Trang Chủ
Banking digital transformation reaps many "sweet fruits"
Recently, the SBV has submitted to competent authorities to promulgate many legal documents, policy mechanisms to facilitate non-cash payments and the digital transformation of banks, including: (i) The National Assembly passed the Law on CIs on January 18, 2024; The Government issued Decree No. 52/2024/ND-CP dated May 15, 2024 on non-cash payments; (ii) The SBV submitted to the Government a draft decree regulating the application of Regulatory Sandbox in the banking sector; conducted researches on and drafted a dossier proposing the development of a Decree on Mobile Money services and submitted to the Government a proposal to extend the pilot implementation period of this service; (iii) The SBV has issued 07 Circulars detailing and guiding the Law on CIs and Decree 52/2024/ND-CP, covering areas such as payment agent activities; management, operation and use of the National Interbank Electronic Payment System; provision of non-cash payment services; opening and use of payment accounts at payment service providers; bank card activities; provision of intermediary payment services; supervision of important payment systems, provision of intermediary payment services; supervision of important payment activities and intermediary payment service providers; (iv) The Governor signed Decision No. 2525/QD-NHNN dated November 15, 2024 promulgating the Basic Standard for the technical specification of QR Code displayed from the customer’s side in Vietnam...
In addition, the SBV is actively working on a variety of projects, programs, plans, and policies to promote non-cash payments and digital banking activities. This includes the Banking sector’s plan to implement Project 06, as outlined in Decision 06/QD-TTg of the Prime Minister approving the Project on developing the application for population data, e-identification and e-authentication to support national digital transformation from 2022 to 2025, with a vision to 2030; Plan 01/KHPH-BCA-NHNN on implementing tasks in Project 06 to promote and facilitate payment service providers and intermediary payment providers to offer safe, secure, and convenient payment products and services. The SBV continues to direct these organizations to implement safe and secure solutions for online payments and bank card transactions. At the same time, the SBV effectively supervises important payment systems and monitors the provision of intermediary payment services to ensure security and safety in payment activities.
In order to better protect the legitimate rights of customers when using online banking services, in terms of cleaning customer data, and eliminating fake bank accounts, the SBV has issued several circulars to guide the implementation of Decree 52/2024/ND-CP on non-cash payments (including Circular 17/2024/TT-NHNN dated June 28, 2024 regulating the opening and use of payment accounts at payment service providers; Circular 18/2024/TT-NHNN dated June 28, 2024 governing bank card activities; Circular 40/2024/TT-NHNN dated July 17, 2024 regulating the provision of intermediary payment services). These regulations require customers to withdraw money and make payment transactions by electronic means only after they have completed the verification of their identity documents and biometric information with: (i) Biometric data stored in the chip of the citizen identification card that have already been accurately verified by the Public Security agency or through the electronic identification account created by the Electronic Identification and Authentication System; (ii) or biometric data that can be collected during face-to-face checking for foreigners who do not utilize electronic identities or for individuals of Vietnamese descent whose nationalities have not been determined. For individual customers: these regulations will take effect on January 1, 2025; while for organizational customers, the effective date is July 1, 2025.
In addition, the SBV has issued a directive to its branches in provinces and cities, outlining the steps to transform data related to payment operations to ensure safe and smooth payment operations throughout the system, and review documents affected by the reorganization of the payment sector.
Efforts to promote payment activities for public services through banks are ongoing. The SBV has directed commercial banks and intermediary payment organizations to actively invest in technology applications, conduct researches and develop solutions to connect with the National Public Service Portal, enabling online payments for services integrated on the Portal. Electronic payments in the government sector and administrative services have seen positive outcomes. The collection of state budget revenues through non-cash payments has been emphasized, strengthened, and has also achieved positive results.
The SBV encourages CIs to adopt digital transformation, collaborate with other sectors to develop and enhance a comprehensive digital ecosystem, deliver customer-centric products and services, and provide seamless and personalized transaction experiences.
Many banks have been applying new technologies (such as artificial intelligence/ machine learning, big data, etc.) in their operations. These technologies allow banks to analyze customer behavior, needs, and preferences, helping banks optimize and tailor their products and services. These advancements facilitate process automation and improve operational efficiency. As a result, most basic banking services are now available through digital channels, with many banks reporting that over 95% of their transactions are conducted digitally.
