Digital Transformation Event 2024 of the banking sector

Under the leadership of the SBV, the press conference was organized under the co-chairmanship of the Editor-in-Chief of the Banking Times, leaders of the Payment Department and the Information Technology Department of the SBV. Also attending the press conference, there were representatives of several SBV entities, the National Payment Corporation of Vietnam (Napas), a number of commercial banks and intermediary payment service providers like EPay, etc.

On her opening speech, Ms. Hoang Thanh Nhan, Editor-in-Chief of the Banking Times, shared that, to continue the successes in 2023, the Digital Transformation Event 2024 with the theme of “Expanding the digital connectivity and developing a digital ecosystem” has reflected the banking sector’s determination in implementing the digital transformation plan as stated in Decision 06/QD-TTg dated January 6, 2022 of the Prime Minister approving the Scheme on developing the applications of the population database, the personal authentication and eKYC in support of the national digital transformation for the 2021-2025 period, vision to 2030.

Ms. Hoang Thanh Nhan, Editor-in-Chief of the Banking Times, speaks at the Press Conference

Also at the press conference, Mr. Pham Anh Tuan, Direct General of the Payment Department, asserted that the SBV has actively implemented various measures for the application of the population data to clean, standardize, as well as to collect and expand the customer database. Mr. Tuan also emphasized that developing a diverse, multi-utility and safe digital ecosystem is the choice of many banks in the digital transformation era.

After 3 years implementing Decision No. 810/QD-NHNN, the banking sector has achieved encouraging results in the digital transformation, contributing to the development of the economy. In 2023, online payment transactions increased by 59.86% in the number of transactions and by 12.73% in transaction value; transactions via QR codes increased by 242.46% and 157.2% in the numbers and value of transactions respectively as compared with 2022. Non-cash payment and digital banking operations in the first 2 months of 2024 continued to experience a significant increase as compared with the same period in 2023. The non-cash payment transactions increased by 59.6% in the numbers of transactions and by 32.73% in transaction value; transactions via the Internet increased by 51.60% and 23.88% respectively; transactions via mobile phones increased by 63.24% and by 33.43% respectively; transactions via QR codes increased by 846.41% and by 1,146.14% respectively; transactions via POS increased by 2.53% and by 3.56% respectively.

Regarding the orientations in the coming time, the SBV has determined to further promote the digital transformation process and the implementation of the assigned tasks as stated in Decision No.810/QD-NHNN of the SBV Governor approving the digital transformation plan of the banking sector by 2025, with orientations to 2030. The SBV will also continue to improve the institutional framework, formulate a Circular providing guidance on the implementation of the Decree on non-cash payments, and a Circular on opening and using accounts,… in order to minimize the risks, and to enhance the security and confidentiality of the payment systems.

Building and developing a diverse, multi-utility and safe digital ecosystem

Speaking at the press conference, Mr. Nguyen Hung Nguyen, Deputy General Director of Vietnam National Payment Joint Stock Company (Napas) shared that, in the context that the transaction system has to operate continuously with a volume of about 25-30 million transactions per day, which are made through online payment, Napas has been coordinating with the National Public Service Portal and the National Population Data Center in building a digital platform to provide comprehensive payment services on the VNeID application in order to promote non-cash payments, and to develop a diverse and multi-utility digital ecosystem.

The SBV has deployed a system, which is connected with and exploits data from the National Population Database, for the online public services (issuing digital certificates) since December 2022. Currently, the system has connected with and exploited the population data to process more than 560 turns of applications. Vietnam National Credit Information Center (CIC) has connected with the National Population Database to ‘clean’ (verified) 48.5 million customers’ credit information, from which, building a digital ecosystem infrastructure platform not only for the digital transformation of the banking operations but also for integrating the service connections with other sectors and fields to ensure the interconnectivity, inclusiveness and safety.

Mr. Pham Anh Tuan, Director General of the Payment Department, speaks at the press conference

In 2024, the SBV has been continuing to promote the implementation of Decision No.1813/QD-TTg on developing non-cash payments in Vietnam for the 2021 - 2025 period, with a view to building an ecosystem that not only provides digitalized banking services but also integrates a digital ecosystem consisting of hundreds of products and services linked to third parties, bringing maximum benefits to the users.

According to Mr. Pham Anh Tuan, in the coming time, the SBV, the credit institutions, and the payment service providers would work together to enhance the safety and security of the payment system, prevent high-tech crimes, protect the legitimate interests of customers, while still promoting the communication and financial education to improve the knowledge and the skills of the public in using financial and banking products.

For the credit institutions, up to now, 58 credit institutions have been applying customer authentication by using chip-based ID cards via devices at the counters, 14 credit institutions are experimenting the use of the VNeID application to the operations, such as: opening payment accounts; authentication of payment transactions; verification and authentication of customer information.

At the event this year, there will be 16 exhibition kiosks introducing the latest products, services, and technology from the banks, the payment intermediaries, and several technology businesses. The 2024 Digital Transformation Day of the banking sector will be open for the public from 8 a.m. to 6 p.m. on May 8, 2024 at the National Convention Center (in Hanoi).

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