Banking sector promotes digital transformation to improve customer experience

According to the State Bank of Vietnam (SBV), the banking sector has invested over 15 trillion VND (617.6 million USD) in digital transformation by the end of 2022.

The country maintained a 40% growth rate in digital payments in the last four years, making it one of the world's fastest-growing economies in banking digital transformation.

At least 96% of Vietnamese banks have devised plans for digital transformation and 92% have developed internet and mobile application services, the SBV said.

The Vietnam Bank for Agriculture and Rural Development (Agribank), for instance, is one of the banks that take the lead in piloting new technologies and business models to improve customer experience based on a breakthrough digital banking ecosystem.

Surveys conducted by some consulting firms such as McKinsey and BCG pointed out that more than 70% of digital transformation projects fall short of their goals.

According to SBV Deputy Governor Pham Tien Dung, the banking industry has been facing several challenges, including those relating to synchronisation and standardisation of technical infrastructure, which aim to facilitate interconnection and integration between the industry and other sectors to form a digital ecosystem, providing multi-utility services to customers. Therefore, all SBV’s plans on digital transformation set forth tasks and solutions relating to research and deployment of centralised infrastructure which allows data connection, exploitation and sharing with the National Population Database and those of other industries to verify information, classify, and evaluate customers.

The SBV has regularly reviewed and completed the legal corridor to create favourable conditions for data connection and exploitation, and technology application to promote digital transformation on the basis of ensuring security, safety and confidentiality in banking activities, he said.

He went on to say that in the coming time, the SBV will continue to proactively coordinate with stakeholders to effectively deploy solutions under the cashless payment project for the 2021-2025 period. It will also work with the digital transformation plan and Project 06 of the banking industry, which focuses on perfecting the legal framework to promote digital transformation, including policies on data connection and exploitation.