The State Bank of Vietnam (SBV) urged the banking industry to build an inclusive finance system that serves all members of society in Vietnam in Hanoi on September 10.

People in Phu Tho province join the credit incentive programme. Vietnam has been
working on an inclusive finance system to serveall people in the country. (Photo: VNA)

SBV Deputy Governor Nguyen Kim Anh told the industry's conference on the action plan to serve the national financial strategy to 2025 that: “The inclusive finance system needs to specify vulnerable groups, helping them access the financial system in a favourable manner.”

Considering an inclusive finance system, which serves all stakeholders of society, as one of the important pillars in sustainable development in Vietnam, Anh said, “Such a system will contribute to creating livelihood opportunities, rotating investment capital flows and saving in society and promoting sustainable economic growth.”

She said the traditional economic growth model in other countries with the goal of rapid growth has gradually revealed its shortcomings when solving poverty but the increasing income inequality led to other political and social instability.

Thus, she said, “The overarching growth model towards long-term sustainability; in which, ensuring harmony between economic growth, social equity and environmental protection has become a common goal of all countries and regions.”

According to the central bank, inclusive finance has become a common vision around the world. Up to now, more than 60 countries have developed and implemented a comprehensive national financial strategy. Many countries have come up with innovative solutions in financial technology, focusing on reducing costs and improving the safety and convenience of financial services.

By that, the deputy governor said the system had contributed to improving service accessibility for people and businesses, especially those who have never been served by banks.

To develop such a system in Vietnam, Anh asked the whole industry to develop a specific plan to implement assigned tasks in the National Financial Inclusion Strategies (NFIS), approved by the Prime Minister in January this year.

By 2015, NFIS set targets to have at least 80% of adults having bank accounts or accounts with other authorised organisations, at least 20 branches and transaction offices of commercial banks per 100,000 adults, at least 50% of the total number of communes that have financial service points, at least 25% to 30% of adults depositing at savings credit institutions.

Also at the conference, Anh told the central bank’s payment department to issue a decree to guide the electronic know your customer/client (e-KYC) in the country this month.

Getting the direction, head of the department Pham Tien Dung also added the decree may define the cryptocurrencies in payment activities and the e-wallet term will be included in international payments.

They would also work on building local mobile money too, said Dung.

According to the payment department, the average growth rate of individual accounts and the total balance in the account reached 10.26% and 25.41% in 2015-19, respectively. It is expected there will be about 70% of Vietnamese adults having a bank account by the end of this year.

As for the Government’s strong push, non-cash transactions have increased sharply in recent years. In the first four months of the year, payments using bank cards increased by 15.7% over the same period in 2019, said the department.