Accelerate and break through in the digitalization of banking operations.

Statistics from the State Bank of Vietnam (SBV) show that over 60% of current financial transactions are conducted through digital banking. In fact, implementation has shown that, to date, over 87% of adults have payment accounts at banks, and many banks have processed over 95% of their transactions through digital channels.

A POWERFUL TRANSFORMATION IN THE DIGITAL BANKING MODEL

According to the State Bank of Vietnam's report, as of the end of 2024, approximately five banks were under special supervision, three of which had implemented restructuring measures through digital transformation. By adopting digital banking technology, these struggling banks can significantly reduce operating costs, mitigate financial risks, and expand customer reach.

Meanwhile, research by McKinsey & Company also indicates that integrating AI and Big Data into financial management can help banks reduce credit risk by up to 30% and improve fraud detection capabilities. Modern digital banking systems are capable of monitoring unusual transactions and detecting fraud risks immediately.

This is also evidenced by the fact that immediately after mandatory transfers and restructuring, three out of four banks have strongly shifted towards a digital banking model.

For example, Vikki Digital Bank, after being acquired by HDBank , implemented a strong investment strategy in technology to build a modern digital bank, providing flexible and convenient financial services.

After MB acquired OceanBank and renamed it Modern Bank of Vietnam (MBV), it also underwent a comprehensive restructuring and completely transformed into a digital banking model, integrating AI and Big Data technologies to optimize processes and enhance customer information security.

As for VCBNeo, after Vietcombank acquired CBBank, it shifted its focus to becoming a digital bank specializing in helping small and medium-sized enterprises access capital more easily and effectively.

According to Nguyen Hung, General Director of Tien Phong Commercial Joint Stock Bank (TPBank), TPBank has comprehensively applied cloud computing, Big Data, and artificial intelligence (AI) in its banking operations. “The application of the most modern technologies helps TPBank save up to 40% of the time in developing and operating new models. Customer experience at TPBank has also been enhanced.”

"With the support of modern technologies, TPBank has built an advanced ecosystem of banking products and services, thereby enhancing the bank's competitiveness in the market by increasing customer support capabilities, from meeting diverse needs to providing a wide range of convenient services through digital transaction channels," Mr. Nguyen Hung analyzed.

Associate Professor, Dr. Nguyen Huu Huan - lecturer at the Ho Chi Minh City University of Economics - assessed that banks are currently transitioning to a digital model, drastically reducing staff to optimize operational efficiency and lower operating costs. This is also why banks are choosing to transform into digital banks instead of continuing to maintain the traditional banking model. “Maintaining physical branches incurs high costs for rent, personnel, and other operating expenses. Meanwhile, digital banks can operate primarily through online platforms, reducing dependence on branches and saving on infrastructure costs,” Dr. Nguyen Huu Huan emphasized.

SOLVING THE PROBLEM OF SAFETY AND SECURITY

Besides the practical benefits, digital transformation in the banking sector also poses numerous challenges for the entire banking system. Banks will have to face many major issues, especially challenges in ensuring data security and confidentiality, investment costs, operational management, and employee training.

Associate Professor, Dr. Nguyen Huu Huan stated that the digital transformation of the banking industry will apply technologies from the fourth industrial revolution such as AI, Big Data, Blockchain, and IoT.

Therefore, he realized that the most difficult aspect of digital transformation in banks is technology, requiring banks to invest heavily in technological infrastructure, software, and staff training. On the other hand, digital transformation also depends on the vision, mindset, and direction of each bank, so digital transformation must first be a transformation of mindset – this is the prerequisite and also the biggest challenge.

According to Mr. Nguyen Hung, without a sufficiently strong security system, banks could face the risk of losing customer data, being subjected to cyberattacks, or experiencing serious financial fraud. Therefore, banks need to invest heavily in modern security solutions such as data encryption, multi-factor authentication (MFA), and the application of AI in transaction monitoring.

MB's leadership also stated that, in order for digital transformation in banking to be more effective, specific regulations on banking data security, ensuring cybersecurity standards, and risk management processes need to be issued.

Banks need to be clearly accountable for security breaches and have strict penalties for non-compliance. Furthermore, banking systems need to identify risks and regularly update their security policies to protect customer interests and enhance their reputation in the face of increasingly complex cybersecurity threats.

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