E-wallets and digital banks are two of the most well-known technology products & services in the 4.0 revolution. While providing some common benefits and utilities to users, e-wallets and digital banks are two completely different products.

What is a digital bank?

Digital banks are built on the basis of allowing customers to carry out most banking transactions online via the internet. Instead of going to a bank branch or office to make the transactions, transactions via digital banks can be done simply and quickly via your phone application or the bank’s official website.

The concept of digital banks is becoming more popular and favored by people in Vietnam due to the fact that all usual procedures associated with banking transactions and even fees are minimized. This helps customers to save a lot of time and money.

What is an e-wallet?

Unlike traditional wallets, e-wallet is placed in your mobile application. Since it is a new trend of payment method favored by a large population of people in Vietnam due to its convenience, e-wallets are becoming more common and accepted as an an online and offline payment method in different sectors.  

Money in e-wallets can come from 3 main sources: money in your e-wallet account, bank account or bank card. Some of the most common features of e-wallets include:

– Phone top up

– Bill pay: You can use e-wallets to pay your shopping bills or bills at restaurants, coffee shops, bars, etc. if the service provider accepts this as a payment method.

– Online payment via e-commerce websites, such as Tiki, Lazada, Shopee, etc.

– Buy movie tickets at CGV, Lotte Cinema, etc.

Similarities & differences between digital banks and e-wallets

Similarities: online transactions and payment

Both digital banks and e-wallets allow you to pay bills (electricity, water, internet, etc.), top up your phone credit and settle online payments. Both products can be used as a replacement for cash.

Differences:

Digital banks

1/ Provide you with a bank account and card for transactions

When using services provided by digital banks, you will be provided with a bank card and an account number to transact online and offline.

2/ Provide other banking services/products

The majority of digital banks offer a full range of banking products and services such as: different loan products, savings accounts, transferring and receiving money, etc. However, unlike traditional banks, most of the transactions associated with these services and products offered by digital banks can be carried out online via a website or a mobile application.

E-wallets

1/ Need to be linked with a bank account or card

In addition to depositing money into your e-wallet at an office of the e-wallets’ provider, you need to link your e-wallet with your bank account or card to be able to use it.

2/ Do not provide other banking services/products

Unlike digital banks, you can only use e-wallets for online payments and transactions. E-wallets do not provided other banking services and products as mentioned above.

Hopefully this article has helped you to clearly see that digital banks and e-wallets provide their own set of features. While Momo, ZaloPay & Moca are currently some of the most leading e-wallets in the market, Timo and Yolo are two of the most well-known brands in the digital banking sector.

 

E-wallets and digital banks are two of the most well-known technology products & services in the 4.0 revolution. While providing some common benefits and utilities to users, e-wallets and digital banks are two completely different products.

What is a digital bank?

Digital banks are built on the basis of allowing customers to carry out most banking transactions online via the internet. Instead of going to a bank branch or office to make the transactions, transactions via digital banks can be done simply and quickly via your phone application or the bank’s official website.

The concept of digital banks is becoming more popular and favored by people in Vietnam due to the fact that all usual procedures associated with banking transactions and even fees are minimized. This helps customers to save a lot of time and money.

What is an e-wallet?

Unlike traditional wallets, e-wallet is placed in your mobile application. Since it is a new trend of payment method favored by a large population of people in Vietnam due to its convenience, e-wallets are becoming more common and accepted as an an online and offline payment method in different sectors.  

Money in e-wallets can come from 3 main sources: money in your e-wallet account, bank account or bank card. Some of the most common features of e-wallets include:
– Phone top up
– Bill pay: You can use e-wallets to pay your shopping bills or bills at restaurants, coffee shops, bars, etc. if the service provider accepts this as a payment method.
– Online payment via e-commerce websites, such as Tiki, Lazada, Shopee, etc.
– Buy movie tickets at CGV, Lotte Cinema, etc.

