Digitalization helps commercial banks save 60-70% of costs and at the same time have deeper access to digital banking services. However, becoming a digital bank is a long and arduous journey. The reporter of New Energy Magazine notes the opinions of managers and experts at the new Forum ‘Strategic Future Digital Banking in Vietnam’ held in Hanoi.
Ms. Nguyen Thuy Duong – President of EY Consulting Vietnam, Vice Chairman of Fintech Club, Banking Association: Scale as a venture capitalist
Survey results on digital transformation in the Vietnamese banking industry show that 42% of commercial banks are building a digital transformation strategy; 28% of commercial banks have been implementing digital transformation strategies integrated with business strategies; 11% of commercial banks have approved and are implementing their own digital transformation strategy; 70% of credit institutions (CIs) are willing to deploy from an average level or higher with the following technologies: Mobile devices, open data connections according to application program interfaces; data analysis, standardization of electronic information according to the international financial electronic information standard ISO 20022; customer support (chatbot, virtual assistant …). In which, data analysis is the most widely used technology in credit operations (over 53% of credit institutions).
In the digital age, every credit institution needs to think like a strategist, innovate like a startup, design like a technology corporation, scale as a venture capitalist.
Mr. Pham Xuan Hung – Head of Supervisory Policy Research and Coordination Committee, National Financial Supervisory Commission: There are still many legal gaps
The development of digital banking in Vietnam is facing a number of limitations and difficulties such as: The legal gaps for digital banking development remain many; legal bases only focus on non-cash payment activities, such as digital signature authentication; identify customers; protecting consumers’ interests in financial services; protect user data privacy. The legal framework often lags behind technological developments.
In addition, the strategy for investment in the financial foundation technology is slow and inconsistent; There are still many shortcomings in sharing data between fields. There are still many limitations on information technology resources in digital banking development; Communication and consumer awareness raising (between regions) have not been strengthened.
Overview of the Forum “The future of digital banking strategy in Vietnam”
In order to accelerate the digital transformation process, state management agencies need to soon complete the legal framework in the areas of: Limited Online Customer Identification (eKYC); the bank’s trust agent system for non-cash payment services, digital banking services; policies on information safety and confidentiality in electronic transactions to protect the legitimate interests of customers; electronic banking process, supervise digital banking activities.
Commercial banks need to study and build a digital transformation roadmap; appropriate resource allocation for investment in new technology; promote banking digitization and develop pure digital banking.
Mr. Pham Xuan Hoe – Former Deputy Director of Banking Strategy Institute: Risk management, security, confidentiality
Digital technology is gradually changing the forms of providing financial and banking services. Digitalization helps commercial banks save 60-70% of costs and access more and more to digital banking services, integrating multi-dimensional in providing full financial services.
Digitalization has created a big change in the banking industry in terms of customer experience, more difficult banking, less loyalty; The increase in non-intermediary activities, in other words, the intermediary role of commercial banks will no longer be a unique position in the market, but will be replaced by online provision on technology platforms (the platform of P2P lending or P2P payment).
The emergence of huge data sources and integrated automatic collection processing and analysis by Bigdata technology will create a turning point in revenue development on a large scale. Technology development requires a change in the legal environment (open perspective) to reasonably support the development of new financial-banking business models.
Vietnamese commercial banks are mostly in the second stage (digital transformation), having implemented digital banking at the transition level in terms of processes and communication channels, while converting to new data platforms. deployed at some pioneering commercial banks. In order to develop digital banking in the future, it is necessary to have an open and balanced view that encourages innovation in policy making; National database and connection is the foundation for digital financial services.
Commercial banks need to strictly implement solutions to risk management, security, confidentiality, and consumer data assurance; take advantage of technology in capacity assessment and training to retain talent; need a database strategy. In addition, the Government’s support for policy is indispensable.
Survey results on digital transformation in the Vietnamese banking industry show that 42% of commercial banks are building a digital transformation strategy; 28% of commercial banks have been implementing digital transformation strategies integrated with business strategies; 11% of commercial banks have approved and are implementing their own digital transformation strategy …
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