Speaking a recent digital banking workshop, Nguyen Quoc Hung, general secretary of the Vietnam Banking Association, said the fourth wave of Covid-19 last year fueled digital transformation in the banking sector.

During Covid lockdowns, Vietnamese were still able to transact with banks via mobile apps, Hung noted.

Positive business results achieved by many commercial banks during this period partly reflected the effectiveness of digital transformation.

Specifically, applying technology in business operations at an early stage increased the CASA ratio of VPBank, Techcombank, MB and HDBank to 40-50%, helping them achieve high profits.

Currently, 95% of payment services and deposits are made via digital platforms.

Until now, 95% of banks have mapped out their digital transformation strategies, mastering technologies such as cloud computing and big data, to go digital, improve IT systems and supply products and services on digital platforms.

The banking sector has also invested VND15,000 billion in digital transformation, which enabled it to achieve a growth rate of 40% in a short time, according to a representative of the SBV.

To achieve the target of 50% digitalized banking and 70% client transactions made via digital channels by 2025, the banking sector will focus on three main tasks. Firstly, it will invest in developing operational infrastructure and electronic payment systems. The banks will diversify their products and services by creating an ecosystem that enables them to provide new products and services on electronic devices and traditional ones.

Secondly, the banking sector will coordinate with the Ministry of Public Security to connect residents via the available data platforms and provide better and safer banking services to customers.

Thirdly, the banks will improve the security of their services by providing customers with financial security skills and knowledge.

During the above digital transformation, the banking sector will face many obstacles. One of the most concerning issues is the lack of a legal corridor and consistency in regulations, namely the E-transaction Law and the Accounting Law.

In addition, a large amount of capital required for investment in IT and a shortage in human resources in this sector are also significant challenges, apart from hi-tech criminals always targeting banks to steal money.

The last hindrance is the awareness of customers of digital products, while some freely provide their accounts, passwords and transaction codes to others, possibly causing enormous losses for banks and customers when their transactions are no longer secured.

Source: Saigon Times