Data and data analysis, use and connection are the key factors for the success in cashless payment promotion and the digital transformation of the banking sector. In the digital age, data can be used to understand customers’ behaviors and consumption trends, helping banks and businesses identify new opportunities, make right decisions, and improve their performances.
This was the sharing by Deputy Governor Pham Tien Dzung of the State Bank of Vietnam (SBV) at the Conference themed "Data connection, smart payment to promote social development" within the framework of the “Non-Cash Day 2023”, which was organized on June 16, 2023 in Ho Chi Minh City by the SBV Payment Department and the SBV Communication Department, in coordination with the Tuoi Tre (Youth) Newspaper.
Having clearly recognized the importance of data in the banking operations, the SBV and the banks, the intermediary payment service providers have been actively implementing the applications, the connection, sharing and use of the population database in all banking operations, especially in the fields of payment and credit, in order to promote cashless payment and digital transformation.
Mr. Pham Anh Tuan, Director General of the SBV Payment Department.
According to Mr. Pham Anh Tuan, Director General of the SBV Payment Department, the legal frameworks for payment operations have continued to be reviewed, amended and improved, creating favorable conditions for the development and the use of new payment methods and services, ensuring the security and safety in all payment operations, promoting the digital transformation in the banking sector.
The infrastructure and technology for cashless payments and the digital transformation have constantly been invested into and improved. The key payment systems, the financial switching and electronic clearing systems have been operated stably, smoothly and safely. The payment system for retail sales has also obtained new progress with the bilateral payment connection between Vietnam and Thailand, allowing the people and visitors of the two countries to pay for products and services in either country through the QR code. A lot of convenient banking products and services have brought about practical values, meeting the diversified demands of customers.
In addition, the SBV has proactively developed the contents and formulated several financial education programs, such as the TV game shows of "Smart Money", "Holding the purse-strings", “Correct Understanding of Money”, a series of events of the “Tomorrow Bankers 2023” Contest, etc., in order to provide instructions and protect users of banking products and services.
In the first four months of 2023, in comparison with those of the same period of 2022: non-cash payment operations increased by 52.8% in the number of transactions; transactions via the internet increased by 83.76% in the number of transactions, and by 2.83% in the transaction value; transactions via smart phones rose by 64.84% and 9.47% in the number and the value of transactions respectively; transactions via QR codes increased by 161.6% and 36.62% in the number and the value of transactions respectively. Non-cash payment operations through points of sale (POS) increased by 33.98% in the number of transactions, and by 29.15% in the transaction value; transactions via ATMs decreased by 3.49% in the number and by 5.45% in the value, reflecting the trend of shifting from cash withdrawals to non-cash payment. About 74.63% of adults in Vietnam own at least one bank account. The annual growth rate of non-cash payment via mobile phones and QR codes is over 100%; many indicators have exceeded the targets as set out in the Digital Transformation Plan of the banking sector. A lot of banking services can be performed entirely on the digital channels with simple and fast processes and procedures. And a lot of banking products and services have been designed and developed to meet the needs of the people in the rural and remote areas. As of April 2023, the SBV had coordinated with the Ministry of Public Security to authenticate over 25 million customers' credit information with the National Database on Population (up by over 7 million customers' credit information as compared to that in March, 2023).
The speakers in the panel discussion
In the coming time, the SBV would continue to coordinate with the relevant Ministries and agencies to conduct synchronous and effective solutions as stated in the Scheme on Cashless Payment Promotion in Vietnam for the 2021-2025 Period, and the Digital Transformation Plan of the banking sector, specifically as follows:
First, the SBV would continue to research, review and improve the legal frameworks, develop appropriate mechanisms and policies to promote cashless payment; continue to review and formulate plans on revising the legal documents under the SBV’s jurisdiction over the application/sharing of data in the banking operations, accelerating the implementation of Scheme 06.
Second, the SBV would continue to implement the strategies/schemes on promoting cashless payments, enable the commercial banks and the intermediary payment service providers to provide payment products and services in a safe manner, meeting the increasing demands of their customers in the digital era; closely coordinate with the relevant units to promote the electronic payment in the Governmental sector and in the public administrative services.
Third, the SBV would continue to research, establish synchronized infrastructure to enhance the data connection among the Ministries and local authorities; continue the implementation and connection with the national population database, allowing the credit institutions to authenticate their customers’ information, clean data and support their customers in the service of credit granting related to small personal loans.
Fourth, the SBV would strengthen the security and safety in the information technology systems of the banking sector; protect the legitimate rights and interests of the consumers; closely coordinate with the Ministry of Public Security, other relevant Ministries and agencies to research, formulate appropriate mechanisms and ensure the safety and security of the banking operations, promptly prevent crimes and attacks in the banking sector.
Fifth, the SBV would enhance the communication and the financial education to improve the public knowledge and skills in using banking products and services.
Participants visit the booths at the “Cashless Town” festival
The communication on financial education plays an important role in improving the knowledge and skills for customers in using financial and banking services, especially the skills in making banking transactions on the digital platforms, including non-cash payment methods, thereby contributing to promoting the cashless payment and financial inclusion.
* The National Conference on "Data connection, smart payment to promote social development" was held on June 16, 2023 at the Rex Hotel, Ho Chi Minh City, with about 400 invited guests.
* A “Cashless Warriors” contest, which lasts from June 16, 2023 to July 15, 2023, was also launched. The results would be announced on July 21, 2023. Contestants must make short videos showing at least three cashless transactions and their comments on the practical benefits that they can enjoy from those cashless payment transactions.
* A “Cashless Town” festival, which took place from June 16 through June 18, 2023 in Le Loi street, Ho Chi Minh City, was another event within the framework of the Cashless Day 2023. This festival was organized in the form of a small cashless society. Participants had opportunities to experience the utilities of cashless payments and online public services with promotions from the sponsors of the event, and they could also visit an exhibition on the history of currencies, etc.
* Last but not least, there was a Big Boom Promotion Program, which included many activities for customers to purchase goods with promotions from sellers and intermediary payment service providers, as well as various activities for enterprises, banks, card issuers, retailers, etc.
Le Hang