Similarities & differences between digital banks and e-wallets

Similarities: online transactions and payment
Both digital banks and e-wallets allow you to pay bills (electricity, water, internet, etc.), top up your phone credit and settle online payments. Both products can be used as a replacement for cash.
Differences:
Digital banks
1/ Provide you with a bank account and card for transactions
When using services provided by digital banks, you will be provided with a bank card and an account number to transact online and offline.
2/ Provide other banking services/products
The majority of digital banks offer a full range of banking products and services such as: different loan products, savings accounts, transferring and receiving money, etc. However, unlike traditional banks, most of the transactions associated with these services and products offered by digital banks can be carried out online via a website or a mobile application.
E-wallets
1/ Need to be linked with a bank account or card
In addition to depositing money into your e-wallet at an office of the e-wallets’ provider, you need to link your e-wallet with your bank account or card to be able to use it.
2/ Do not provide other banking services/products
Unlike digital banks, you can only use e-wallets for online payments and transactions. E-wallets do not provided other banking services and products as mentioned above.
Hopefully this article has helped you to clearly see that digital banks and e-wallets provide their own set of features. While Momo, ZaloPay & Moca are currently some of the most leading e-wallets in the market, Timo and Yolo are two of the most well-known brands in the digital banking sector.
 


Originated around the earlier 2000’s, digital banks have became a new trend in the banking industry across both developing and developed countries. Equally, digital banking is also considered the ideal solution to help radically improve the customer experience commonly associated with traditional financial institutions. However, the concept of digital banking is still somewhat alien to people in Vietnam.

What is a digital bank?

Most of us are probably familiar with the concept of traditional banks offering branches and transaction offices at different locations for customers to come and carry out their banking transactions.
Unlike traditional banks, digital banks allow customers to carry out the majority of regular banking transactions online via the Internet. Instead of having to visit a bank branch or office to make transactions, all transactions are digitized and can be done online, from applying for a new bank account to opening a savings account, getting an overdraft loan, etc.

Digital banking is becoming more popular in Vietnam as all procedures and even fees associated with digital banking services and products are minimized. This helps customer to save a lot of time as they would only need a mobile phone with Internet connection to manage their bank account and make any bank transaction they need via the digital bank’s official website or mobile app. Unlike traditional banks, digital banks have little to no branches. However, there are still offices where customers can visit to collect their cards, deposit money into their accounts or get advice from banking representatives.

Benefits of digital banking

1/ All payments and transactions can be done conveniently
With either a phone or a laptop connected to the Internet, you can carry out any transaction with digital banks anytime and anywhere, whether at home, in the office or even abroad. All transactions from basic to extended levels, such as checking your account balance, transferring money, paying bills, opening savings accounts, etc., can easily be done on the digital bank’s official website or mobile app. You will not have to worry about arranging time to visit its office to carry out your transactions.
2/ Fees are minimized
Not only do digital banks help customers to save time and effort, fees are also minimized.
To enhance customer experience, many digital banks in the market have minimized different types of fees associated with banking, such as: money transfer fees, ATM withdrawal fees, account maintenance fees, etc with the aim of encouraging transactions online.
3/ High accuracy
Built on the foundation of internet and information technology, digital banks handle and record transactions more quickly and accurately. All activities that arise from the process of a transaction being made would be handled quickly and fully recorded in the system with absolute accuracy.
4/ High security
As a digital bank is built on the basis of letting customers perform most transactions via the Internet, information and account, careful attention is paid to security of digital banks. This is also why most mobile apps provided by digital banks are built with multiple layers of protection such as OTP/iOTP, instant notifications of transactions, etc, to ensure all transactions made are authorized and secure.


CVV/CVC stands for Card Verification Value or Card Verification Code. Simply put, CVV/CVC is an anti-fraud security feature printed on the signature panel on the back of your card and used to verify that you are in possession of your card. CVV and CVC have the same functions and are used for different types of cards.

Main functions of CVV/CVC


All financial institutions/banks issuing credit or debit cards would develop a system in which every card is provided with a unique CVV/CVC code. This code is required to complete any transaction carried out using the card. When your card expires, this CVV/CVC code will no longer be valid.
For Mastercard/Visa cardholders, CVV/CVC may have already became familiar as it would always be required for every online transaction. This is required to ensure the card and its holder’s safety.

Important notes to remember when using CVV/CVC for online payments


To ensure your card and account’s safety, below are some Do(s) and Don’t(s) to take into consideration upon making transactions via your card.

