Ready to face the challenge of optimizing the digital ecosystem
Recently, the leaders of the State Bank of Vietnam have requested commercial banks to closely follow the Prime Minister's direction with a consistent viewpoint of taking people and businesses as the center and orienting the digital transformation of the banking industry with customer experience as the measure. At the Digital Transformation of the Banking Industry 2024 event, the Prime Minister emphasized: "Banking will be the leading industry in promoting national digital transformation". The Prime Minister also pointed out three goals and six key tasks for the banking industry to develop to new heights through digital transformation.
The State Bank of Vietnam leaders emphasized the view that "Digital transformation is no longer a choice, but a matter of survival". In practice, up to now, more than 87% of adults have had payment accounts at banks and many banks have processed over 95% of transactions on digital channels. The average growth in the number of mobile payment transactions and QR codes over the years from 2017-2023 reached over 100%/year. Banking technology infrastructure is regularly invested in, upgraded and developed. The interbank electronic payment system processes an average of 830 trillion VND/day (equivalent to 40 billion USD), the financial switching and electronic clearing system processes an average of 20-25 million transactions/day.
The bank's pioneering role in digital transformation helps commercial banks expand connections and develop digital ecosystems according to the Party and State's policies to meet the increasing needs of customers and the market.
Talking to the Government Electronic Newspaper, Mr. Le Viet Duc - Director of VietinBank Retail Division shared the view that Digital transformation in the banking industry is no longer an option, but has become a mandatory requirement, a "survival" business strategy for banks. Not out of that trend, VietinBank has focused on investing in digital transformation strategy, especially implementing initiatives to optimize the digital ecosystem to improve customer experience.
Although pioneering, facing the flow of digital transformation, VietinBank does not stand still but always learns about customer needs to constantly improve and increase new features, thereby bringing a smart and comprehensive experience to customers using the VietinBank iPay Mobile digital banking application.
As a banking application developed on a new technology platform based on open application programming interfaces (Open APIs), VietinBank iPay Mobile can easily connect with partners to increase features and utilities, build a comprehensive digital banking ecosystem, meeting diverse customer needs... To date, VietinBank has connected nearly 3,000 partners to provide more than 200 services and features on the application for customers. Thus, the VietinBank iPay Digital Banking application has become a super application with a diverse payment and service ecosystem outside the bank and meets the majority of customer needs.
In addition to the opportunities and advantages to enhance competitiveness, the expansion of the digital banking ecosystem also brings great challenges to VietinBank such as: Financial institutions and e-wallets are increasing in terms of products, services, utilities and user experience; the consumption habits of a group of customers are not ready to access digital channel transactions, so communication and propaganda work on the benefits of digital channel transactions must be carried out deeply, widely, with high frequency and simply to customers. Moreover, the expansion of the digital ecosystem requires huge financial and human resources while service fees on digital channels are mostly zero..., and legal issues must also be considered.
Mr. Le Viet Duc - Director of VietinBank Retail Division - Photo: VGP/HT
Expanding digital banking goes hand in hand with security
Mr. Le Viet Duc - Director of VietinBank Retail Division affirmed: In the context of increasingly sophisticated high-tech crimes, the bank always puts the safety and security of customers when using digital products and services first.
In addition to devoting huge resources to investing in security system "fences", platforms, and advanced security devices, continuously reviewing and optimizing security systems and platforms is something we always prioritize and continuously implement.
Mr. Nguyen Thanh Tung - Director of VietinBank Corporate Customer Division - Photo: VGP/HT
VietinBank is one of the first banks to apply transaction authentication using Soft OTP for customer transactions on digital banking applications. VietinBank is also the first bank to deploy transaction authentication solution via FacePay, only customers with facial biometrics registered with the bank can authenticate financial transactions on the VietinBank iPay Mobile application, bringing peace of mind to customers when making financial transactions.
Recently, VietinBank signed a cooperation contract with the Center for Research and Application of Population Data and Citizen Identification (RAR Center) - Ministry of Public Security to deploy electronic authentication service via VNeID on VietinBank iPay Mobile to help customers easily collect biometrics and update identification documents to make online payment transactions according to the regulations of the State Bank of Vietnam in Circular 17.
VietinBank "joined hands" with the Ministry of Public Security to bring electronic authentication into digital banking, showing that this is not just the story of a bank, but part of a larger picture, which is the picture of a modern Vietnam, in which there are efforts to make each transaction safe and each step of development solid.
Through the implementation of biometric collection to authenticate financial transactions, the situation of fraud and appropriation of money in customer accounts on cyberspace by high-tech criminals has been significantly reduced in recent times - down more than 50% compared to the previous period.
"With the strength of technological solutions, along with the orientation shared above, in the coming time, VietinBank will continue to expand many products, services, programs and policies to promote digital banking services on the basis of enhancing customer experience, expanding the ecosystem and the world's most advanced multi-layered security platform," said Mr. Le Viet Duc.
Not only in the retail business sector providing direct services to customers, VietinBank also actively participates in coordinating the implementation of public services, implementing the country's cashless payment policy.
Mr. Nguyen Thanh Tung - Director of Corporate Banking Division of VietinBank expressed his honor to be one of the first major banks to coordinate with the Government Office and agencies, departments, branches and localities to successfully integrate and deploy public service payments on the National Public Service Portal, contributing strongly to promoting the implementation of administrative procedure reform and non-cash payments in Vietnam. VietinBank has coordinated with the Government Office and ministries, branches and localities to test and integrate the implementation of public service fee and charge payments for all ministries, branches and localities on the National Public Service Portal.
VietinBank has accompanied the Government Office in implementing the orientation of providing many essential services to people on the National Public Service Portal such as: Payment of fees and charges; Payment of administrative fines in the field of traffic; Payment of personal taxes, registration fees, land taxes; Payment of health insurance card renewal, voluntary insurance payment; Payment of land taxes;...
In addition to developing payment solutions on the National Public Service Portal, the bank has early identified the key task of researching comprehensive solutions to meet the requirements of implementing public service payments for localities on the basis of applying modern technology systems in payment.
Thereby, contributing to modernizing the process of handling procedures and paying for public services for local authorities and people. VietinBank has deployed many modern payment solutions such as: Online payment on the Online Public Service Portal of provinces/cities through payment methods of bank accounts, ATM cards, credit cards; Payment via POS, QRCode at Public Administration Service Centers and one-stop departments of districts, communes, etc.; Payment through all transaction channels of all banks (transaction counters, internet banking, mobile banking). The online public service payment solution - eGPS has been awarded the "Sao Khue Title" by VINASA for comprehensively meeting 4 levels of public services, allowing citizens and businesses to choose and conveniently use it to pay for public services.
The Government, ministries, and localities' increased provision of level 4 public services to the people has had a strong impact and changed people's habits in using banking services and modern payment methods, helping to increase the number of customers opening and using VietinBank accounts to pay for public services.
Source: https://baochinhphu.vn/vietinbank-mo-rong-he-sinh-thai-so-di-doi-voi-tap-trung-ve-an-toan-bao-mat-102250210192518511.htm
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