At least half of the total Vietnamese adult people will use e-payment services and at least 70% of total transactions will be made via digital channels by 2025.

It is one of the goals set out in the digital transformation plan of the banking industry to 2025, with a vision to 2030, which has been issued by Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong this month.

Livebank app of TPBank. Photo: TPBank

At least 50% of banking operations of credit institutions and foreign bank branches will be performed completely in the digital environment.

Under the plan, by 2025, 60% of credit institutions will earn more than 30% of revenue from digital channels and 50% of small and consumer loans will be extended via digital channels. 

About 70% of the credit institution’s files are processed and stored in the digital environment (except for files classified as state confidential data).

“By 2030, 70% of the SBV’s inspection and supervision activities of the banking industry will be carried out in the digital environment,” the plan noted.

A recent report shows that 95% of credit institutions planned to build a digital transformation strategy, 39% of surveyed organizations have approved a digital transformation strategy or integrated it into the strategy of information technology business development. 

Vietnamese users are experiencing virtual reality viewing projects in BIDV Home app. Photo: BIDV

In the next 3-5 years, about 82.5% of banks expect revenue growth of at least 10%, more than a half of which want over 60% of customers will use digital channels.

Assoc. Prof. Dr. Ngo Tri Long, a local economist, said that digital development has been changing economies around the globe at a rapid pace.

"Digitalization is an inevitable trend and a "survival battle” of the banking industry. The Covid-19 pandemic has contributed to speeding up this process," Long emphasized.

The use of a range of payment technologies is trending upwards as users are comfort with them and their understanding increases. 

A latest report titled "the Mastercard New Payments Index" found that nearly 70% of respondents in APAC say they will use digital or mobile wallets in the next year. The number is higher than the global average of 62%. 

The majority of respondents in the region perceive new payment methods like QR codes to be cleaner (76%) and more convenient (71%) for in-person payments as it is likely consumers are using their own mobile device. 

“Consumers are also increasingly showing interest in being able to spend crypto-assets for everyday purchases,” the survey noted.

The survey underlined businesses of all scales will face greater expectations to provide multiple ways to purchase and pay.

Source: Mastercard in globe, May 2021

Looking forward, the SBV will support the processing of new payment methods and connection models involving QR code, e-wallets, mobile money (direct carrier billing), cards, payment accounts, and cross-border transactions.

From an expert’s view of point, Vice Director of the Vietnam Institute of Digital Transformation and Innovation (VIDTI) Hoang Nguyen Van said that the Covid-19 pandemic is making digitalization an urgent issue for firms to increase their survivability by transforming business operation and technologies to cope with a new situation. 

“Thus, the government should provide legal guidance for digital transformation as quick as possible,” he told Hanoitimes.

According to SBV Governor Hong, the central bank will modernize the payment infrastructure, improve connectivity and interoperability including upgrading and modernizing the inter-bank electronic payment system (IBPS), towards meeting international principles and standards.

Besides, the SBV will also hold an annual “Digital Transformation Day” event to promote the process.