return icon

50% of banks' lending decisions to be based on technology

A report of IDC conducted under the authorization of Backbase clearly shows two directions of development in the banking industry of Vietnam in the coming time: mobile transactions and tech-based lending activities.

Banks' lending decisions in the future will depend on fintech. (Photo: Hai Dang)

According to this report, mobile transactions in Vietnam are expected to grow by 300% in the period of 2021-2025, with mobile payments playing a leading role. Newly emerging technologies such as artificial intelligence (AI) and machine learning will be applied to enhance the customer experience.

Digital banks across Asia - Pacific (APAC) reached a customer growth rate of three times higher than that of traditional banks in 2020/2019. All banks are actively performing digital transformation, the report says.

It is forecast that in the next four years, the APAC market will welcome about 100 new generation banks, including banks operating entirely on digital platforms. As a result, in each market in the APAC region, current banks will have to face fierce competition from at least two digital banks. It is estimated that up to 30% of business activities of Vietnamese banks are threatened by new digital challenges.

The report says that 60% of banks in the APAC region will leverage artificial intelligence and machine learning to solve database-driven problems, compared to 48% last year. In Vietnam, core banking and modernization of the payment system will be the two main concerns of the top eight banks in order to meet high consumer demand by 2025.

Lending services are expected to develop again. Banks in APAC will focus on digitizing lending activities. This trend is very clear in Vietnam, where up to 80% of banks reinvest in credit risk management and liabilities, while consolidating lending capacity. Lending activity in Vietnam is expected to reach double-digit growth annually starting in 2021.

New potential in this service segment will include the presence of fintech partners. IDC predicts that by mid-2021, 50% of lending decisions in retail banking will be supported by benefits from fintech, emphasizing the acceleration of cooperation between banks and this potential sector.

In the past, lending activities depended entirely on application reviewers at banks. Currently, the explosion of fintech companies makes use of technology to review personal credit scores, creating the basis for lending activities. Banks are also taking advantage of the fintech company's platform to shorten the credit lending process.

Hai Dang

Mobile payment: new trend in Vietnam

Mobile payment: new trend in Vietnam

Buyers nowadays only need to scan a QR code by their phones to pay for items, and shops have even stopped accepting cash payments.

Fintechs to partner with telecom carriers to offer Mobile Money

Fintechs to partner with telecom carriers to offer Mobile Money

The pilot program on providing the Mobile Money service is expected to increase non-cash transactions, especially in remote areas. To improve users' experience, fintechs should work with network operators, experts say.


Vietnam contributes to International Law Commission

Vietnamese Ambassador Nguyen Hong Thao has pledged to make more contributions to the progress and development of international law, for peace, friendship, cooperation and sustainable development worldwide.

Pencak silat fighter enjoys golden year

Pencak silat fighter Quang Thi Thu Nghia has had amazing year of competition when she has won titles from all competitions that she took part in.

Pop singer to compete at MTV Europe Music Awards

Pop singer Pham Dinh Thai Ngan from HCM City will represent Vietnam at the MTV Europe Music Awards (MTV EMA) 2022.

PM hosts national committee on digital transformation’s third session

Prime Minister Pham Minh Chinh chaired the third meeting of the National Committee on Digital Transformation on August 8 to assess digital transformation pace during the first half of 2022 and devise tasks for the time ahead.

Liem to face off against chess king Carlsen at FTX Crypto Cup

Vietnam’s leading chess player Le Quang Liem has revealed that he will take on Norwegian chess king Magnus Carlsen at the FTX Crypto Cup which is scheduled to take place in Miami, USA, from August 15 to August 21.

Vietnam ranks third overall at ASEAN Para Games 2022

Vietnamese athletes bagged seven more gold medals on August 5, the last competition day of the ASEAN Para Games 2022, retaining their third place in the medal tally.

Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development

Vigilance urged against COVID-19 amid emergence of new epidemics

Prime Minister Pham Minh Chinh asked ministries, agencies and localities to maintain vigilance against COVID-19 while addressing a meeting in Hanoi on Saturday.

Vietnamese, British agencies coordinate in identifying fire victims

The Consular Department under the Ministry of Foreign Affairs and the Vietnamese Embassy in the UK will continue to coordinate with Vietnamese and British agencies to identify victims in a blaze in Greater Manchester on May 7.

Photo contest highlighting beauty of Vietnamese islands kicks off

Professional and amateur photographers across Vietnam are encouraged to compete in a photo contest highlighting the beauty of Vietnamese Hoang Sa and Truong Sa islands.