Hang, 23, a recent graduate from Hai Phong, is on probation at a state-owned bank. Her monthly target is to mobilize 3 billion VND in savings deposits, both over-the-counter and online. During her first week, she reached out to relatives and friends from middle school to university. The following week, she shifted tactics, monitoring Facebook groups and immediately contacting anyone who left their phone number, but she faced constant rejections.

"Mobilizing savings deposits is extremely difficult at this time," Hang said.

Her struggles stem not only from a limited network but also from her state-owned bank's interest rates, which hover around 8%, while private banks offer up to 9%. When speaking with clients, she consistently highlights the bank's safety and reliability to compensate for the lower rates. She even offers to contribute 500,000 to 1 million VND from her own funds to partially cover the difference.

Despite her efforts, results remain modest. By mid-month, Hang had only secured two accounts totaling approximately 500 million VND, one from a returning customer and another from a family member.

The challenge of deposit mobilization extends beyond new recruits, taxing even seasoned employees. Khanh Van, a client specialist at a bank undergoing mandatory restructuring, faces a monthly KPI of 6 billion VND. This target, introduced a few months ago as the bank intensified its mobilization efforts, has yet to be met.

Van mentioned that her prior two years in lending meant she quickly adjusted to the new targets. However, she was surprised by the intense competition, not just among different banks but also between branches of the same institution.

A poster showcasing preferential interest rates, created by a bank employee using AI. *Photo: Phuong Dong*

Within hours, a single post in a Facebook group drew hundreds of comments from bankers. They all offered interest rates of 9-9.5% annually, along with promises of external commissions, gifts, or travel vouchers. Some even utilized AI to design promotional posters and funded advertisements across various platforms.

The pressure of targets and competition compels Van to work continuously, from 7 am until late evening. The concept of a weekend off no longer exists, as she must respond immediately whenever a client inquires. According to her, the mobilized funds convert into performance points, directly influencing her monthly income and year-end bonuses.

Similarly, a monthly target of 20 billion VND keeps Minh Thu, a sales specialist at a Hanoi-based bank, awake at night. She considers deposits exceeding 500 million VND to be invaluable, as customers increasingly tend to divide their funds, opt for short-term deposits, and spread them across multiple institutions to optimize interest rates.

"Savings interest rates are consistently rising, but closing deals is not easy, as idle funds and competition are inversely proportional," she stated.

Beyond acquiring new clients, Thu also works to retain existing ones who face poaching attempts from competitors and early withdrawal requests. In recent months, she has encountered numerous cases where clients, promised slightly higher interest rates elsewhere, wanted to close their savings accounts prematurely. Such occurrences reduce the employee's performance metrics and, consequently, their income. Therefore, every few weeks, she calls to check in or sends small gifts to nurture client relationships.

The competitive pressure faced by Hang, Van, and Thu is not an isolated issue. According to Nguyen Hung, Chief Executive Officer of Tien Phong Bank (TPBank), competition in the retail deposit market is intense due to the economy's rising capital demand. This is particularly evident as banks increase credit to support business production, consumption, and major infrastructure projects.

An Oriental Commercial Bank (OCB) representative shared a similar view, stating that banks are competing not only through interest rates but also by increasingly focusing on service quality, convenience, customer care policies, and enhancing value for depositors.

This competitive pressure is amplified as growth in traditional deposit channels tends to slow. By the end of Quarter II, total customer deposits across the entire system reached 15,7 million ty VND, marking a 5% increase compared to the end of last year. Many major banks, including BIDV, Vietcombank, VietinBank, Agribank, LPBank, and Sacombank, experienced deposit growth at or below the industry average. Furthermore, some banks, such as ACB, Eximbank, and BacABank, even saw a decline in deposits.

To attract funds, many banks have opted to increase deposit interest rates. Compared to the beginning of the year, the average interest rate for 6-12 month deposits has risen by 1.5 percentage points, reaching 7.8% annually.

Some private banks, such as MBV and Vikki, are actually offering interest rates of 8.5-9.2% for short-term deposits. Negotiated rates can be even higher, depending on factors like the deposit amount, term, and discussions between the depositor and the bank employee. Notably, at National Citizen Bank (NCB), employees present savings products with an effective yield close to 10.3%, which includes a 9.3% public rate and bonus points convertible to cash if the customer chooses not to use them.

In contrast, some banks are exploring alternative strategies. At ACB, which experienced a decline in customer deposits during the first 6 months of the year, the issuance of valuable papers became a primary compensatory source, increasing by 50%. The bank's leadership stated that this strategy helps reduce their dependence on traditional retail deposits, allowing them to mobilize funds from businesses and non-bank financial institutions with longer terms and more reasonable costs.

According to the Chief Executive Officer of TPBank, the bank prioritizes the quality and stability of its capital sources rather than engaging in an interest rate race. They focus on developing current account savings accounts (CASA) by encouraging customers to use payment accounts and other convenient services.

"In an environment of volatile interest rates, we are not aiming to increase term deposit mobilization at all costs," Hung stated.

Similarly, OCB's leadership confirmed that they do not exert undue pressure on employees to achieve mobilization growth through inappropriate means. Instead, they focus on product quality and fostering long-term relationships. The bank also does not encourage employees to offer external incentives or make promises regarding interest rates or benefits that fall outside approved policies.

Phuong Dong

*Names of bank employees have been changed