Accelerating digital transformation in the banking industry: Data is a strategic asset

Tăng tốc chuyển đổi số ngành Ngân hàng: Dữ liệu là tài sản chiến lược

As the lifeblood of the economy , the banking industry plays a pioneering role in the digital transformation journey, not only meeting the increasing needs of customers but also contributing to the national digital transformation goal. The digital transformation journey of the whole industry is accelerating, but there are still many barriers and challenges, especially the lack of synchronization of data and old technology. According to experts, in the coming time, data will be a strategic asset, a key factor for banks to move faster in their digitalization process.

Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam ( BIDV ), said that Vietnam is maintaining a stable GDP growth rate, averaging 6.36% per year. However, to reach new heights, the country needs to effectively utilize the new driving force - digital transformation, in which digital financial services play a key role thanks to their strong spread to other sectors. Accordingly, the national strategy on digital transformation, through important decisions and resolutions such as Decision 749/QD-TTg (2020), Resolution 57-NQ/TW (2024) has laid the foundation for a comprehensive digital ecosystem, contributing to reshaping the economy in the digital age. "The finance and banking sector is at the forefront of digital transformation in Vietnam," Dr. Can Van Luc emphasized.

In fact, according to Mr. Le Anh Dung, Deputy Director of the Payment Department, in recent years, the Vietnamese banking industry has made rapid and strong progress in digital transformation, in line with the Digital Transformation Plan for the Banking Industry to 2025, with a vision to 2030 (Decision 810/QD-NHNN). Credit institutions have invested heavily in applying advanced technologies such as artificial intelligence (AI), machine learning, big data, cloud computing, robotic process automation (RPA)... to improve operational efficiency, enhance customer experience and manage risks more effectively.

Statistics from the annual financial reports of listed commercial banks show that 2024 will mark a leap in technology investment in the Vietnamese banking industry, with total spending on technology reaching VND32,437 billion, equivalent to 14.85% of total operating costs of the entire industry. This is the highest rate in the past four years, marking a clear shift in the strategic thinking of financial institutions. While in the past banks were still cautious about technology budgets due to cost barriers and implementation risks, digital transformation has now become a key factor in improving productivity, optimizing costs and protecting market share.

These efforts have yielded impressive results. By early 2025, at many credit institutions, more than 90% of financial transactions were conducted via digital channels, reflecting the great efforts and success of the entire industry in the motto of focusing on customers, providing superior experiences and providing practical benefits to service users. Most banks have connected and effectively exploited the National Population Database, implementing customer identification through chip-embedded citizen identification cards.

The number of personal payment accounts reached more than 200 million, with transaction growth via the Internet, mobile devices and QR codes reaching 35%, 33% and 66% respectively compared to the same period in 2024. Many banks have reduced their cost-to-income ratio (CIR) below the threshold of 30%, demonstrating efficiency thanks to comprehensive digital transformation, approaching the leading financial institutions in the region.

“These figures not only demonstrate the speed of digital transformation but also demonstrate financial inclusion, helping tens of millions of people, especially in rural and remote areas, access convenient and modern financial services,” Mr. Le Anh Dung emphasized.

As one of the leading banks in digital transformation, Mr. Tran Cong Quynh Lan, Deputy General Director of VietinBank , said that digital transformation is a vital requirement for banks in the context of competition and rapidly changing customer needs. Therefore, VietinBank's orientation is to digitally transform not only transaction channels, but also internal processes, data management and operations.

Ms. Nguyen Thi Nga, Director of PVcomBank Digital Banking, also said that digitalization needs to be linked to the customer journey, not just using Apps or Chatbots, but must truly optimize the experience. Special attention is paid to exploiting data to personalize services and enhance customer experience.

Although digital transformation activities have been vigorously implemented by banks and achieved positive results, bank representatives believe that there are still many barriers and challenges in digital transformation in the banking industry. For example, the lack of synchronization of old data and technology. Many banks are facing a situation where data is scattered, there is no central system, making it difficult to make decisions or analyze AI. Old Core Banking systems make it difficult to integrate new technology; human resources are not ready, because not everyone in the bank understands technology, so when implementing digital transformation, they often encounter a fear of change or lack of skills to operate the new system... In addition, the legal corridor is not complete; customer psychology is still divided, when many customers are still familiar with traditional transactions...

Faced with the above difficulties and challenges, Mr. Tran Cong Quynh Lan proposed to build a digital ecosystem connecting banks - businesses - customers. As well as soon issuing a clearer legal framework for new digital financial products, especially services via App, eKYC electronic identification... Within banks, Mr. Tran Cong Quynh Lan said that it is necessary to accelerate the digitalization of credit processes, approval, post-audit... to reduce dependence on paperwork and increase decision-making speed.

Sharing his vision for the next 3-5 years, Mr. Tran Cong Quynh Lan affirmed: data will be a strategic asset. Thereby, it is necessary to orient the development of banks in the direction of "data-driven", making decisions based on real-time data. Actively deploy Machine Learning to automate risk decisions, credit scoring and suggest suitable products...

To make digital transformation truly become a growth driver, Dr. Can Van Luc proposed key solutions. Specifically, perfecting the legal corridor such as promulgating the Law on Digital Transformation, the Law on Digital Industry and the Sandbox framework for new business models such as Fintech. At the same time, increasing training and investment in R&D, especially focusing on developing high-quality human resources; promoting international cooperation in the fields of technology transfer, cybersecurity, cross-border digital trade; building a digital culture and raising public awareness.

With a strong digital transformation strategy, especially in the financial sector, Dr. Can Van Luc affirmed that Vietnam can absolutely make a breakthrough, achieve the goal of the digital economy contributing 30% of GDP by 2030 and rise to the group of leading countries in the region in innovation and technology.

Sharing the same view, Mr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Banking Association, said that in the coming time, the digital transformation process in the Banking and Finance industry will continue to be accelerated and focus on the following main tasks: Continuing to build and perfect the legal framework to promote digital transformation in the Banking industry, encouraging the application of digital technologies such as AI and blockchain, developing open banking, electronic transactions, security and safety on the Internet, as well as testing Fintech through sandboxes. In addition, it is necessary to implement data and technical standardization to connect and share data inside and outside the Banking industry, along with the Central Bank's digital currency research.

In parallel, it is necessary to develop digital infrastructure by modernizing the payment system and enhancing connectivity, including upgrading the inter-bank electronic payment system (IBPS) and expanding the infrastructure for retail payments with new payment methods such as QR, e-wallets and mobile payments. At the same time, it is necessary to expand the data processing infrastructure and upgrade the credit information portal to support risk management.

In addition, it will deploy the formation and development of digital banking models at credit institutions. Develop and exploit digital data of the State Bank and credit institutions effectively according to the big data model, while promoting data collection and cleaning. In addition, ensure data safety and network security according to domestic and international standards. Develop and train high-quality human resources with knowledge and skills in using information technology and digital transformation skills...

On the management side, Mr. Le Anh Dung, Deputy Director of the Payment Department, said that to overcome challenges and continue to promote digital banking transformation in the direction of innovation and strong application of technology, the State Bank of Vietnam has been implementing many important policies and guidelines. "In the coming time, the State Bank of Vietnam will focus on perfecting the legal framework, investing in technology infrastructure, strengthening network security, developing digital human resources in the banking sector as well as promoting financial inclusion," Mr. Dung emphasized.