Vietnamese banking sector enters a phase of comprehensive restructuring in the digital era

This assessment was made by Mr. Nguyen Thanh Son - Director of the Training Center, Vietnam Banks Association (VNBA) - at the "Banking Exchange Roundtable", jointly organized by VNBA and TerraPay (UK) on May 27 in Hanoi.

The Banking Exchange conference gathered domestic and international experts, representatives of credit institutions, and financial technology enterprises, focusing on discussing the future of financial services in Vietnam, Fintech-Bank collaboration models, and lessons learned from regional markets.

From service digitalization to ecosystem restructuring

Speaking at the conference, Mr. Nguyen Thanh Son stated that the banking sector is no longer stopping at mere service digitalization but is entering a phase of comprehensive restructuring of its operating model and financial ecosystem. This is to meet the increasing demand for access to safe, efficient, and inclusive financial services in line with the Government's orientation.

Mr. Son identified three main strategic shift trends:

-Firstlt, the transition from digital banking to Open Banking, in which data no longer operates in closed systems but is safely shared and connected among entities in the digital ecosystem, helping financial services integrate more deeply into people's lives and commerce.

-The shift from passive security to smart risk management based on big data and artificial intelligence (AI), requiring real-time automation of financial fraud prevention systems.

-Thirdly, the trend of extensive cooperation between banks and Fintech companies, which is deemed inevitable to form a new generation of financial services with higher personalization, lower costs, and broader reach.

Citing data from the State Bank of Vietnam, Mr. Son noted that Vietnam is currently among the Top 5 markets with the fastest-growing application-based payments at point-of-sale (POS) in the region. During the 2019 - 2025 period, the cash usage rate at POS plummeted from 85% to 33%, indicating a fundamental change in people's payment behaviors.

Regarding the digital identity infrastructure, Vietnam has issued over 87 million chip-embedded citizen identity cards, directly connected to the eKYC system—creating an important foundation for the deployment of fully digitalized financial services. On a regional scale, Vietnam has connected cross-border QR code payments with Thailand, Laos, Cambodia, China, and South Korea; and concurrently continues to expand to markets in India, Taiwan, and Singapore.

To ensure safe and sustainable development, Mr. Nguyen Thanh Son proposed focusing on five groups of solutions:

-Perfecting policy mechanisms and digital institutions for financial inclusion;

-Synchronizing technical standards, especially inter-sectoral QR Codes;

-Building shared data warehouses and securely connecting with the National Population Database;

-Accelerating AI application in fraud prevention and credit monitoring;

-Promoting comprehensive financial education linked with the development of high-quality digital human resources.

"The forum will serve as a vital platform for parties to share information, promote substantial connections, and create innovative strategies capable of comprehensively restructuring Vietnam's financial ecosystem in the digital era," Mr. Nguyen Thanh Son emphasized.

VNBA News