ADVANCING DIGITAL BANKING TO 2030 - TARGETING NON-CASH PAYMENTS AT 30× GDP

(TBTCO) – The digital transformation strategy for the banking sector to 2030 identifies citizens and businesses as the center and driving force of the transformation journey. The strategy outlines several concrete goals, such as: 95% of the population aged 15 and above owning a transaction account, non-cash payment value reaching 30 times GDP, and 50% of banks fully digitizing small-value retail lending processes. Digital banking is turning “raw diamond mines” into valuable data assets. Open API is shaping a new competitive landscape for the banking industry, while many institutions remain slow to adapt.

1. New payment trends take the lead, pushing non-cash transactions to 25× GDP

The State Bank of Vietnam (SBV) has just issued Decision No. 3579/QĐ-NHNN approving the Digital Transformation Strategy for the Banking Sector to 2030 (Decision 3579).

This decision replaces:

Decision No. 2655/QĐ-NHNN dated 26/12/2019, which approved the IT development strategy for the Vietnamese banking sector to 2025, orientation to 2030; and

Decision No. 810/QĐ-NHNN dated 11/5/2021, which approved the digital transformation plan for the banking sector to 2025, orientation to 2030.

2. Accelerating digital banking toward 2030, targeting non-cash payments at 30× GDP

The strategy clearly states that citizens and businesses are the center, subject, and core driving force of the banking sector’s digital transformation. The State Bank plays the leading role in driving, promoting, and creating the most favorable conditions for technology development, innovation, and digital transformation across the sector.

The ultimate goal of the digital transformation in banking is to deliver convenient, intelligent banking services with friendly interfaces, easy access, multi-channel and multi-device support, safety, and reliability, contributing to improved financial well-being for citizens and business efficiency for enterprises.

“Data is the fundamental foundation, a critical asset, and a strategic resource that determines the effectiveness of digital transformation, enhances competitiveness, and creates new value for the banking sector and the economy,” Decision 3579 affirms.

The strategy sets out seven groups of overarching objectives. Accordingly:

Perfecting mechanisms, regulations, policies, and laws to create an enabling environment for digital transformation.

At the same time, comprehensively modernizing SBV operations toward enhanced monetary policy effectiveness and financial supervision.

Credit institutions will build and develop digital banking to operate transparently and efficiently based on data.

Developing digital infrastructure, digital data, and cybersecurity for the banking sector.

Promoting innovation in finance and adopting emerging technologies in management and service delivery.

In addition, the sector will develop a high-quality digital workforce and a digital culture, while strengthening domestic and international cooperation.

Specific targets under Decision 3579

The strategy aims for:

95% of citizens aged 15 and above to own a transaction account at a bank or other authorized financial institution;

By 2030, non-cash payment value reaching 30× GDP;

100% of employees in banking units trained in digital skills.

For banks and foreign bank branches:

100% are required to develop and issue a digital transformation strategy, either as a stand-alone document or integrated into business strategy.

At least 70% of banking operations must allow customers to perform them fully in a digital environment.

At least 80% of customer transactions must be conducted through digital channels.

At least 80% of banks must achieve 30%+ revenue through digital channels.

“50% of banks will fully digitize all small-value retail lending processes,” Decision 3579 states.

At least 80% of banks must build smart digital financial ecosystems with interconnected systems to form new digital business models and innovative financial services.

100% of banks must apply advanced technologies such as AI, Big Data, Blockchain, Cloud, Open API, RPA, and IoT in customer analytics, interaction, risk management, fraud prevention, and service development.

SBV also sets specific digital transformation targets for non-bank credit institutions, microfinance organizations, and people’s credit funds.

To materialize the vision and objectives already set, the State Bank identifies nine groups of key tasks and solutions to ensure synchronized, unified implementation across the entire system.

Source: Synthesis & https://thoibataichinhvietnam.vn