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| Mr. Le Viet Sy, Deputy Director of the State Bank of Vietnam - Thua Thien Hue Branch |
According to Mr. Le Viet Sy, in the context of the increasingly strong development of the digital technology era that impacts nearly all sectors, digital transformation in the banking sector is an inevitable requirement. Digital transformation in banking sector is contributing to a shift in customer behavior from in-person transactions at banks to online transactions, aiming for speed, convenience, and security. Banks can also reduce staffing costs, save time, maximize customer benefits, and maximize bank profits.
In order to effectively implement the goal of digital transformation, the banking sector in the province has synchronously implemented numerous solutions to credit institutions, including new regulations related to digital transformation and promoting non-cash payments; security and safety solutions in online payments, and bank card payments; as well as collaborating with relevant agencies to implement the digital transformation plan, along with the project to promote non-cash payments in the province in an effective and efficient manner.
Could you elaborate on the advantages that digital transformation has brought to the banking sector, sir?
Credit institution branches have continuously invested in and upgraded their technical infrastructure and modern technology. They have implemented database connections to exploit the National Population Database to facilitate transactions and ensure security and safety in banking operations; they have also implemented biometric information verification with chip-based Citizen Identification Cards or VNeID accounts. Up to now, the credit institution branches have verified the biometric information of 366,816 individual customers and 1,088 organizational customers. The interbank electronic payment system has also operated more securely and smoothly.
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| Banks are currently focusing on implementing digital banking services |
Furthermore, the digital ecosystem and digital payments have established connections between banking services and numerous other services within the economy. Many banks have reported that over 90% of their transactions are conducted through digital channels. Electronic payments in government sector and public services have yielded positive results; the collection of state revenue, as well as services in education, healthcare, electricity, water, pension payments, health insurance, social insurance benefits, and unemployment benefits, have seen a strong focus and been strengthened on cashless transactions, leading to positive outcomes. As of the end of the third quarter of 2024, the entire province had 238 ATMs, 1,536 POS and mPOS terminals, of which 1,294 meet the chip card standards.
What do you believe was the key element that contributed to this success?
It can be said that the decisive directive of the Government and the State Bank of Vietnam in digital transformation has promoted the shift of almost all state management activities and credit services to a digital environment, stimulating socio-economic development and providing better services for people and businesses. In addition, the completion of the institutions, mechanisms, and policies, and the synchronized issuance of a system of decrees and circulars have created a favorable legal framework for the active deployment of digital transformation.
As a result, this has motivated units to continuously invest in technical infrastructure, build and deploy digital banking models, and enhancing customer convenience and experience in the direction of automating processes, optimizing products and services, integrating various utilities with modern and secure technology. Consequently, the awareness of and actions towards digital transformation have spread throughout society, with every citizen participating and engaging, especially in organizations such as youth, students, women, and farmers, etc.
Recently, the State Bank of Vietnam has issued numerous legal documents for the non-cash payments, promoting digital banking activities. Could you share some of the key highlights from these documents?
On January 18, 2024, the National Assembly passed the Law on Credit Institutions. Subsequently, the State Bank of Vietnam submitted to the Government for promulgation Decree No. 52/2024/ND-CP dated May 15, 2024 on non-cash payments, including regulations to promote non-cash payments, facilitating the digital transformation of the banking sector, as well as developing new, convenient, and secure payment products and services.
Notably, Decree 52 has added regulations on cryptocurrencies; clarified the concept of international payment; revised and supplemented new regulations on opening and using customer payment accounts at payment service providers; non-account-based payment services for public service providers, and regulations on payment intermediary services, etc.
Some regulations outlined in the guiding circulars contribute to limiting the use of fake documents to open payment accounts/issue cards/e-wallets for the purpose of fraudulent transactions, scams, and violations of the law.
As you previously discussed, the project to develop the application of population data, electronic identification and authentication to serve the national digital transformation in the period of 2022 - 2025, with a vision towards 2030, is being applied quite well in the digital transformation of the banking sector. Could you provide more detailed information on this?
In accordance with the implementation plan of the banking sector’s Project 06, and the cooperation plan between the Ministry of Public Security and the State Bank of Vietnam, credit institutions have actively collaborated with the C06 Department of the Ministry of Public Security to exploit the National Population Database to clean customer data and serve the bank's business activities. At the same time, credit institutions have gradually implemented, coordinated and signed contracts with enterprises authorized by the Ministry of Public Security to provide customer authentication solutions using chip-based Citizen Identification Cards and implemented customer authentication solutions via the VNeID application, so as to apply in the process of account opening and the use of e-banking services.
Credit institutions are also in the process of implementing solutions to apply data from the National Population Database in the customer loan assessment process. Currently, 8 credit institutions with branches in the province are in the process of researching and integrating technical solutions to connect and exploit the credit scoring service. Credit institutions have been cooperating with the social insurance agencies of the province, city, and districts to make social security payments such as salaries, allowances, sickness, and maternity benefits, etc., through ATM accounts. Up to now, 6 credit institutions with branches in the province have completed the connection and linking of social security accounts with bank accounts for social security payments.
The integration of the National Population Database into banking operations also contributes to the development of a digital economy, enhancing transaction efficiency between banks and ensuring the security of operations to prevent crimes in the banking sector.
Could you please elaborate on the orientation of digital transformation within this sector in the coming time?
In addition to adhering to legal documents and relevant plans and projects, the State Bank of Vietnam - Thua Thien Hue Branch has focused on directing credit institutions in the locality to create the most favorable conditions for individuals, enterprises, and administrative-public institutions to access all banking services in the most convenient and efficient manner; contributing to reducing costs in terms of time, materials, and compliance for people, enterprises, administrative-public institutions, and the banking system; controlling risks, preventing and combating corruption, negativity, and harassment.
The bank is also strengthening the security, safety, and confidentiality of payment and banking activities; directing service providers to actively implement security and safety solutions in online payments and bank card payments so as to protect the legitimate rights and interests of customers. At the same time, it is promoting financial communication and education to enhance the knowledge and skills of the people in using financial and banking products and services.
Thank you, sir!