Digital transformation in policy credit operations

To improve service quality and provide poor households and policy beneficiaries with more opportunities to experience modern digital banking services, the Social Policy Bank - Thanh Hoa Provincial Branch (NHCSXH Thanh Hoa) has applied digitalization to its credit operations. This helps customers make payments flexibly, ensures information security, saves costs, reduces transaction time, meets customer needs, and guarantees the safety of the policy credit payment system.

Digital transformation in policy credit operations Officials from the Vietnam Bank for Social Policies (NHCSXH) in Nga Son district guide people in conducting digital banking transactions at the Nga Bach commune transaction point.

The Vietnam Bank for Social Policies (VBSP) in Thanh Hoa province has directed its branches in districts, cities, and towns to strengthen propaganda, guidance, and the opening of VBSP Smart Banking accounts and the installation of biometric data for customers, ensuring uninterrupted and secure payment and transaction activities, while also helping policy beneficiaries access the conveniences of digital banking. VBSP Smart Banking is a digital banking service of the VBSP that helps poor households and policy beneficiary families access convenient services such as: paying interest and checking transactions directly on their accounts; customers borrowing under the social housing loan program can have their monthly interest deducted directly through the application... At the same time, the application integrates many services such as payments, transfers, investments, credit, cards, e-wallets, utility bill payments, tuition fee payments... creating a comprehensive experience for customers to easily transact anywhere via mobile phone, allowing customers to manage their transaction time and avoid going to the bank in person. Customers' routine banking transactions such as deposits, withdrawals, transfers, and bill payments, as well as more complex transactions like opening online accounts, making online savings deposits, issuing cards, registering for VBSP Smart Banking services, and applying for loans, can all be performed directly within the system.

Mr. Nguyen Duy Hoa, residing in Le Lai neighborhood, Lang Chanh town (Lang Chanh district), stated: "Previously, to find out about the principal and interest payment schedule for my family's loan or preferential credit programs, I had to go directly to a branch or meet with a credit officer to verify and make payments. However, thanks to the guidance from the staff of the Vietnam Bank for Social Policies (VBSP) in Lang Chanh on installing and using the Mobile Banking application, I can easily look up information about my payment account, deposit money, make monthly loan payments, view transaction history, and access bank product information anytime, anywhere, as long as my phone has an internet connection. After nearly a year of using the VBSP Smart Banking application, I find it very convenient and saves me time and travel costs."

The policy credit management application helps banks and entrusted political organizations better manage and implement policy credit activities; provides information on loan programs; loan databases, including both principal and interest for customers; loan verification results; credit guidance documents; and introduces typical and exemplary production and business models... This helps users access data quickly and accurately. Credit activity data and the activities of associations and savings and loan groups are also updated promptly on the application, helping users quickly grasp information on policy credit activities in the area, contributing to improving the quality of credit activities and entrusted lending operations. Currently, 100% of savings and loan group leaders in the area have installed and are proficient in using the policy credit management application.

Ms. Nguyen Thi Loan, President of the Women's Union of Lang Chanh town (Lang Chanh district), said: "In coordinating and acting as an intermediary with the Vietnam Bank for Social Policies (VBSP) to provide loans to members, we have received training from the bank on using its convenient services. Now, with just a smartphone connected to the internet, the heads of savings and loan groups can provide detailed and specific information about VBSP's credit programs to members; and guide and support members in completing loan application procedures quickly and conveniently."

With the goal of becoming a guide to help customers promptly access preferential policies, manage loan information, and provide knowledge for economic development, the launch of the Mobile Banking application by the Vietnam Bank for Social Policies (VBSP) has been supported and welcomed by people in the poor and policy beneficiary groups from the very beginning due to the positive and feasible impacts of this software. The VBSP Thanh Hoa branch continues to promote digital transformation applications, creating convenience and convenience for the poor and eligible beneficiaries; proactively grasping and improving service quality, making social policy credit activities in the area increasingly effective. This contributes to raising the intellectual level of the people, narrowing the gap between mountainous and lowland areas, between urban and rural areas, and between the poor, policy beneficiaries, and other segments of society. Promoting the development of a digital ecosystem for financial inclusion and supporting the implementation of social welfare programs, leading to sustainable poverty reduction.

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