Not out of that trend, Deposit Insurance of Vietnam (DIV) is also responsible for responding to implement digital transformation, contributing to the spread and successful implementation of national digital transformation. The DIV's digital transformation in the media sector will also contribute to promoting the spread of deposit insurance policies as well as public confidence in banking operations.
The term "digital transformation" has appeared popular around the world in recent years, however, there is no exact definition of this term. According to technology experts, in simple terms, digital transformation is the application of digital technology to change and transform traditional ways of doing things. In other words, integrating digital solutions into the core of an organization (business, agency…) to profoundly change the way that organization operates by creating new business processes, experiences better customers and a modern organizational culture.
In the banking sector, common technologies of the Industry 4.0, such as artificial intelligence, machine learning and big data, have been deployed, especially in the context of the recent pandemic. The demand for online transactions has increased rapidly, while the technology infrastructure of the banking industry was fully responsive. As digital transformation is also associated with information security, the banking industry has been proactive in building and investing in technology infrastructure to keep pace with the rapid growth of the market. A strong wave of digital transformation in the Vietnamese banking system has taken place in the last years. Most Vietnamese banks have either implemented or are in the process of developing their digital transformation strategies.
Applying digital transformation in deposit insurance policy communication
Along with the strong development of information technology and the industrial revolution 4.0, deposit insurance communication tools are increasingly diversified and modernized, such as mass media (television, radio, press, advertising), leaflets, websites and digital tools, etc. used by deposit insurers more flexibly and creatively.
The Philippine Deposit Insurance Corporation (PDIC) is currently using a digital communication tool, linking with banks and local authorities. PDIC's digital communication services include the internet, social networks and automatic messaging services through 78 centers in provinces. PDIC also implemented many new communication activities such as launching the Deposit insurance e-Calculator tool to help depositors calculate the insured deposit balance; officially launched accounts on social networks such as Facebook and Twitter on the occasion of the organization's 53rd anniversary in 2016.
The Korea Deposit Insurance Corporation (KDIC) deploys regular communication tools through mass media channels, comprehensive financial education, and organizes activities on social networks such as Facebook, Twitter, Youtube, etc. In the event of a failed insured institution, KDIC uses an integrated information processing technology system (IRIS) for depositors and creditors to claim compensation, and at the same time provides online creditor advisory services.
In Russia, with the goal of connecting deposit insurers with professionals and depositors across the country, the Russian Deposit Insurance Agency (DIA) has launched a Communication Development Strategy with the goal of expanding access to services. DIA's services are in electronic form: Renovating the official website, developing user-friendly mobile applications, strengthening financial inclusion activities for the community. Among them are two large-scale programs that DIA has successfully implemented, namely the Finoteka financial inclusion program and the assessment of the satisfaction of financial service users with the deposit insurer.
The Finoteka program aims to provide financial information to depositors nationwide in the form of videos with simplified content on the official website finoteka.ru. There are 3 forms: long skits, short skits and visual videos about a specific situation. As of May 2018, these videos have reached 42 million times through channels such as Youtube, Facebook, social networking applications and official news sites in Russia. According to statistics, up to 97.6% of the responses are positive, the time watching a video is 40% higher than the average watch time on Youtube, and the traffic to the DIA website increases by more than 30% each time playing a new video. The initial results of this communication program are very remarkable when the financial knowledge is illustrated in an attractive, easy-to-understand way, attracting viewers. Up to a third of Internet users in Russia have watched videos on the topic of personal financial management. Finoteka also won a number of prestigious awards such as 2018 Digital Technology Awards and Best Business Promotion Video 2018.
The DIA used an online rating system to measure the satisfaction of financial service users with deposit insurance activities. Responding to the survey is done online, based on factors such as behavioral issues and user psychology. Among those who have interacted with the DIA, 57% rate the activities of the deposit insurer as very good. The surveyed subjects were also divided into demographic and sociological groups to assess the satisfaction level of each of these groups with the banking and deposit insurance system, as well as to devise appropriate communication plans. suitable for each group in the future.
