Hung Vuong Trading and Service Co., Ltd. operates in multiple sectors, therefore its working capital needs are very high. Ms. Nguyen Thi Huong, the company's director, affirmed, " Currently, thanks to digital technology , the process of accessing capital has completely changed. All documents are uploaded to the app, from eKYC identification to scanning transaction history, everything is completely automated. It's faster for businesses, and the information is transparent and cannot be falsified."
Regarding Hop Thinh Mineral Trading Joint Stock Company, Mr. Ta Vu Anh - the company's director - affirmed: " Exporting is a unique industry: cash flow is constantly circulating, heavily dependent on exchange rates, geopolitical risks, and lengthy international payment periods. Therefore, the application of technology by banks to control risks has greatly supported businesses. When banks shift to risk control based on big data and real-time cash flow through digital banking systems, they can accurately assess the 'health' of businesses. Automated credit scoring helps eliminate biases, opening up opportunities for businesses to access unsecured loan packages based on export contracts or inflows of foreign capital."
Instead of manual assessment, current machine learning algorithms can process thousands of data points simultaneously, accelerating the approval process and minimizing subjective errors. This technology is becoming a solid foundation for banks to direct capital flows to the right recipients, maximizing the efficiency of capital in the market.
As part of the comprehensive digital transformation strategy of the entire system, BIDV Nghe An has been strongly applying modern technology software to its credit risk management process, shifting from a passive response to proactive identification and prevention from an early stage, such as the application of Big Data and Artificial Intelligence (AI) in early warning systems. Accordingly, the system automatically scans and filters cash flow data and detects unusual signs in business operations or customer payment history. This helps risk management officers in Nghe An to promptly detect bad debt risks before the actual incident occurs. The credit monitoring system always provides red, orange, and yellow alerts to support timely management of the loan portfolio and improve credit management and operations.
Grandma Nguyen Thi Huong, Deputy Director of BIDV Nghe An branch, affirmed : " Thanks to mastering these risk management technologies, the unit has not only improved labor productivity and shortened the time for approving customer applications, but also ensured safety and maintained stable credit quality amidst market fluctuations."
Mr. Nguyen Manh Ha, Director of HD Bank's Nghe An branch, said: “ The intelligent management system not only focuses on loan approval but also continuously monitors customers after disbursement. Any negative fluctuations in cash flow are warned early, helping the bank proactively prevent bad debts from afar. Thanks to the application of AI, Big Data, and electronic customer identification technology, this unit has automatically screened and rejected substandard applications from the outset, helping to reduce the bad debt ratio from over 2% to below 1.5%. Machine learning algorithms tirelessly process millions of data fields simultaneously. As a result, appraisal productivity has increased 20 times, while the error rate due to subjective human factors has been reduced to almost zero.”
In banking, lending is the main revenue-generating activity but also a source of significant risks. These include customers incurring losses, intentionally defaulting on payments, or, more sophisticatedly, falsifying financial documents for personal gain. In the digital space, the risks are even greater as hackers constantly attack and impersonate individuals to steal online disbursed funds. In the context of a volatile economy, the pressure of bad debt is a major challenge. Worryingly, not only are large businesses struggling, but even individuals taking out consumer loans or unsecured loans are now facing bad debt.
According to Ms. Nguyen Thi Huong, Deputy Director of BIDV Nghe An Branch: “ The increasing sophistication of high-tech fraud methods and cybercrime poses a major challenge to the financial system. To protect customers' assets and maintain reputation, banks must not only continuously upgrade their technological infrastructure (such as applying biometric authentication, AI fraud detection, and multi-layered security) but also ensure transparency and strictly adhere to information security standards.”
The safety of the banking system is always linked to the stability of the economy. In the context of a volatile market, the digitalization of credit risk management is a mandatory solution to maintain financial security. Only then will funds reach the right recipients, be used for the right purposes, and create strong momentum for growth targets.
Source: https://baonghean.vn/so-hoa-de-kiem-soat-rui-ro-tin-dung-10339945.html
