The trend of consumers shifting from cash payments to cashless payments is becoming more and more popular.
Data from the State Bank of Vietnam shows that by the end of 2023, the number of personal payment accounts reached more than 182.88 million, an increase of 21.8% over the same period in 2022. Non-cash payment indicators have a fairly good growth rate.
More than 90% of transactions are on digital channels
In the first two months of 2024, non-cash payment transactions increased by 59.6% in quantity and 32.73% in value compared to the same period in 2023. Of which, via the internet channel increased by 51.6% and 23.88% respectively; via mobile phone channel increased by 63.24% and 33.43%; via QR code method increased by 846.41% and 1,146.14%; via POS increased by 2.53% and 3.56%.
According to Pham Anh Tuan, Director of the Payment Department (SBV), to date, about 77.41% of Vietnamese adults have bank accounts, more than 35 million payment accounts and about 14.9 million cards opened using the eKYC electronic method are in operation. Some credit institutions in Vietnam have a rate of more than 90% of transactions conducted on digital channels. Many friendly banking products and services are rich in utilities, bringing practical values to meet the diverse needs of customers. Many basic operations have been completely digitized 100% (savings deposits, term deposits, opening and using payment accounts, opening bank cards, e-wallets, money transfers, loans, etc.).
Thanks to catching up with the digital transformation "train", many commercial banks have achieved results so far. Chairman of the Board of Directors of the Military Commercial Joint Stock Bank (MB) Luu Trung Thai said that thanks to the standard investment in information technology platform and the strategy of attracting customers on a diverse digital ecosystem, MB has maintained sustainable customer growth momentum. 2023 is the third consecutive year that MB has attracted more than 6 million new customers.
In 2024, MB will continue to invest heavily in information technology to ensure customers have the best service experience; deploy the biometric feature when transferring money to support customers in better account management. "This is also a strategy for MB to attract more customers, thereby achieving the goal of 30 million customers in the near future," affirmed Mr. Luu Trung Thai.
Similarly, Mr. Dang Cong Hoan, Director of Retail Banking, Saigon-Hanoi Commercial Joint Stock Bank (SHB), said that since 2023, SHB has shifted and expanded its retail service activities. Accordingly, comprehensive digitalization is the most effective lever for developing retail banking. Currently, the proportion of transactions on SHB's digital channels continues to grow. 90% of key banking operations at SHB can be performed on digital channels; 92% of transactions of corporate and individual customers are carried out entirely through digital channels.
Increased security from biometrics
Along with promoting non-cash payment activities, according to Mr. Pham Anh Tuan, in the past time on the digital transformation journey, the banking industry has also been very active in implementing the Project on Developing the application of data on population, identification and electronic authentication to serve the national digital transformation in the period of 2022-2025, with a vision to 2030 (Project 06), to promote and facilitate banks and payment intermediary organizations to provide safe, secure and convenient payment products and services, meeting the increasing needs of customers.
Deputy Director of the State Bank of Vietnam's Information Technology Department Doan Thanh Hai said that currently, 48 credit institutions have deployed customer authentication applications using chip-embedded citizen identification cards via phone applications, 16 credit institutions have deployed service provision; 58 credit institutions have deployed customer authentication applications using chip-embedded citizen identification cards via counter devices, 22 credit institutions have deployed service provision.
Regarding data cleaning, 23 credit institutions have signed with the Department of Administrative Police for Social Order - Ministry of Public Security (C06) to implement customer data cleaning in an offline manner, of which 14 credit institutions are piloting the application of electronic identification and authentication accounts (VNeID) in the following operations: opening payment accounts; authenticating payment transactions; comparing and authenticating customer information. Currently, 7 credit institutions have implemented and are implementing a creditworthiness scoring solution.
Many years ago, the State Bank of Vietnam stipulated that when providing online transaction services, organizations in the banking sector must classify transactions and apply transaction authentication solutions appropriate to the information security risks of each type of transaction. Although this increases the safety of online transactions against unauthorized access and fraudulent appropriation of assets, this solution still does not allow management agencies and service providers to accurately identify account owners and beneficiaries of illegal transactions such as gambling, money laundering, fraudulent appropriation of assets, etc. The reason is that the personal data of customers in the customer database of service providers is not clean. High-tech criminals take advantage of the lack of knowledge of people in remote areas and ethnic minorities to rent and buy payment accounts; Forging personal information to open payment accounts,... This weakness allows high-tech criminals the opportunity to "hide" and continue to commit illegal acts in cyberspace.
From July 1, according to Decision No. 234/QD-NHNN of the State Bank of Vietnam, banks must coordinate with the Ministry of Public Security to clean up the biometric database of customers by comparing the biometric database stored by the bank with the national database on population managed by the Ministry of Public Security. This solution allows management agencies and service providers to accurately identify account holders, transaction makers, and beneficiaries. This will further contribute to improving the effectiveness of preventing and combating high-tech crimes in cyberspace.
Deputy General Director of the National Payment Corporation of Vietnam (NAPAS) Nguyen Hung Nguyen said that NAPAS is coordinating the implementation of payment infrastructure, allowing people to use all current payment services including cards, accounts, VietQR to pay for public services performed on the National Public Service Portal and the VNeID application built and managed by the Ministry of Public Security.
To date, NAPAS has piloted a number of services, including online payment services for fees/charges for issuing criminal records for citizens. “Regarding the recent issue of online fraud, NAPAS is coordinating with banks and management agencies to introduce additional solutions to monitor and detect early signs of fraudulent and counterfeit accounts to limit risks for customers when making transactions,” Mr. Nguyen added.
Source
Comment (0)