Customers use the Viettel Pay app to pay for goods.(Photo: VNA)Hanoi (VNS/VNA) - Embracing the digital transformation is criticalfor Vietnamese bankers in the era of Industry 4.0, experts said during the 2019Asian Banker Conference in Hanoi on January 10.
The event, themed "Future of Finance Vietnam", was organised by Singapore-basedThe Asian Banker, a provider of strategic business intelligence to the region’sfinancial services community.
The event brought financial institutions, regulators, policymakers and serviceproviders together to share professional insights, work on detailed solutionsand discuss the latest trends in the banking industry.
“We are living in an era of technological revolution which brings both newopportunities and challenges,” said Huynh Buu Quang, CEO of the Vietnam MaritimeCommercial Joint Stock Bank (Maritime Bank). “Currently, 59 percent ofVietnamese people have bank accounts, 67 percent use the internet and 70 percentuse smart phones, but less than 20 percent make online banking transactions anddigital payments.”
“This presents a huge opportunity for bankers to apply digital technology tobring new and convenient products and services to customers,” Quang said.
According to Nghiem Thanh Son, senior deputy director general of the State Bankof Vietnam (SBV)’s Payment System Department, there is significant potential toapply digital technology to increase the efficiency and quality of services inthe country’s banking industry. These opportunities are provided by the country’sgood technical infrastructure and streamlined policies.
The SBV pays special attention to fine-tuning legal frameworks and promulgatingregulations to enhance the development of information technology infrastructureand security for the banking industry, Son said.
Following the trend, many banks have been embarking on the application ofIndustry 4.0 technology and the modernisation of their business models, saidNguyen Toan Thang, Secretary General of the Vietnam Banks Association.
The development of mobile internet banking, QR code payment systems andbiometric fingerprint and iris scanning has helped improve the quality ofbanking services and promises to lead to sustainable growth thanks to increasedservices revenue and a gradual reduction of dependence on lending, Thang said.
Vladislav Solodkiy, Managing Partner of Life.SREDA and CEO and Founder ofArival Bank, told the conference that in Sweden, the government prohibits cashbanking transactions to force the banking system to urgently prepare digitalinfrastructure.
Can Van Luc, chief economist of the Bank for Investment and Development ofVietnam, said that in 2017, Vietnam’s Government triggered a move towards acashless society by 2020, with a focus on the development of digital payments.
"In the first quarter of 2018, internet payments increased by 33 percentin volume and 18 percent in value, while mobile payments were up 29 percent involume and 128 percent in value," he said.
"Traditional banks, fintech start-ups and governments, should worktogether to build a robust and healthy ecosystem to provide more efficient andlower cost digital financial services to customers, including un-bankedpotential customers," Luc said.-VNS/VNA
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