It can be seen that the role of communication on deposit insurance is very important, not only helping the deposit insurer to build its image with the community but also helping to increase trust and knowledge about finance and banking for depositors. money, contributing to maintaining social stability. Communication activities on international deposit insurance are more and more innovative, adapting to the process of modernization and development of technology today. Deposit Insurance of Vietnam needs to learn from the experiences and trends of international deposit insurers in deploying and updating communication programs to respond to changes in socio-economic life due to the process of integration and globalization brings.
Recommendations for Vietnam
In early 2022, at Directive No.02/CT-NHNN on promoting digital transformation and ensuring information security and safety in banking activities, the Governor of the State Bank of Vietnam (SBV) requested units of the SBV, credit institutions, foreign bank branches, and payment intermediary service providers actively and effectively implemented the tasks and solutions stated in the Digital Transformation Plan of the banking sector to 2025, with orientation to 2030, issued together with Decision No.810/QD-NHNN dated 11/5/2021 by the Governor of the SBV.
Notably, Directive No.02 also emphasizes continuing to promote information, dissemination and dissemination of knowledge, financial education, and guiding people and businesses to understand and use products and banking services on a digital platform in a safe and legal manner. Promote cooperation activities, experience sharing and research and application of digital technology in banking activities to develop and provide a variety of convenient, safe and enhanced banking products and services. customer experience and meet the increasing needs and expectations of people and businesses.
The banking sector strive to effectively implement the tasks as stated at the Scheme on the development of the applications of the population data, the personal identification and e-KYC for the national digital transformation in the 2022 - 2025 period, vision to 2030 issued as attachment to Decision No. 06/QD-TTg dated January 06, 2022 of the Prime Minister (Scheme 06). The focus has been put on connecting and exploiting the national database on population to validate the customers’ data and support the banking industry's professional operations. Over the past time, the banking sector has been one of the pioneers in implementing Scheme 06. In addition, in order to ensure the enhancement of people's trust in electronic transactions, and to further facilitate the implementation of digital applications in the banking sector, it is necessary to quickly amend the Law on Electronic Transactions 2005 to be more in line with the reality of the banking industry.
For deposit insurance activities, information and communication on deposit insurance policies has been legalized, becoming one of the tasks of Deposit Insurance of Vietnam (DIV). Accordingly, the DIV has the task of “organizing the dissemination of policies and laws on deposit insurance; organize training and courses on deposit insurance”. During more than 20 years of operation and growth, DIV has been gradually diversifying and modernizing activities to communicate deposit insurance policies to the public, provide training in related professions, and exchange information to serve the services for the operation of the deposit insurance, contributing to influence the authorities to perfect the deposit insurance policy.
Through useful experiences in the implementation of deposit insurance communication as well as the practical implementation of operations, the deposit insurer can draw lessons to edit, supplement, and improve communication in the direction of applying digital transformation into operation.
First of all, it is necessary to develop an overall communication strategy for each period in line with the deposit insurance development strategy and the banking industry development strategy towards the application of new information technology and digitalisation.
Secondly, it is necessary to diversify and concretize the target communication objects and corresponding tools and solutions. Applying information technology, digitization tools and information systems of the FSMIMS project to the public communication, moving towards building an online support system for depositors, using online tools online such as email, mobile phone message, online deposit insurance consultation, social network such as Facebook, Zalo etc. in a reasonable, controlled manner.
Thirdly, it is necessary to develop offline and online simulation communication options for events such as the failure of insured institutions, mass withdrawals of deposits, etc. to train and guide staff.
Fourthly, promote educational activities, communicate the policy of deposit insurance and financial inclusion, coordinate with agencies in the finance and banking industry and propose to participate in the action plan to implement the Financial Inclusion Strategy of the banking industry in the near future. In which, research, build and deploy financial education programs in the form of online, digitized, short, interesting, easy to understand clips, suitable to public tastes.
