The turn of banks in the race to digital banking

According to the State Bank: 96% of banks have been building development strategies based on modern technology, 92% have developed application services on Internet and mobile" 

"Digital transformation in Vietnam banking and finance sector is inevitable, helping the banking industry overcome the challenges of the digital age, because technology is being applied in all aspects of life", Mr. Pham Tien Dung, Director of Payment Department 

Phygital model in business development 

Mr. Ngo Quang Trung, CEO of Ban Viet Bank, shared: 

“Currently, all banks want to Digital Bank. I don't want to say that banks want to give up 

traditional banking model and replace it with digital banking, that banks will combine branches with digital services - called the Phygital model in business development. 

After a 5-year cooperation agreement with VPBank, recently, Timo transformed its partnership with Ban Viet Bank and changed name to Timo Plus. The achievement of nearly 5 years of testing the system is owning 350,000 accounts, of which about 100,000 have transferred to Ban Viet Bank's platform in the past 2 months. 

In fact, in the period 2015-2017, many banks have started to experiment the digital banking model, Timo based on VPBank's platform is one of them. After that, VPBank also tested the Yolo application, but it was not really outstanding. 

Invest in application whose own trade name 

Recently, VIB Bank  and MyVIB was advertised as cooperating with popular Fintechs such as Trusting Social with the ability to evaluate user trust, or applications in big data and and use artificial intelligence (A.I) into credit card limit approval process in just 30 minutes and done completely online. OCB Omni even advertises that customers can access many products such as buying insurance or investing in VinaCapital fund certificates right on the app. 

of 2020, Techcombank have acquired more than 330,000 customers, bringing the total number of customers to nearly 8 million. The volume and value of transactions via electronic channels of individual customers respectively reached 153 million transactions (up 130% over the same period) and nearly 2 million billion (up 91%). 

The State Bank has gradually become more open in payment operations in particular and Fintech in general 

In the digital banking sector, there are currently about 10 banks that are allowed to test eKYC (electronic identification) and the market expects a formal decree on online banking management to be issued soon. 

But eKYC is just the first legal step in a long process to truly bring a bank's digital financial product to users. In the next trend, many managers believe that it will be a race to connect services and Fintech (open system trend - Open API) to provide many products and services to customers.