The impact of digitalization on driving innovation and enhancing financial inclusion

The APEC 2025 Digital Finance Workshop “The Impact of Banking Digitalization on Financial Innovation and Financial Inclusion” focused on two main topics: “Financial Digitalization and Innovation in the Banking System” and “New Data Ecosystem for Safe and Inclusive Digital Finance”. Within the framework of the program, through the perspective of experts, speakers from many international financial organizations shared their views and practical experiences on the impact of technology on the banking system, data security, consumer protection, etc.

CIC delegation attended the Workshop

Many important contents at the Workshop

First, Open Finance: An open financial model that allows individuals and businesses to access, share, and manage their financial data proactively and transparently through digital platforms; helping to promote competition, increase financial access, and support technological innovation in the financial industry.

Second, MyData: An advanced personal data management model that allows data subjects to control, manage and use their data, proactively deciding whether to share their data with financial institutions to receive more suitable services.

Third, digital financial process: Through the application of Big Data technology, artificial intelligence (AI) and blockchain technology, this process digitizes financial activities, helps automate and optimize service provision processes, improve operational efficiency and ensure information security.

Fourth, protecting consumers in the digital financial ecosystem: Along with the development of technology in general and the digital financial ecosystem in particular, risks related to privacy and cybersecurity are becoming increasingly complex and unpredictable. To address this issue, the speakers presented and analyzed a number of key strategies such as standardizing technical standards, strengthening strong security controls, perfecting the data authorization process, and supporting financialeducation initiatives.

Fifth, the new data ecosystem in financial services: Ensuring that four factors are met, including: Trust in data and analytics (D&A), the development of third-party data providers, modern data infrastructure, and personal data governance.

Mr. Le Anh Tuan, Deputy General Director of CIC speaking at the Workshop

Speaking at the workshop, Mr. Le Anh Tuan, Deputy General Director of CIC, shared some contents about the challenges of accessing finance for small and medium enterprises (SMEs) and the role of new data, especially for businesses in developing countries, where businesses often lack formal credit history, making it difficult for financial institutions to assess risks.

Discussion session at the Workshop

Practice in Vietnam shows that although CIC and private Credit Information Companies (CIs) have performed well in functions such as diversifying CI products and services, including value-added products such as credit scoring, credit rating, risk management support and debt collection, etc., they cannot avoid the strong impacts of the rapid digital transformation process and the urgent need to promote digital finance, when there are still about 30% of the adult population without a credit history in Vietnam.

Therefore, it is necessary to collect alternative data sources such as data on the use of electricity, water, logistics, accounting services, etc.; Research and apply new types of data infrastructure such as AI, machine learning, cloud computing, blockchain, open banking and data sharing through open APIs, data analysis, etc.; Closely follow the legal framework to support new data infrastructure (Data Law 2024 and draft Law on Personal Data Protection, Decree on data products and services, Decree on data analysis and synthesis products and services and the Controlled Testing Mechanism for Fintech Activities in the coming time).

Lessons learned for CIC

Firstly, focus on investing in upgrading information technology platforms, applying AI, Machine Learning, and Big Data to credit activities, ensuring compliance with the State Bank's digital transformation orientation according to Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on digital transformation in the banking industry.

Second, proactively research and propose mechanisms to connect new data sources and build modern data infrastructure.

Third, promote cooperation with organizations experienced in data analysis and application to improve the quality of TTTD products and services.

Source: https://thoibaonganhang.vn/tac-dong-so-hoa-den-thuc-day-doi-moi-va-tang-cuong-tai-chinh-toan-dien-162236.html