Fifthly, organize periodic evaluation of the effectiveness of deposit insurance policy communication through various forms such as surveys, face-to-face interviews, online, by phone, etc., to amend and supplement solutions for communication activities on deposit insurance. Based on the results of periodic and regular evaluation of deposit insurance policy communication, as well as the implementation of a survey on public perception, the deposit insurer can build a digital database on depositors and the general public. On that basis, the deposit insurer can grasp the characteristics, needs and habits of each public object, thereby having appropriate communication solutions.
In addition, the DIV can apply social listening tools to actively monitor public opinion to determine the direction and message of the media. In the future, with the use of Bigdata and AI, the deposit insurer can synthesize, process and analyze data on the basis of algorithms, thereby automating digital communication operations and reducing costs. human resources, and at the same time increase communication efficiency.
In the trend of modernization of communication activities on deposit insurance in the world and the significant influence of the 4.0 technology revolution and digital transformation on the finance - banking - deposit insurance industry in Vietnam, the deposit insurer needs to make efforts in completing communication activities on deposit insurance policies in order to well fulfill the task of protecting depositors, contributing to financial-banking stability and social security.
However, the digital transformation needs to be done step by step in a long-term strategy and must be constantly updated to keep up with advances in modern science and technology, and at the same time to test and evaluate its effectiveness for the implemented activities to promptly improve and correct (if necessary). At the same time, digital transformation in policy communication is necessary but not sufficient to meet all practical implementation problems. It is necessary to coordinate digital communication with traditional measures to reach all target audiences such as: leaflets, promotion in mass media, event organization... Implementation Digital transformation in deposit insurance policy communication is necessary, but in the current context, it is still necessary to maintain a considerable amount of traditional communication activities to ensure effective communication and dissemination of deposit insurance policies.
Communication Department
Not out of that trend, Deposit Insurance of Vietnam (DIV) is also responsible for responding to implement digital transformation, contributing to the spread and successful implementation of national digital transformation. The DIV's digital transformation in the media sector will also contribute to promoting the spread of deposit insurance policies as well as public confidence in banking operations.
The term "digital transformation" has appeared popular around the world in recent years, however, there is no exact definition of this term. According to technology experts, in simple terms, digital transformation is the application of digital technology to change and transform traditional ways of doing things. In other words, integrating digital solutions into the core of an organization (business, agency…) to profoundly change the way that organization operates by creating new business processes, experiences better customers and a modern organizational culture.
In the banking sector, common technologies of the Industry 4.0, such as artificial intelligence, machine learning and big data, have been deployed, especially in the context of the recent pandemic. The demand for online transactions has increased rapidly, while the technology infrastructure of the banking industry was fully responsive. As digital transformation is also associated with information security, the banking industry has been proactive in building and investing in technology infrastructure to keep pace with the rapid growth of the market. A strong wave of digital transformation in the Vietnamese banking system has taken place in the last years. Most Vietnamese banks have either implemented or are in the process of developing their digital transformation strategies.
Applying digital transformation in deposit insurance policy communication
Along with the strong development of information technology and the industrial revolution 4.0, deposit insurance communication tools are increasingly diversified and modernized, such as mass media (television, radio, press, advertising), leaflets, websites and digital tools, etc. used by deposit insurers more flexibly and creatively.
The Philippine Deposit Insurance Corporation (PDIC) is currently using a digital communication tool, linking with banks and local authorities. PDIC's digital communication services include the internet, social networks and automatic messaging services through 78 centers in provinces. PDIC also implemented many new communication activities such as launching the Deposit insurance e-Calculator tool to help depositors calculate the insured deposit balance; officially launched accounts on social networks such as Facebook and Twitter on the occasion of the organization's 53rd anniversary in 2016.
