On May 18, 2023, in Hanoi, the “Digital Transformation Day of the Banking Sector” in 2023 was organized by the State Bank of Vietnam (SBV). This event included the following activities: a Thematic Conference on “Application of population data in the banking operations - momentum for digital transformation”; an Exhibition displaying simulations of outstanding and typical products and services in digital transformation; an Awarding Ceremony of the SBV Governor’s Certificates of Merit to organizations and individuals who have made extraordinary contributions to the digital transformation of the banking sector.
Deputy Prime Minister Le Minh Khai speaks at the event
The event was attended by Deputy Prime Minister Le Minh Khai; Mr. Nguyen Manh Hung, Minister of Information and Communications; Lieutenant General Nguyen Duy Ngoc, Deputy Minister of the Ministry of Public Security, together with representatives of the Committees of the National Assembly, the Government’s Office, other Ministries and agencies, etc.
On the side of the banking sector, there was SBV Governor Nguyen Thi Hong and other members of the SBV Board of Management; members of the Steering Committee and the Working Group for Digital Transformation of the Banking Sector; representatives from the credit institutions, Vietnam Banks’ Association, the international institutions, etc.
Deputy Prime Minister Le Minh Khai visits booths at the exhibition
Closely following the Party’s directions and the Government’s policies on digital transformation
In her opening speech at the event, SBV Governor Nguyen Thi Hong emphasized that digital transformation is an inevitable and irreversible trend in the development process of most countries around the world. In Vietnam, the SBV has been effectively implementing the tasks as stated in the National Digital Transformation Program, the Scheme on the development of applications of the population data (Scheme 06), and the theme for “Year of Digital Data 2023” as set out at the Conference reviewing the 1-year’s implementation of Scheme 06 and the performance in 2022 of the National Committee for Digital Transformation, the SBV has selected the theme of “Application of population data in banking operations - momentum for digital transformation” for this year’s Digital Transformation Day of the Banking Sector.
SBV Governor Nguyen Thi Hong delivers her opening speech
Over the past time, following closely the guidance and policy of the Party and the Government, with the coordination and support from the relevant Ministries and agencies, together with the proactiveness and the great efforts of the whole banking industry, with the spirit of innovation and creativity, placing the people as the center, the banking industry has achieved encouraging results in the digital transformation after two years implementing the Banking Sector’s Plan for Digital Transformation to 2025, Vision to 2030 (Decision No. 810/QD-NHNN).
Currently, the SBV has connected with the National Database on Population, cleaned 25 million customers' credit information, and supported various professional operations. The credit institutions have constantly researched and applied widely advanced digital technologies, such as big data, data analytics, artificial intelligence/machine learning, etc., in order to optimize and simplify their business processes, provide highly customized products and services, etc.
Many credit institutions have implemented solutions allowing their customers to open payment accounts based on the authentication of the citizen data; allowing identification and verification of customer information by chip-based citizen identification cards or VNeID application; optimizing the lending processes with credit scoring solutions; verifying multi-dimensional information through the population data, etc.
These results have been reflected through the following highlighted information: many banks have over 90% of the customers’ transactions via digital channels; about 74.63% of adults in Vietnam own at least one bank account; 3.71 million Mobile Money accounts have been opened, of which over 70% accounts opened in the rural and remote areas, etc.
Speaking at the event, Mr. Nguyen Manh Hung, Minister of Information and Communications, affirmed that the SBV has ranked the fourth in terms of the national digital transformation index, and ranked the first in terms of information security; have processed 99% of public service documents online; completed over 50% of the tasks as assigned in the National Digital Transformation Program to 2025; connected and shared data with the national databases, especially the population database, and obtained initial positive results.
According to the Minister of Information and Communications, data is a new type of resource and the banking industry has the most data, and this data is increasing on a daily basis. The good use of data will create a lot of new values for the country and create breakthroughs for the banking industry, helping it to become a leading sector in big data analytics.
The Minister of Information and Communications hoped that the banking industry would always be in the leading group in digital transformation, creating new values for itself and for the whole country. IN addition, banks should use and create more technology products for their customers, especially services only available with 4.0 technologies.
Banking sector achieved encouraging results in digital transformation
According to Mr. Pham Anh Tuan, Director General of the Payment Department under the SBV, implementing the policy of the Party and the Government, on May 11, 2021, the SBV Governor signed Decision No. 810 issuing the Plan for Digital Transformation of the Banking Sector, which places the people as the center, and the users’ utilities and convenience as measurers for the performance of the digital transformation.
After 2 years implementing this Decision, the banking sector has achieved encouraging results, and has always received high recognition in the digital transformation index rankings of ministries and central agencies, as well as in the rankings of the institutional development for digital transformation index, and the network safety and security index.
The above results have been achieved thanks to the banking sector’s active and synchronous implementation of the tasks and solutions as stated in Decision No. 810 of the SBV Governor, specifically as follows:
Firstly, regarding the awareness raising, in 2021, the SBV established the Banking Sector’s Steering Committee for Digital Transformation, which is chaired by the SBV Governor, and the members are the heads of the SBV entities and several credit institutions. The SBV has also selected and announced that May 11 is the Digital Transformation Day of the Banking Sector. Also, over the past 2 years, the SBV has organized various policy dialogues, thematic discussions, conferences, workshops and training courses for the leaders and employees at different levels on digital transformation.
