For more than two decades, commune transaction points have served as the channel through which policy credit reaches local people.

Today, while maintaining this distinctive service model, Vietnam Bank for Social Policies (VBSP) is gradually bringing its services onto digital platforms, making it easier for customers to access information and conduct transactions.

The family of Trieu Thi Tien, an ethnic Dao woman, is among the households in Hung Vu commune, part of the northeastern mountainous province of Lang Son, that have escaped poverty with the support of policy credit.

VBSP staff and Trieu Thi Tien, an ethnic Dao resident of Nooc Mo village, Hung Vu commune, review information on VBSP SmartBanking application

Using a $4,800 loan provided under VBSP's lending scheme for poor households, her family invested in developing 8 hectares of acacia, eucalyptus and cinnamon plantations.

More than 6 hectares of acacia trees, now over six years old, are expected to generate more than $12,000 in revenue, providing a solid foundation for the family's long-term livelihood.

The story is not only about the effective use of policy credit. The way Tien interacts with the bank has also changed significantly.

Previously, she visited the commune transaction point every month to make her interest payment. Now, after receiving guidance from VBSP staff on installing the VBSP SmartBanking application, she can pay loan interest directly on her mobile phone.

The application also allows customers to monitor outstanding loan balances, repayment schedules and savings deposits without visiting a transaction point.

“Since using VBSP SmartBanking, I can pay my loan interest from home without having to travel as I did before. I can also track my loans and savings deposits through the app, which is very convenient,” she said.

Tien's experience is far from unique in Lang Son. According to the VBSP’s Lang Son branch, more than 1,700 customers have installed and are actively using VBSP SmartBanking, helping reshape banking habits even in rural and mountainous areas.

According to Phan Anh Thang, deputy director of VBSP’s Lang Son Branch, as the bank responsible for expediting the government's preferential credit programmes for poor households and other policy beneficiaries, VBSP has established its operational network down to the commune level, where mobile transaction points continue to operate on a monthly basis.

“The application of digital technology is not intended to supersede the commune transaction model. Instead, it modernises our service delivery while making it easier for people to access and use VBSP's services,” Thang said.

Through the VBSP SmartBanking application, customers can perform a wide range of transactions, including paying loan interest, checking outstanding loan balances, monitoring repayment schedules and reviewing transaction histories.

Borrowers under the social housing loan programme can also make their monthly interest payments directly through the application, making transactions more convenient.

Technology bolsters public services

Beyond digitising transactions, VBSP is also gradually transforming the way it provides information and helps people access policy credit programmes.

At commune transaction points in Bac Son district, traditional public information boards have now been supplemented with QR codes.

According to Nguyen Thanh Lang, director of the VBSP’s Bac Son Transaction Office, the unit has posted QR codes containing information on credit policies and administrative procedures at transaction points, allowing people to access information more conveniently.

“Instead of reading printed notices as they did in the past, people now simply scan a QR code with their smartphones to obtain comprehensive information about credit policies and related administrative procedures,’ he said.

The use of QR codes enables customers to obtain information before conducting transactions, reducing the amount of direct guidance required from staff at transaction points.

Alongside digitising information, the bank has introduced a range of services available on its VBSP SmartBanking platform, including an online savings deposit service that allows customers to open and manage savings accounts directly through the application.

According to VBSP, expanding its digital services not only provides greater convenience for customers but also helps diversify funding channels for policy credit.

Through online savings deposits, customers can better manage their finances while contributing to the pool of funds that enables VBSP to continue implementing preferential lending programmes for poor households and other policy beneficiaries.

Commune transaction points remain the place where VBSP staff meet residents, disburse loans and support borrowing households.

However, with smartphones, QR codes and the VBSP SmartBanking application, many transactions can now be completed remotely.

Technology is not replacing VBSP's distinctive commune transaction model; rather, it is helping the model operate more efficiently while delivering more convenient services to the people it serves.