“Not disturbing customers’ experience in using the services, while still ensuring the legitimate rights and interests of the service users are one of the crucial principles for the banks”, Deputy Governor Pham Tien Dzung emphasized at a Conference on “Enhancing the security and safety for non-cash payment transactions”, which was organized on June 14, 2024 in Ho Chi Minh City, on the side of the “Cashless Day 2024” event.
“The figures that could never be dreamed of before”
About the results in the development of cashless payment, the SBV Deputy Governor cited: “As stated by the Minister of Finance, 99% of the tax payment transactions are now cashless. This is a figure that could not be dreamed of before. In 2019, there were one billion non-cash payment transactions. Now, there are nine billion transactions. The growth rate is extremely high”.
The SBV Deputy Governor went on to summarize the main points that had been raised by the presenters at the Conference, i.e. the participation of NAPAS in the process of providing payment services in order to detect promptly any risks during the transactions; the sharing of information with the relevant parties about the accounts and cases related to frauds,… as well as applying credit ratings to prevent frauds. Deputy Governor Pham Tien Dzung also explained more about the requirement for authentication by biometrics for transactions valued at over VND 10 million in compliance with Decision 2345.
The SBV Deputy Governor added that, in the coming time, there would be further improvements of the legal frameworks. Specifically, the SBV has been reviewing, revising, amending and supplementing the regulations providing guidance for the implementation of the 2024 Law on Credit Institutions, Decree 52/2024/ND-CP on cashless payment; the Circulars related to payment activities. The SBV Deputy Governor expressed his hope that these new regulations would soon come into effect to promote cashless payment in the future.
Minister of Finance Ho Duc Phoc speaks at the Conference
Speaking at the Conference, Minister of Finance Ho Duc Phoc said that, recognizing the crucial role of cashless payment in the social life, over the past years, the Ministry of Finance has directed the General Department of Taxation, the General Department of Vietnam Customs, the State Treasury and other relevant entities to conduct various synchronous measures to promote cashless payment in the finance sector.
Up to now, there are over 40,000 state budget spending units that have authorized the State Treasury to automatically pay electricity, water, and telecommunications bills through the online public service system with the total transaction amount of over VND 3 trillion.
In order to facilitate tax payers, the tax authorities have connected and enabled electronic tax payment through 57 commercial banks and foreign bank branches, and deployed various forms of electronic tax payment.
According to Mr. Pham Anh Tuan, Director General of the SBV Payment Department, over the past time, under the leadership of the Government and the SBV, non-cash payment activities have continued to be promoted and achieved positive results. In the context of the scientific and technological development and Vietnam's integration with the world economy, the banking sector has held a pioneer flag in the application of the information technology and the digital transformation in order to implement, provide new and modern non-cash payment products and services, meeting the payment and transaction demands of individuals and businesses. By the end of 2023, there were more than 182 million personal payment accounts in Vietnam, equivalent to 87.08% of the total number of adults having banking accounts. At most banks, 95% of the transactions are now made online. Moreover, payment transactions via mobile phones and QR codes have also experienced a rapid increase over the recent time.
Mr. Pham Anh Tuan, Director General of the SBV Payment Department, speaks at the Conference
The number of payment transactions via the Internet, mobile phones and QR codes have increased rapidly. Until now, there have been 85 payment service providers providing payment services via the Internet, and 52 providers of services via mobile phones. According to the statistics, during the first 4 months of 2024, there were 4.9 billion online transactions, with the total value of more than VND 87,000 trillion (an increase of 57.11% in the number of transactions and 33.45% in the transaction value respectively); of which, transactions via the Internet reached more than 916.7 million in the number of transactions and more than VND 22,500 trillion in the transaction value (an increase of 47.48% and 30.03% respectively); transactions via mobile phones reached more than 3.4 billion in the number of transactions and more than VND 22,400 trillion in the transaction value (an increase of 59.26% and 35.91% respectively). Particularly, transactions via QR codes reached nearly 101.2 million in the number of transactions, and more than VND 126.8 trillion in transaction value (an increase of 167.2% and than 424.5% respectively).
An overview of the Conference
Ensuring the security and safety for non-cash payment transactions
In the past 5 years, the SBV has issued more than 90 directives and warnings on ensuring information security and safety to units in the banking sector, requiring the units to implement synchronous solutions to raise awareness of their employees and customers about information security and safety.
Recently, the SBV has coordinated with Vietnam Television (VTV) to organize several communication programs on financial education, including: Smart Money (broadcasted on VTV3), Wise Money (broadcasted on VTV1), Holding the Purse Strings (broadcasted on VTV1); and has coordinated with the Tuoi Tre (Youth) Newspaper to organize the annual events of “Cashless Day” and the Digital Transformation Day of the Banking Sector.
Mrs. Le Thi Thuy Sen, Director General of the SBV Communication Department
In addition, the SBV has coordinated with several relevant units to create a Financial Education Fanpage (https://www.facebook.com/giaoductaichinh.official). This Fanpage has attracted a lot of followers and visits with various short plays, video clips, infographics, pictures about banking and finance in simple, easy-to-understand, easy-to-remember formats, introducing about non-cash payment products and services, as well as warning people about fraudulent tricks of technology criminals, and instructing people on how to use banking services, and on safe and secure skills in non-cash payments in particular and in using banking services on the digital platforms in general.
In the coming time, communication activities will be constantly innovated and will apply modern technologies to increase its coverage, continuing to target the general public, including the disadvantaged people in the remote and rural areas. The SBV is preparing to create a Website on Financial Education to disseminate financial and banking information, contributing to realizing the Government's goals on financial inclusion and non-cash payment.
From the credit institutions’ side, they have frequently conducted communication activities targeting their customers, disseminating about the solutions to ensure the information security and safety when using online banking services via vebsites, internet banking and mobile banking apps, etc.
Mr. Le Hoang Chinh Quang, Deputy Director General of the SBV Information Technology Department, speaks at the panel discussion
At the panel discussion at the Conference, the panelists talked about the risks for the digital transformation, digital transactions in general and in payment transactions in particular, and made recommendations for possible solutions. The panelists all agreed that the regulations in Decision No. 2345/QD-NHNN formed appropriate solutions, which could limit the damage caused by the increase in the forms of cyber frauds and crimes.
In the coming time, the SBV would continue to consider and implement measures to promote non-cash payment development and ensure the security and safety, focusing on the following key tasks:
First, continuing to research, improve and promptly issue legal documents and Circulars providing guidance for the Law on Credit Institutions, Decree No. 52/2024/ND-CP on non-cash payment; Effectively implementing Decision No. 2345 to ensure the safety and security in payment transactions.
Second, continuing to invest in the information technology infrastructure of payment service providers; upgrading and developing payment infrastructure to ensure continuous, safe and smooth operations, flawless connection with other sectors (such as public services, education, e-commerce,...) and cross-border payment connection to meet the various and rapidly increasing payment demands of organizations and individuals in the economy.
Third, continuing to coordinate with the Ministry of Public Security to effectively implement Scheme 06, focusing on exploiting the information from the chip-based ID cards and VNeID accounts to accurately identify and authenticate customer information; coordinating and supporting the process of providing banking products and services in a convenient and safe manner; preventing fraudsters from taking advantage of payment services for fraudulent acts.
Fourth, enhancing the security, safety of payment and banking operations; coordinating with functional units in preventing, investigating and penalizing high-tech crimes; protecting the legitimate rights of the customers,…
Fifth, continuing to promote the financial communication and education to raise awareness and improve skills for the community; continuing to innovate and diversify the forms of communication, applying the 4.0 technologies to increase the coverage of communication activities.
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