DO(s)DON’T(s)
– Only pay online at well-reputed websites with trustworthy encryption technologies
– Use your private computer/laptop or your mobile phone device to make transactions
– Make sure your computer/device is equipped with a firewall/ virus-protection software
– Keep your receipts/invoices to cross check them with your billing statements
– Ignore the terms and conditions of use before paying on any website
– Use public devices to carry out online transactions
– Save accounts attached with your card details in your browsers
– Let someone take a photo or write down your card details

Find out more about other card safety guidelines here.

One of the most common challenges that people often get themselves into is struggling to save as much money as we want. However, with Timo, saving money can be as easy as pie. Join us in exploring the convenience and flexibility of Timo Goal Save in the article below.


  • Important notes:
    From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN.


Timo Goal Save is a smart tool that allows the creation and management of effective financial goals. With Timo Goal Save, you can create as many saving goals as you want in a few swipes and taps in the Timo App on your phone.

1/ Automatic saving

How many savings methods have you heard of and tried yourself? Has there been any savings method that has been significantly more effective than the others?
To help you save without spending a lot of time planning ahead or even thinking, Timo Goal Save allows users to setup recurring contributions with your own choice of frequency – daily, weekly or monthly. With the amount of money you need to save for your goal and your selected frequency, Timo will calculate and automatically move money from your Spend Account to this goal.

However, if you are not entirely confident with this automatic contribution feature, you can always leave this for later and start with manually moving money from your Spend Account to your Goal Save whenever you want.

2/ Flexible settings

Having a savings account is like having your own asset, and you should be able to be entirely in charge of your asset. Understanding this need, Timo Goal Save is designed with flexible settings for you to adjust your savings goals anytime and anywhere.

Firstly, with Goal Save, you can freely decide on names for all of your savings goals to boost up your motivation. Instead of having to stick with ordinary names such as “Savings Account 1”, “Savings Account 2”, etc., you can freely set up creative names for your savings account such as “Euro- Trip”, “Dream watch”, “My perfect wedding”, etc. Additionally, instead of using traditional methods where you can only set up your savings amount and due date at the beginning, you are entitled to change your goal name, target date and target amount for your Goal Save whenever you want. You can also turn your automatic recurring contribution feature on and off at anytime you wish.
At Timo, we also make it completely free for you to transfer as much money as you want from your Spend Account to any of your Goal Save Accounts. If you do not have a specific goal in mind but do not want to tie your money into a Term Deposit, you can also save your money in the Piggy Bank.

Financial needs and personal finance management are important factors in our lives. Every individual has a different set of financial needs based on many considerations, such as age, career path, personal goals, etc. Hence every person would have a different way of managing their own personal finances.
In the process of managing personal finances, unexpected need of money beyond one’s current financial capacity is something that cannot always be avoided. This may lead to taking a loan from a bank or a financial institute or even a family member. But how can you choose a right loan type that suits your needs and repayment capability? Hopefully the following article will help you to do this easier.

1/ Different financial needs

Depending on various factors, such as age, career path, personal goals, etc., everyone will have a different purpose to get a loan. For young people who are still in universities, they often need a small loan to pay their tuition fees or buy a new laptop to support their education. For people who have been working for a few years, the demand for a loan may come from higher needs, such as: buying a new motorbike or a tablet to work anywhere without carrying a laptop. As for people with stable jobs and middle-aged people, their demand for a loan is often used to serve larger purposes, such as: investment, opening a business, buying a house, investing in education for their children, etc.

While the purpose of the loan may differ from individual to individual, it all comes down to one common need – that sometimes people just need an extra amount of money that can be paid off later. Hence, almost every bank and financial institution offers a range of loan types to suit different needs.