CIs are also continuously investing in security technology infrastructure and training highly skilled cybersecurity personnel. At the same time, they are encouraging customers to enhance their skills in using banking services on digital platforms safely and effectively.
The results of non-cash payments and digital banking activities in the first month of 2025 have shown strong positive growth. According to the SBV, compared to the same period in 2024, non-cash payment transactions increased by 41.81% in quantity and 11.09% in value. Transactions through the Internet channel grew by 35.54% in quantity and 18.32% in value. Mobile phone transactions rose by 32.57% in quantity and 15.76% in value, while QR Code transactions saw an impressive increase of 66.54% in quantity and 190.31% in value. Additionally, transactions through the Interbank Electronic Payment System increased by 17.85% in quantity and 7.38% in value, and the financial switching and electronic clearing system grew by 13.60% in quantity and 0.30% in value.
Addressing challenges in digital banking transformation
Despite notable achievements, the banking digital transformation faces numerous challenges. One major concern is the rising incidence of technology-related crimes and cybercrime, which are becoming increasingly sophisticated. This raises significant difficulties in ensuring the safety and security of technological systems and maintaining uninterrupted, secure payment processes. There is also a risk that criminals may exploit payment services for fraudulent activities, scams, and other illegal purposes.
Furthermore, as banking operations are profoundly impacted by the Fourth Industrial Revolution and international economic integration, new and complex issues have emerged. These challenges require careful assessment to understand their effects on policy and alignment with current realities. The situation involves multiple sectors, both within and outside the banking industry, and features diverse perspectives that affect the progress of enhancing the legal framework for the banking sector.
Besides, the habit of using cash remains prevalent in rural, remote, and isolated areas where many people are hesitant to adopt new payment technologies due to concerns about security and safety when using electronic and online payment methods. Additionally, a significant number of individuals lack information and do not fully understand the importance of personal information protection, resulting in leasing, lending, or buying and selling account information and bank cards – behaviors that are exploited by criminals for fraudulent, deceptive, and illegal activities.
In the upcoming period, the SBV will focus on enhancing the institutional framework to support the ongoing digital banking transformation. This includes issuing and implementing a decree on a Regulatory Sandbox in the banking sector. Additionally, the SBV will review, amend, and supplement circulars that guide the Law on Credit Institutions as necessary. The Banking sector continues to realize the targets outlined in the Plan for implementing the Project on developing non-cash payments for the period 2021 - 2025; proceeds with the Digital Transformation Plan for the Banking sector, Plan No. 01 on coordination between the SBV and the Ministry of Public Security to execute Project 06.
In addition, the SBV is committed to ensuring the smooth and secure operation of payment systems. It focuses on upgrading information technology infrastructure and implementing solutions that guarantee security and confidentiality in banking activities. The SBV also instructs service providers to actively adopt safe and secure methods for online and card payments, thereby protecting the legitimate rights and interests of customers.
Additionally, the SBV is directing the research and development of a comprehensive bank customer database. This effort prioritizes the collection and sharing of information to enhance management, monitor banking activities, and prevent fraud risks in the banking sector. By promoting the application of digital technology, the SBV aims to effectively utilize data to design, develop, and provide products and services that are convenient and tailored to the needs and behaviors of different customer groups. This initiative includes early warnings, timely detection, and proactive measures to prevent and combat frauds, ensuring the security, safety, and confidentiality of customer information.
The banking industry must continue to enhance communication and information sharing with customers through various channels. This will help raise customers’ awareness and understanding of technology applications, as well as provide important notes and warnings. Thereby, customers would better recognize, prevent, and avoid risks while conducting transactions in the digital environment.
Beyond the banking industry's own solutions, collaboration with relevant ministries and agencies is essential for upgrading the technical infrastructure, standardizing data across different industries and sectors to facilitate integration, connectivity, and information sharing of relevant ministries with banks and organizations that provide intermediary payment services. This approach will help expand the digital ecosystem and promote the development of digital banking and digital payment services.
Department of Research and International Cooperation (translation)
