At the event (Photo: Saigon Times)
HCM City (VNS/VNA) - Many banks and finance companies have proactively adopted technologies toprovide digital financial s൩ervices, Nguyen Hoang Minh, a senior cen🥂tral bank official said.
Speaking at aconference organised by Saigon Times newspaper in Ho Chi Minh City on December 5, Deputy Director of the StateBank of Vietnam (SBV)’s Branch in HCM City, said: “The countryhas seen a growth in population and internet and smart phone users, and banksand finance companies should take advantage to further develop digital servicessuch as mobile and internet payments.”
The SBV isstrengthening the legal framework to create the best conditions for banks andfinance companies to operate more efficiently, he added.
Legal amendments totake effect early next year would require finance companies to provide clearinformation about interest rates, how they are calculated, loan documents,and the debt collection “culture” to help improve the financial sector,especially the consumer finance segment, he said.
“The conduct offinance companies and the way they demand repayment of debts have caused a badimage for them among the public.”
There have beennumerous instances of finance companies' debt collectors harassing and eventhreatening debtors and even their relatives.
According to thecentral bank’s payment department, almost all banks have plans for digitaltransformation.
Bruce Delteil,partner at McKinsey & Company, said: “Consumers’ banking preferences areevolving with the rapid adoption of digital.”
“Banks thatsuccessfully execute digitisation will improve their return on equity, but itmay not be sufficient.”
Leading globaleco-system players, including banks, have already started to build capabilitiesoutside their core business activities, he said.
Banks thatsuccessfully execute eco-system and platform plays could potentially return todouble digit return on equity, he said.
Financial servicescompanies have started to transform their “DNA” to prepare for the changes, hesaid.
Kalidas Ghose, vicechairman and CEO of FE CREDIT, said digital transformation has helped improvethe quality of staff at finance companies.
Dang Thuy Ha,director of consumer insight at Nielsen Vietnam, said her company’s manystudies show that consumers aged 18 to 25 account for 20 percent of those usingfinancial services.
“Banks and companiesproviding electronic wallet services should focus on people of these agesbecause they are potential future customers. They should strengthen the linksbetween financial services and these young people’s daily activities.”
They start usingdigital transactions via their banking accounts to pay university fees, shesaid.
Moreover, they usee-wallets because of the many attractive promotions, she said.
NguyenKhac Quoc Bao,head of the University of Economics’ School of Finance, said studies showconsumers’ lack of trust is a major barrier to the digital economy.
Consumers’ acceptanceand the Government’s support are decisive factors in its success, he added.
Datareportal’sDigital 2019 report showed that 70 per cent of the country’s population use theInternet, and the average age of users is 30.
A statistic from the VietnamE-commerce and Information Technology Agency showed that 50 percent of internetusers use financial services via mobile phones.
According to theState Bank of Vietnam, the country’s interbank clearing system handled 37 milliontransactions worth nearly 21 quadrillion VND (898.4 ⛎billion USD) in the first quarter of thi🌸s year, up 23 percent and17.8 percent./.
