On May 8, 2024 in Hanoi, the State Bank of Vietnam (SBV) organized the “Digital Transformation Day of the Banking Sector” in 2024 with the theme of “Expanding the digital connectivity and developing a digital ecosystem”. At the event, there were 16 display booths introducing the latest products, services, and technology of the banks, payment intermediaries and technology businesses, bringing interesting experiences to customers.
Prime Minister Pham Minh Chinh speaks at the event
Attending the event, there was H.E. Mr. Pham Minh Chinh, Member of the Politburo, Prime Minister; SBV Governor Nguyen Thi Hong, Member of the Party’s Central Executive Committee; the other members of the SBV’s Board of Management; representatives and leaders of the Ministries and Government agencies. In addition, there were also representatives of several SBV entities, commercial banks, the National Payment Corporation of Vietnam (NAPAS), as well as international organizations and economic experts, etc.
Placing the people and businesses at the center
Delivering an opening speech at the event, Governor Nguyen Thi Hong shared that, in implementing Decision No. 749/QD-TTg of the Prime Minister approving “The National Digital Transformation Program to 2025, Vision to 2030", and to further promote the achieved results in "The National Year of Digital Data 2023", the SBV had chosen the theme of “Expanding the digital connectivity and developing a digital ecosystem" for the Digital Transformation Day of the Banking Sector in 2024.
According to Governor Nguyen Thi Hong, over the past time, the banking sector has made continuous efforts and has closely coordinated with the relevant Ministries and agencies in the digital transformation process, and has made various progress in the key areas of: raising the awareness, improving the institutions, upgrading the infrastructure, applying data mining and developing digital banking models, as well as ensuring security and safety,...
Governor Nguyen Thi Hong delivers an opening speech at the 2024 Digital Transformation Day of the Banking Sector
Notable achievements in the implementation of the digital transformation by the banking sector
Reporting on the results of implementing the goals of digital transformation in the banking sector, Mr. Pham Anh Tuan, Director General of the SBV’s Payment Department, shared that, implementing the policies and orientations of the Party and the Government on the Fourth Industrial Revolution (IR4.0) and the national digital transformation, the entire banking sector has been actively implementing the tasks mentioned in the Digital Transformation Plan of the banking sector.
Accordingly, the SBV has encouraged the credit institutions to implement the digital transformation, connect and cooperate with other sectors to establish and expand a digital ecosystem providing customer-centered products and services, creating continuous and individualized transactions. A lot of fundamental operations have been fully digitized (bank deposits, opening and using payment accounts, e-wallets, money transfers, etc.). Non-cash payment transactions and digital banking activities in the first 3 months of 2024 had continued to achieve positive results compared to the same period of 2023. The non-cash payment transactions increased by 56.57% in the numbers of transactions and by 31.35% in transaction value; transactions via the Internet increased by 48.81% and 25.73% respectively; transactions via mobile phones increased by 58.70% and by 33.12% respectively.
In addition, the credit institutions have been actively coordinating with the businesses licensed by the Ministry of Public Security to provide user authentication solutions with chip-based citizen identification cards in the implementation of the customer authentication solutions. Specifically, 48 credit institutions have been implementing customer authentication applications using chip-based ID cards via phone applications; 60 credit institutions have been implementing applications to authenticate customers with chip-based ID cards via devices at the counters. On data cleaning, 24 credit institutions have signed with C06 Department (the Police Department for Administrative Management of Social Order - Ministry of Public Security) to implement customer data cleaning by offline methods; 19 credit institutions have been piloting the electronic identification and authentication accounts (VNeID) in the operations of opening payment accounts, authenticating payment transactions, and authenticating customer information.
Specially, at the SBV, 100% of the administrative procedures have fully met the requirements to be integrated and provided as fully digitized public services on the National Public Service Portal. By the end of 2023, 87.08% of adults had opened in total 182 million payment accounts, exceeding the assigned plan in Decision No. 1813/QD-TTg of the Prime Minister.
According to Mr. Pham Anh Tuan, the digital transformation activities of the banking sector had made notable achievements. On the legal frameworks, the SBV has studied, issued and implemented multiple important policies to promote the digital transformation in the banking sector. From 2020 to 2022, the SBV received high recognition in the digital transformation index rankings among all of the Ministries and central Government agencies
Prime Minister Pham Minh Chinh visits the exhibition booths at the event
Digital transformation is a top priority
In his keynote speech, Prime Minister Pham Minh Chinh acknowledged highly the SBV’s choice of the theme for the 2024 Digital Transformation Day of the Banking Sector of “Expanding the digital connectivity and developing a digital ecosystem”, and recognized that over the past years, the digital transformation of the banking sector had achieved a lot of positive and outstanding results, specially as follows:
Firstly, non-cash services have been widely implemented nationwide with increasing numbers of users and payment value .
Secondly, the SBV has actively coordinated with the Ministry of Public Security to implement Scheme 06 and has offered a lot of practical products and services to the people and businesses, especifically the authentication of customers by their biometric information through chip-based citizen ID cards and electronic personal identification accounts (VNeID); the application of multiple modern technologies in payment, the connection enabling online payment of levies, taxes, hospital fees, school fees, etc. linked with the electronic invoicing system.
