Co-opBank Thai Binh Branch – Actively supporting local PCFs

30/01/2023 - 11:33:00 CH 30/01/2023 - 23:33:00

As a role of focal Bank of PCFs in the area, Co-opBank Thai Binh branch not only plays a role in regulating capital, but also works with local PCFs to bring convenient digital banking services to the people in the rural area.

We visited Thai Binh in the last days of winter, when the bright yellow sun shined on the roads of “new countryside village “. This is also the most exciting activity of the year for 85 People’s Credit Funds in the province when people prepared to invest in a new production and business season or renovate their houses to welcome the Lunar New Year. Particularly, Co-opBank Thai Binh branch, as a focal bank in the area, not only plays a good role in regulating capital, but also works with local PCFs to bring convenient digital banking services to the people in the rural area.

Mr. Pham Huy Phuong – Manager of Co-opBank Thai Binh branch informed that 2022 was a difficult year for the branch’s operation. The economy has recovered that opened up production opportunities and caused decreasing residential deposits. Because the operation of several PCFs is depending on the seasonality of agriculture, so the high credit growth rate is mainly concentrated in the fourth quarter of the previous year and the beginning of the first quarter of the following year. This makes a significant impact on operating PCF system of the branch. However, with proactively anticipating demand, promoting increasing residential capital mobilization and flexible management, Co-opBank Thai Binh branch has ensured capital sources to fully and promptly meet the needs of PCFs for its stable, safe and development. As of November 30, 2022, the branch’s credit sales reached VND 1,629 billion; debt collection of the PCFs reached VND 1,583 billion; total outstanding loans to PCFs of the branch reached VND 147.8 billion, up 45% compared to the end of 2021.

Co-opBank Thai Binh branch has also performed well the capital regulation of PCFs, ensured receiving all deposits with higher interest rates than residential deposits. The PCFs have strictly complied with regulations on depositing idle capital into the regulated deposit account at Co-opBank, 100% of PCFs have deposit at Co-opBank, that contributes to ensuring the safety of PCF operating capital.

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Especially, digital banking products and services have been deployed by Co-opBank Thai Binh branch to PCFs, which brought new atmosphere to the activities of the PCFs in the area. For example, the 24/7 fast money transfer service launched from March 2022 for PCFs has met the expectations and brought the most practical results.

The branch also registered for Mobile Banking service for 68 PCFs, opened 808 payment accounts for officers, members and customers of the PCFs. These services have been effectively implemented by many People’s Credit Funds such as: Hong Phong, Thai Xuyen, Thai Phuc, Dong Giang, Tien Phong… Besides, in order to meet the needs of customers, in March 2022, Co-opBank Thai Binh branch launched the service of opening personally selected-number bank accounts and 2,913 accounts have been opened for the customers.

Ms. Tran Thi Phuong – Manager of Hong Phong PCF, operating in Hong Phong commune, Vu Thu district, Thai Binh province shared that due to implementation of Co-opBank’s 24/7 fast money transfer service, PCF has meet better use money transfer service needs of people and members in the area. From March 2022 up to now, outgoing remittance turnover of 24/7 fast money transfer service has reached nearly 60 billion VND, incoming money transfer over 30 billion VND respectively. In particular, with the installation of 2 POS machines, instead of having to go to the bank 4-5 km away from home, now their members are able not only transfer money quickly, but also withdraw cash at the locality whenever they need it.

Ms. Tran Thi Phuong also informed that Hong Phong PCF has also opened Co-opBank Napas chip cards and Co-opBank Mobile Banking services for 113 customers and employees. Currently, Co-opBank continues to apply exemption of all money transfer payment fee, annual fees, account management fees, and revenue sharing from digital banking services for PCFs, which also contributes to increasing revenue for the fund.

Mr. Phan Thanh Giang – Manager of Tan Phong PCF, Head of Representative Office in Thai Binh of the Vietnam People’s Credit Funds Association (VAPCF) shared, PCFs were very excited to receive the modern payment services that Co-opBank deployed on the Internet in the locality. For example, at Tan Phong PCF, the 24/7 Quick Money Transfer service has helped the Fund support members in the area to trade and consume more smoothly. As of the end of November 2022, the fund’s remittance turnover reached VND 73.75 billion with 597 outgoing orders and VND 31.95 billion with 300 incoming orders. Co-opBank Mobile Banking service is also used by all staff and is being expanded to the members.

At present, 61 PCFs in Thai Binh province are members of Co-opBank’s E-banking system. 21 POS machines were installed, 39 PCFs regularly having money transfer payment transactions with granted overdraft limits. This has contributed to improve the image and position of the PCFs and earn income from service activities. By November 30^th 2022, money transfer transactions reached 51,104 items with a total value of VND 4,286 billion, of which, 25,237 outgoing money transactions with a total value of VND 2,812 billion, 25,867 incoming money transferred items with a total value of VND 1,474 billion. Outgoing – incoming orders increased in both quantity and value over the same period in 2021, especially incoming money orders. Bank overdraft of PCFs by VND 585 billion VND as of November 30^th, 2022.

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Mr. Phan Thanh Giang shared, over the past years, Co-opBank Thai Binh branch has actively taken initiatives in many areas of operation, expanded its scale to improve operational quality, and better serve its members; applying different measures to increase the prestige and position of Co-opBank and the PCFs; organizing many seminars on PCFs operation; Regularly capturing information on the operation of the PCFs, providing advice and recommendations in capital mobilization and lending; removing a number of difficulties and problems related to PCFs’’ activities; applying a reasonable interest rate mechanism in receiving harmonized deposits on the principle that the harmonized deposit interest rate is higher than the deposit interest rate from the population, reducing loan interest rates, reduction and exemption of all fees for money transfer services. Along with that, expanding and improving the quality of money transfer services, digital transformation have been implemented actively. This is really an important step for banking activities in the 4.0 period… “It can be said that Co-opBank Thai Binh branch has clearly demonstrated the role and responsibility as the Bank of people’s credit funds in the area”, emphasized Mr. Phan Thanh Giang.

Pham Huy Phuong informed, in 2023, based on the direction of the State Bank of Vietnam, and target plan Co-opBank assigned, Thai Binh branch continues to perform well its duties and responsibilities for the People’s Credit Fund, strengthen and improve the quality of capital regulation, create a safe development in the whole system; Will well perform the role of focal point, promote the mobilization of capital on the site both within the PCF and from the people; continues to expand banking services, push the process of digital transformation, modernize technology to meet the requirements of PCF members as well as customers in the economy…

Some pictures of activities at Co-opBank Thai Binh branch: