The information technology infrastructure in the Vietnamese bankingsector should be updated due to the rapid development of technology.
NguyenMinh Hong, Deputy Minister in the Ministry of Information andCommunications, stated this at the Banking Vietnam 2014 in Hanoi on May21.
He said that the banking industry also needed to focus oninformation safety and security in the financial system. At the moment,the ministry is completing a law on information safety for submission tothe government and is updating a list of criteria for allowing digitalsignature.
Speaking at the conference, Nguyen Thi Kim Thanh,Director of Banking Strategy under the State Bank of Vietnam (SBV),referred to three achievements in applying science and technology in thebanking industry after nearly 30 years of economic development.
First,Vietnam has established a national advanced payment system with theelectronic trans-bank payment system as a nuclear unit. Second, corebanking systems have become popular in Vietnamese banks. Third, manybanks have achieved their international safety standards such as ISO27001:2005 on building an information security management system and thePayment Card Industry Data Security Standard (PCI DSS).
In orderto improve the IT infrastructure in the sector, Thanh suggestedselection of appropriate technology and boosting of internet banking togradually replace bank branches.
Kaleem Chaudhry, Oracle's seniordirector of sales consulting in ASEAN, said that the transformation andevolution in technology increased the best experiences for customers.He said banks needed to manage life cycles with eight steps (need,research, select, purchase, receive, use, maintain and recommend), nottransactions.
According to Oracle's statistics, 19 percent of thecustomers use electronic payments, 25 percent do online retailtransactions and 35 percent access accounts through bank branches.
Fifty-onepercent of them are content to remain with their primary bank over thenext six months and 59 percent would change their banks if they couldkeep their current account number.
The statistics showed that 35percent of the banks do not have social media for their sales channeland 35 percent don't have social media for customer service.
Chaudhrysaid that banks should make priorities about complying with regulatoryrequirements and provide better customer services.
At theconference, Pham Tien Dung, Chairman of Banknetvn's Board of Directors,said that the SBV would submit to the Prime Minister a project aimed atresolving five big issues. These include building a united switchingcentre, setting up automated clearing houses (ACH), building standardsfor domestic chip cards, constructing a common point of sale (POS)system and connecting with international switching card organisations.
Accordingto Dung, transactions would be quicker and those with errors would beresolved faster once they are processed through one centre. The ACHsystem would include banks and service providers too.
Meanwhile,domestic chip cards would meet the demands of banks in Vietnam and becompatible with international standards. A change from magnetic stripcards to chip cards would develop added value services and allow for astandardised chip for the country.
Referring to the common POS,Dung said that it would help improve management and monitor transactionsas well as bring cost efficiency and fair competition in banks. Theconnection with international switching card organisations would allowcard owners to use domestic credit cards at automated teller machine(ATMs) in other countries and vice versa.
The annual event,organised by SBV and the International Data Group until May 22, aims athelping banks to update technology and share experiences on ITapplications. The conference participants can also take part in anexhibition on new products and solutions by leading companies.-VNA
NguyenMinh Hong, Deputy Minister in the Ministry of Information andCommunications, stated this at the Banking Vietnam 2014 in Hanoi on May21.
He said that the banking industry also needed to focus oninformation safety and security in the financial system. At the moment,the ministry is completing a law on information safety for submission tothe government and is updating a list of criteria for allowing digitalsignature.
Speaking at the conference, Nguyen Thi Kim Thanh,Director of Banking Strategy under the State Bank of Vietnam (SBV),referred to three achievements in applying science and technology in thebanking industry after nearly 30 years of economic development.
First,Vietnam has established a national advanced payment system with theelectronic trans-bank payment system as a nuclear unit. Second, corebanking systems have become popular in Vietnamese banks. Third, manybanks have achieved their international safety standards such as ISO27001:2005 on building an information security management system and thePayment Card Industry Data Security Standard (PCI DSS).
In orderto improve the IT infrastructure in the sector, Thanh suggestedselection of appropriate technology and boosting of internet banking togradually replace bank branches.
Kaleem Chaudhry, Oracle's seniordirector of sales consulting in ASEAN, said that the transformation andevolution in technology increased the best experiences for customers.He said banks needed to manage life cycles with eight steps (need,research, select, purchase, receive, use, maintain and recommend), nottransactions.
According to Oracle's statistics, 19 percent of thecustomers use electronic payments, 25 percent do online retailtransactions and 35 percent access accounts through bank branches.
Fifty-onepercent of them are content to remain with their primary bank over thenext six months and 59 percent would change their banks if they couldkeep their current account number.
The statistics showed that 35percent of the banks do not have social media for their sales channeland 35 percent don't have social media for customer service.
Chaudhrysaid that banks should make priorities about complying with regulatoryrequirements and provide better customer services.
At theconference, Pham Tien Dung, Chairman of Banknetvn's Board of Directors,said that the SBV would submit to the Prime Minister a project aimed atresolving five big issues. These include building a united switchingcentre, setting up automated clearing houses (ACH), building standardsfor domestic chip cards, constructing a common point of sale (POS)system and connecting with international switching card organisations.
Accordingto Dung, transactions would be quicker and those with errors would beresolved faster once they are processed through one centre. The ACHsystem would include banks and service providers too.
Meanwhile,domestic chip cards would meet the demands of banks in Vietnam and becompatible with international standards. A change from magnetic stripcards to chip cards would develop added value services and allow for astandardised chip for the country.
Referring to the common POS,Dung said that it would help improve management and monitor transactionsas well as bring cost efficiency and fair competition in banks. Theconnection with international switching card organisations would allowcard owners to use domestic credit cards at automated teller machine(ATMs) in other countries and vice versa.
The annual event,organised by SBV and the International Data Group until May 22, aims athelping banks to update technology and share experiences on ITapplications. The conference participants can also take part in anexhibition on new products and solutions by leading companies.-VNA
