BANKING INDUSTRY PROMOTES DIGITAL TRANSFORMATION FOR SMART DIGITAL ECOSYSTEM

Many credit institutions in Việt Nam have achieved a digital transaction rate of more than 95 per cent. Nearly 87 per cent of Vietnamese adults have bank accounts.

Prime Minister Phạm Minh Chính visits a booth that displays digital banking products and services at the event. — VNA/VNS Photo

HÀ NỘI — The digital transformation of the banking industry must be further promoted to better the connection between commercial banks with people, enterprises and the State, Prime Minister Phạm Minh Chính said at a banking event on Thursday.

Addressing the ‘Digital Transformation of the Banking Industry in 2025’ event with the theme ‘Smart Digital Ecosystem in the New Era’ held in Hà Nội by the State Bank of Vietnam (SBV), the PM Chính, who is also head of the Government's Steering Committee on Science and Technology, Innovation and Digital Transformation, said the digital transformation of the banking industry has made progress. It has so far gained certain achievements on data, non-cash payments and implementation of practical digital utilities and technology solutions such as online account opening, digital signatures on the VNeID platform and cross-border payments using QR codes.

However, there are still many limitations and challenges in the digital transformation of the banking industry related the legal corridor, including development of digital infrastructure and digital platforms, a shortage of high-quality employees and concerns about information security and safety.

Therefore, the PM directed: “The banking sector must complete the legal framework and policies in line with reality. It needs to urgently implement the sandbox in the banking sector and promptly submit to the Government for promulgation of the Decree on Mobile Money besides reviewing legal regulations to amend and supplement the existing regulations to ensure consistency and compliance with the provisions of the Law on Credit Institutions, the Law on Data and the Law on Electronic Transactions.”

In addition it is necessary to develop modern digital infrastructure and platforms with high interoperability, and ensure security and safety.

The banking sector must comprehensively digitise traditional banking processes and products, develop new digital financial products and services to meet the increasingly high and diverse needs of customers.

“Notably, banks must expand access to financial services for disadvantaged groups, remote areas, border areas and islands,” the PM said, adding digital data, combined with Project 06, need to be developed.

Besides prioritising human resource development to meet the transformation requirements of the banking industry, the PM said that it is necessary to enhance dissemination about the benefits of digital transformation in the banking sector to each citizen and business, helping them understand the benefits and effectiveness of the work.

At the event, SBV Governor Nguyễn Thị Hồng said: “This is an important annual event, showing the high determination and strong commitment of the entire banking industry in implementing Resolution 57-NQ/TW on breakthroughs in science, technology, innovation and national digital transformation, and the National Digital Transformation Programme to 2025, with a vision to 2030.”

According to Hồng, the theme ‘Smart digital ecosystem in the new era’ of the event shows the determination of the banking industry in realising the Party’s and Government's directions on breakthroughs in science and technology development, innovation and national digital transformation. They include the National Digital Transformation Programme to 2025, with a vision to 2030; and the Project on Developing Non-cash Payments for the 2021-25 Period, which aim towards creating a digital ecosystem interconnected with other economic sectors to create momentum for the development of the digital economy.

After constantly improving the legal framework to promote digital transformation activities in banking and promoting investment and upgrade in infrastructure serving digital transformation, the banking sector has so far achieved many outstanding achievements in digital transformation, contributing to the overall development of the economy.

Hồng reports that the interbank electronic payment system processes an average of VNĐ820 trillion per day, while the financial switching and electronic clearing system processes 26 million transactions per day. More than 113 million individual customer profiles and more than 711,000 corporate customer profiles have been cross-checked with biometric information.

Many credit institutions in Việt Nam have achieved a digital transaction rate of more than 95 per cent. Nearly 87 per cent of Vietnamese adults have bank accounts.

“Việt Nam is also a pioneer in connecting cross-border retail payments via QR codes with Thailand, Cambodia and Laos, aiming to expand in the Asian region,” Hồng said.

At the event, participants also experienced direct services at 19 booths that displayed digital banking products and services of commercial banks, payment intermediaries and technology solution providers. — BIZHUB/VNS

Source: VNS