salary was paid through banks.
Most card holders used them mainly to withdraw money, Nguyen Thi Thu Ha, president of the Viet Nam Bank Cards Association, said. "There are customers who never use their cards until they expire."
The first ATM card was issued by Vietcombank in 1997, but their issuance started to catch on only five years ago.
Banks have been issuing ATM cards through massive promotions, installing more ATMs and launching convenient payment services through the use of ATM cards to wean people away from the cash habit.
There were 1,800 ATMs in 2005 but the figure has ballooned to around 11,500 now.
A tie-up between the three biggest card alliances has made it easier for holders to use cards at any ATM and merchant's.
But all this notwithstanding, the card habit has yet to catch on in the country.
A survey by Nielsen earlier this year found only 23 per cent of surveyed people used ATM cards, with a mere 1 per cent each using internet banking and credit cards.
Almost 60 per cent said they did not have the need for cards while 31 per cent said they did not understand the process.
Cards received a boost from a Government regulation that required salaries to be paid via bank accounts. But most Government workers use their ATM cards just to withdraw their salary and little else.
Statistics obtained by Nguoi Lao Dong said VietinBank, South Asia Bank, and Agribank topped the list of issuing banks in 2010 with more than five million ATM cards each.
Vietcombank issued 4.5 million ATM cards last year.
The head of Vietcombank's card services in HCM City, Trinh Thuong Thuc, said while the bank had the largest number of ATM card holders, it included a lot of unused cards. This caused a huge waste of money, he said.
The VCBA's Ha too admitted that the massive non-use of cards was a waste, but defended the banks saying it was an indispensable aspect of their promotion.
Banking analysts explained that since ATM cards were an effective way to mobilise funds at low interest rates, commercial banks did not worry about their effectiveness and in fact keenly competed to issue more cards.
They were referring to the fact that the minimum outstanding balance in a card account is VND50,000-100,000.
To decrease the number of unused ATM cards, analysts said, banks should be competitive in offering card services instead of merely increasing numbers.
Deputy general director of the Orient Commercial Joint Stock Bank, Doan Quoc Long, said banks should distinguish their ATM cards from others' through different and better services.
Ha said: "Banks are starting to reduce the number of customers by being more selective in issuing ATM cards."
vietnamnews, VNS
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