Many specialists and management authorities have recommended groups of measures focusing on three following core issues: 1) Improving the legal framework to strengthen payments for public services via banks; 2) Upgrading the technical infrastructure for payments for public services via banks in order to modernize the modes of payments, meeting the increasing demand of the society and the public; 3) Increasing the people’s awareness of payments for public services via banks by enhancing the tasks of information and financial education to help the public understand the benefits and the facilities of public service payments via banks and change their habits.
In the recent years, in addition to payments for public services by traditional methods based on paper bills, there are new, modern and easy-to-use payment options for customers, such as automatic debiting services, card payments, transactions through ATMs, POS, internet banking, mobile banking, e-wallet, etc. In order to strengthen the payments for public services via banks, the enterprises, credit institutions and management bodies have proposed several effective measures.
On February 23, 2018, the Prime Minister issued Decision No. 241/QD-TTg approving the Scheme on promoting payments for public services via banks (Scheme 241) with the aim of enhancing the payments for public services and social security via banks, contributing to the development of e-Government, improving the accessibility to banking services of the economy and promoting non-cash payments. Implementing the Government’s directives, the SBV has researched and coordinated closely with the relevant ministries and agencies to develop appropriate mechanisms, policies and programs to promote non-cash payments in general and payments for public services via banks in particular. At the same time, the SBV has instructed credit institutions to invest in infrastructure, research and development of diversified products and payment services, improving connectivity with the relevant agencies (the General Department of Vietnam Customs, the General Department of Taxation, Vietnam Social Insurance, the Electricity of Vietnam Group, hospitals, etc.) with the aim of better meeting the needs of customers in payment for the public services.
Upgrade and synchronize the technical infrastructure
Mr. Pham Thanh Du, Deputy Director of the Finance and Accounting Department of Vietnam Social Insurance suggested several solutions to payments of insurance benefits via banks. He insisted on the administrative procedure reform, the application of the information technology and the limitation of the use of cash.
The Electricity of Vietnam Group (EVN) sets the objective of terminating the form of collecting electricity bills at home. Therefore, Mr. Nguyen Quoc Dung, Head of the EVN's Electricity Business Department, said that the EVN has formulated a policy of developing online payments for each specific customer group, implementing web-based payments and OTT application, e-wallet. At the same time, in order to attract customers, the EVN will also offer incentives such as no collection fee for electricity bills paid by automatic debiting, arranging staff to guide customers and promote the use of the services, especially in the rural and mountainous areas where there is not yet a bank network.
The Ministry of Health is very interested in promoting non-cash payment services. According to the statistics of the Ministry of Health, every year this Ministry collects about VND 100,000 billion from hospital fees, of which the amount of hospital fees paid in cash is very large. Therefore, the Ministry of Health is ready for reforms to strongly implement the Government's directive. Mr. Nguyen Nam Lien, Director of the Planning and Finance Department of the Ministry of Health asserted that in order to promote non-cash payments, the hospitals must have a good information technology infrastructure while state investments in hospitals are very small, there are not enough money for upgrading the system. He suggested the SBV should coordinate with the Ministry of Health to make recommendations to the Government on allowing the transfers of hospital fees and health insurance money to banks so that the hospitals can be more active in collecting and spending. The system should also be synchronized so that it is more comfortable and convenient for the people in the payment process.
As a pioneer in the implementation of payments for public services, Vietinbank has been seeking more effective solutions in this area. Ms. Tran Thi Hong Anh, Director of Product Development and Marketing of VietinBank recommended to improve the legal framework for cooperation with banks in the development of non-cash payments and gradually upgrade the technical infrastructure of public service providing units.
The National Payment Corporation of Vietnam (NAPAS) plays the role as the national switching center, providing an electronic payment infrastructure for banks, payment intermediaries and public administration units. Mr. Nguyen Dang Hung, Deputy General Director of NAPAS analyzed some possible solutions to the payments for public services. He expressed hopes that the Government and the functional agencies would promulgate more incentive policies in order to support the implementation of 4th level public services, synchronize the infrastructure and the information technology systems for the centralized data management, assign clear tasks and responsibilities to the focal points in the public service units, and to coordinate with NAPAS and the commercial banks in this area.
Improve the legal framework, mechanisms and policies
Mr. Pham Tien Dung, Director General of the Payment Department, suggested that it is necessary to develop the legal framework and policies on payments via banks, continue to fulfill the task of ensuring security and safety in payment activities; apply more advanced forms and modes of payments via banks, which are suitable to the payment characteristics of each type of public services. At the same time, it is also necessary to expand cooperation among public service-providing units and banks and payment solution providers; speed up the connection and exchanges of data and information between the public service-providing units and the banks.
Discussing this topic, Mr. Bui Sy Loi, Deputy Chairman of the Committee for Social Affairs of the National Assembly, suggested that the banking sector should continue to update and apply advanced measures to ensure the security and safety of the payment systems, the payment services and products, and at the same time enhance the supervision of the management bodies and the coordination between banks and the relevant units in the tasks of ensuring security and safety. The banking sector should continue to regularly inspect, review, supplement and finalize the internal operational procedures and regulations on security, IT system security of the public service providers in order to minimize risks; at the same time, detecting early violations to ensure the compliance with the regulations on security and safety of payment activities.
Enhance the tasks of information and financial education
Mr. Bui Sy Loi stated that it is necessary to step up the dissemination of information in a wide variety of forms which are suitable to the characteristics of each target group, area and region, especially the remote and rural areas, in order to improve the access to banking services and payment services in the economy, promote non-cash payments.
Based on the implementation situations, a senior representative from the insurance industry came to the conclusion that a very important solution should be to enhance the role of communication to encourage pensioners and social insurance beneficiaries to receive their benefits through their bank accounts, in accordance with the conditions and needs of the beneficiaries under the direction of the Prime Minister; to coordinate with the postal service to further accelerate the payments of monthly social insurance benefits through personal bank accounts. Without the communication activities, it would be very difficult to promote the payments for public services via banks.
Communication and financial education are the areas that Vietnam is very interested in. Therefore, Ms. Le Thi Thuy Sen, Deputy Director General of the Communication Department of the SBV emphasized that in the coming time, the communication programs of the SBV to disseminate finance and banking information will focus on people in the remote areas with the aim of supporting them to get access to banking services, avoid being taken advantage of by bad guys due to the lack of information; at the same time, focusing on young people to improve their sense of responsibility and financial management skills, and creating good practices in the society.
According to Ms. Sen, the SBV Communication Department has implemented many communication programs to improve the understanding, the habits and the behaviors of the financial service users. She mentioned such programs as “Smart Money” and “Smart Kids”. She shared that the Communication Department has focused on the rural areas where there is less financial information in order to change the habits of using financial services in these areas, where 70-80 percents of the country’s population resides. The SBV Communication Department has also focused on studying the international experience, the population characteristics, and the people’s habits in order to implement its projects. In addition, together with the efforts of the SBV, it is necessary to have the support and coordination of the relevant entities with regard to payments for public services via banks in order to achieve the goal of comprehensive development of the society.
Le Hang