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Digital banking and electronic payment are set to boom in the time of Covid-19

03/06/2020

Facing the severe impact of the Covid-19 pandemic on the economy, however, from a positive perspective, the Covid-19 pandemic has vigorously urged a race among banks and financial technology enterprises in the process of deploying digitalization of services and electronic payments.

The online seminar “Digital banking and electronic payment: perspective in the time of COVID-19” recently held in Hanoi showed the overall situation of digitalization in the business of banks and financial technology companies during the pre-pandemic period. However, through that banks and financial businesses also recorded impressive growth through online transaction methods.

Mr. Pham Tien Dung - Head of Payment Department of the State Bank of Vietnam emphasized that recently, there has been a significant shift in customers from one bank to other banks' services. Many banks are facing the pressure of not "joining in" will be eliminated.

For the digital economy to really "boom", Mr. Pham Tien Dung recommended: Banks need to drastically improve the digital ecosystem, first of all, quickly turn ordinary users into their digital bank customers. Second, more importantly, customers must be satisfied with the products and services that the bank provides.

In addition, Mr. Dung also said that in the coming time, the SBV will formulate and issue an action plan of the banking industry to implement the Government's Resolution No.50/NQ-CP; it is also expected to submit to the Government for promulgation of a decree replacing Decree No. 101/2012/ND-CP on non-cash payments.

This would see Viet Nam having a concept of electronic money and correspondent banks for the first time. This is the basis for banks to develop comprehensive digital banking. In particular, regulations on online authentication and Electronic Know Your Customer (e-KYC) will be in place, etc.

Mr. Nguyen Quang Hung - General Director of NAPAS also said that NAPAS will conduct many solutions to develop the electronic payment infrastructure. In particular, NAPAS will put into operation the automatic clearing infrastructure to serve retail transactions (ACH). In addition, NAPAS is also focusing on conducting research on new payment products on mobile platforms, including: new utilities for mobile banking services; use of mobile phone as a device that accepts contactless cards, etc.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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