Luu Trung Thai, vice chairman of the Board and CEO of MB stated that a cashless economy is a determinant of a modern and sustainable future

The statement was made at a workshop themed Digital Transformation Towards a Cashless Society on June 17 in Hanoi. The framework of Cashless Day 2022 was organised by the Payment Department at the State Bank of Vietnam (SBV) and Tuoi Tre newspaper.

The CEO made a presentation on the topic of Digital Transformation in the Baking Sector and MB's best practices.

He placed a focus on the practical values that are brought about by digital transformation, including risk-free transactions for customers.

Despite being a major challenge, security will receive more attention in the coming time. It will be enhanced to bring exciting and smooth customer experiences.

Digital transformation not only optimises operations but also cuts costs and creates new investment opportunities, which lay the foundations for businesses to thrive in the future.

In the new normal, Thai noted that MB has seen a sharp rise in online demands, with customers tending to experience online services more than they visit banks. Also, he feels that the market shares are not confined to only banks.

This, coupled with the intensifying competition, has prompted MB to step up its digitalisation efforts.

SBV has set the goal of having at least 70 per cent of its total transactions made via digital channels by 2025. MB has surpassed this goal since 2021 with 94 per cent of its transactions being made online. With a vision to become a digital firm in the banking sector, MB accounts for the lion’s share of the money transfer market.

MB is a trailblazer in deploying payment services with VietQR code on the MBBank app

To this end, MB gives precedent to a synchronous and drastic action strategy that expands its product ecosystem and increases the customer experience, having successfully adopted technology to serve 15 million customers.

The bank focuses on developing two key platforms, namely the MBBank app for retail customers and BIZ MBBank for corporate customers.

However, challenges related to leadership, human resources, technology, and competition remain as the bank embraces digital transformation.

Noting that MB will continue to implement its projects and consider digital transformation as an ongoing process rather than a project, the CEO said, “Digital transformation is a large-scale investment but revenue and profits remain questionable. Most basic services are free, so it is hard to gauge the yield of the investment.”

Regarding human resources, there are requirements to increase productivity, master technology, and manage the building of a business database. To facilitate the requirements, MB has established a data department to manage this database and has been working to rapidly increase its connections.

Thai proposed some solutions like allowing the connection of national databases with banking industry platforms, thereby increasing services, security, and safety.

Other measures include promoting the QR code standard known as VietQR and increasing product offerings to eKYC customers to prevent risks and increase their access to diversified and convenient banking products. Finally, banks also need a backup mechanism to deal with technological risks.