Deputy Governor of the State Bank Pham Tien Dung attended and gave a speech at the seminar.
Risk management with new technology
Speaking at the opening of the seminar, Dr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Banking Association, stated that in the context of the economy experiencing many fluctuations, ensuring credit safety and improving the effectiveness of risk management are increasingly becoming key factors in the operations of credit institutions, especially commercial banks.
At the same time, the strong development of technology, especially artificial intelligence (AI), machine learning and big data analysis, is opening up new opportunities to optimize the credit scoring process, increase the accuracy of risk assessment and thereby improve the quality of credit portfolios.
“Over the years, we have witnessed the strong development of credit risk management tools, from building internal credit rating systems to applying advanced management standards according to Basel II and Basel III,” Dr. Nguyen Quoc Hung shared.
The State Bank of Vietnam has also issued many regulations related to the internal credit rating system, most recently Circular 31/2024/TT-NHNN dated June 30, 2024 regulating the classification of assets in the operations of commercial banks and non-bank credit institutions, Circular No. 14/2025/TT-NHNN dated June 30, 2025 regulating capital ratios for commercial banks and foreign bank branches.
Accordingly, credit institutions must establish an internal credit rating system to rate customers, as a basis for credit approval, credit quality management, and risk provisioning policies appropriate to the scope of operations. Up to now, basically, large credit institutions have had their own internal credit rating systems.
However, Dr. Nguyen Quoc Hung also frankly admitted that the current credit rating and scoring models of credit institutions still have some shortcomings: Financial data of many customers has not been publicly disclosed, transparently and clearly (except for public companies), while there are not many data information systems connected for direct verification, important data such as tax data, social insurance data, customs data, telecommunications data, etc. have not been exploited, leading to incomplete and inaccurate scoring and ranking results.
The internal credit rating systems of some new credit institutions use traditional data, not yet using non-traditional data to rate customers.
Along with that, each credit institution currently builds and calibrates its internal credit rating model according to its own methodologies and is based mainly on the customer characteristics of those credit institutions, so it is possible that for a customer who has credit transactions at many credit institutions, the credit scoring and rating results at each credit institution will be different and inconsistent; in case of large differences, it can cause negative reactions from customers.
On the other hand, CIC and credit information companies also have their own internal credit rating system, which charges a fee for use with scoring and ranking results based on a number of criteria on credit transaction history, tax payments, etc., so the results are different from the scoring results of credit institutions, leading to a customer having many different scoring results...
“The transformation of the digital economy, changes in consumer behavior, and diversification of credit types have created urgent requirements. That is, there is a need for new methods and tools to assess risks with higher speed and reliability. The application of modern credit rating models, based on new technology platforms, not only helps credit institutions make more accurate credit decisions, but also contributes to improving competitiveness and adapting to increasingly strict management requirements from supervisory agencies,” Dr. Nguyen Quoc Hung stated.
The trend is irreversible.
Speaking at the seminar, Deputy Governor of the State Bank of Vietnam Pham Tien Dung affirmed that credit scoring, risk management and customer appraisal on digital platforms are irreversible trends in current banking activities.
Emphasizing the role of non-financial data, the Deputy Governor said that in many countries, lending is no longer entirely dependent on credit history, but on actual cash flow, spending behavior, and even personal movement and mobility data. This is a trend that Vietnam can fully access, if it has a good data system and appropriate sharing mechanism.
According to the Deputy Governor, in Vietnam, digital transformation is no longer a recommendation but a consistent direction from the Party and the Government. Resolution No. 57-NQ/TW of the Politburo clearly stated: Digital transformation is a breakthrough driving force for socio-economic development in the new era. Accordingly, all organizations, individuals, and businesses - both public and private sectors - must prioritize digital transformation and technology application.
Affirming that the banking industry is not outside that trend, the Deputy Governor emphasized that banks always prioritize digital transformation and cost reduction, thereby reducing interest rates and improving access to credit through online channels.
To implement online lending, according to the Deputy Governor, the prerequisite is to have online credit scoring, online risk management and online business ranking. That is why the State Bank has issued Circular 12/2024/TT-NHNN allowing online lending, although the current lending limit is only 100 million VND. However, this is an issue that is being studied so that it can be adjusted to be more suitable for practice in the future, especially in cases of loans secured by savings books.
On the CIC side, the Deputy Governor also said that in order to effectively support the digital transformation process, CIC needs to drastically change its approach, from a raw data provider to a complete credit product provider, helping to increase efficiency and reliability in credit appraisal.
Finally, in its role as a State manager, the Deputy Governor affirmed that the State Bank is committed to continuing to accompany credit institutions in the journey of digitizing credit activities.
Source: https://nhandan.vn/ung-dung-mo-hinh-xep-hang-tin-dung-hien-dai-post897521.html
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