On August 4, 2022, in Hanoi, the State Bank of Vietnam (SBV) organized an event on Digital Transformation in the Banking Sector. Prime Minister Pham Minh Chinh, Chairman of the National Committee on Digital Transformation, attended and delivered a keynote speech at the event.
Prime Minister Pham Minh Chinh speaks at the event
The event "Digital Transformation in the Banking Sector” aimed to promote the implementation of the Digital Transformation Plan of the banking sector and technological applications, contributing to the implementation of the national digital transformation program, spreading the spirit of digital transformation, changing the perception of organizations and individuals inside and outside the banking industry about the role, meaning and benefits of digital transformation in the banking operations.
Digital transformation is an inevitable trend
Speaking at the event, Prime Minister Pham Minh Chinh emphasized the importance of the event and acknowledged the great efforts and determination of the SBV and the banking industry in the process of accelerating the national digital transformation towards a digital government, a digital economy and a digital society.
An overview of the event
The Prime Minister emphasized that digital transformation is an inevitable and irreversible trend in the development process, a mandatory and urgent requirement, affecting all people and all activities of the economy. Therefore, only when all digital transformation activities are directed to the people and take a people-centered approach, in which the people are the key subjects, and they can join and benefit from it, will the digital transformation be successful.
The Prime Minister assessed that the SBV leadership and the whole banking industry have been well aware of, strongly directed and implemented this policy in order to transform many state management activities and services into a digital environment, thereby achieving many encouraging results, offering many practical products and services to serve the people and businesses in a timely and effective manner, contributing greatly to the national digital transformation.
Apart from the positive results, the Prime Minister stated that the process of national digital transformation and the digital transformation of the banking sector still face many difficulties and challenges. The current mechanisms and policies still have multiple shortcomings and problems, especially in terms of e-identification and e-authentication; the information technology infrastructure, the connectivity with and the exploitability of the population, insurance, tax,… data are still restricted; the participation and coordination of the financial technology companies is still limited; high-tech crimes with increasingly sophisticated forms and frauds; the resources, especially highly qualified human resources for digital transformation, are still insufficient, including IT human resources.
The banking industry must focus on implementing six key tasks for digital transformation
The Prime Minister requested the SBV and the entire banking industry to show strong determination, great efforts, drastic and more effective actions in digital transformation, specifically:
Prime Minister Pham Minh Chinh visits booths at the exhibition
Firstly, the Prime Minister requested the banking industry to further develop their understanding of the practical needs of the people, businesses and credit institutions in order to review, issue, amend and improve the legal frameworks, facilitating the application of digital technologies to business operations, providing banking products and services to improve operational efficiency.
The SBV is required to continue to closely coordinate with the relevant Ministries and agencies to urgently finalize and submit to the Government a draft Decree on non-cash payment. In addition, the SBV also needs to develop, test and apply a new legal framework for financial technology development.
Secondly, the SBV needs to further promote the investment and develop the shared infrastructure of the banking industry, such as payment infrastructure and credit information infrastructure, in order to serve as the core and keep up with the development needs of the credit institutions and the payment intermediaries; promoting the connections and linkages between the banks/credit institutions with the other industries and sectors to bring about the comprehensive benefits to the people and businesses.
Thirdly, focusing on ensuring security and safety, including security and safety of the IT infrastructure systems, the confidentiality of customer information and personal data; the database, data information, standardized connections; strengthening the inspection and supervision; analyzing the data to ensure security and safety of the entire system, as well as to prevent hi-tech crimes and money laundering.
Fourthly, strengthening the communication about the benefits of digital transformation in the banking sector, helping the people and businesses understand its benefits and the efficiency. The Prime Minister assessed that the communication programs which have been implemented by the SBV are highly effective, especially the TV show "Smart money" on VTV, with a very attractive and informative format. The Prime Minister emphasized the need for more extensive communication and promotion of communication on the digital platforms.
Fifthly, paying more attention to training, improvement of the quality of human resources, especially IT human resources; strengthening the disciplines and ethics to bring into full play the capacity and the wisdom of all officers and employees in the banking industry in order to better serve the people and businesses.
Sixthly, promoting the international cooperation in digital transformation in order to develop and adopt new technologies into the banking operations, such as near-field communications (NFC), contactless payment technology, etc.
The Prime Minister believed that the SBV and the banking industry would further promote the achieved results, overcome all difficulties and challenges, maintain the pioneering flag in digital transformation, and make efforts to accelerate the digital transformation process in the banking industry, contributing to the enhancement of the national digital transformation towards a digital government, a digital economy and a digital society.
SBV Governor Nguyen Thi Hong delivers her opening speech
People are at the center of the banking digital transformation
Speaking at the event, SBV Governor Nguyen Thi Hong stated that in order to implement the directions and the assigned tasks in a transparent and consistent manner, the SBV had established a Steering Committee for Digital Transformation of the Banking Sector, which is chaired by the Governor herself, and the Committee’s members are Directors General of the SBV entities, Chairpersons/General Managers of several credit institutions and payment intermediaries.
