{News…} In Vietnam, banking is the fastest and strongest digitized industry in the market

2 years of the pandemic have drastically changed the consumption behavior of customers, banks are forced to change and adapt. Digitization from a choice has now become a necessity. Banks have also been constantly accelerating and many new technologies have been put into practice in the digitalization race. At the online seminar “The banking industry pioneers digital transformation: For all people to participate, all people to benefit” organized by the Government Portal on September 28, Mr. Lê Anh Dũng- Deputy Director General In charge of the Payment Department, the State Bank of Vietnam, said that Vietnam is one of the leading digital banking application countries. Some typical achievements can be mentioned such as in a short time the growth rate in the introduction of technologies into banking operations has reached 40%. Payments on mobile devices grow strongly every year (90% in volume and 150% in value). The digital payment and digital ecosystem have been established by connecting digital banking services with many other digital services in the economy. Many operations have been fully digitized 100%. In the first eight months of 2022, mobile payments increased by 107% in volume and 92% in value. Banks have invested a lot in their technology systems to achieve these achievements. According to the Director of the Payment Department, the banking industry has initially invested VND15,000 billion in digitalization. Many new technologies have been introduced into the application. Many banks have long viewed technology as one of the focuses of their development strategy. As a VIB, according to Mr. Trần Nhất Minh Deputy General Director and Head of the Technology Services Division, this bank chose a pioneering strategy of digitization and focused resources on technology development from a very early age.

VIB pays special attention to 3 main aspects: 1) My VIB application; 2) Data: Big Data (Big Data), artificial intelligence (AI), Machine Learning (Machine Learning); and 3) the application of new technologies such as Cloud, Open API… This is one of the first banks to deploy multi-cloud computing (Multi-Cloud) in Vietnam. Previously, from 2020, VIB has successfully applied AI and Big Data to digitize 100% of the credit card approval process, allowing customers to register and receive a credit card immediately in just 30 minutes, completely online.


Most recently, the Bank applied artificial intelligence and launched the first virtual financial advisor in Vietnam – Vie. In addition, there are some other notable technologies such as augmented reality technology integrated into My VIB 2.0 application to support virtualized users in all areas from life, and activities to education, medical. The pioneering digitization strategy is VIB’s advantage in breakthroughs in service speed, innovation and continuously bringing the best digital banking experiences and personalized products to users. Currently, 93% of VIB customers’ transactions are done through digital channels, nearly 50% of VIB’s newly issued cards come entirely from unsold digital channels, and 10% of calls to VIB are received and received. Answered by Virtual AI Agent – virtual PBX service.  Many banks also focus on similar technologies such as Techcombank launching iDO – a new digital platform for branches and PayLink – A payment Hub system connecting interbank payment networks; ACB has stepped up investment in AI and applying this technology to face recognition; MB has successfully connected the MBBank digital banking application with the MB SmartBank system so that customers can synchronize O2O transactions (Online to Offline and reverse) quickly and conveniently… According to Vietnam Report’s survey “The Banking Industry Overview 2021 and Prospects 2022”, the increase in customer expectations and the competitive landscape are the two main factors driving the strong demand for digital transformation. Besides, the demand for experience of young customers (24-44 years old) is very large and this group does not expect one bank to meet all needs. Instead, this team expects a more integrated experience when combining multiple service providers. Innovation and convenience as well as digitization of services are exactly what young customers want and need. “Consumer expectations are growing rapidly, and to maintain their edge, banks need to build new business models that can respond to growing demand and evolving markets. They will need to be more agile, more creative, and accelerate the digital transformation process,” said Vietnam Report. This report also said that thanks to the digitization of operations, the cost-to-income ratio (CIR) of most banks has decreased significantly in recent years. The pandemic has also contributed greatly to increasing the speed of customer interaction with online banking services. This ultimately reduces the bank’s fixed costs. 54% of banks forecast that CIR in 2022 will improve compared to 2021.

Van Tue – Anh Duong

Market Life Rhythm

Date: 11/10/2022