Digital transformation creates a breakthrough for the banking and finance industry during the pandemic

Newly released reports by the Asian Development Bank (ADB) and the BIDV Research & Training Institute show that the financial market, including banking, insurance, and securities, has made great strides in recent years. via. In particular, digital transformation plays an important role in helping businesses in the financial and banking sectors make a breakthrough, especially during the epidemic period, people have tended to adapt more to products. , number service.

Digital banking – increase convenience, reduce procedures

According to a survey in the November 2021 Report of Mambu Company – a SaaS cloud platform (Germany), about 61% of global consumers participating in the survey have used more digital banking services than in the past. score before the Covid-19 pandemic (this index is higher in Vietnam, reaching 70%) and 75% think they will use more in the near future. In Vietnam, the value of payments via Internet channels, mobile phones and QR Code channels in 2021 has a high growth rate (as outlined below).

According to McKinsey (2021), Vietnam’s penetration of financial technology (fintech) services and e-wallets will reach 56% in 2021, higher than the average of emerging Asia – Pacific countries (53 %) and grow (43%).

Only in the past 2 years since the application of eKYC electronic identity, the number of customers using Digimi digital bank of Ban Viet Commercial Joint Stock Bank has increased rapidly. Users only need to take a selfie portrait, along with identification documents, and can open an account at home. Recently, added the feature of depositing/withdrawing money by Citizen ID through Digimi+ Automated Banking System. Initially, the first point was deployed in Ho Chi Minh City and expanded to other provinces such as Hanoi, Da Nang, Binh Duong, Can Tho… The development of digital banking is seen by many banks as an extension, creating create an automated banking ecosystem to help customers transact with the bank most conveniently and quickly.

According to Mr. Ngo Quang Trung, General Director of Viet Capital Commercial Joint Stock Bank, digital transformation brings many conveniences to users and also an opportunity for the bank to promote the development of its customer file when more and more utilities are available. implemented: “The first is to improve the convenience and convenience of the payment platform that the bank has. The second is to connect that payment platform with the surrounding ecosystems of customers as well as of the bank. customers, serving convenience for customers. These are the main solutions”.

“Digital transformation contributes to creating more utilities for users, but also helps businesses improve labor productivity. As at Vietnam Prosperity Joint Stock Commercial Bank (VPBank), thanks to digital transformation Listed and comprehensive, 98% of the bank’s transactions have been done through digital platforms, more than 3.3 million current customers regularly use VPBank NEO digital banking platform for daily transactions. In particular, the number of new customers registering to use VPBank NEO has continuously increased recently.In the first quarter of 2022, the number of customers increased by 10% compared to the same period last year. Standing General Director, Head of Personal Banking Division, VPBank “Digital transformation in Vietnam’s banking industry has become an irreversible and ongoing trend. This trend originates from the change in customer behavior before the evolution of the 4.0 revolution. Customers today want to use services more on technology platforms. Therefore, banks are also forced to change to meet the needs of customers and increase competitiveness in the market.”

According to statistics of the State Bank, in the first 4 months of this year, payment via mobile phone increased by 97.65% in number of transactions and 86.68% in value; via QR code increased by 56.52% and 111.62% respectively over the same period in 2021.

More convenient when trading securities online

In the financial industry, banks are at the forefront of digital transformation. But in other industry groups, such as securities, the recent changes in the social distancing process are also a proof that the digital transformation race has entered a new phase. In 2021, the number of newly opened securities investor accounts will reach 1.5 million accounts, 1.5 times higher than the total number of newly opened accounts in the previous 4 years (2017-2020) combined (Total of 4 years reaching 1, 04 million accounts). A significant contribution in attracting investors is that the procedures for market participation have been simplified thanks to technology. At Tan Viet Securities Company, from 2020 instead of going to transaction counters and filling in a series of documents, investors can completely register for an account and conduct securities transactions using eKYC technology. on the phone app.

Nguyen Trung Du, director of investment services and asset management at Tan Viet Securities, said: “In my opinion, the positive side of the COVID-19 epidemic is the rapid promotion of people and businesses. Applying digital platforms in business activities, serving and advising customers, TVSI is also in the general trend of the banking and securities industries with strong investment in technologies such as KYC, E contract, and other technologies. investment applications, consulting and training programs on digital platforms….This helps TVSI approach customers more easily and we also receive many new customers with a remarkable increase in assets under management. management and revenue and profit in the general context of the securities industry”.

Thanks to digital transformation, despite facing many difficulties due to COVID-19, last year’s revenue of Tan Viet Securities had a total revenue of 2.3 times higher than 2020. Digital transformation has become a success. An effective tool, providing opportunities for businesses that are agile, willing to change, and grasp market trends. Many products that seem to be required to be traded directly are also put on digital platforms, such as bonds, or instant money transfer systems linking multiple banks, which also maximize efficiency.

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