PricewaterhouseCoopers has conducted a survey of 30 banks in Southeast Asia to learn about plans as well as difficulties and challenges of banks during the digital transformation process.

In the banks’ approach, digital transformation is not simply the improvement of architecture and technological infrastructure. When talking about the driving force for digital transformation, 68 percent of banks in Southeast Asia, including Vietnam, said they wanted to improve customers’ experiences, 56 percent wanted to improve operational efficiency through digital transformation activities, and 41 percent wanted to get more customers. 

The said digital transformation will help ease the cost burden and obtain new growth targets. To reach their goals, 82 percent of banks have digitized channels that help access customers, while 68 percent have decided to digitize operation processes.

The main worries of the banking sector when digitizing include ineffective digital transformation (62 percent) and cybersecurity risks (59 percent). Also, they are concerned about how to build a reasonable digital transformation roadmap (36 percent).

The survey by PwC found that 90 percent of banks have interest in using cloud computing technology to carry out digital technology. However, many banks have old ‘core banking’ which are incompatible and difficult to integrate into new systems. 

Therefore, during digital transformation, banks need to ‘modularize’ their structure to ensure compatibility with new technologies.

Regarding human resources, there is separation between technique and banking operations. Digital transformation requires banks to have officers who have both technological and professional knowledge.

According to PwC, commercial banks are eager to digitize now because they can feel pressure from fintechs. To compete with fintechs, banks want to modernize their architecture and infrastructure platform, try to connect with fintechs to speed up the digitization process, and optimize the technological operation process.

Earlier, PwC released a report on revolution in payment, showing that 85 percent of surveyed people had at least one e-wallet or payment app, and 71 percent used apps at least once a week.

Vietnam has over 40 e-wallet service providers. Experts have predicted that the Vietnamese non-cash payment service market will grow strongly in 3-5 years. This is one of the reasons prompting banks to carry out digital transformation, because digitization can bring new experiences that help retain existing clients and attract new clients.

The State Bank of Vietnam reported that 74.6 percent of adults in Vietnam have bank accounts. 

Manh Ha