VPBank provides QR codes for its services. (Photo: VNA) Phung Anh Tuan, executive vice chairman and secretary general at VietnamAssociation of Financial Investors (VAFI), passed the remarks at the FintechRevolution Summit in Hanoi on March 27.
The two-day summit is attended by BFSI experts, fintech leaders, ministry andcentral bank authorities, investors and corporates across Vietnam.
The Vietnamese Government is advocating the development of a digital economyand promoting industrial revolution 4.0, said Tuan.
Many directives have been on promoting non-cash and electronic payments,including Resolution 02, dated January 1, 2019, and Decision 1813, datedOctober 28, 2021.
The policy and law-making process should reflect the Government's commitments,noted Tuan.
The VAFI representative expects some fintech policy changes, includingamendments to some articles and clauses related to payment in prevailing legaldocuments such as the Law on the State Bank of Vietnam, Law on CreditInstitutions, Law on Prevention of Money Laundering and other relevant legaldocuments and decree replacing Decree No 101/2012/ND-CP on non-cash payments.
He also recommended developing mechanisms and policies on national digitalcurrency; designing a pilot mechanism for peer-to-peer lending; developing apilot project (sandbox) for fintech; and developing a pilot project for mobilemoney.
Market trends
Up to 55% of Vietnamese people purchased via online marketplaces, while 93%have at least one banking app installed, said Nagesh Jaladi, VP-MarketplaceSolutions at Crayon Data, at the summit.
About 66% of first-time users shopped online through apps and websites, and 75%plan to splurge this year despite inflation negatively impacting categoriesexcept for groceries and fuel.
However, he added that banks continue to face multiple challenges in organisingand consuming data.
About 71% of banks underperform at collecting and utilising customer data.
Nearly 30% of banks can integrate structured customer data to use in AIinitiatives.
Only 8% of banks can apply predictive insights from their machine-learningmodels to inform campaign execution and decision-making.
For seamless customer experience, building blocks are needed, including data,algorithms, expertise and partnerships, said Jaladi.
Data and AI platforms aim to transform raw data into consumable outcomes. Inaddition, algorithms aim to deepen customer engagement and manage risk.
This will create a relevant, unified digital experience and scalable merchantecosystem.
Vietnamese Government has a programme to get those without a bank to 20% fromits current 50-65%.
Technology is coming in to help, said Peter Marini, VP – Of sales for the APACregion at Crayon Data, a Singapore-based company focusing on leveragingartificial intelligence, to Viet Nam News.
"The fact that also here in Vietnam, mobile penetration is very high, nowit means being able to use mobile banking become much easier for thoseconsumers to move from the unbanked to the banked," said Marini.
Once consumers were starting to get engaged in the banking world, Crayon Datacould bring its technology to help the mobile banking banks build and extendthose services, he added./.
VNA
