Trang Chủ
That was extracted from Prime Minister Pham Minh Chinh’s speech at the event of the 2024 Banking Sector Digital Transformation event, themed "Expanding Connectivity and Developing Digital Ecosystems," held by the State Bank of Vietnam (SBV) on the morning of 8th May 2024.
The proportion of adults with payment accounts has reached 87%, exceeding the target of 80% by 2025
Speaking at the event, Prime Minister Pham Minh Chinh said that identifying digital transformation as an objective requirement, strategic choice, and top priority for the current stage, the Government has chosen the topic of digital transformation in 2024 is "Digital economic development with 4 pillars of ICT industry, digitalization of economic sectors, digital management, digital data - An important driving force for rapid and sustainable socio-economic development."
The focus is on promoting the development of the digital economy, in which the banking sector plays a particularly important role as the lifeblood of the economy and impacts most sectors of the economy, all activities of people, businesses, administrative, and public service units on a daily basis.
“The Government and the Prime Minister always determine and expect the banking sector to be the leading and pioneering industry in promoting national digital transformation, developing the digital economy, digital society, digital citizens, and the banking sector has the basis, conditions, and foundation to promote this role" - the Prime Minister said.
The Prime Minister strongly agreed with the theme chosen by the SBV for the 2024 Digital Transformation Day of the banking sector, "Expanding Connectivity and Developing Digital Ecosystems", in accordance with the views and orientations of the Party and Government, as well as the goals, tasks, and solutions of the National Committee on Digital Transformation in 2024.
Through monitoring and direction, the Prime Minister assessed that the SBV leaders had had a profound awareness of the digital transformation and drastically directed all relevant activities to transfer most state management activities and credit services to a digital environment, promote socio-economic development, and better serve people and businesses.
Recently, the national digital transformation of the banking sector has achieved some positive and outstanding results as follows:
Firstly, non-cash services have been widely deployed nationwide with an increasing number of users and payment value.
The rate of adults with payment accounts has reached 87%, exceeding the target of 80% by 2025. The average annual growth rate of non-cash payments is more than 50%; The growth rate of transactions on mobile phones hit more than 100%; The growth rate of transactions on the Internet reached more than 50%. The proportion of customers using non-cash payment methods went up to more than 49%. The value of non-cash payments is 23 times greater than GDP. The payment infrastructure has been maintained continuously, smoothly, and safely, minimizing incidents and congestion.
Secondly, the SBV has actively coordinated with the Ministry of Public Security to implement Project 06 and offer many practical products and services to people and businesses, specifically authenticating and identifying customers with biometric information through chip-embedded citizen identification cards, identification accounts, and VneID electronic authentication; applying many modern technologies in payment (facial biometrics; one-touch payment, QR code, etc.); introducing big data technology and virtual reality technology in lending and credit granting activities to individuals and businesses; connecting and making online payments for fees, charges, taxes, hospital fees, tuition, transportation, gasoline, car rental, purchase and sale of goods and services, etc., associated with electronic invoices, preventing tax losses.
The Prime Minister said that, by visiting and experiencing exhibition booths before attending this event, he clearly saw outstanding progress compared to the products and services he experienced two years ago.
Thirdly, the SBV has actively implemented the provision of comprehensive and integrated online banking public services on the National Public Service Portal and Project 06; Over 90% of records have been processed and stored in the network database; There have been nearly 14.6 million accounts and more than 46.2 million documents submitted on the National Public Service Portal; almost 26.8 million online payment transactions with an amount of more than 12.9 trillion VND. 41 out of 53 essential public services at levels 3 and 4 have been deployed online. It is just 25 essential public services in Project 06 that save the State and society nearly 3.5 trillion VND each year.
On behalf of the Government leaders, the Prime Minister acknowledged and praised the efforts and results achieved by the banking sector and credit institutions system, the coordination among ministries, branches, localities, especially the Ministry of Public Security, the consensus, support, and active participation of people and businesses that collectively contribute to the national digital transformation.
Besides the achievements, the banking digital transformation has many shortcomings and limitations. Specifically, regulations and policies still have many problems, such as Decree No. 73/2019/ND-CP regulating investment management of information technology applications using the State budget capital has not been promptly amended and supplemented; The Decree on Controlled Testing Mechanism in the banking sector and the new Decree on non-cash payment have not been issued yet.
