Under the competition pressure from the Fintech wave, domestic banks have applied cloud computing technology, big data analysis, artificial intelligence, biometric authentication and Blockchain to change the operation and provide services to customers.
In fact, in recent years, in the development wave of Fintech technology (technology in fiannce), a series of electronic wallets such as MoMo, Ngan Luong, VinaPay, Payoo, Mobivi, ZaloPay (or even Chinese names like Alipay and Wechat Pay which are gradually penetrating into Vietnam), provide a multitude of utilities and quickly attract users. The emergence of Fintech applications has caused many people even though they still have online transactions every day, but they almost do not have to find banking services, causing the bank to lose a large number of customers.
In order to catch the development trend of the 4.0 industrial revolution, many banks in Vietnam are making strong changes in the application of new technologies to supply products, services and operations, competing with other partners. Technologies such as cloud computing, big data analysis, artificial intelligence, biometric authentication and Blockchain are being applied by many domestic banks such as TPBank, VietcomBank, VPBank, Vietinbank, MBBank to improve operational efficiency and increase experience for customers. For example, TPBank has deployed LiveBank automatic bank, allowing customers to conduct 24/7 online transactions, including holidays and outside office hours, withdraw cash without ATM cards thanks to authentic biometric technology.
LienVietPostBank provides a non-cash payment platform that allows online savings and mortgage loan via mobile.
MB Bank applies chatbot virtual assistant to answer and advise customers on social networks.
Sacombank allows customers to pay and withdraw money with QR Code.
Many other banks also apply large data analysis technology and artificial intelligence to perform customer behaviour assessment, predict market demand as well as a warning of potential risks. According to the survey results published by the State Bank of Vietnam (SBV) in late 2018, 94 percent of domestic banks are conducting digital conversion, of which about 42 percent of credit institutions consider digital banks a business strategy. Vietnam Report’s survey also showed that 93 percent of banks are investing in technology innovation and developing sales channels through digital technology (Internet Banking, Mobile Banking); 80 percent are digitising the core banking operations and attracting workers in high technology and IT fields.
In an effort to promote the development of non-cash payments, the government has recently instructed the central bank to report the plan to allow cash deposits into electronic wallets without financial bank payment before the third quarter of 2019. The central bank also requires commercial banks and intermediary payment organisations to apply the QR Code basis to ensure the compatibility between QR Code-based payment solutions thereby to contribute to boost banks more boldly in digital transformation, creating a fair competition between Fintech businesses and banks. However, according to experts, in the process of digital transformation, banks need to be careful.
In addition, banking and financial experts also said that in order to make full use of the achievements of the 4.0 industrial revolution, Vietnam needs a strong and adequate legal framework to promote banks in digital transformation, ensure network security to operate smoothly and protect customer information confidentially. Regarding this issue, Nguyen Dinh Thang, LienVietPostBank’s chair also emphasized that, in the process of digital transformation, if the legal framework does not go one step ahead and does not facilitate business operations, it will be easy to violate the law. Therefore, the State must have an open and appropriate policy to help businesses avoid law violations.
