Digital transformation in the banking sector is taking place around the world. According to Backbase’s omnichannel (cross-channel) bank report, 90 percent of bank respondents said they would increase spending on technology to develop online trading platforms that optimise the customer experience. 56 percent of survey respondents thought that customer interaction with digital platforms played a decisive role in retaining customers. Along with that, 50 percent forecasted that by 2020, 50 percent of service profits would come from transactions via mobile applications.
Phuong Mai (District 7, HCM City) said that because of her typical job as an office worker, it was difficult for her to arrange time at a bank when needed. With the advent of the digital banking platform, busy customers like Phuong Mai can save a lot of time and effort. Currently, most banks develop Internet Banking and Mobile Banking. Some banks also identify this as a key strategy to promote the retail segment, becoming the leading retail bank in the market.
“I currently have three different bank accounts so I use three banking applications. They all come with a variety of utilities such as checking accounts, transferring money, saving, buying air tickets and paying electricity and water bills”, Phuong Mai shared.
Most recently, Orient Commercial Joint Stock Bank (OCB)has launched OCB Omni digital bank in April 2019 based on the strength of the omnichannel that this unit has invested and deployed since 2017. In addition to the outstanding features OCB Omni brings, security is also a top priority. Application security by face recognition and fingerprint also helps optimise the user experience, increasing the security of payment accounts.
Experts said that in the race to promote the digital banking platforms, the key to success was to create the best experience for customers through diversified utilities, full integration of services, meeting to almost all customers’ financial transaction needs.
Not only offering bank accounts for online transactions, digital banking platforms now link with many partners to build a product and service ecosystem. Smartphones and digital banking applications will play powerful role to assist users in modern life when supporting shopping and payment with QR codes. Services such as account opening, credit cards, savings and deposits, smart financial advice are all integrated into the application. In addition, activities such as buying movie tickets, booking tours and hotels will be completed in the future.
This new development shows the banks’ focus in the technology application to provide customers with services of high quality in line with the development trend of the ongoing industrial revolution 4.0 all around the world.
For example, with the OCB Omni digital banking application, customers can access more than 80 utilities in the same application, in which customers can transact online for free such as intra-network money transfer, inter-bank 24/7 transfer, free SMS and free Mobile Banking.
The application uses European security standards to increase safety and security, customers can register to open an account online. Along with that is the quick handling of the system, it only takes 8 seconds to send money to your account with time-saving interbank transfer, simple operation, proactive banking experience anytime and anywhere.
This is also one of the banking applications in cooperation with VinaCapital to deploy financial investment products. Cooperating with insurance companies, selling related products such as travel insurance, expected to launch more motorcycle insurance in October, expanding the ecosystem of services provided to customers. Besides, it is the function of selling foreign currencies online, paying utility bills, telecommunication charges, tuition fees and QR Pay.
For customers who are office workers, OCB’s application provides utilities to experience such as opening an account, an online card and paying bills. For students and newly hired workers, they can easily pay the tuition and the bill completely for free.
For the younger generation group who prefer technology, QR Pay feature helps to pay immediately without cash, secure by FaceID and safety according to European standards. It is also easy for elderly, middle-aged customers or investors to save, invest and buy insurance online. Using the Trading Basket feature can help to perform multiple transactions at the same time (maximum 10 transactions) with only one OTP verification, reducing processing and saving time.
OCB representative said to provide multi-utility digital banking applications, services with high security technology, the bank has a long-term preparation for many years. Digital technology is synchronously deployed by the bank, building modern digital infrastructure, helping to improve the efficiency of the operation of the internal system, optimising processes, data management and customer portfolio, ensuring security and risk management requirements.
Specifically, for the business process digitalisation and data digitisation platform, the first major credit processes implemented on this platform include credit approval, credit transaction and asset valuation processes which have been effectively applied. Thereby, it directly supports the digitalisation strategy to reduce transaction processing time and serve customers faster and better.
In addition, the bank has been granted a certificate of information security management system according to ISO/ IEC 27001: 2013, in order to control all activities and transaction content and avoid information theft or conduct improper transactions. OCB has also completed the implementation of advanced iOTP authentication system, in compliance with the regulations of the State Bank of Vietnam (SBV).
The upgrade of the application system, technology infrastructure and security has also contributed to bringing the unit into the first group of banks in Vietnam to be recognised to successfully complete the implementation of risk management project items under international standard Basel II. The bank is also rated by Moody’s, an international credit rating organisation, to Ba3the highest level in Vietnam today.
In the coming time, the bank intends to add a functional ecosystem on applications based on Omnichannel platforms such as social networking, expanding transaction methods and one-stop-shopping ecosystem.
Alex Jimenez, an expert from Rockland Trust said that with the development of technology, especially financial technology, banks around the world faced unprecedented challenges. Each bank must change its products, services, ways of interacting with customers and apply technology to core banking to create the fastest and most convenient experience possible.
“The biggest problem banks need to solve now is to answer the question whether they have applied the technology fast enough and good enough or not”, said Alex Jimenex.
