Mr. Nguyen Chien Thang, Director of BIDV Digital Banking Development Center
Accompanying the National Digital Transformation Program
In recent times, the Government and the State Bank have made strong decisions on digital transformation. From the perspective of the banking industry, it is not difficult to see that Vietnam is a bright spot in digital transformation. In the US or Europe, their financial systems are mature enough and have a certain level of reluctance to change. Meanwhile, emerging countries like Vietnam or countries in the East Asian region are developing rapidly, transforming digitally strongly and drastically.
In particular, after the pandemic, transactions in the digital space grew very strongly. If we consider the entire banking sector, in 2022 alone, through national switching statistics, we recorded that the number of financial transactions was equal to the previous three years combined. Within the scope of BIDV digital banking, we recorded a stronger growth, for example, for retail customers and individual customers, the number of transactions through digital channels grew twice as much in 2022 compared to the previous year and equal to the previous five years combined. BIDV not only develops digital products and services but also supports small and medium-sized enterprises in digital transformation, such as connecting API, managing cash flow in cyberspace, registering for loans online, etc. Currently, with the support of technology, customers can register for loans very quickly just through a phone or on the bank's website. If the customer is eligible, the bank can disburse the loan in less than three minutes.
To achieve the achievements of today, since 2017, BIDV's Board of Directors has built BIDV's development strategy to 2025 - 2030, including three main pillars: people, customers and technology. We have chosen a somewhat difficult option, which is not to find specific points for digital transformation but to decide on comprehensive digital transformation, from serving customers to building a digital ecosystem. Especially digital human resources and digital culture, these are two important factors, determining BIDV's success in digital transformation. BIDV fully accompanies the Government's National Digital Transformation Program, which is aimed at customers, people, businesses...
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We have had a very good momentum in digital transformation; especially in the finance, banking, and securities industries. But digital transformation is a process, not a project with a starting point and an ending point. Because digital transformation not only reduces costs and promotes growth, but also opens up other business opportunities for us. That is the core value that digital transformation aims for.
Mr. Sylvester Kinuthia, Head of Transaction Banking, Standard Chartered
Vietnam
Bringing about a larger ecosystem where all parties benefit
Data shows that Vietnam is one of the fastest growing digital economies in the ASEAN region and is expected to become the second largest digital economy in the region by 2025. Vietnam has a large digital consumer base with high internet and mobile penetration rates, a high-quality workforce in the technology sector, etc., all of which act as catalysts for this digital transformation.
With the Government's pioneering direction in this important roadmap, Vietnam has a promising prospect. Many initiatives in the national digital transformation program are key supporting factors, contributing to creating and seizing development opportunities and solving challenges ahead. The review and amendment of a number of laws and regulations such as the e-commerce law, decrees on electronic identification and authentication, personal data protection, etc. are creating conditions for new technology initiatives to develop digital banking products and services, while ensuring security and safety for banking activities.
Banks play a vital role in digital transformation, starting with prioritizing and driving internal digital transformation (which is already underway) and this transformation includes investing in technology and people. Next, banks need to support customers in their digital transformation journey as well as collaborate with other financial institutions, service providers, and fintech companies to build and deliver solutions that deliver value and serve people and businesses, thereby driving economic growth. Banks, especially global banks with experience and expertise from other developed markets, should also share best practices and provide thought leadership on key topics to help further accelerate digital transformation in Vietnam.
Digital transformation has accelerated over the past few years in every sector and has become a part of everyday life. Businesses that embrace digital transformation are better able to adapt and survive in a world that is changing at a rapid pace. Developing a successful partnership ecosystem by collaborating with other partners in the value chain, by leveraging the developer portal, as well as working closely with regulators and by educating customers is critical.
The benefits for all stakeholders in the digital ecosystem are clear. However, the challenge is to promote or encourage a comprehensive “programme” of change that addresses the cultural, systemic, and capacity issues across industries and societies. This requires investment, planning, coordinated decision-making, and increased collaboration.
Governments, banks and organisations have a role to play in ensuring this happens. This also means ensuring the right talent pool and the necessary technological capabilities are in place to manage security and build trust; and ensuring ongoing awareness raising among customers and the general public about the use of new technologies, privacy and data security…
Current and future generations are and will continue to be early adopters of the digital world, so the digital transformation must accelerate. After all, it is a profound shift that brings significant opportunities to people and organizations across all sectors; allowing everyone to participate in a larger ecosystem where everyone benefits.