On May 11, 2021, the SBV issued Decision No.810/QD-NHNN approving the Plan for Digital Transformation in the banking sector by 2025, vision to 2030. The issuance of Decision 810 can be considered as an important milestone, showing the proactiveness and creativity of the banking sector, following closely the guidelines and orientations of the Party and the Government, ensuring consistent wills and actions of the whole banking industry to create strong resonances to help the banking industry develop sustainably in the digital era, continuing to pioneer in the implementation of the National Digital Transformation Program, and actively contributing to the development of Vietnam's digital economy.
For the SBV, there are two significant annual events in May, namely the Anniversary of Vietnam Banking Sector (May 6) and Vietnam’s Science and Technology Day (May 18). Therefore, in order to mark the digital transformation activities of the banking industry, contributing to creating a positive widespread effect for the implementation of the national digital transformation program, May 11 has been selected to be the Digital Transformation Day of the Banking Sector.
Over the past time, closely following the guidelines and policies of the Party and the State, especially the directions of the Government and the Prime Minister, with the close 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 taking the people as the center, the banking industry has achieved encouraging results in the digital transformation, especially in improving the institutional and legal frameworks, developing the technological infrastructure, promoting the banking services, ensuring the safety and security, and enhancing the communications.
Mr. Nguyen Manh Hung, Minister of Information and Communications, speaks at the event
The banking industry has made a lot of encouraging achievements in digital transformation
Previously, speaking at the event, Mr. Nguyen Manh Hung, Minister of Information and Communications, acknowledged that the banking industry has been at the forefront in terms of information technology application.
The banking industry was the first sector to initiate its Digital Transformation Day, pioneering the application of new technologies in renewing the industry. He further stressed that the fast digital transformation in the banking industry would promote the national digital transformation. Digital transformation brings value to customers, the people, shifting from costs to creating benefits and values.
Lieutenant General Nguyen Duy Ngoc, Deputy Minister of the Ministry of Public Security, speaks at the event
Lieutenant General Nguyen Duy Ngoc, Deputy Minister of the Ministry of Public Security, shared that the Ministry of Public Security always stands ready to coordinate with the banking sector in the practical implementation of digital transformation, bringing benefits to the people and the society in a more effective and efficient manner, including the authentication to clean the banking database; biometric authentication of fingerprints and iris recognition to ensure high reliability for customers in transactions; using e-ID accounts to replace customer-created accounts, helping to reduce frauds.
SBV Deputy Governor Pham Tien Dzung makes a presentation at the event
Making a presentation at the event, SBV Deputy Governor Pham Tien Dzung shared that the SBV has implemented multiple solutions to improve the legal frameworks, and has been one of the first Government agencies to issue a Circular guiding the opening of payment accounts and card issuance by electronic means (eKYC). Currently, the SBV is finalizing two draft Decrees on non-cash payment and Sandbox for Fintech. The SBV has also made a lot of efforts in promulgating and implementing several common standards (QR Code standards, chip card standards,...); promulgating regulations on the safety and confidentiality of information in banking operations.
The technical infrastructure for digital transformation has also been constantly improved, connecting all of the banks and payment intermediaries, with all of the Ministries and Government agencies, and with the national database on population, creating a seamless ecosystem. Up to now, 68% of adults in Vietnam owns at least a bank account, with a very high percentage among young adults; more than 1.77 million customers are using Mobile Money; the customers’ transactions via digital channels have reached over 90%; 100% of payment operations have been digitized,… the application of modern technologies into payment, service provision and banking operations has been high effective and efficient; the cyber security and information safety in the banking operations have been improved greatly, etc.
Regarding the orientations in the coming time, the banking industry will continue to improve the mechanisms, policies and legal frameworks, such as the Law on Credit Institutions, the Law on the SBV, the Decrees on non-cash payment and Sandbox for Fintech, the regulations aiming to facilitate the application of digital technologies, etc.. The SBV will further coordinate with the relevant Ministries and agencies to formulate the draft Law on Electronic Transactions (amended), a Decree on electronic identification and electronic authentication, a Decree on the protection of personal data, etc.
Second, the SBV will continue to focus on the implementation of Scheme 06, especially on the connection with the population database, the electronic identification and electronic authentication system for the state management and the service provision in the electronic environment.
Third, the SBV will continue to improve the technological infrastructure for digital transformation, strengthening the connectivity and the coordination with other industries and sectors.
Fourth, the SBV will further enhance the application of advance technologies to develop digital banking products and services in order to better serve the people, as well as to ensure the security and safety of the banking operations, the digital banking transactions, and digital payments.
Fifth, the SBV will continue to strengthen the communication and financial education targeting the people. This is an important activity to let the people know about the banking policies, products and services. Currently, the SBV Communication Department has cooperated with Vietnam Television (VTV) to develop several TV shows, such as Smart Money, Holding the purse-strings, etc. in order to communicate and disseminate information on the matters that most people are interested in.
Le Hang