Moreover, digital infrastructure and digital platforms have not meet the actual needs (5G commercial infrastructure, big data center infrastructure, etc.). The tools and methods for ensuring safety and information security still have many limitations, being unable to prevent ransomware from becoming increasingly popular (the first quarter of 2024 recorded nearly 2.4 thousand cyber-attacks). There have been limited businesses participating in the development of new technologies (Fintech). There remains a shortage of highly qualified human resources, especially information technology human resources.
The Prime Minister shared the difficulties with the banking sector and hoped that the SBV and the entire banking system would be more determined and make bigger efforts to overcome shortcomings, limitations, difficulties, and challenges to promote digital transformation.
From the recent practice of digital banking transformation, the Prime Minister draws some lessons as follows:
Firstly, the entire banking sector should participate with its high determination and close coordination with ministries, branches, and localities. The SBV should promote the role of a leader to deliver synchronous and flexible direction, organize drastic implementation with clear identification of priorities and focuses. The SBV should also firmly grasp the actual situation and have flexible, timely and effective policy responses.
Secondly, the people, businesses, and administrative units should be taken as the subjects and center of the digital transformation process so that the people, businesses, administrative, and professional units can enjoy the results brought about by digital transformation in the spirit of leaving no one behind.
Thirdly, the legal framework for the digital transformation of the banking sector should be built and accomplished, meeting practical requirements, especially developing a testing legal framework as an important solution to allow the testing of new business models.
Fourthly, inspection and supervision should be strengthened to prevent corruption, negativity, and group interests resolutely; policy communication should be promoted to contribute to creating social consensus with the people's trust.
Fifthly, it is important to continue making breakthroughs in developing digital infrastructure, digital society, and digital citizens through of supportive policies, smooth infrastructure, and smart governance.
Three goals and five perspectives on the digital transformation of the banking sector
The Prime Minister clearly pointed out 3 three goals of digital transformation for the banking sector as follows: Creating the most favorable conditions for people, businesses, and administrative units to access all banking services in the most convenient and best way; contributing to reducing expenses in terms of time, material, and compliance costs for people, businesses, administrative and public service units and the banking system itself; contributing effectively to controlling risks, preventing and repelling corruption, negativity, trouble, and harassment.
The Prime Minister emphasized five perspectives on the digital transformation of the banking sector:
Firstly, thoroughly understanding, closely following and realizing the Party's policies and guidelines, and the State's laws to effectively promote national digital transformation in general, and digital transformation of the banking sector in particular in an effective way, contributing to maintaining monetary and financial market stability and macroeconomic stability.
Secondly, grasping the opportunities and challenges from the impact of the 4th Industrial Revolution, and apply them appropriately and effectively to Vietnam's conditions and circumstances to orient the activities of digital transformation in the banking sector. Digital transformation of the banking sector must be associated with the digital economy, digital society, digital citizens, and green economy, sharing economy, and circular economy, contributing to improving production capacity, labor productivity, and competitiveness and creating jobs and livelihoods for people. Promoting the spirits of self-help, initiative, and creativity in all situations, turning challenges into opportunities, turning nothing into something, turning difficult into easy, turning impossible into possible.
Thirdly, digital transformation of the banking sector must go with modern science and technology, innovation and creativity, combined with the development of high-quality human resources, which are key factors for the banking sector in Vietnam to rapidly and sustainably develop, improve its competitiveness to keep up with and surpass the region and the world.
Fourthly, conducting digital transformation of the banking sector in a comprehensive manner, prioritizing quality over quantity, diversifying banking products and services, developing electronic payment infrastructure and ensuring network security and information safety.
Fifthly, in the digital transformation process, the banking sector should cooperate closely with ministries and localities.
“Five pushes”
For general tasks and solutions, the Prime Minister pointed out "5 pushes," including:
Promoting the improvement of regulations and policies for a full legal framework to promote the development, expansion and diversity of modern banking products and services in compliance with international standards, developing the digital banking ecosystem to meet the growing needs of the economy.
Promoting the development of electronic payment infrastructure, diversify banking products, and services, creating an important foundation for the development of the digital banking ecosystem and digital economy.
