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The State Bank of Vietnam (SBV) has issued regulations allowing credit institutions to deploy eKYC for loan customers based on the exploitation of personal identification data.
From September 1, Circular 06/2023/TT-NHNN amending and supplementing a number of articles of Circular 39/2016/TT-NHNN regulating lending activities of credit institutions to customers will take effect.
In particular, the State Bank of Vietnam added specific regulations on electronic lending activities of credit institutions, promoting banks to apply technology and strongly transform digitally in lending activities.
Shorten processes and procedures
Accordingly, when borrowing money, customers do not have to go to the bank to complete procedures. Circular 06 stipulates the identification and verification of customer identification information by electronic means (eKYC); concluding loan agreements in the form of electronic contracts; loan applications are established in the form of documents, electronic data, storing records in the digital environment; organizing loan approval (appraisal and decision on loans, disbursement) by electronic means...
Credit institutions will decide to invest in technological solutions to support lending activities. To control the source of identification data in eKYC activities, the State Bank of Vietnam stipulates that credit institutions are allowed to deploy eKYC for borrowers based on the exploitation of personal identification data authenticated by competent state agencies or with the national population database, the CCCD database or by an organization providing electronic authentication services in accordance with the provisions of law on identification and authentication.
electronic
It is noted that recently, commercial banks have applied technology and digitalization to banking products and services, including lending services.
Vietnam Bank for Agriculture and Rural Development (Agribank) applies solutions to improve loan documents and procedures, non-cash solutions in credit activities (through automatic debt collection system); applies technology and automation methods in loan origination process, problem debt management, and collateral management.
Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) applies eKYC from receiving loan requests to initiating, implementing and managing loans towards increasing automation in the credit granting process...
Lending activities are also deployed on many different transaction channels at Military Commercial Joint Stock Bank (MB) such as MBBank app, Biz MBBank... or linked with third-party systems such as Mcredit.
Biz MBBank's feature also allows businesses to register for a credit limit online and receive approval results in a short time, helping micro-enterprises access capital more flexibly and quickly.
Tien Phong Commercial Joint Stock Bank (TPBank) applies digital transformation technologies in lending to customers, especially customers using credit cards and unsecured consumer loans without documents and at low costs.
Online disbursement
At Vietnam Prosperity Joint Stock Commercial Bank (VPBank), by the end of the second quarter, the number of users of the VPBank NEO digital banking platform reached 7 million customers, an increase of 87% over the same period in 2022.
In just the first 6 months of the year, the individual customer segment alone recorded nearly 2 million new customers, bringing the total number of customers to nearly 10 million.
For electronic lending at VPBank, overdraft lending services for online corporate customers and online limit disbursement have been deployed.
Individual customers can apply for a car loan right at the car dealership and know the approval result after 5 minutes; sales staff meet customers directly, enter information, identify customers and submit documents online. VPBank also installs online document approval processing principles.
Mr. Hoang Trong Hieu - Senior Director of Business Development Department - Corporate Banking, Vietnam Technological and Commercial Joint Stock Bank (Techcombank), said that the bank has completed the features on digital banking to comprehensively meet the need for quick capital.
The addition of features such as guarantee issuance, online disbursement, conditional pre-approval loan limits on the Techcombank Business digital banking platform or personalized financing packages based on customer needs and experience creates conditions for businesses to quickly access working capital.
According to Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, the State Bank's unified regulations will contribute to standardizing and expanding this method to meet customer needs and increase competition among banks.
Specific regulations in Circular 06 of the State Bank of Vietnam are expected to create a boost for online lending activities of commercial banks, serving as a basis for banks to deploy and widely apply electronic means in the lending process.
VY ANH (according to NLDO)
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