Digital banking transformation must be for the benefit of the people and the development of businesses.

Digital transformation contributes to preventing and repelling corruption and negativity

Speaking at the event, Prime Minister Pham Minh Chinh acknowledged the efforts of the banking sector with a VND500,000 billion credit package for science , technology, innovation, digital transformation and strategic infrastructure with an interest rate 1% lower than the current medium and long-term interest rate. However, the Prime Minister emphasized that with the positive and strong digital transformation (DT), banks cut spending, cut costs for people, for businesses, banks save more in operations, save more labor so that this VND500,000 billion package can reduce interest rates by at least 1.5%.

In addition, the Prime Minister suggested that in the coming years, the banking industry must implement digital transformation to create better conditions for better connections between the banking industry, between commercial banks in particular, and people, businesses, and the State. This will contribute to the rapid and sustainable development of the country; contribute to the development of digital government, digital society, digital citizens; contribute to stabilizing the macro economy , ensuring major balances of the economy.

“Good digital transformation will reduce costs, reduce bank loan interest rates, and contribute to stabilizing the macro economy. This is very important because when ensuring the major balances of the economy, we will have enough revenue to spend, enough exports to import, and enough to eat; Good infrastructure and enough energy for production, business and consumption are extremely important,” the Prime Minister emphasized.

In addition, according to the Prime Minister, digital transformation brings very clear benefits, which can be seen clearly in saving time for people and businesses; reducing costs for banks; contributing to preventing and repelling corruption and negativity. The general view is to closely follow the guidelines, mechanisms and policies of the Party and State; Actions must be drastic and improve efficiency; at the same time, digital transformation of the banking industry "is to seize opportunities, take the lead in technology and promote development". The Prime Minister emphasized: Opportunities are very important. Wasting opportunities, wasting opportunities is also a form of waste that we also need to fight.

The Prime Minister also noted that digital transformation in the banking sector must be a pioneer in technology and a leader in technological innovation; must diversify products, diversify services, be professional but must be safe for people and businesses. “Digital transformation in the banking sector must be for the benefit of the people and the development of businesses. We often say that the interests of the people and businesses are the center and the subject. It must be both the center and the subject, not just the center. All digital transformation activities of the bank are aimed at the people, making it most convenient for people in terms of cost, time, effort and money” - the Prime Minister emphasized.

Assigning tasks to the banking sector, the Prime Minister said that "we must accelerate, break through and reach the finish line" with "5 accelerations and breakthroughs", including accelerating and breaking through in institutional improvement; accelerating and breaking through in digital infrastructure development; accelerating and breaking through digital transformation for people and businesses, especially ensuring equitable access to remote, border, island areas and disadvantaged people; accelerating and breaking through in developing human resources for digital transformation; accelerating and breaking through in ensuring security and safety in digital transformation.

In addition, there must be artificial intelligence (AI) specifically serving the banking industry. “To have AI, banks must have data, data as an asset, a resource, a source of wealth. Therefore, we must quickly complete the database for the entire industry, the database for each industry and the database for each person,” said the Prime Minister.

At the same time, the head of the Government also requested the banking sector to focus on payment infrastructure for continuous, smooth and safe operations; develop products and services; diversify the supply chain in the banking sector through digital transformation; expand access to financial services for vulnerable groups such as customers in remote areas; strive to upgrade 100% of eligible administrative procedures to full online public services by 2025.

The value of non-cash payments is 25 times GDP.

According to Governor Nguyen Thi Hong, in recent times, the State Bank has had a deep awareness and strongly directed digital transformation work to transform most state management activities and credit services into a digital environment, increasingly better serving people and businesses and promoting the country's socio-economic development.

Banking industry databases have been deployed synchronously, effectively, connected and shared with many national and specialized databases, such as the credit database, storing information of 54 million borrowers; the anti-money laundering database storing information of 36 million customers, 154 million accounts and 1.3 billion transactions; connecting, interoperating and sharing data with the National Public Service Portal, many national databases and especially with the national population database.

To date, 57 million loan customer profiles have had their data compared; 113 million individual customer profiles and 711,000 corporate customers have had their biometric information compared. Promoting integration, connection, and data sharing for online payment of fees, charges, taxes, hospital fees, tuition, transportation, gasoline, purchase and sale of goods and services... associated with electronic invoice issuance, contributing to promoting e-commerce growth of 20%/year.

Non-cash payment activities have been widely deployed and have made remarkable progress. The rate of adults with payment accounts has reached 87%, exceeding the target of 80% by 2025. The value of non-cash payments in 2024 will reach over VND 295 million billion, 25 times higher than GDP. About 80% of pensioners, social insurance and unemployment benefits in urban areas are paid via accounts. Cross-border retail payment connections with Thailand, Cambodia and Laos have been deployed (currently being deployed with China and South Korea).

The industry has deployed digital utilities and practical technology solutions for people and supported businesses, such as opening online accounts, deploying digital signatures on the VNeID platform; cross-border payments using QR quick response codes; applying modern technology in payments (facial biometrics; one-touch payment, QR codes, etc.); appraising customer profiles to decide on disbursement of loans to individuals and businesses throughout the digital channel; applying AI in business operations, optimizing processes, automating, supporting decision-making, and shortening processing time.

Hoang Tu

Source: https://baophapluat.vn/ngan-hang-chuyen-doi-so-phai-vi-loi-ich-cua-nguoi-dan-va-su-phat-trien-cua-doanh-nghiep-post550186.html