Digital banks and finance are becoming an important trend in the context of industrial revolution 4.0. In Vietnam, the race for survival in banking sector are fiercer than ever.
Instructing customers on LiveBank.
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At the event Banking Vietnam 2017 in May, the Bank for Investment and Development of Vietnam (BIDV) introduced new functions of the BIDV smart banking application, such as VnShop (online shopping), virtual assistant and online shops, which allow customers to pay through QR code scanning. In addition to basic functions, customers can experience other unique functions of the application, such as saving online, transferring money for charity, login and transaction verification through fingerprints.
At present, numerous services related to digital banking have been implemented, from the basic ones, such as internet banking, SMS banking, mobile banking, to other smart functions such as TM, MoMo, SenPay, 123Pay, Public online services supporting management. Many banks have applied technologies in operation such as Viet Capital Bank with saving online, Vietcombank with online tax payment, Vietinbank, Eximbank, SHB with new Corebanking system. New services are offered to customers such as: saving online, lending, livebank, internet banking, mobile banking, transaction, are improved with more efficiency.
According to the Deputy Head of Bank Strategy Institute Nguyen Thi Hoa, digital technologies have removed barriers on the distance, time, geography, so that credit institutions, commercial banks can provide services and products with lower cost. It is also helps reduce cash payment in the market. With regard to statistics from the Sate Bank of Vietnam (SBV), investment scale of technologies in banking is growing rapidly. In SBV, there is currently project of establishing IT infrastructure for the development of banking system, with the total value of 70 million USD.
In the current context, digitalizing is a big race among banks. Therefore, Vietnamese banks must actively develop a complete IT system before foreign banks entering and dominating the domestic financial market. Experts said with the current competitive trend, it will open new doors for Vietnam banking services. It is expected that until 2020, there will be around 40% transaction of banks implemented through online and smartphones, moreover, there are around 2/3 of bank procedures being done by IT system. Experts said, the digital technology application will help banks increasing 45% of revenue in the retail sector.
Vice governor of SBV Dao Minh Tu: “the development of IT has brought along the development of the banking sector, and Vietnam is not exception. When revenue from credit service is decreasing, the development of services and products based on digital technology platform is necessary for banks to increase revenue”.
Marketing director of CMC Telecom – Azhar Bin Adnan: “Banks are aware of the necessity of applying technologies, this trend will continue in the coming time. Digitalizing will help banks reduce cost, improve quality and time processing. On the other hand, customers always want to have services at the utmost security and convenience at everywhere, every time”.
