Digital banking has great potential for development in Vietnam (Photo ndh.vn) Hanoi (VNA) - Vietnam needs a legal framework for the developmentof digital banking, heard a conference held by the State Bank of Vietnam in Hanoion December 19.
Deputy Governor of the central bank Nguyen Kim Anh said therapid development of information and technology, especially the fourthindustrial revolution, was bringing opportunities for digital banking.
The digitalisation of banking services would help the sectorimprove convenience in providing financial services, Kim Anh said, adding thatdigital banking had potential to become a core business of banks in Vietnam.
“This is big opportunities for credit institutions andfinancial technology (fintech) companies,” he stressed.
However, he added there were risks regarding system errors,security issues and money laundering.
Digital banking was different from traditional banking frompolicies, products and services, Pham Tien Dung, Director of the central Bank’sPayment Department said.
“It is important to have a legal framework for digitalbanking development,” Dung said. In the short-term, relevant regulations mustbe revised for amendments, he said, adding that in the long run, a law onpayment should be issued to regulate issues such as payment services ofnon-bank institutions, mechanisms to protect users and data security.
According to Dung, payment was especially important indigital baking.
Many types of payment services have been developed, such asInternet Banking, SMS Banking, Mobile Banking, Mobile Payment and online cardpayment, but they lacked links and failed to give customers smooth experiences,he said.
He cited statistics that 25 fintech companies which providepayment services are licensed in Vietnam but only five are profitable.
He said Vietnam was still in the early stages of digitalbanking.
Pham Anh Tuan from the Joint Stock Commercial Bank forForeign Trade of Vietnam said that security must be given special importance indigital baking.
Cross-border transaction was also a challenge to Vietnam duringthe development of digital banking, he said.
Experts said that the legal framework for digital bankingshould focus on ensuring security, protecting user information and preventingfrauds.
A representative from the Ministry of Public Security saidthat a citizen database was being developed to connect with other systems suchas banking and health care in order to simplify procedures in individualverification.-VNA
Deputy Governor of the central bank Nguyen Kim Anh said therapid development of information and technology, especially the fourthindustrial revolution, was bringing opportunities for digital banking.
The digitalisation of banking services would help the sectorimprove convenience in providing financial services, Kim Anh said, adding thatdigital banking had potential to become a core business of banks in Vietnam.
“This is big opportunities for credit institutions andfinancial technology (fintech) companies,” he stressed.
However, he added there were risks regarding system errors,security issues and money laundering.
Digital banking was different from traditional banking frompolicies, products and services, Pham Tien Dung, Director of the central Bank’sPayment Department said.
“It is important to have a legal framework for digitalbanking development,” Dung said. In the short-term, relevant regulations mustbe revised for amendments, he said, adding that in the long run, a law onpayment should be issued to regulate issues such as payment services ofnon-bank institutions, mechanisms to protect users and data security.
According to Dung, payment was especially important indigital baking.
Many types of payment services have been developed, such asInternet Banking, SMS Banking, Mobile Banking, Mobile Payment and online cardpayment, but they lacked links and failed to give customers smooth experiences,he said.
He cited statistics that 25 fintech companies which providepayment services are licensed in Vietnam but only five are profitable.
He said Vietnam was still in the early stages of digitalbanking.
Pham Anh Tuan from the Joint Stock Commercial Bank forForeign Trade of Vietnam said that security must be given special importance indigital baking.
Cross-border transaction was also a challenge to Vietnam duringthe development of digital banking, he said.
Experts said that the legal framework for digital bankingshould focus on ensuring security, protecting user information and preventingfrauds.
A representative from the Ministry of Public Security saidthat a citizen database was being developed to connect with other systems suchas banking and health care in order to simplify procedures in individualverification.-VNA
VNA
