On October 2, at the workshop "Hanoi - Smart City and Open Banking Ecosystem", Mr. Pham Anh Tuan, Director of the Payment Department, State Bank of Vietnam, commented: "Open Banking is a new development trend and outstanding banking practice of the financial services industry in the world in recent years.
Open banking has a huge impact and the potential to create a breakthrough in the provision of innovative banking products and services, with more choice, personalization and cost efficiency.
Market reality shows that although Vietnam does not have common data standards or API technical standards for open banking, many banks have proactively opened part of their data to third parties and deployed APIs relatively commonly.
Mr. Pham Anh Tuan, Director of Payment Department, State Bank.
Banks have recently deployed Open API Portals allowing third parties to register to connect and use APIs to develop innovative financial and banking products and services such as VietinBank iConnect (2019), BIDV Open API (2023)...
Currently, Mobile Banking applications and e-wallets of many credit institutions and payment intermediary service providers have allowed customers to access and use full banking utilities and services anytime, anywhere such as information inquiries, money transfers, bill payments, savings deposits, etc.
According to Mr. Nguyen Quoc Huy - Vice President of Business Management, Mastercard Organization, Vietnam has a lot of potential to develop open banking.
Vietnamese consumers are increasingly using digital solutions for their daily financial needs. In the first 6 months of this year, the State Bank of Vietnam reported an impressive 8 billion cashless transactions, of which internet payments increased by 50%, mobile payments increased by 60% and QR code transactions skyrocketed by 104%.
Mr. Nguyen Quoc Huy - Vice President of Business Management, Mastercard Organization.
Mr. Huy said that open banking truly empowers consumers, allowing them to securely share their financial account data with other financial service providers. Open banking provides consumers with personalized financial services, helping them manage their finances more effectively.
Open banking will aggregate information from multiple accounts, credit cards, and digital money transfer services into a single user interface. Consumers will be able to pay directly through the service they already use without having to switch between different banking apps or payment services.
In terms of benefits for all parties involved, open banking reshapes the financial industry and becomes a trend of the future. With sharing between parties and better customer visualization, open banking will have the advantage of boosting sales, improving conversion rates and increasing customer retention by quickly applying technology and simplifying payment processes.
Despite the potential to bring many practical benefits to people and businesses, the development of the banking ecosystem towards an open banking model still faces a number of difficulties and challenges such as: security, data management challenges, and common standards challenges.
Therefore, according to Mr. Tuan, the State Bank always focuses on protecting security, confidentiality, and protecting consumer data.
All relevant service providers must ensure that transactions are carried out by the owner, helping to protect user data information. There are also regulations on consumers, data owners, having the right to share data with third parties.
In the coming time, the State Bank will continue to implement regulations on protecting users' personal data; especially complying with the regulations that have just come into effect from October 1, 2024. Consumers must be aware of protecting their personal data and not providing it to untrustworthy parties to limit fraud, scams, etc.
Source: https://www.nguoiduatin.vn/ngan-hang-mo-dang-tro-thanh-xu-huong-cua-tuong-lai-20424100216425566.htm
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