Digital transformation in banking providing users with more convenience

SGGP

The meaningful switch in transaction habits of the Vietnamese to cashless payment after the Covid-19 outbreak last year has greatly contributed to digital transformation in the banking sector.

Digital transformation in banking providing users with more convenience ảnh 1 Customers are experiencing digital services of a bank. (Photo: SGGP)


About 95 percent of commercial banks in Vietnam has been implementing their own digital transformation strategies and plans. Many banking activities like opening a savings account, depositing money into a savings account, opening a spending account, registering for a bank card or e-wallet, transferring money between bank accounts.

Several banks are developing their digital version or their own banking ecosystem to satisfy diverse demands of their clients.

For instance, Nam A Bank’s ecosystem is running its Robot OPBA to provide financial consultation and aid customers to complete necessary banking procedures without the employment of a bank teller. Its Open Banking app on smart devices with eKYC (Electronic Know Your Customer ) allows customers to carry out financial transactions without the need to visit a bank office. Its latest ecosystem - Onebank-ATM – helps customers conduct transactions whenever they want.

Owning similar useful banking ecosystems are TPBank with its app called TPBank Mobile and TPBank Biz for individuals and businesses, respectively, or Vietcombank with its multi-function Digibank that allows customers to transfer money, pay bills, deposit money into an ETC account, book airline tickets or hotel rooms.

Deputy Governor of the State Bank of Vietnam Pham Tien Dung informed that the digital platform of all banks in Vietnam has significantly developed, especially the e-payment function. Many banks now have more than 90 percent of their clients carry out transactions online, far exceeding the set target of 70 percent in 2025.

In the event of ‘Digital Transformation in Banking’, held by the State Bank of Vietnam this August, Prime Minister Pham Minh Chinh stressed that digital information is an inevitable trend in all sectors for development. This process has affected all citizens and economic activities. The banking sector has all favorable conditions to be the pioneer in this process. Banks in Vietnam have accelerated the transformation of many state management activities and public services into the digital environment, achieving valuable results. This has significantly contributed to the national digital transformation in general.

Statistics from the State Bank of Vietnam reveal that in the first 6 months of 2022, transactions with cashless payment increased by 77 percent in quantity and 30 percent in value compared to this time last year. The rises of transaction quantity and value under the form of Internet were 63.2 percent and 32.3 percent; of smart phones 98.3 percent and 84.3 percent; of QR code 86 percent and 127 percent.

68 percent of Vietnamese adults now have their own bank accounts. 5.5 million new bank accounts and 8.9 million bank cards were opened via the eKYC method. 1.77 million new Mobile Money account were opened, 67 percent of which comes from the countryside and remote areas.

By Nhung Nguyen – Translated by Huong Vuong

Other news