Thirdly, the SBV has actively implemented Scheme 06 and the provision of public services of the banking sector, which are fully integrated on the National Public Service Portal. By now, over 90% of the operations are processed and stored in the virtual environment; nearly 14.6 million accounts have been opened and more than 46.2 million dossiers have been submitted on the National Public Service Portal; nearly 26.8 million online payment transactions have been made with the transaction value of more than VND 12.9 trillion.
Continuing to further promote the digital transformation in the banking sector
The Prime Minister clearly identified 3 goals for the digital transformation in the banking sector in the coming time, namely: Creating the most favorable conditions for the people, businesses, administrative and non-business units to access all banking services; continuing to reducing the costs related to processing time, material value and compliance costs for the people, businesses, administrative and non-business units, as well as for the banking system itself; contributing effectively to controlling the risks, preventing and deterring corruption, misconduct, harassment.
In addition, the Prime Minister emphasized 5 key viewpoints for the digital transformation of the banking sector:
First, thoroughly understanding, following closely and realizing the Party's policies and orientations, the State’s laws to promote the national digital transformation in general, and the digital transformation of the banking sector in particular, contributing to maintaining the monetary and financial market stability and the macroeconomic stability.
Second, leveraging the opportunities and overcoming the challenges from the impacts of the IR4.0, applying appropriately the IR4.0 achievements into Vietnam's conditions. The digital transformation of the banking sector must be associated with the formation of a digital economy, a digital society, digital citizens, and the promotion of a green economy, a sharing economy, a circular economy, contributing to improving the production capacity, the labor productivity, the competitiveness, creating employment and livelihoods for the people; Promoting the spirit of self-reliance, innovation and creativity in all situations.
Third, the digital transformation of the banking sector go along strongly with the application of modern science, technology, innovations, combined with the development of high-quality human resources. These are the key factors to help the Vietnamese banking sector to make fast and sustainable development steps, improving its competitiveness to catch up and excel in the region and the world.
Fourth, implementing the digital transformation of the banking sector in a comprehensive and inclusive manner, prioritizing quality over quantity, diversifying banking products and services, developing electronic payment infrastructure, and ensuring network security and information safety.
Fifth, the digital transformation of the banking sector must be implemented in a synchronous manner, with close coordination with the Ministries, agencies and local authorities.
Regarding the general tasks and solutions of the banking sector in the coming time, the Prime Minister clearly identified as follows:
Promoting the improvement of the institutions, the policy mechanisms, creating a full legal corridor to promote the development, the expansion and the diversification of modern banking products and services, complying with international standards, and developing a digital banking ecosystem, meeting the growing demands of the economy.
Promoting the development of the electronic payment infrastructure and diversifying banking products and services, creating an important foundation for the development of the digital banking ecosystem and a digital economy.
Promoting the digital transformation in supporting the banking inspection and supervision to enhance the publicity and transparency.
Promoting the development of the digital human resources in the banking sector, especially high-quality human resources to meet the development needs of the banking sector;
Promoting the security and safety in the payment activities, applying new security standards to ensure quick, safe, convenient and affordable payment.
Second, developing the digital infrastructure in the banking sector in accordance with the development trends, in which it is necessary to further upgrade and develop the electronic payment infrastructure and the credit information infrastructure to ensure continuous operations and to meet the rapidly increasing payment demands of organizations and individuals in the economy (online banking, Internet payment, mobile phone payment, contactless payment, etc.);
Promoting the integration and interconnection with the National Public Service Portal, the National Information System for Administrative Procedures, and the Public Service Portals of the Ministries and agencies, in order to allow the people and businesses to experience continuous services.
Third, enhancing the development of the information systems of the SBV and the credit institutions to improve their international competitiveness.
Representatives of the organizations received the SBV Governor’s Certificates of Merit
Fourth, developing the digital data, combining with the implementation of Scheme 06 to create motivations to promote the digital transformation in the banking sector and develop a digital economy, a digital society, and digital citizens.
The Prime Minister also requested the banking sector to develop a national database of its customers and connect it with the National Database on Population
Closely coordinating with the Ministry of Public Security to implement effectively the applications of the population database, focusing on exploiting the chip-based identification information and the VNeID accounts to identify and authenticate customer information;
Fifth, prioritizing human resource development to meet the transformation requirements of the banking sector; strengthening the cooperation and experience sharing with the international organizations and foreign countries in the digital transformation to apply in Vietnam in an appropriate and effective manner, suitable to the practical conditions of banking operations in Vietnam.
Sixth, strengthening the coordination with the Ministry of Public Security, the Ministry of Information and Communications, etc. in ensuring the security and safety when providing services on the internet environment.
Within the framework of this event, the SBV Governor also awarded the Certificates of Merit to several organizations with outstanding contributions to the digital transformation in the banking sector, including: BIDV, TPbank, VIB, etc.
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