Accelerate digitalization
Digital transformation in Vietnam's banking industry is progressing rapidly, aiming to move 50% of operations and 70% of customer transactions to digital platforms by 2025. However, the industry still faces three main challenges: cybersecurity and data protection, a shortage of digital professionals, and the need to refine policy mechanisms to keep pace with the rapid development of technology and new business models.
By early 2025, the number of individual payment accounts in Vietnam will have exceeded 200 million, reflecting a strong expansion in access to banking services. Transaction growth is evident in a 35% increase in internet transactions, a 33% increase in mobile transactions, and a dramatic 66% increase in QR code transactions compared to the same period in 2024.
The explosion of modern payment methods has contributed to accelerating the cashless process, boosting consumption, and improving financial service coverage, a core objective in the national financial inclusion strategy.
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| Innovation is not just a "digital game," but a genuine commitment from commercial banks. Photo: Agribank |
Beyond expansion, digital transformation also helps improve operational efficiency. Many banks have reduced their cost-to-income ratio (CIR) to below 30%, an indicator previously considered the gold standard reserved only for top financial institutions in the region.
Innovation is not just a "digital game" but a genuine commitment from commercial banks. According to Decision 810/QD-NHNN on the digital transformation of the banking sector by 2025, with a vision to 2030, Vietnamese banks have proactively integrated technology into almost every aspect of their operations. From AI, big data, machine learning, cloud computing to robotic automation (RPA), all are creating "intelligent machines" capable of predicting user behavior, detecting fraud and money laundering early, and making optimal credit decisions. Above all, hyper-personalization is being implemented to meet the tailored needs of each transaction and each user.
Connecting to the national population database and deploying electronic identification using chip-embedded citizen ID cards has also paved the way for digital financial services to become simpler, faster, and more secure than ever before.
Speaking at the WFIS 2025 Conference on the theme "Financial Innovation" held on April 15, 2025, Mr. Le Anh Dung, Deputy Director of the Payment Department, State Bank of Vietnam, stated that Vietnam is entering a new phase of development, with the aspiration to become a developed nation by 2045. Digital transformation is the core driving force to achieve this aspiration. As the lifeblood of the economy , the banking sector plays a pioneering role in the digital transformation journey, not only meeting the increasingly high demands of customers but also contributing to the goal of digital transformation.
With over 90% of financial transactions now conducted through digital channels, this figure demonstrates the significant shift in consumer behavior, requiring banks not only to digitize but also to "humanize" the user experience.
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| Mr. Nguyen Quoc Hung - Vice President and General Secretary of the Vietnam Banking Association, speaks at the conference. Photo: Duy Minh |
Providing further information on digital transformation in the banking system, Mr. Nguyen Quoc Hung - Vice Chairman and General Secretary of the Vietnam Banking Association - said that banks offer many practical products and services, enhancing the experience for people and businesses, contributing to the successful implementation of the Government 's Project 06. Modern technologies such as biometric authentication and one-touch payment via QR code have been applied.
"In addition, banks are currently actively applying AI in two main areas: data management and analysis for forecasting and business operations, and detecting fraud and money laundering risks for risk management and compliance," Mr. Hung emphasized.
Identifying and overcoming challenges
However, in the course of the banking industry's rapid digital transformation, alongside noteworthy achievements, many challenges are emerging that need to be identified and addressed promptly.
According to representatives from the Payment Department, cybersecurity and data security are the top challenges today. High-tech attacks such as deepfake or digital identity spoofing are increasing in sophistication and scale, creating an urgent need to enhance cybersecurity defense capabilities and improve secure authentication solutions.
Furthermore, the challenge of investing in modern technology infrastructure and developing a digital workforce also poses significant pressure. While technology is constantly changing, the shortage of high-quality personnel in data, AI, cybersecurity, etc., is slowing down the digitalization process at some credit institutions. Developing digital infrastructure also requires substantial financial resources and coordinated efforts among all stakeholders.
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| The WFIS 2025 conference, themed "Financial Innovation". Photo: Duy Minh |
On the other hand, the current system of mechanisms and policies still needs to be further improved to keep pace with the development of new models such as digital banking (neobank), super apps, and embedded finance, which are emerging strongly in the digital age.
The digital transformation plan for the banking sector, as outlined in Decision 810, aims for at least 50% of banking operations to be fully digitized by 2025, with 70% of customer transactions conducted through digital channels. Resolution 57 of the Politburo also emphasizes breakthroughs in institutional reform, promoting the development of science, technology, innovation, and national digital transformation across various sectors and fields.
To achieve these goals, according to Mr. Nguyen Quoc Hung, in the coming time, the digital transformation process in the finance and banking sector will continue to accelerate and focus on key tasks such as: Continuing to build and perfect the legal framework to promote digital transformation in the banking sector, encouraging the application of digital technologies such as AI and blockchain, developing open banking, electronic transactions, internet security and safety, as well as testing Fintech through a sandbox. In addition, it is necessary to implement data and technical standardization to connect and share data within and outside the banking sector, along with research on digital currency by the Central Bank.
Simultaneously, we will develop high-quality human resources through intensive training programs, collaboration with universities and technology companies; and refine a flexible and adaptable legal framework that encourages innovation while ensuring system security and consumer rights.
| The banking sector has also promoted the exploitation and development of online public services, effectively integrating them into the National Public Service Portal. Over 90% of applications are processed and stored online, with nearly 14.6 million accounts and 46.2 million applications submitted through the National Public Service Portal, and nearly 26.8 million online payment transactions totaling over 12.9 trillion VND. |
Source: https://congthuong.vn/chuyen-doi-so-ngan-hang-doi-mat-3-thach-thuc-383092.html
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