Strengthening the linkage of credit fund system from payment agent model

Legal corridor "paves the way" for payment agents

In the context of the increasingly strong innovation of the finance and banking industry, expanding access to banking services to customers, especially in rural, remote and isolated areas, has become an urgent requirement. For Co-opBank and the People's Credit Fund system, this reality has required a new direction from the payment agent model, a model that has been officially legalized by the State Bank of Vietnam in 2024.

Specifically, Circular 07/2024/TT-NHNN of the State Bank of Vietnam officially took effect from July 1, 2024, thereby officially recognizing payment agent activities in the Vietnamese banking system. According to regulations, People's Credit Funds are allowed to act as agents for Co-opBank for members and customers of that People's Credit Fund.

With the legal corridor from Circular 07/2024/TT-NHNN of the State Bank, Co-opBank is allowed to act as a payment agent for People's Credit Funds and thereby help expand the ability to provide financial services to areas that do not have or lack bank transaction points.

With the legal corridor on payment agents, Co-opBank can expand its ability to provide financial services to areas that do not have or lack bank transaction points.

When implemented, the payment agent model not only helps Co-opBank expand its financial services but also creates conditions for People's Credit Funds to enhance their role and operational capacity in the locality. With this model, People's Credit Funds can perform a number of important banking operations under authorization from Co-opBank, including: Payment account operations; card operations; payment service operations. The implementation of payment agents at People's Credit Funds also helps reduce pressure on Co-opBank's branch system, while bringing direct benefits to customers, especially in rural areas where the commercial banking system is not yet widely available.

The diverse benefits of payment agents

According to experts in the financial sector, the payment agent model brings many important benefits to both customers, the People's Credit Fund system and Co-opBank in aspects such as convenient access to banking services, improving operational efficiency, and synchronously deploying digital banking services.

In fact, in the past, customers in remote areas often had difficulty accessing financial services due to geographical distance and limited number of bank transaction points. However, with the deployment of payment agents at People's Credit Funds, people can use banking services right in their locality, instead of having to travel far to bank branches. This not only helps save time and travel costs but also increases the level of access to formal financial services, contributing to promoting comprehensive finance according to the direction of the Government and the State Bank.

In addition, for the People's Credit Fund system, the payment agency model opens up opportunities to improve operational efficiency and increase revenue from service fees. Through being authorized to perform a number of payment agency operations from Co-opBank, the People's Credit Fund can expand the list of services provided to customers, thereby diversifying business activities without having to invest too much in infrastructure or human resources; ensuring system safety and maintaining sustainability in operations.

In the context of the financial and banking sector promoting the application of technology, the deployment of payment agents will help People's Credit Funds gradually approach and synchronously deploy digital banking services locally; help improve service quality, better meet customer needs in the digital age. At the same time, the deployment of the payment agent model through People's Credit Funds helps banks optimize operations and save costs in expanding new branch networks, thereby increasing their presence in rural, remote and isolated areas.

The payment agent model not only helps strengthen the connection between Co-opBank and the People's Credit Fund but also brings many practical values ​​to customers and the community. This is considered an optimal solution to develop a comprehensive financial system, ensuring that everyone has the opportunity to access safe, convenient and effective banking services; increasing access to banking services in rural areas.

Thuy Linh

Source: https://congthuong.vn/tang-cuong-lien-ket-he-thong-quy-tin-dung-tu-mo-hinh-dai-ly-thanh-toan-387207.html