Mr. Phung Quang Hung, Deputy General Director of Techcombank
Different and superior utilities
We understand our customers' expectations for differentiated and superior utility products. Therefore, we have been and continue to promote digitalization and excellent data to better understand our customers. Techcombank recently announced its cooperation with Adobe, the world's leading company in providing technology platforms throughout the journey of personalized customer experiences, across all direct and online platforms. To date, more than 90% of Techcombank customers' transactions are conducted via digital channels. The number of new customers coming to Techcombank's digital channels in 2022 increased by 40% compared to 2021, with the application loyalty rate reaching 88%. Along with that, the number of new credit cards opened in the past year increased by 47.7% and card payment transactions increased by 40.6%. As a result, Techcombank's card value and transactions account for the highest market share in the Vietnamese card market. In 2022, the customer appreciation program for the Year of the Cat on the Techcombank Mobile digital banking platform alone, with an online interaction called "Méo Đại Cát", received the participation of more than 2.1 million customers, with the number of daily logins increasing by more than 20%.
Strong digital transformation is also a factor that positively impacts the entire business operations of the bank. Techcombank always prepares its capital foundation and applies strict risk management standards. Currently, Techcombank's Basel Capital Adequacy Ratio (CAR) is up to 15.2%, nearly double the minimum requirement of Basel II (8%), and is also the capital adequacy ratio in the top group of the Vietnamese banking industry. Techcombank is currently the leading bank in the industry in terms of return on assets (ROA), at 3.2%. In terms of asset quality, Techcombank is among the best in the industry with an on-balance sheet bad debt ratio of only 0.9%, and a healthy bad debt coverage ratio (reaching 125.0%).
We believe that the economy and businesses will continue to face many challenges, especially in the first half of 2023. Therefore, Techcombank's priority is to continue to accompany and support customers, maintain outstanding strengths such as asset quality, liquidity position and operational efficiency of the bank, while continuing to diversify the customer base, develop new sources of income to maintain growth momentum for the long term.
Mr. Vu Thanh Trung, Member of MB Executive Board
“Greening” VietQR in payment
In recent years, MB has invested heavily in digital transformation, from modern technology platforms to human resources. Thanks to that, MB has quickly accelerated and achieved many successes in its digital transformation journey.
To date, MB has accumulated over 20 million customers, of which in 2022 alone the bank successfully attracted 7 million new customers. The number of transactions on digital channels increased rapidly with 1.8 billion transactions, 2 times higher than in 2021. The proportion of transactions conducted via digital channels reached over 95%. MBBank App ranks No. 1 among financial Apps in terms of downloads.
In 2022, MB "won big" at the Vietnam Digital Awards 2022 when three digital products were named: Wealth Management - a financial investment platform on the MBBank App (for individual customers); BIZ MBBank (digital banking solution for businesses) and Charity App in the category of digital transformation products and solutions for the community.
In 2023, MB aims to focus its resources on becoming a leading digital enterprise, providing comprehensive solutions to customers. In particular, MB aims at a number of specific goals, such as: developing a variety of products and services on the MBBank App to serve the needs of customers anytime, anywhere, including Hi Collection cards, Mini App Marketplace; convenient payment on Wealth Management; enhancing the banking ecosystem experience on third-party platforms, including bringing banking services to partner platforms so that customers can use the bank's services directly on partner platforms without having to be in MB's ecosystem or app.
In addition, MB will continue to promote cashless payments with VietQR products such as free sharing of VietQR balance fluctuations on the MBBank App - helping business owners manage revenue more conveniently, avoiding errors and risks in transactions. MB is moving towards "greening" VietQR to bring the most convenient and optimal transaction experience to customers.
Mr. Tran Thai Binh, Director of Sacombank Digital Transformation Center
Complete business automation platform
For many years, Sacombank has shaped a comprehensive digital transformation strategy by creating a technical foundation and laying the foundation for digital thinking, fully automating business operations.
In recent years, Sacombank's digital transformation activities have been demonstrated by the frequency of new products and solutions appearing more frequently. We have launched Sacombank Pay, added eKYC features; successfully deployed the LOS solution to automate the credit appraisal and approval process. Thanks to this solution, the delivery and receipt of documents is less risky than paper documents, while also shortening the time waiting for document approval for customers.
At the end of 2022, Sacombank established a Digital Transformation Center to implement programs to transform awareness, thinking and technology. Accordingly, the entire banking system will practice getting used to new ways of thinking, suitable for the digital environment such as design thinking, data-driven decision-making, customer-centric thinking... to digital skills such as data mining, information security for managers and employees.
Recently, Sacombank has cooperated with UNIT Technology Joint Stock Company to implement the project of Building a Business Automation Platform. With this project, this year and next year (2023-2024), Sacombank will focus on building a technology platform that meets and complies with the target architecture as well as developing, integrating, operating... to minimize manual operations and increase the level of automation. After implementation, customers using services at Sacombank will be more convenient when forms are minimized, transaction times are shortened... The bank will also increase operational efficiency through automating business operations.
In the medium-term plan, Sacombank aims to build and complete the entire digital business automation platform (Business Process Automation - BPA), helping the bank save resources, operating costs and shorten transaction processing time, design reasonable business processes, revolving around customer needs. In addition, new generation automation technology will also create a new professional collaboration and coordination environment between banking business units, helping to reshape the business rules system in line with the new business strategy.
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