Promoting digital transformation in supporting banking inspection and supervision to enhance publicity, and transparency, and prevent corruption and money laundering.
Promoting the development of digital human resources in the banking sector, especially high-quality human resources to meet the development needs of the banking sector;
Promoting security and safety in payment, protecting personal data, applying new security standards, and ensuring fast, safe, convenient and reasonable payment.
Tasks and solutions for digital transformation in the coming time
The Prime Minister pointed out that the key tasks and solutions in the coming time should be first to build and complete legal documents to meet the requirements of the reality and context of digital transformation and digital economic development, especially and urgently the documents guiding the implementation of the Law on Credit Institutions 2024 already passed by the National Assembly.
At the same time, the SBV should submit to the Government for promulgation of a Decree on a controlled testing mechanism in the banking sector and a new Decree on non-cash payments (expected to be completed in the second quarter of 2024); review and complete current legal regulations to consider promulgating, amending and supplementing to ensure synchronization and compliance with regulations in the Law on Identification, Law on Electronic Transactions, etc. and other banking operations on digital platforms.
Secondly, developing the digital infrastructure in the banking sector in line with development trends. Accordingly, it is necessary to continue to invest, upgrade, and develop electronic payment infrastructure and credit information infrastructure to ensure business continuity, smoothness, and safety, meeting the diversified and rapidly increasing payment needs of organizations and individuals in the economy (online banking, Internet payments, mobile phones, contactless payment, etc.);
The integration and interconnection with the National Public Service Portal, Information System for handling administrative procedures, and Public Service Portals of ministries, branches and localities should be enhanced so that people and businesses enjoy seamless and smooth services (from receiving, registering, using services, paying, etc.).
Thirdly, developing the information systems of the SBV and credit institutions to increase competitiveness and gradually improve international competitiveness.
Accordingly, it is important to apply technologies for the governance and operations of credit institutions to comply with international standards and practices. Modern technology should be applied in operation and management, analysis, and risk prevention. The core banking system should be continuously upgraded and developed in accordance with the scale, operational complexity and management requirements of credit institutions.
Fourthly, developing digital data, especially combining with Project 06 to create motivation to promote digital transformation in the banking sector and develop a digital economy, digital society, and digital citizens.
The Prime Minister requested the banking sector to build a national database of banking customers and connect with the national population database.
Closely coordinating with the Ministry of Public Security to effectively deploy residential data applications, focusing on exploiting chip-embedded citizen identification information and VneID accounts to identify and authenticate customer information and coordinate and support in the process of providing banking products and services safely and conveniently.
Closely coordinating with ministries, branches, and agencies to deploy data connectivity, providing an increasingly diverse range of banking products and services in the economy.
Well organizing the management and protection of customer data, effectively apply and exploit data based on new technologies (artificial intelligence, machine learning, big data, etc.) to develop more convenient products and services for people, businesses, and administrative units.
Fifthly, prioritizing human resource development to meet the transformation requirements of the banking sector. All relevant institutions should have policies to attract and retain high-quality human resources to meet the requirements of digital transformation in the banking sector. It is necessary to strengthen cooperation and promote learning from international experiences in digital transformation to apply appropriately and effectively in consideration of practical conditions of banking operations in Vietnam to build and develop Vietnamese banking culture.
Sixthly, assuring security and safety. The banking system should strengthen its coordination with the Ministry of Public Security and the Ministry of Information and Communications, etc., in preventing and combating crime and ensuring the security, safety, legitimate rights, and interests of people when providing services on the Internet.
Strengthening inspection and supervision mechanisms; data analysis should be conducted to ensure system security and safety, as well as prevent crime and money laundering due to the current trend of increasing high-tech crimes with many new and increasingly sophisticated tricks.
The Prime Minister also highlighted the need for communication about the benefits of digital transformation in the banking sector to people and businesses.
The Prime Minister wishes and believes that the banking sector will continue to promote its achievements and results, overcome shortcomings, limitations, difficulties, and challenges to pioneer and promote digital transformation, innovation, creativity, and application of science and technology for upgrading the banking sector to a new level with rapid and sustainable development, contributing to building a strong, prosperous country with increasingly wealthy and happy people.
Department of Research and International Cooperation (translation)
