Mr. Dao Minh Tuan (pictured), Deputy General Director of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), said that investing in technology to promote e-banking and non-cash payments is an inevitable trend, due to the changing needs of the bank to match increasing customer size.

Mr. Dao Minh Tuan, Deputy General Director of Joint Stock Commercial Bank
for Foreign Trade of Vietnam (Vietcombank) 

Could you tell us about the current situation of non-cash payments in banks?

According to the State Bank's report, the amount of non-cash payments in Vietnam accounts for about 80-85% of the value. According to statistics on the banking system, especially the interbank electronic payment system and the retail banking payment system, this number can reach 80-90%.

For example, at Vietcombank, the amount of payments via electronic channels accounts for 90%, at traditional transaction branches about 50% are cash transactions, the rest is non-cash. Since July, Vietcombank has officially launched the digital banking service of VCB Digibank, on the basis of unifying online transaction platforms and replacing the previous internet banking and mobile banking services. Over the past few months, the amount of non-cash payments in general and through electronic channels has increased dramatically.

How have banks been investing to develop non-cash payments, sir?

Investment in information technology for businesses in general and banking in particular in the context of Industry 4.0 is an inevitable trend. Investment in providing non-cash payment solutions requires investment in an infrastructure system, with modern payment service support systems and a secure security system. After that, banks will invest in payment facilities for users such as ATM systems, especially electronic banking systems.

With the banking industry, investment in technology has changed in a number of fields with different levels. For example, a fundamental technology system such as core banking takes 10 years to change. But the important thing is the means of interactions, as the devices used by the users are always changing. For example, Apple's smartphone line is constantly updated with new features, this is an issue that banks must pay attention to invest and provide ecosystems, value-added services in accordance with improvements in technology and consumer demand.

Obviously, the investment in technology and the development of non-cash payments of the banking industry is a two-sided issue. On the one hand, banks have to invest in strengthening appropriate infrastructure as the number of customers is increasing, as well as meeting security and confidentiality requirements. On the other hand, banks also have to invest in improving their products according to the changing technology trends to meet the needs of users.

In your opinion, does the current policy mechanism for non-cash payments in Vietnam really support banks?

In recent years, the Government has given special attention in promoting non-cash payments, in particular the recent operation of the National Public Service Portal, allowing people and businesses to pay for public services via commercial banks.

In a short time, more than 90% of localities, 50% of ministries and agencies have participated in providing the Public Service Portal, helping to bring about a series of necessary institutions for e-payment to be issued and implemented this year. In particular, the State Bank has issued a Circular providing guidance on opening electronic payment accounts (eKYC). This is an important condition for banks to continue to provide modern payment services.

In addition, from the National Public Service Portal mentioned above, the Ministry of Public Security has committed to building a national database on citizens and enterprises. This is a favorable condition for banks to use electronic identifiers to verify their financial situation when individuals and businesses access banking services. With this method, a bank can assess the appropriate service delivery rating, especially for activities related to credit extensions.

Security and confidentiality are a concern of people when using e-banking, besides policy mechanisms, what actions should banks and other stakeholders take to solve this problem, sir?

Legal documents on cybersecurity have been enacted by the National Assembly into Law, the banking sector has also captured and updated to ensure the legal framework. Banks have to implement more solutions to ensure safety and security in electronic transactions and electronic payments. In which, internally, banks have been completing investment in information security. The banking system must also ensure that prevention policies, methods and plans are always updated; coordinating closely with ministries, departments, branches, especially the Ministry of Public Security to promptly handle all possible situations.

But besides that, it is also important to increase people's awareness of fraudulent behavior and tricks. This is the responsibility not only of the banking industry but of the media. How to communicate with customers to realize the role and benefits of non-cash payment services, e-banking, it is recommended that customers also pay attention to the security of their information to avoid being taken advantage of and having property stolen.

Thank you Sir!