2/ Common types of loans


Overdraft loan
An overdraft loans is an approved amount of money that you can use in excess of the current balance in your account. Once you have successfully applied for an overdraft loan, your bank will issue the approved loan limit for you to use when your account balance hits 0. The outstanding benefit of this loan type lies in the fact that your loan limit can be relatively high as it can go up to 100 millions VND or 5 times higher than your monthly income.
Overdraft loan can act as a “financial savior” for situations where you have accidentally used most of your monthly budget and you still need money to pay for daily expenses or necessities. Suitable customers for this loan type are employed people with a relatively stable monthly income or small business owners requiring money to pay for expenses.
Unsecured loan
This is the type of loan that does not require being secured by mortgage assets. Any application for this loan type will be reviewed and approved based on one’s financial reputation. Your financial reputation will be evaluated through your monthly income or credit crating. Unsecured loans can be used to cater to those who need to pay expenses for weddings, holidays, etc..
Unsecured loans can offer a high limit of up to 500 million VND to use for 60 months. However, in similarity with overdraft loans, suitable customers for this loan type should be people with stable monthly income that can afford to repay for their loan.
Mortgage loan
This is the type of loan that requires being secured by mortgage assets. These mortgage assets must be ensured to be at interest for borrowers. With this loan type, the bank will keep documents related to the assets used for mortgage. Mortgage loans should be picked when you need money to use for large investments such as opening a business, stock investment, buying a house, etc. The approved loan limit can be significantly high as it can get up to 70% – 100% worth of your mortgage assets.
Installment loan
When using an installment loan to purchase a product, you will not have to pay the entire price of the product at the time it is purchased. An installment loan is a loan that is repaid over time with a set number of scheduled payments. To meet different needs, banks and financial institutions will have different interest rates and repayment periods for customers to choose based on their financial capabilities. This loan type is suitable for customers who are still in universities or have only been employed for a short period of time that need money to buy necessary facilities to support their education or their jobs.

3/ Things to consider before getting a loan

With all these available loan types offered by banks and financial institutions, you need to carefully consider your needs as well as all information related to the loan type you are aiming for. Personal factors needed to be considered include: your loan purpose, your desired loan limit, your monthly income, your repayment capability, assets that can be used for mortgage, etc.

Some important information related to the loan type you are aiming for can be the lowest & highest available loan limit, the length of time it can be used for, repayment method, interest rates and how interest is calculated, all terms & conditions related to the loan type, reputation of the selected bank, etc. Equally, you should carefully discuss and consult bank staff to be able to choose the most suitable loan type for yourself.

In parallel with a wide range of traditional types of loans, most banks have now offered overdraft loans. With outstanding benefits such as fast approval, flexible loan limit and simple repayment, overdraft loan is believed to be the suitable “financial savior” for a large number of people.

What is an overdraft loan?

An overdraft loan is an approved amount of money that allows you to use it, over and above the current balance in your account. With an overdraft loan, your bank will earn interest based on the amount of money you have use from your loan.
This form of loan is particularly useful for customers who need money to pay for their daily expenses. At Timo, this product, also known as Fast Cash, is offered to you with a goal of making sure it is a fast and convenient “financial savior”. In particular, any application for Timo Fast Cash is reviewed within 30 minutes with a flexible loan limit of up to 100 millions VND. Additionally, compared to other traditional loan types, Timo Fast Cash is more convenient and beneficial in terms of approval process, limit, interest rates, repayment method.

1/ Approval process

Instead of having to prepare a mountain of paperwork to apply for an overdraft loan at traditional banks, the application and approval process for Fast Cash at Timo is significantly fast and simple. You can check to see if you are qualified in the Timo app and apply for Fast Cash in app without having to submit any income proof or mortgage assets. Your application then will be reviewed within 30 minutes.

2/ Loan limit and interest

  • Loan limit: You could easily get a Fast Cash limit that is 5 times higher than your monthly income, if you have a monthly income of 20 million VND. To meet different customer needs, Timo Fast Cash varies from 10 to 100 millions VND.
  • Competitive interest rate: Although the interest rate for overdraft loans can be higher than interest rates for other loan types, the interest rate for overdraft loans is only calculated based on the actual outstanding overdraft balance and the number of days you have used the loan for. You can easily calculate your loan interest with the following formula:

Your monthly overdraft interest = (Total actual outstanding overdraft balance x Interest rate x Actual number of days the loan is used) / 365
Example: Your issued bank’s interest rate for overdraft loans is 9%. Your actual outstanding overdraft balance (the amount you used from your overdraft loan limit) is 5.000.000 VND and has been used by you for the past 14 days. If this is the case, the amount of interest you would have to pay is equivalent to:
Interest = (5.000.000 x 9% x 14) / 365 = 17.260 VND

3/ Easy repayment method

Instead of having to bring cash to the bank to pay for your overdraft loan, customers using Timo Fast Cash can easily repay for their overdraft loan without having to carry out complicated paperwork. When you top up your Timo Spend Account, the deposited amount will automatically be deducted to repat for your Fast Cash, including interest fees.
Find out more about Timo Fast Cash here.