The Korea Deposit Insurance Corporation (KDIC) deploys regular communication tools through mass media channels, comprehensive financial education, and organizes activities on social networks such as Facebook, Twitter, Youtube, etc. In the event of a failed insured institution, KDIC uses an integrated information processing technology system (IRIS) for depositors and creditors to claim compensation, and at the same time provides online creditor advisory services.
In Russia, with the goal of connecting deposit insurers with professionals and depositors across the country, the Russian Deposit Insurance Agency (DIA) has launched a Communication Development Strategy with the goal of expanding access to services. DIA's services are in electronic form: Renovating the official website, developing user-friendly mobile applications, strengthening financial inclusion activities for the community. Among them are two large-scale programs that DIA has successfully implemented, namely the Finoteka financial inclusion program and the assessment of the satisfaction of financial service users with the deposit insurer.
The Finoteka program aims to provide financial information to depositors nationwide in the form of videos with simplified content on the official website finoteka.ru. There are 3 forms: long skits, short skits and visual videos about a specific situation. As of May 2018, these videos have reached 42 million times through channels such as Youtube, Facebook, social networking applications and official news sites in Russia. According to statistics, up to 97.6% of the responses are positive, the time watching a video is 40% higher than the average watch time on Youtube, and the traffic to the DIA website increases by more than 30% each time playing a new video. The initial results of this communication program are very remarkable when the financial knowledge is illustrated in an attractive, easy-to-understand way, attracting viewers. Up to a third of Internet users in Russia have watched videos on the topic of personal financial management. Finoteka also won a number of prestigious awards such as 2018 Digital Technology Awards and Best Business Promotion Video 2018.
The DIA used an online rating system to measure the satisfaction of financial service users with deposit insurance activities. Responding to the survey is done online, based on factors such as behavioral issues and user psychology. Among those who have interacted with the DIA, 57% rate the activities of the deposit insurer as very good. The surveyed subjects were also divided into demographic and sociological groups to assess the satisfaction level of each of these groups with the banking and deposit insurance system, as well as to devise appropriate communication plans. suitable for each group in the future.
It can be seen that the role of communication on deposit insurance is very important, not only helping the deposit insurer to build its image with the community but also helping to increase trust and knowledge about finance and banking for depositors. money, contributing to maintaining social stability. Communication activities on international deposit insurance are more and more innovative, adapting to the process of modernization and development of technology today. Deposit Insurance of Vietnam needs to learn from the experiences and trends of international deposit insurers in deploying and updating communication programs to respond to changes in socio-economic life due to the process of integration and globalization brings.
Recommendations for Vietnam
In early 2022, at Directive No.02/CT-NHNN on promoting digital transformation and ensuring information security and safety in banking activities, the Governor of the State Bank of Vietnam (SBV) requested units of the SBV, credit institutions, foreign bank branches, and payment intermediary service providers actively and effectively implemented the tasks and solutions stated in the Digital Transformation Plan of the banking sector to 2025, with orientation to 2030, issued together with Decision No.810/QD-NHNN dated 11/5/2021 by the Governor of the SBV.
Notably, Directive No.02 also emphasizes continuing to promote information, dissemination and dissemination of knowledge, financial education, and guiding people and businesses to understand and use products and banking services on a digital platform in a safe and legal manner. Promote cooperation activities, experience sharing and research and application of digital technology in banking activities to develop and provide a variety of convenient, safe and enhanced banking products and services. customer experience and meet the increasing needs and expectations of people and businesses.
The banking sector strive to effectively implement the tasks as stated at the Scheme on the development of the applications of the population data, the personal identification and e-KYC for the national digital transformation in the 2022 - 2025 period, vision to 2030 issued as attachment to Decision No. 06/QD-TTg dated January 06, 2022 of the Prime Minister (Scheme 06). The focus has been put on connecting and exploiting the national database on population to validate the customers’ data and support the banking industry's professional operations. Over the past time, the banking sector has been one of the pioneers in implementing Scheme 06. In addition, in order to ensure the enhancement of people's trust in electronic transactions, and to further facilitate the implementation of digital applications in the banking sector, it is necessary to quickly amend the Law on Electronic Transactions 2005 to be more in line with the reality of the banking industry.
