Digital Transformation event in Banking sector organized on April 25, 2024.
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The 2024 Digital Transformation event in the Banking sector aims to promote the positive outcomes of digital transformation in the banking industry, contribute to the acceleration of the national digital transformation, and actively engage in the socio-economic development of the country. This year’s theme is “Expanding connectivity and developing the digital ecosystem” – a continuation of the theme “Application of population data in banking activities – a driving force for digital transformation” of the Digital Transformation Day of 2023. This theme affirms the banking industry’s dedication to the effective implementation of the tasks in the Digital Transformation Plan of the banking industry by 2025, with a vision to 2030.
In essence, digital transformation has become an inevitable trend for banks to overcome challenges, create competitive advantages, proactively adapt, and develop sustainably. After 3 years of implementing Decision 810, the digital transformation activities of the banking sector have achieved remarkable results, contributing to the overall development of the economy.
In terms of the legal framework, the SBV has studied, issued, and implemented several important policies to promote digital transformation in the banking sector. From 2020 to 2022, the SBV ranked high among ministries and sectors in the institutional creation index for digital transformation. Infrastructure serving the digital transformation of the banking sector is constantly being invested in, upgraded and developed.
Many banking products and services are user-friendly, feature-rich, and offer practical value to meet the diverse needs of customers. Many basic services have been fully digitalized (savings deposits, term deposits, opening and using payment accounts, opening bank cards, electronic wallets, money transfers, loans…). Many commercial banks in Vietnam have over 90% of their transactions conducted through digital channels.
To date, approximately 77.41% of adult Vietnamese have bank accounts, over 35 million payment accounts have been opened, and around 14.9 million cards have been opened via electronic eKYC method are in operation. In 2023, mobile payments increased by 59.86% in volume and 12.73% in value; QR code payments increased by 242.46% in volume and 157.2% in value compared to the same period in 2022.
E-commerce and digital banking activities in the first two months of 2024 compared to the same period in 2023 continue to achieve considerable growth rates: E-commerce transactions increased by 59.6% in volume and 32.73% in value; via Internet channels increased by 51.6% and 23.88% respectively; via mobile phones increased by 63.24% and 33.43%; via QR code increased by 846.41% and 1,146.14%; via POS increased by 2.53% and 3.56%.
In recent times, the banking industry has been actively striving to implement Project 06 and the tasks set out in Plan 01 (a collaboration plan between the SBV and the Ministry of Public Security signed on April 24, 2023 to implement Project 06), contributing to enhancing security and safety during the expansion of banking services on digital platforms, thereby accelerating the digital transformation of the industry to serve socio-economic development. To date, 48 commercial banks have deployed and are deploying customer authentication applications using CCCD cards integrated with chip through mobile applications; 58 commercial banks have deployed and are deploying customer authentication applications using CCCD cards integrated with chip through over-the-counter devices; 14 commercial banks are piloting digital identity and authentication accounts (VNeID) for the following services: opening payment accounts; authenticating payment transactions; verifying and authenticating customer information; 7 commercial banks have deployed and are deploying reputation scoring solutions. Regarding data cleansing, 23 commercial banks have signed contracts with C06 (Department of Administrative Management of Social Order Police – Ministry of Public Security) to conduct offline cleansing of customer data.
The SBV has implemented a system to connect to and utilize the national population database for the online public service system (issuing digital certificates) since December 2022. Currently, the system has connected to and utilized population data to process over 560 applications. The National Credit Information Center of Vietnam (CIC) has connected to the national population database to clean 48.5 million credit information records.