Secondly, in the field of institutional development, over the past 2 years, the SBV has studied, developed and issued various documents aimed at facilitating the digital transformation in the banking sector. The SBV has also formulated and issued a lot of guiding documents on the technical regulations, and has coordinated closely with the Ministry of Information and Communications and the Ministry of Public Security to provide counseling to the Prime Minister on the issuance of Decision No. 316 on the pilot use of cellphone accounts to pay for small-valued goods and services. In addition, the SBV is currently in the process of finalizing the draft Law on Credit Institutions (revised), submitting to the Government a number of draft Decrees on cashless payment and on a Fintech Sandbox in the banking operations, in order to create the foundation for the application of digital technologies in the banking operations.
Thirdly, in the field of infrastructure, digital transformation has always received high interest and large investment by the banks to develop robustly.
Fourthly, the SBV has been actively coordinating with the Ministry of Public Security in the implementation of Scheme 06 on the provision of digital services.
Fifthly, the SBV has been continuing to put big efforts into the development of an e-government.
Sixthly, the banks have also been cooperating and connecting with organizations and sectors outside the banking sector in order to build an ecosystem to provide diverse products and services to their customers.
The Ministry of Public Security stands ready to coordinate with the banking sector in the implementation of the digital transformation
Senior Colonel Vu Van Tan, Deputy Director General of the Police Department for Administrative Management of Social Order (C06) of the Ministry of Public Security, shared that the Ministry of Public Security always stands ready to provide the authentication services based on the citizen identification cards to assist the banking sector’s operations; thereby saving the management costs, optimizing the systems, digitizing the data, creating a comprehensive electronic process; contributing to improving the production and business efficiency.
With the solutions that have been implemented, it is believed that the Ministry of Public Security could contribute significantly to the prevention of crimes, restricting frauds and financial risks.
The participants at the event
The fast digital transformation in the banking industry will accelerate the country's digital transformation
Speaking at the event, Deputy Prime Minister Le Minh Khai said that the finance and banking industry is identified as one of the eight priority sectors for digital transformation, because it can help change people’s awareness the fastest, save costs and bring about social efficiency. The banking sector is the bloodline of the economy. The fast digital transformation in the banking industry will accelerate the country's digital transformation; contributing to the effective implementation of the tasks and main solutions as set out for 2023; implementing successfully the development goal as set out in the Socio-Economic Development Strategy for the 2021-2030 period.
The Deputy Prime Minister said that at the meetings of the National Committee on Digital Transformation, the SBV has been one of the Ministries and agencies highly recognized for the great efforts and the achievements in the implementation of the objectives, targets and assigned tasks, etc., making an important contribution to the realization of the National Digital Transformation Program, of which Scheme 06 is one of the key schemes to promote the national digital transformation and develop an e-Government, heading towards a digital Government, a digital economy, a digital society and digital citizens.
In the coming time, in order to promote further the achieved results, the Deputy Prime Minister requested the banking sector to continue to actively implement the following tasks:
Firstly, on the institutional building and reforms: Continue to proactively find out about the practical needs of the people, the businesses and the credit institutions to develop and improve the legal documents in alignment with the situations and the context of digital transformation; continue to closely coordinate with the Ministries and agencies to urgently finalize and submit to the Government for promulgation the Decree on non-cash payment, the Decree on the Sandbox for Fintech, etc.; proactively review and develop plans to amend the legal documents under the SBV’s jurisdiction; promote the implementation of Scheme 06 and the digital transformation in the banking sector.
Secondly, in terms of the digital infrastructure: digital transformation must be implemented synchronously to ensure the efficiency. Digital transformation must place the people as the center, so it is necessary to have a connection and linkage between the banking industry, specifically the credit institutions and the payment intermediaries, with other industries, especially connecting with the National Public Service Portal.
Thirdly, in terms of security and safety: ensuring security and safety for banking operations should receive special attention, and there should be a reasonable balance between the investment in developing new products and services and the investment in ensuring security and safety of the IT systems.
In addition, it is necessary to continue to strengthen the information and communication to raise awareness and understanding of the people and businesses, so that they can use banking services on digital channels in a convenient and safe way, and prevent the risks of being abused, or becoming victims of information thefts, etc.
In her concluding remarks at the event, SBV Governor Nguyen Thi Hong expressed the strong determination of the SBV's Board of Management in directing the whole banking industry to realize the key contents as directed by the Deputy Prime Minister, focusing on improving the institutional mechanisms, developing the digital infrastructure, ensuring information security and safety, strengthening the human resources, and enhancing the information and communication. The SBV Governor also expressed her wishes that the Ministries and agencies would continue to coordinate with the banking sector to realize the objectives of the National Digital Transformation Program, as well as to successfully implement the Coordination Plan between the SBV and the Ministry of Public Security.
Representatives of collectives and individuals receive the SBV Governor’s Certificates of Merit
Also at this event, the SBV Governor awarded the Certificates of Merit to several organizations and individuals. This reflected the SBV’s recognition of their active and important contributions to the digital transformation of the banking sector.
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