On December 7, 2023, in Hanoi, Vietnam Economic Times (VnEconomy), in coordination with the Information Technology Department and the Payment Department under the State Bank of Vietnam (SBV), as well as Vietnam National Payment Joint Stock Company (Napas), organized a Conference themed “Open Banking 2023: Transitioning business models from closed to open mode". SBV Deputy Governor Pham Tien Dzung attended and made a keynote speech at the Conference.
The Conference was composed of a presentation session and an panel discussion session. At the presentation session, representatives of the authorities and experts made presentations on the expansion of connections to develop an ecosystem for promoting the digital transformation in the banking sector; the trend of transitioning to an open banking business model (Open Banking); ensuring security and safety in electronic banking transactions.
In the panel discussion session with the topic of Open banking and the issues that need to be resolved, the focus was on 6 groups of issues: (i) Market trends for Open banking; (ii) Benefits and benefit sharing among participating entities; (iii) The necessity for common Open banking standards; (iv) The urgency of establishing a common management unit (a Hub) in building and operating common Open banking standards; (v) The role of management agencies and the legal corridor; (vi) Identifying risks and how to prevent them.
An overview of the Conference
Speaking at the Conference, SBV Deputy Governor Pham Tien Dzung said that Open Banking - Open API is a new area in terms of both technical and legal matters, not only in Vietnam but also in other countries. The challenges and difficulties in implementing Open API are related not only to technical aspects, but also to the changes in people’s awareness and the legal frameworks. The successful introduction of a legal framework for Open API would create favorable conditions for Fintech communities to provide innovative services, meeting increasing demand of customers.
The SBV Deputy Governor expressed his hope that in the Conference, the presenters would share more specifically about the ongoing models, the experience for the connections. Specially, the Conference would clarify the specific substances of Open Banking and Open API, and the relationship between Open Banking and Open API.
Sharing at the Conference, Mr. Pham Anh Tuan, Director General of the SBV Payment Department, said that 72.3% of the credit institutions have been planning to deploy APIs, of which 47.6% have built APIs for third parties to connections; about 65% of the credit institutions are now ready to deploy Open API, of which over 30% of the credit institutions have a high level of readiness for Open API. Many credit institutions have built APIs that allow third parties to connect and deploy API Portals so that their partners could connect to the banking ecosystem.
Moreover, Mr. Pham Anh Tuan also shared that the SBV would review and propose possible amendments and supplementations to the Draft Law on Credit Institutions (revised) regarding electronic transactions in the banking operations, the information security, the customers’ data, a sandbox for technology application, and the provision of products, services and the implementation of new business models; submit to the Government a Draft Decree on non-cash payment and a sandbox for Fintech; formulate a Circular on Open API; review for possible amendments and issuance of regulations on payment activities; technical and data standards, etc.
Le Hang