Digital transformation of the banking sector, promoting the development of convenient financial services

Nowadays, digital transformation has become an inevitable trend in economic and social life, especially clearly demonstrated in the banking sector. Banks have been focusing on developing modern digital banking products and services, helping customers increase their access to and use of convenient financial services.

Implementing Resolution No. 06-NQ/TU dated June 15, 2021 of the Provincial Party Committee on the Digital Transformation Program of Hung Yen province for the period 2021-2025, with a vision to 2030; Decision No. 810/QD-NHNN dated May 11, 2021 of the Governor of the State Bank approving the "Banking sector digital transformation plan to 2025, with a vision to 2030", the provincial banking sector has promoted the application of convenient digital technology to serve the people and the socio-economic development process. Up to now, technical infrastructure and digital technology, automation for non-cash payments, especially electronic payments in the province have been focused on investment, improving quality and promoting efficiency. According to statistics of the State Bank of Vietnam, the province currently has 210 automatic teller machines (ATMs), 2,209 POS/EFTPOS/EDC card payment acceptance machines, tens of thousands of quick response code (QR Code) points installed at most supermarkets, business agents, retail stores, individual sellers, service providers. Currently, on digital banking applications, in addition to common products such as online savings deposits, money transfers, there are many convenient banking products and services such as: Payment of electricity, water, telephone bills; booking and payment of movie tickets, train tickets, airline tickets, hotels; payment of insurance premiums; transfer of money to securities accounts; tax payment; charity donations and money transfers; Look up exchange rates, interest rates, manage personal finances... With digital banking applications, customers can use banking products and services anytime, anywhere without having to make direct transactions, saving time and travel costs, helping people in rural areas and remote areas conveniently use online banking services. In 2023, non-cash payment transactions through the banking system in the province increased by 60% in quantity and 29% in value compared to 2022. Currently, 100% of supermarkets, shopping centers, and stores selling goods and services in the province have used non-cash payment methods. Some banks apply biometric technology (through face, fingerprint) for customers to register to open accounts, convert magnetic cards to electronic chip cards, improve security... Mr. Nguyen Van Manh, a resident of An Tao ward (Hung Yen city) shared: Currently, most of my expenses are paid through my bank account. I download the bank's App to my mobile phone, apply to pay for purchases via QR Code or transfer money through my account. Using digital technology of the banking system is very convenient in life.

Business activities at Vietinbank Hung Yen branch

A typical example of promoting digital transformation is the Bank for Agriculture and Rural Development (Agribank) Hung Yen branch. Together with branches nationwide, Agribank Hung Yen branch effectively issued the Loc Viet ATM card product. The Loc Viet Agribank card product integrates two card applications "debit" and "credit" on the same chip with full features of a domestic debit card as well as a standard domestic credit card, helping customers conveniently transact. In addition, Agribank also provides free POS equipment and free discounts to encourage the development of a network of card acceptance units in rural areas in the supply of input materials and purchase of agricultural output products from farmers. With outstanding features, the Loc Viet Agribank card product and the Agribank Digital digital bank both won the "Sao Khue Award 2022". In 2023, the Loc Viet card was honored to be in the Top 50 products and services trusted by consumers.

Digital transformation in the banking sector has been effective in every family, practical for many people. However, besides the opportunities, digital transformation in banking activities also raises a number of issues that require continued research to perfect the legal framework. In particular, it is necessary to pay attention to electronic transactions, electronic signatures, electronic contracts, electronic identification and authentication, management and supervision mechanisms for companies and technology firms participating in providing large banking services in the payment sector... Besides, it is necessary to pay attention to ensuring safety and security for people in the face of the increasing trend of cybercrime with increasingly sophisticated and complex tricks...

To continue effectively implementing the Digital Transformation Strategy, in the coming time, the State Bank Provincial Branch needs to focus on directing banks and credit institutions in the province to focus on applying information technology and enhancing security. Banking modernization is carried out on the basis of cloud computing, big data, blockchain, artificial intelligence... Bank branches and credit institutions strengthen non-cash payments, smoothly operate inter-bank electronic payment systems; expand and improve the quality of electronic payment types such as switching between banks, e-wallets, QR Code, Mobile Money and implement Mobile Banking, Internet Banking... For the State Bank Provincial Branch, administrative procedures are upgraded to level 3, level 4 with connection to the National Public Service Portal...

Minh Nghia

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