Digital transformation enters a boom phase
Mr. Nguyen Quoc Hung - General Secretary of Vietnam Banks Association said that at this time, digital transformation activities in the banking industry are entering a boom period.
Compared to the same period, in the first two months of 2023, non-cash payment transactions increased by 50.14% in quantity, via the internet channel increased by 90.21% in quantity and 10.01% in value; via mobile phone channel increased by 60.29% in quantity and 13.89% in value; via QR code scanning method increased by 142.06% in quantity and 49.42% in value; via POS increased by 36.65% in quantity and 29.72% in value.
Accordingly, a digital ecosystem and digital payments have been established, connecting digital banking services with many other digital services in the economy, thereby bringing seamless experiences and many benefits to service users in the digital space. At the same time, many banking operations such as opening payment accounts, money transfer payments, and savings deposits have been fully digitized, allowing customers to perform them entirely on digital channels.
Currently, many banks have recorded that more than 90% of customer transactions are conducted through digital channels with an optimal cost-to-income ratio (CIR), only from 30% - 40%, reflecting the effectiveness of digital transformation and development of digital banking services.
In the coming time, this trend will continue to increase strongly. It is forecasted that by 2025, personal credit will account for about 24% of the digital financial services market. This shows that the Vietnamese market has great potential for development and can become a very attractive market for Fintech products," said Mr. Nguyen Quoc Hung.
Challenges and difficulties
However, besides the positive aspects, according to Mr. Nguyen Quoc Hung, in the process of promoting the development of digital banking, banks also face significant challenges in preventing fraud and cheating by high-tech criminals to appropriate money in customers' accounts.
“Recently, high-tech crimes have been on the rise, even though banks have applied the latest security technology solutions and regularly warned customers to keep their information confidential during transactions,” Mr. Hung emphasized.
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Sharing more about the challenges in digital transformation of the banking system, the Director of Digital Banking of a commercial bank said that currently, many banks still lack personnel to meet professional and technical requirements for digital transformation.
Besides, banks are currently facing great pressure to constantly improve and upgrade their systems to meet the increasingly rapid and strong development of new technologies...
In addition, current legal regulations have not yet met requirements. This also greatly hinders the promotion of digital transformation of commercial banks.
From the above reality, experts believe that in order to promote the digital transformation process in the banking sector more strongly in the coming time, the most important thing is that the authorities need to quickly complete the legal framework related to digital banking and electronic transactions in a synchronous and comprehensive manner, thereby creating a solid legal corridor for the development of the digital banking sector.
In addition, the technical infrastructure of some units inside and outside the industry is still old systems, not ensuring compatibility for digital transformation and the lack of common standards leads to challenges for integration and connection between units in deploying digital products and services. The issue of ensuring security, safety and security throughout the process of providing services to customers; the shortage of highly qualified personnel as well as competition in recruitment and the balance of efficiency in investing resources for digital transformation... are also challenges for the banking industry.
According to experts, in the coming time, the banking industry needs to continue to improve the policy mechanism and legal framework in banking activities to adapt to the 4.0 Industrial Revolution, facilitating and promoting business models, governance and operations in the banking sector towards breakthroughs, innovation, creativity, and investment in modern technology while always ensuring network security and protecting the legitimate rights of customers.
In addition, credit institutions need to improve the IT apparatus at all levels towards specialization, mastering technology, and limiting dependence on external partners; Building a team of specialized staff in information security; Training and coaching to improve risk handling skills for employees; Building a strict, scientific and professional communication crisis handling process; Strengthening internal audit work to ensure the safety of business activities and IT infrastructure.
Digital transformation of the banking sector has brought positive results in recent times. Compared to the same period, in the first two months of 2023, non-cash payment transactions increased by 50.14% in quantity, via the internet channel increased by 90.21% in quantity and 10.01% in value; via mobile phone channel increased by 60.29% in quantity and 13.89% in value; via QR code scanning increased by 142.06% in quantity and 49.42% in value; via POS increased by 36.65% in quantity and 29.72% in value. Besides the positive aspects, according to experts, in the process of promoting the development of digital banking, banks also face significant challenges in terms of legal issues, technical infrastructure, and increasingly sophisticated fraudulent acts of criminals targeting customers. |
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