Job cuts, network downsizing – what is happening in the development strategy of commercial banks? What is driving this shift? Shrinking sooner than expected? By 2030, an estimated 11,000 bank branches—equivalent to 18% of the retail banking network in Southeast Asia—will be closed. Six markets are expected to downsize their branch networks: Singapore, Brunei, Malaysia, Thailand, Indonesia, and the Philippines. Meanwhile, Vietnam, Laos, Cambodia, and Myanmar are projected to see a modest expansion due to their still-low branch density per 100,000 people and rising demand for financial inclusion. These projections come from a report released four years ago by consulting firm Roland Berger. However, given the recent wave of branch closures by several banks, is the trend of network contraction unfolding earlier than anticipated in Vietnam? Take VietinBank for example. This is the third-largest bank by transaction points in the system. On May 21, 2025, the bank announced it would close two transaction offices in Hanoi effective June 9, 2025. This brings the total number of offices shut down to 12 from early May to May 26 this year. Previously, on March 31 and April 1, the bank already closed 25 offices. Similarly, Sacombank, after reducing six transaction offices in […]
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