A quick reminder for our Timo Mastercard holders…
As you will remember, when you first received your Mastercard, we offered you the option of waiving the annual fee typically associated with Credit Cards in Vietnam for the first year. All you had to do was make 3 transactions on 300,000 VND each within the first 30 days of your card issue date.
After the first year, your applicable Timo Mastercard’s annual fee is 444.000 VND (including VAT) per year and will be charged to your credit card.
Your Timo Mastercard has been designed to be both secured and easy to use, so you can spend peacefully while easily managing your expenses. Plus, you’ll receive notifications in app, email and on your mobile for every transaction, have the ability to convert your purchases to installments and pay your outstanding balance in just a swipe and a tap.
For the detailed Mastercard fee schedule, please click here.
We hope you will continue using your Timo Mastercard and enjoy cashless convenience wherever you go.

Instead of struggling to face unexpected situations, why don’t we start the New Year by proactively preparing ourselves with a backup plan to enjoy life peacefully? Below are 3 main factors worth your consideration before you decide that buying personal accident insurance in Vietnam is not necessary.

1. Give yourself the peace of mind you deserve

According to the National Traffic Safety Committee, there were approximately 13,242 traffic accidents that lead to 6,012 people killed and 10,319 people injured in the first 9 months of 2018 in Vietnam. More recently, during the 2019 New Year’s Holiday, there were 147 road and rail traffic accidents, leading to 110 people killed and 61 people injured across the country.
The benefits of personal accident insurance will never be fully seen in the present as it is more of a provision for future in the event of unexpected situations. However, buying personal accident insurance also means that you allow yourself the peace of mind you and your loved ones deserve. Besides traffic safety issues, petty theft and violence has been increasing in the mass media and around you. Personal accident insurance will help you and your loved ones reduce anxiety and worry from all these unstable issues and unexpected risks since personal accident insurance means that you have at least prepared yourself with a proactive provision.

2. Reduce the potential financial burden of unexpected situations

In addition to the potential physical and mental injuries after every accident, the victims and their relatives usually must bear a significant fee for treatment, medicine, daily living expenses in case the victim is a breadwinner and more. This is where personal accident insurance would come in handy as health insurance usually does not cover it all. In the worst case scenario, if the insured person passes away, the sum of the personal accident insurance will partially facilitate the financial burden and temporarily balance the daily living expenses of the victim’s family.
Understanding the needs of customers and the importance of personal accident insurance, many related insurance products have been offered in the market to become a financial fulcrum and protect families against unforeseen risks. One of the most outstanding accident insurance products in the market is personal accident insurance provided by Sun Life Financial. Sun Life’s personal accident insurance packages offer coverage up to 600 million VND for motorbike accidents and up to 300.000 VND/day for hospitalization fees.

3. Social insurance and health insurance are not enough

Health insurance is the type of insurance coverage that covers the cost of an insured individual’s medical and surgical expenses. Therefore, health insurance only covers services, treatments and medicines included in the insurance benefits, meaning that patients would still have to pay for costs of things that are not included in their health insurance benefits. Health insurance is a basic and necessary insurance for everyone but not enough for your full protection because of the above limitations.
These limitations are the reasons why personal accident insurance will contribute to reduce the potential financial burden of unexpected risks and accidents. Personal accident insurance can help you to pay for expenses that are not fully covered by health insurance. In case the insured victim loses their life, the entire amount would still be returned to their relatives or beneficiary.

There are currently a wide range of personal accident insurance packages in the market that come with reasonable fees and quịck registration procedures. If you are a Timo cardholder, you can register online for a personal accident insurance package provided by Sun Life via the Timo app in just a few taps and swipes.