Banking industry urged to complete digital transformation legal framework

The banking industry needs to continue investing in shared payment and credit information infrastructures.

Prime Minister Pham Minh Chinh requested that the banking industry focus on completing the legal framework to facilitate its digital transformation activities.

Prime Minister Pham Minh Chinh addresses the event. Photos: SBV

On the Digital Transformation Day of the banking industry on August 4, the Prime Minister called on the State Bank of Vietnam (SBV) to soon submit to the government a draft decree on the pilot mechanism to control fintech operation.

The SBV should also continue to invest in shared payment and credit information infrastructures to bring benefits to individuals and businesses, Chinh stressed.

Nguyen Thi Hong, the SBV’s Governor, said in implementing the national digital transformation, businesses and people are regarded as the center and beneficiaries of the process.

“The goal of the banking digital transformation is to improve the quality of services, improve customer experience and meet the demand,” Hong added.

The SBV has also established the Steering Committee for the banking industry digital transformation, which is chaired by the Governor and consists of heads of affiliated units and several presidents and general directors of credit institutions and payment intermediaries.

Prime Minister Pham Minh Chinh and delegates attend the event.

According to the Payment Department under the SBV, in the first six months of 2022, cashless payment transactions increased by 77.2% in quantity and 29.8% in value compared to the same period of last year.

Nearly 70% of Vietnamese adults have a bank account, and 5.5 million accounts and about 8.9 million bank cards now use the eKYC (electronic Know Your Customer) process.

From January-July, transactions via smartphones surged 98.3% in volume and 84.3% in value over the same period of 2021.

Vietnamese shoppers using e-payments via the internet jumped 63.2% in the number of transactions and 32.3% in value compared to the same period of 2021. Payment transactions via QR code increased to 86% in volume and 127% in value.

The total number of customers registering for and using the Mobile Money service reached more than 1.7 million by the end of July, of which nearly 70% of the total users are in rural and remote areas.

About 90% of transactions in local leading banks are currently conducted via digital channels, higher than the figure set out by the Government for 2025.

Hanoi Times

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