The Ho Chi Minh City branch of BNP Paribas has signed a cash management service agreement with Vietnam’s Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank). The new agreement will mean that BNP Paribas’ local and multinational customers will have access to cash management services throughout Sacombank’s nationwide network of more than 299 transaction offices and branches.
“The partnership with Sacombank will allow us to expand our cash management offerings in Vietnam through its extensive branch networks and local capabilities,” said Jacques Levet, head of international cash management at BNP Paribas, in a statement. “Our customers in Vietnam will be able to make use of our partner bank’s network, notably for collection services.”
According to BNP Paribas, the partnership with Sacombank currently only covers collection services. However, they expect demand from the Vietnam market to increase in terms of volume and type of services. “We have selected our partner bank based on their capabilities to provide various cash management services and we intend to expand our franchise business in Vietnam,” said Luc Cardyn, country head for BNP Paribas in Vietnam.
“This is a significant milestone for BNP Paribas in Vietnam as it is the first partnership we have with a local bank in cash management,” said Cardyn. “We hope to strengthen our network coverage and be able to offer a complete suite of cash management products and services to our customers via Sacombank or other local networks which we may partner in the future.”
Sacombank has also partnered with MoneyGram International last year to provide money transfer services for its clients.
Cardyn said that the partnership will add to Sacombank’s credentials by improving its liquidity, and by bringing in advanced products, technology and expertise. The Vietnamese bank has indeed been upgrading its technology; in April last year it implemented a core banking solution from Temenos to replace a 10-year solution it had been using from Smartbank.
BNP Paribas is present in more than 80 countries globally and employs more than 200,000 staff. It recently appointed Thierry Josz its new head of global trade solutions.