A series of banks closed branches, what is happening?

(Dan Tri) - A series of banks have cut down on traditional transaction offices. Experts say this helps banks optimize costs, focus on technology, AI, and improve customer experience on digital channels...

The wave of downsizing the network of branches and transaction offices is taking place strongly in the Vietnamese banking system. This move reflects the pressure to restructure the organization, cut costs, and at the same time shows a clear shift to a digital banking model.

A series of banks announced the closure of branches.

Vietnam Joint Stock Commercial Bank for Investment and Development ( BIDV ) has just announced a plan to change transaction points. From October 1, BIDV will cease operations of 6 branches and convert 4 others into transaction offices. This is the bank with the largest total assets in the system, reaching more than 2.99 million billion VND by the end of the second quarter, an increase of 8% compared to the beginning of the year. Outstanding loans reached nearly 2.18 million billion VND, deposits more than 2.07 million billion VND, both up 6%.

Before BIDV, many large banks also cut down their networks. VietinBank said it closed 66 transaction offices nationwide in the first half of the year, bringing the total number of transaction points from 953 (by the end of 2024) to 887. SCB continued to cut 14 more transaction offices, after closing 95 points in 2024. At the end of August, LPBank announced the termination of 25 post office transaction offices in 9 provinces and cities.

According to many banking experts, this is a remarkable number in the context of the network of branches and transaction offices which are considered the "face" of the bank. The downsizing is happening simultaneously at many large financial institutions, showing that the shifting trend has become inevitable.

Employees at a bank branch are counting money (Photo: Tien Tuan).

Why do banks cut their networks?

According to Dr. Chau Dinh Linh, lecturer at the Banking University of Ho Chi Minh City, the main reason is the change in customer behavior. “Basic transactions such as money transfers, savings deposits, and payments can now be done through digital banking. As the frequency of going to the counter decreases, many positions associated with direct transactions become redundant,” he analyzed.

The explosion of technology, especially artificial intelligence (AI), machine learning and automation systems, has replaced many manual steps. Statistics from the State Bank show that more than 90% of personal financial transactions at major banks are now conducted via digital channels; many banks have achieved a rate of over 95%. Meanwhile, the number of transactions at the counter has decreased steadily over the years.

Experts say that closing branches is not simply about saving operating costs. This is a comprehensive restructuring step, aiming to reallocate resources to areas with higher added value, such as digital services, smart financial products or asset management.

Customers come to make transactions at a bank branch (Photo: Tien Tuan).

The Future of Banking: Lean and Digital

Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking, Nguyen Trai University, assessed that the wave of cuts reflects cost pressure but more importantly, shows a strategic shift in the digital banking era.

“This process helps the organization become leaner, more flexible, and technology-based. Instead of shrinking, banks are preparing for a period of expansion in terms of scale and service quality,” he said.

According to Mr. Huy, the savings from cutting physical transaction points will be reinvested in digital infrastructure, network security, AI applications in management and customer care. This not only reduces operating costs but also opens up the possibility of personalizing services and improving user experience.

In the context of Vietnam aiming to become an international financial center, the banking system plays a pivotal role in leading capital flows, innovating operating models and integrating globally. Strong digitalization is considered a necessary preparation step to meet the increasingly diverse and complex financial needs of the economy .

Experts predict that in the future, traditional bank branches will not disappear completely, but their functions will change. Instead of focusing on basic transactions, branches will become specialized consulting points, providing complex financial services that digital channels cannot replace.

Thus, the fact that a series of banks are simultaneously closing branches is not simply a matter of narrowing down operations, but is part of a strategy to rebuild the model, moving towards a lean, digital and deeply integrated future.

Source: https://dantri.com.vn/kinh-doanh/hang-loat-ngan-hang-dong-cua-chi-nhanh-chuyen-gi-dang-xay-ra-20250930154118691.htm