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CIMB Bank Vietnam enhances digital services with Zalopay partnership

The collaborative effort with CIMB Bank Vietnam to introduce the Buy Now Pay Later represents a significant stride forward for Zalopay in diversifying its financial products

In early 2024, CIMB Bank Vietnam partnered with the payment app Zalopay to launch the Fixed Deposit (Gửi Tiết Kiệm), a top-tier interest rate savings product. This product marks an expanded collaboration following their successful “Buy Now Pay Later” partnership in 2022.

The CIMB Group is a top bank in the ASEAN region and a leading corporate advisor. It is the fifth largest banking group by assets in ASEAN and, as of the end of March 2024, it had over 34,000 staff and around 25 million customers.

Zalopay, a leading online payment platform in Vietnam, reached over 14 million users in 2023. That same year, Zalopay was the only Vietnamese company featured in CNBC’s global top 200 fintech companies list.

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The fixed deposit product was launched in January 2024 with an attractive interest rate of up to 6% for a 12-month tenor, which is higher compared to offers from other banks. Since July 2024, CIMB and Zalopay have also launched shorter tenors of 1 to 3 months to meet customer needs.

“Customers can proactively withdraw a portion or the entire principal amount before or on the maturity date as needed. To ensure financial transparency and fairness, the current payment account interest rate applies to early withdrawals. Coming soon, customers will have the option to renew their principal and receive interest directly through their Zalopay e-wallet at maturity. Alternatively, they can reinvest both principal and interest to continue enjoying favourable rates for the next term,” CIMB Bank Vietnam said.

Aiming to foster financial inclusion for all, the fixed deposit is a strategic financial product of Zalopay.

Zalopay CEO Le Lan Chi said, “Partnering with CIMB Bank Vietnam to offer a market-leading high-interest fixed deposit with flexible options has provided Zalopay’s customers with an effective financial management tool. The flexibility to withdraw the principal amount in increments offers customers a sense of ease when saving, while also empowering them to manage their finances effectively during emergencies. The assurance from a reputable institution like CIMB brings security to Zalopay and our users.”

Le Hien Trang, Director Strategic Partnership and Marketing at CIMB Bank Vietnam, emphasised that CIMB Bank is dedicated to understanding the needs of consumers.

“Through our digital financial services, we aim not only to assist customers in achieving their financial objectives but also to exceed their expectations effortlessly. The newly introduced high-interest Fixed Deposit in partnership with Zalopay expands our digital service offerings, providing customers with an array of options to save with competitive interest rates while maintaining control over their finances,” she said.

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Covering BNPL Front As Well

CIMB Bank Vietnam and Zalopay also launched their “Buy Now Pay Later” (BNPL) product called “Tài Khoản Trả Sau” in December 2022.

To apply for the product, users only need to complete 4 registration steps with a high approval rate of over 75% and a fast approval time of less than 5 minutes. Users can get a recurring credit limit of up to 5,000,000 VND, which covers their daily life necessities.

“Upon approval, users can instantly unlock a plethora of perks, including no activation fees, interest-free periods of up to 37 days, and no additional interest accrued when settling outstanding balances on time. Furthermore, users can indulge in a myriad of other enticing benefits accompanying this service,” CIMB Bank Vietnam told Global Business Outlook.

“Users can leverage the resources in their Buy Now Pay Later to seamlessly enjoy a myriad of services on the Zalopay Wallet, all without incurring any fees, around the clock. These encompass topping up/buying mobile phone credits, settling bills for education, electricity, water, internet, condominium fees, and more, promptly and conveniently. Additionally, users can indulge in online shopping, make direct payments at physical stores, and effortlessly cover expenses for app stores, games, movies, and various other platforms,” it continued.

“Buy Now Pay Later was the first product Zalopay launched in collaboration with CIMB Vietnam. It has given our users a vital financial cushion for emergencies, allowing them greater flexibility in managing their monthly expenses. Zalopay users can effortlessly register and use these funds for all services within the app and at partner businesses across the country,” Zalopay CEO Le Lan Chi commented further.

“Through market surveys, we have observed that many Millennial and Gen Z individuals are encountering difficulties in meeting their own consumption needs due to limited access to mainstream credit products. Since our establishment, CIMB Bank Vietnam has made concerted efforts to address the shortage of credit products for this customer demographic. Our collaboration with Zalopay marks a new milestone in our long-term pursuit. With the innovative Buy Now Pay Later, co-created with Zalopay, we now have a new opportunity to cater to a rapidly growing customer base with a diverse range of financial products tailored to the needs and capabilities of consumers,” CIMB Bank Vietnam’s Le Hien Trang added.

Collaboration with Zalopay has helped CIMB Bank Vietnam’s fortunes immensely, with the bank’s customer base surged by 45% in FY2023. New user acquisition saw an even greater rise of 48% YOY. This success can be attributed to innovative partnership portfolio enhancements, including the launching of the BNPL product.

Furthermore, the Monthly Active User percentage jumped from 16% in 2021 to 28% in 2023. This growth can be ascribed to the diverse features offered by the CIMB banking app, such as tuition fee services, insurance services, instalment plans, transportation options, and saving features which require integrating with other partners.

Customer spending has surged dramatically by 20 times year-over-year, soaring from 648 billion VND in 2022 to an impressive 13,000 billion VND in 2023. These achievements contributed to the venture winning the International Finance Award for its “Most Innovative Financial Inclusion Strategic Partnership” with Zalopay.

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