Banks are advised to invest in technology. (Source: en.richardvanhooijdonk.com)

Hanoi (VNA) – Banks should make more investment in science-technology to produce services and products that are more convenient for customers, according to financial experts.

At a conference on Banking Vietnam 2016 held by the State Bank of Vietnam (SBV) in collaboration with the International Data Group (IDG) in Hanoi on May 19, Can Van Luc, a financial expert, said investing in science-technology will be likely to lift banks’ profit up from 15 to 17 percent.

He also warned banks of an increasingly complicated, growing and changing finance market in the future, adding that if banks do not change and invest in technology, they will face big challenges.

Luc also pointed out eight factors affecting the operation of Vietnamese banks in the 2016 – 2020 period. Among those are changes in the legal environment, which will be tighter and more diligent, and will increase banks’ cost which entails a cut in profits.

He also emphasised increasing competition between banks and between banks and non-banking organisations, who provide quicker and more convenient services.

Vietnam’s integration into the international playground and the conformity of international standards will influence the banks’ interest rate.

Pham Xuan Hoe, Deputy Director of the Banking Strategy Institute under the SBV, said one of the challenges facing banks’ investment in science-technology is the low turnover from technology-based products and services.

Luc pointed out Vietnam’s finance market has big potential because the scale is still small, and modern services, products and cross-selling are still limited, and the ability to access financial services is still low. The retail and online banking system is predicted to continue flourishing.-VNA