Finance-banking system ready for tech

Digital transformation would push Vietnam’s finance-banking system in the years to come, helping it catch up with global standards, said Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Kim Anh.

finance-banking system ready for tech hinh 0
Deputy Governor of the State Bank of Vietnam Nguyen Kim Anh (centre) and representatives of the winners of the first prizes for mature fintech companies and early-stage fintech companies. — Photo SBV

Speaking at the Fintech Vietnam Forum 2019 (FVF) held in Hanoi on November 8, the SBV Deputy Governor said it was the right time to promote digital transformation in the finance-banking system whilst the country’s economy was enjoying high growth.

Some credit institutions have already taken the initiative to research and apply financial technology solutions to optimise products and services.

He said accompanying the traditional financial and banking system in the digital transformation process were financial technology (Fintech) companies, who would help the Government achieve its socio-economic development goals.

Vietnam has witnessed a dramatic increase in the number of new businesses, especially start-ups, in recent years. In the past four years, the number of Fintech companies has increased from 40 to about 150, Anh said.

He said the figures showed the dynamism of the businesses, especially start-ups in Vietnam, where the business environment was improving. Many management agencies, including the central bank, had helped create a legal framework for the development of technology and management capacity.

At the forum, experts from the central bank, World Bank, Asian Development Bank, Visa and MasterCard shared different perspectives on the digital transformation process in banking operations, technology support and development policies, cyber security and automation of financial - banking services.

Asian Development Bank (ADB) Country Director in Vietnam Eric Sidgwick said new technologies had great potential in increasing access to finance for those who had not or had limited access to banking services.

It also enhanced efficiency and financial security in a rapidly growing market like Vietnam, he said.

The FVF’s organising committee also announced the results of the Fintech Challenge Vietnam 2019 competition. Through this contest, the State Bank of Vietnam will capture new service solutions and digital transformation trends to build policy mechanisms and issue management regulations, creating a favourable environment for innovation.

VNA