Attending the program were: Mr. Le Anh Dung - Deputy Director - Payment Department - State Bank of Vietnam; Mr. Nguyen Thanh Son - Director of Training Center - Vietnam Banks Association; Mr. Nguyen Xuan Truong - Director of Technology - Kienlongbank; Mr. Terry Paleologos - Managing Director - BPC Asia - Pacific Region; Mr. Imran Vilcassim - Global Director - Digital Banking Solutions - BPC; Mr. Guillaume Panot - Commercial Director - Digital Banking Solutions - BPC; Ms. Hanh Bui - Country Director - BPC Vietnam.
Currently, in Vietnam, the Government has issued the "National Digital Transformation Program to 2025, with a vision to 2030" and the State Bank has issued the Digital Transformation Plan for the Banking Industry to 2025, with a vision to 2030. Up to now, most banks have been building digital transformation strategies and developing application services on the internet and mobile phones.
Mr. Nguyen Thanh Son, VNBA's Director of Training Center
Statistics show that in the first 6 months of 2024, Non-Cash Payment (TTKDTM) and digital banking transformation continued to achieve positive results, with important payment systems operating smoothly and safely. Up to now, more than 87% of adults have had payment accounts at banks and many banks have processed over 95% of transactions on digital channels.
Compared to the same period in 2023, the number of transactions via the interbank electronic payment system increased by 2.83% in quantity and 26.94% in value. The financial switching and electronic clearing system increased by 38.18% in quantity and 23.26% in value. The ATM system generally operated stably, safely, smoothly, and well served people's payment needs.
E-commerce transactions reached 7.83 billion transactions, with a value of VND 134.9 million billion (up 58.23% in quantity and 35.01% in value) compared to the same period in 2023, of which: payments via the Internet channel increased by 49.97% in quantity and 32.13% in value; via mobile phone channels increased by 59.3% in quantity and 38.53% in value; Transactions via QR Code increased by 104.2% in quantity and 99.5% in value.
By the end of June 2024, the total number of registered and used Mobile-Money accounts was about 9.13 million accounts, of which the number of customers registering and using services in rural, mountainous, remote, border and island areas accounted for about 72%.
Banks also invested heavily in new technology, core banking to serve digital transformation and apply it to operations such as: Blockchain technology; Artificial intelligence (AI) application; Biometric technology (voice, face, fingerprint, iris recognition).
For the Fintech sector, the State Bank of Vietnam (SBV) has granted operating licenses to provide intermediary payment services to 50 non-bank organizations, including more than 40 units providing e-wallet services. According to statistics from the State Bank of Vietnam as well as the Vietnam Fintech market report 2022, the number of Fintech companies has increased 4 times, from 39 companies at the end of 2015 to more than 176 companies at the end of 2022. Among Fintech companies in Vietnam, about 70% are startups. According to Robocash Group's assessment (2022), Vietnam's Fintech market is the second fastest growing in the region, after Singapore, expected to reach nearly 20 billion USD in 2024 with a high level of competition. Vietnam is also ranked No. 1 in the world in terms of global cryptocurrency adoption index in 2022.
In the coming time, the digital transformation process in the Banking and Finance industry will continue to accelerate. The trend of banks cooperating with Regtech, Suptech, Proptech has also begun to be deployed in Vietnam in different forms, in which Regtech is an information technology application to support legal enforcement for financial institutions; Suptech is an information technology application to support legal enforcement for management and supervision agencies, Proptech is an application of information technology and platform economics to the real estate market, abbreviated as real estate technology.
In addition, the open banking trend will help customers use bank products from many different applications in addition to digital banking applications, while helping banks reach a variety of customers at reasonable costs through other applications of partners. According to a survey by the State Bank of Vietnam at the end of 2023, 72.3% of credit institutions have planned to deploy APIs, of which 47.6% have built APIs for third parties to connect; about 65% of credit institutions are ready to deploy Open APIs, of which over 30% of credit institutions have a high level of readiness for Open APIs.
According to Mr. Son, Director of VNBA's Training Center, the conference should focus on digital payments, one of the most important topics in the digital transformation industry, and is an opportunity for leaders, experts, technology and business directors from credit institutions, Fintech companies and payment intermediaries to exchange, share and update information related to achievements in digital transformation in the banking and finance industry. At the same time, the conference is also an opportunity to connect technology developers, experts, investors and business partners to create a tight and effective digital banking and digital payment ecosystem in Vietnam.
Mr. Le Anh Dung - SBV Payment Department
Sharing about the digital transformation situation of the Vietnamese banking industry, Mr. Le Anh Dung said that the management agency has had policies and orientations on digital transformation, legal regulations to facilitate banking activities such as: Law on Anti-Money Laundering 2022; Law on Electronic Transactions 2023; Decree 52/2024/ND-CP regulating e-commerce; Circular 11/2022 and Circular 06/2023 regulating bank guarantees, lending by electronic means; Decree 13/2023/ND-CP on personal data protection, Decree 117/2018/ND-CP on confidentiality, provision of customer information of credit institutions...
Digital transformation increases, digital ecosystem develops and enhances customer experience. The banking industry is a pioneer in applying IT and Digital Transformation to deploy the provision of modern e-commerce products and services to meet people's needs.
According to statistics, e-commerce transactions in the first 7 months of 2024 were approximately 9.3 billion transactions (up 58.44% over the same period in 2023) and the total transaction value reached more than 160 million billion VND (up 35.13% over the same period in 2023). By the end of June 2024, Vietnam had more than 193 million payment accounts of technology enterprises. By the end of 2023, the adult population of Vietnam had payment accounts of 87.07%. Many banks have processed over 95% of transactions on digital channels.
In addition to positive growth and development, digital transformation in the banking industry also faces some difficulties and challenges such as: New context with changing user behavior, new business models, distribution channels based on technology, data and the emergence of "new players"... causing difficulties for management agencies in monitoring, evaluating and controlling risks; Increased cyber security risks; Challenges in financial education and protecting consumer rights.
Mr. Guillaume Panot - Director of Commerce - Global Digital Banking of BPC gave a speech on Conquering the digital payment race. He also pointed out the current trend of focusing on digital experiences; Exploiting small and medium-sized digitalization opportunities for SMEs; Finding ways for businesses to cooperate with third parties in the field of open finance and open banking; Promoting digitalization in SME businesses.
From practical application, Mr. Nguyen Xuan Truong - Technology Director - Kienlong Commercial Joint Stock Bank said: KienlongBank identifies Digital Transformation as a strategic orientation for effective competition and sustainable development in the new era.
KienlongBank's goal is to become a modern digital bank through implementing a comprehensive innovation strategy to create a sustainable digital banking model, improve the quality of banking services, increase utilities and bring "perfectly personalized" experiences. for customers.
KienlongBank's Board of Directors considers information technology not as a back-end support layer but as a key factor in the Digital Banking model, by maximizing the impact of applying Technology in: Digital management; Digital product development; Digital experience. KienlongBank has a strategic orientation towards Digital Banking, so the Bank has proactively deployed digital technologies and platforms such as Cloud, Deploying payment gateways similar to fintech companies (KienlongBankPay), which helps the Bank proactively adapt/change products and compete with Fintech companies.
Kienlongbank decided that Hybrid Cloud is the appropriate model in the journey of transforming the Digital Banking industry, in order to take advantage of the scalability, flexibility, and technology updates of the public cloud while maintaining the high level of control, customization, or security of the on-premises model. In the hybrid cloud, each workload can be placed in an optimized environment to support high performance and reduce total costs.
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