Over the past decade, the global banking industry has witnessed a significant downsizing of physical branch networks, driven by the rapid rise of digital banking. A new trend is now taking shape: the challenge for banks is no longer limited to deciding whether to close or open branches, but rather to redefining the very concept of what a network means in the digital era. Upscale vs. downscale In early Q4 2025, BIDV closed six branches and converted four others into transaction offices. VietinBank has pursued network reduction at an even faster pace, cutting 72 transaction points in the first nine months of the year. Meanwhile, the digital-first lender VCBNeo reduced its transaction points by 26 compared to the beginning of the year, while SCB, Sacombank, and GPBank recorded respective declines of 19, 11, and five. VCBNeo’s orientation toward becoming a fully digital bank provides strong motivation to streamline its physical network. Other banks are also undergoing significant digital transformation and operational restructuring, with network downsizing emerging as an inevitable strategy—not only to reduce operating costs and improve efficiency, but also to enhance the digital customer experience. With the rapid rise of cashless payments in Vietnam, many banks may soon find […]