Over the recent time, digitization and the enhancement of non-cash payment have received a lot of attention from and strong directions of the Party and the Government. Based on those directions, the State Bank of Vietnam (SBV) has been constantly improving the legal frameworks and policy mechanisms in order to enhance the digital transformation in the banking sector and the cashless payment. There has been more and more investment into the payment infrastructure, which has seen steady improvements. The communication and financial education have been promoted. These have created critical pillars for the robust growth of the digital payments and banking digitization.
Deputy Prime Minister Le Minh Khai visits the booths at the Conference
Within the framework of the “Non-Cash Day 2022”, on June 17, 2022, a Conference on “Digitization towards a Cashless Society” was organized by the Tuoi Tre (Youth) Newspaper in coordination with the SBV Payment Department and the National Payment Corporation of Vietnam (NAPAS). The Conference was attended by Deputy Prime Minister Le Minh Khai.
Deputy Prime Minister Le Minh Khai and SBV Governor Nguyen Thi Hong at the Conference
In her opening speech, Governor Nguyen Thi Hong assessed that the “Non-Cash Day” event had created a widespread positive impact, thereby playing an important role in the public communication about cashless payments, highlighting the benefits, promoting and encouraging people to use digital banking services and non-cash payment methods in a safe and reasonable manner, contributing to the socio-economic development.
The Conference was considered a forum for the regulatory agencies, businesses and banks to exchange their views and experience in digital transformation in the banking sector, as well as in the relevant sectors, thereby facilitating the application of digital payment in all aspects of the socio-economic life, contributing to the economic recovery and development.
Governor Nguyen Thi Hong speaks at the Conference
Governor Nguyen Thi Hong shared that the SBV had proactively studied and promulgated: (i) a Plan on digital transformation of the banking sector; (ii) a Directive on promoting digital transformation and ensuring information security and safety in banking operations; (iii) a submission to the Government for issuance of Decision No. 316/QD-TTg approving the pilot use of telecommunication accounts to pay for small-valued transactions (Mobile Money); (iv) guidelines for banks on opening payment accounts through the electronic customer authentication means (eKYC); (v) the issuance of the payment technical standards (QR code, domestic chip cards, etc.) to facilitate inter-payment connections, reduce payment acceptance costs.
Over the past time, the SBV has proactively coordinated with the relevant ministries and agencies to conduct consistent measures to promote non-cash payment. Moreover, the SBV has focused on investing in payment infrastructure, ensuring smooth banking operations and the inter-bank connections, promptly meeting the demand for electronic payments of the people and the enterprises. In addition, the task of ensuring safety and security of the non-cash payment system has continued to be strengthened.
The communication activities and financial education have been strengthened through several programs which have received high interest by the public, such as “Smart Money”, “Holding the purse-strings" TV shows, contributing to improving the knowledge and skills for the people when using financial services, thereby promoting cashless payment and financial inclusion.
Digitization and digital payment bring practical benefits to the people and businesses
Thanks to the enormous efforts of the whole banking system, the banking digitization has obtained encouraging results, especially in the payment activities, bringing practical benefits to the people and businesses. Those results have been reflected through some specific information and figures as follows: the annually average growth rate in mobile payment transactions is over 90%; many banking services are now used completely in digital channels like opening new accounts and bank card issuance, deposits, money transfer, etc.; nearly 70% of adults have payment accounts; about 1.1 million mobile accounts have been opened, the payment system has operated smoothly and safely, meeting almost all demands for payment in the economy, etc.
Deputy Governor Pham Tien Dzung speaks at the Conference
Speaking at the Conference, Deputy Governor Pham Tien Dzung affirmed that after four years of organization, the “Non-Cash Day” event has asserted its role and popularity by attracting enormous public and businesses’ interest in the digital banking products and services, contributing greatly to the communication on enhancing cashless payment, as well as to the National Digital Transformation Program. The SBV Deputy Governor hoped that this event would continue to receive more attention and guidance from the Government; the coordination and contributions from all Ministries and government agencies in order to enable Vietnam to become a cashless society.
Mr. Le Anh Dzung, Deputy Director General in charge of the Payment Department, makes a presentation at the Conference
Before Deputy Governor Pham Tien Dzung’s speech, Mr. Le Anh Dzung, Deputy Director General in charge of the Payment Department, delivered a presentation, in which he shared that in the first four months of 2022, the transaction value through the financial switching and electronic clearing systems had increased by 88.42% in the number of transactions and 139.8% in the transaction value as compared to those of the same period of 2021. Non-cash payment operations increased by 69.7% in the number of transactions, and by 27.5% in the transaction value; transactions via the internet increased by 48.39% in the number of transactions, and by 32.76% in the transaction value; transactions via smart phones rose by 97.65% and 86.68% in the number and value of transactions respectively; the transactions via QR code increased by 56.52% and 111.62% in the number and value of transactions respectively as compared to the figures of the same period of 2021; the total number of activated e-wallets increased by 10.37% as compared to that of the end of 2021.
The panelists in the panel discussion
Consistent measures towards a cashless society
In the coming time, the SBV will continue to conduct synchronous and effective solutions to promote non-cash payment, specifically as follows:
Firstly, the SBV will continue to consider, review and improve the legal frameworks, develop appropriate policy mechanisms to promote cashless payments. The SBV will closely coordinate with the relevant ministries and agencies to revise the Law on Electronic Transactions, and to formulate a Decree on electronic identification and authentication, and another Decree on protection of personal data.
Secondly, the SBV will further upgrade and improve the payment infrastructure, enhance the integration and connectivity with other sectors and fields to provide a digital platform for utility service payments, helping to increase the positive experience and convenience for customers.
Thirdly, the SBV will prioritize the application of the 4.0 technologies in banking activities in order to improve the quality of service provision; the development of the digital banking, the enhancement of the digitization of the banking products and services.
Fourthly, the SBV will proactively and effectively implement Decision No. 06/QD-TTg of the Prime Minister approving the Scheme on developing an database application for population, electronic identification and authentication data to support the national digital transformation; linking the digitization and the enhancement of non-cash payment with the security and safety, as well as the protection of customers when providing banking services.
Fifthly, the SBV will enhance the communication and information about non-cash payments and financial education; strengthening measures to protect the legitimate rights and interests of consumers.
Regarding the orientations of the communication and financial education in the coming time, the SBV will identify the priority target groups, focusing on the people in the remote and rural areas, young people, disadvantaged people, people without bank accounts, etc. The communication activities in the banking sector would need to be more diversified to ensure four “easy-s” objectives (Easy to learn - Easy to remember - Easy to apply - Easy to disseminate); thereby, improving the public knowledge, skills and accessibility to financial and banking services, contributing to promoting the digital transformation of the banking industry in order to accomplish the financial inclusion goals.
Le Hang