VN banks grasp dig­i­tal op­por­tu­ni­ties

Viet Nam News - - BUSINESS -

HAØ NOÄI — Vieät Nam has seen a dig­i­tal wave in the fi­nance-bank­ing in­dus­try, with many banks in­vest­ing sig­nif­i­cantly into the seg­ment, ex­perts said at a con­fer­ence on Thurs­day.

Dur­ing the con­fer­ence on dig­i­tal­is­ing the bank­ing in­dus­try held in Haø Noäi, di­rec­tor of the State Bank of Vieät Nam (SBV)’s Pay­ment Depart­ment Phaïm Tieán Duõng cited data from an SBV sur­vey that by the end of April this year, 94 per cent of lo­cal banks have in­vested in dig­i­tal­i­sa­tion, of which 42 per cent con­sider dig­i­tal bank­ing to be the top pri­or­ity in their busi­ness strat­egy.

In­ter­net bank­ing ser­vices in Vieät Nam have ac­cel­er­ated by 6.3 times over the past three years. Ex­perts at­trib­uted the high growth to the pop­u­lar­ity of the in­ter­net and smart­phones in the coun­try. By the end of 2017, Vieät Nam had 45 mil­lion 3G/ 4G users and a ma­jor­ity of smartphone users.

Pay­ment through mo­bile bank­ing ser­vices has also surged by a whop­ping 144 per cent per year over the past five years. Mean­while, the same pe­riod has seen pay­ments by tra­di­tional meth­ods in­crease by only 40 per cent.

Seiz­ing the trend, many banks have been em­bark­ing on the ap­pli­ca­tion of 4.0 tech­nol­ogy and mod­ernising their busi­ness mod­els. Ex­am­ples in­clude the au­to­mated bank model LiveBank, dig­i­tal bank model Timo or pro­vid­ing on­line con­sult­ing ser­vices through Live Chat.

Ac­cord­ing to the par­tic­i­pants at the con­fer­ence, that banks pre­fer the ap­pli­ca­tion of dig­i­tal tech­nol­ogy thanks to its lower costs and wider cov­er­age than that of tra­di­tional mod­els.

The de­vel­op­ment of in­ter­net bank­ing, mo­bile bank­ing, pay­ment so­lu­tions us­ing QR codes, near-field com­mu­ni­ca­tion tech­nol­ogy (NFC), or ad­vances in bio­met­ric tech­nol­ogy us­ing fin­ger­prints and iris scan­ning has helped the bank­ing in­dus­try bring new and con­ve­nient prod­ucts and ser­vices to cus­tomers, which has helped banks reach sus­tain­able growth in the long run thanks to an in­crease in rev­enue and profit from ser­vices and grad­u­ally re­duce de­pen­dence on lend­ing, they said.

In ad­di­tion, ex­pe­ri­ence from many coun­tries has also shown that, with the sup­port of dig­i­tal tech­nol­ogy, even de­vel­op­ing or poor coun­tries can achieve break­throughs in fi­nan­cial in­clu­sion.

Nguyen Kim Anh, SBV’s deputy gov­er­nor, said there was sig­nif­i­cant po­ten­tial to ap­ply and ex­ploit dig­i­tal tech­nol­ogy in or­der to in­crease the ef­fi­ciency and qual­ity of ser­vices in the coun­try’s bank­ing in­dus­try, pro­vided by the coun­try’s good tech­ni­cal in­fra­struc­ture and stream­lined poli­cies.

“The SBV pays spe­cial at­ten­tion to fine-tun­ing the le­gal frame­work, build­ing and pro­mul­gat­ing le­gal reg­u­la­tions and ori­en­ta­tions in or­der to en­hance the de­vel­op­ment of in­for­ma­tion tech­nol­ogy in­fra­struc­ture and se­cu­rity for the bank­ing in­dus­try,” Anh said, adding that SBV has so far ac­tively un­der­taken many ac­tiv­i­ties so that the bank­ing sec­tor can adapt to the fourth in­dus­trial rev­o­lu­tion.

Re­gard­ing tech­ni­cal in­fra­struc­ture, Anh said, SBV has set up the na­tional in­ter­bank elec­tronic pay­ment sys­tem (IBPS) and the na­tional credit in­for­ma­tion cen­tre, which have been op­er­at­ing smoothly.

As for the le­gal frame­work, SBV have also de­vel­oped IT in­fra­struc­ture, en­hanced safety and se­cu­rity to sup­port banks in dig­i­tal ap­pli­ca­tions and pro­mote on­line bank­ing ac­tiv­i­ties.

To pro­mote dig­i­tal bank­ing, Anh urged banks to fur­ther im­prove cor­po­rate gov­er­nance, se­cu­rity and hu­man re­sources. — VNS

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