Illustrative image (Photo: HSBC) Speaking at the Financial Services – Retail Banking Forum in Ho Chi Minh Citylast week, Vu Viet Ngoan, former chairman of the National Financial SupervisoryCommission, said the habit of using digital products had become more prevalentthan ever in Vietnam.
More than 30% of the population uses banking apps, second globally only afterChina (41%), according to Ngoan.
Vietnam’s banking and financial sectors would continue to play a key role inestablishing a “fully digitised, human-centred system”.
He also pointed out that the digital transformation in the country would be animportant process of how banks and financial institutions analyse, interact andsatisfy their customers.
The government has set a target of increasing financial inclusion to cover morethan 80% of the adult population by 2025.
Phan Thanh Duc, dean of the management information system faculty at the StateBank of Vietnam’s (SBV) Banking Academy, said Vietnam had recorded a surge indigital payment everywhere from online marketplaces to small convenience storesand even vegetable and fruit vendors.
Le Duc Anh, director of the Ministry of Industry and Trade’s Centre forInformation and Digital Technology, pointed out that technologies such asblockchain, AI, cloud computing, machine learning, and customer datacollection, management and analysis were being adopted.
The banking sector had invested over 15 trillion VND (639.22 million USD) indigital transformation as of the end of last year, according to a report by theSBV.
Digital payments have been growing at 40% for the last four years, one of theworld’s fastest digital transformation rates.
According to the report, more than 95% of Vietnamese banks have a digitaltransformation strategy.
Around 90% of banking transactions are handled through digital channels with74.6% of adults having a bank account.
As of March around 3.71 million mobile money (or mobile payment) accounts hadbeen opened, over 70% in rural, remote and disadvantaged regions across thecountry.
Non-cash payments have also seen significant growth, with 82 creditinstitutions offering internet-based payment services and 51 offering mobilepayment services as of the end of last year.
There are 48 licensed intermediary payment organisations.
Digital transformation has helped banks bring down the cost-to-income ratio to30%, on par with regional and international standards.
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But experts say the legal framework for digital financial services isinadequate.
It is vital to improve institutional frameworks and upgrading infrastructure,they say.
The lack of human resources with up-to-date skills is another major challengeto digital transformation, they warn.
Organised along with the forum was a fair introducing the advancements neededfor the financial industry’s digital transformation.
The event was hosted by the Vietnam Association of Securities Business, theVietnam Digital Communications Association, and the International Data Group./.
VNA