For deposit insurance activities, information and communication on deposit insurance policies has been legalized, becoming one of the tasks of Deposit Insurance of Vietnam (DIV). Accordingly, the DIV has the task of “organizing the dissemination of policies and laws on deposit insurance; organize training and courses on deposit insurance”. During more than 20 years of operation and growth, DIV has been gradually diversifying and modernizing activities to communicate deposit insurance policies to the public, provide training in related professions, and exchange information to serve the services for the operation of the deposit insurance, contributing to influence the authorities to perfect the deposit insurance policy.
Through useful experiences in the implementation of deposit insurance communication as well as the practical implementation of operations, the deposit insurer can draw lessons to edit, supplement, and improve communication in the direction of applying digital transformation into operation.
First of all, it is necessary to develop an overall communication strategy for each period in line with the deposit insurance development strategy and the banking industry development strategy towards the application of new information technology and digitalisation.
Secondly, it is necessary to diversify and concretize the target communication objects and corresponding tools and solutions. Applying information technology, digitization tools and information systems of the FSMIMS project to the public communication, moving towards building an online support system for depositors, using online tools online such as email, mobile phone message, online deposit insurance consultation, social network such as Facebook, Zalo etc. in a reasonable, controlled manner.
Thirdly, it is necessary to develop offline and online simulation communication options for events such as the failure of insured institutions, mass withdrawals of deposits, etc. to train and guide staff.
Fourthly, promote educational activities, communicate the policy of deposit insurance and financial inclusion, coordinate with agencies in the finance and banking industry and propose to participate in the action plan to implement the Financial Inclusion Strategy of the banking industry in the near future. In which, research, build and deploy financial education programs in the form of online, digitized, short, interesting, easy to understand clips, suitable to public tastes.
Fifthly, organize periodic evaluation of the effectiveness of deposit insurance policy communication through various forms such as surveys, face-to-face interviews, online, by phone, etc., to amend and supplement solutions for communication activities on deposit insurance. Based on the results of periodic and regular evaluation of deposit insurance policy communication, as well as the implementation of a survey on public perception, the deposit insurer can build a digital database on depositors and the general public. On that basis, the deposit insurer can grasp the characteristics, needs and habits of each public object, thereby having appropriate communication solutions.
In addition, the DIV can apply social listening tools to actively monitor public opinion to determine the direction and message of the media. In the future, with the use of Bigdata and AI, the deposit insurer can synthesize, process and analyze data on the basis of algorithms, thereby automating digital communication operations and reducing costs. human resources, and at the same time increase communication efficiency.
In the trend of modernization of communication activities on deposit insurance in the world and the significant influence of the 4.0 technology revolution and digital transformation on the finance - banking - deposit insurance industry in Vietnam, the deposit insurer needs to make efforts in completing communication activities on deposit insurance policies in order to well fulfill the task of protecting depositors, contributing to financial-banking stability and social security.
However, the digital transformation needs to be done step by step in a long-term strategy and must be constantly updated to keep up with advances in modern science and technology, and at the same time to test and evaluate its effectiveness for the implemented activities to promptly improve and correct (if necessary). At the same time, digital transformation in policy communication is necessary but not sufficient to meet all practical implementation problems. It is necessary to coordinate digital communication with traditional measures to reach all target audiences such as: leaflets, promotion in mass media, event organization... Implementation Digital transformation in deposit insurance policy communication is necessary, but in the current context, it is still necessary to maintain a considerable amount of traditional communication activities to ensure effective communication and dissemination of deposit insurance policies.
Communication Department