Delegates at the event (Photo: VietnamPlus) Hanoi (VNA) – The Vietnam Bank for Social Policies (VBSP), the Asian Foundation, and Mastercard held a seminar in Hanoi on May 23 on enhancing digital finance and promoting comprehensive finance for vulnerable groups in Vietnam, under the auspices of the Australian Department of Foreign Affairs and Trade.
The event aimed to raise awareness of the significance of digital finance in promoting comprehensive financial inclusion in Vietnam through the sharing of results from the implementation of the project named "Mobile Banking - Financial Inclusion and Economic Empowerment for Low-Income Population and Women in Vietnam".
The VBSP also shared its experience in helping customers, especially the poor and policy beneficiaries in rural, remote and mountainous areas, gradually access mobile banking services. This has contributed to changing the habits and mindset of impoverished and vulnerable groups, particularly women who may be hesitant to embrace technology applications in the digital transformation process.
VBSP Deputy General Director Hoang Minh Te said in the digital age, the bank has formulated policies to help its clients, including the poor and other policy beneficiaries, especially women, gradually access mobile banking services.
With the support of the Australian Department of Foreign Affairs and Trade, the Asian Foundation, Mastercard and technology partners, the Mobile Banking project has effectively assisted the VBSP in successfully developing a digital financial platform tailored to its customer base, he said.
He added that thanks to the project, the VBSP has rolled out digital technology in its banking operations since 2017, starting with SMS services that include reminder for loan repayment schedule, debt reminder, and monthly account balance. This has enhanced transparency and operational efficiency, allowing customers to access comprehensive financial services while improving the quality of credit and cost-effectiveness for both customers and the bank.
The process of deploying mobile banking services began with the launch of SMS services for customers of VBSP, followed by the experimental launch of the credit management app for those involved in credit management and the heads of saving and loan groups, and most recently the VBSP SmartBanking app.
Nearly 4 years after the launch of this service, about 32 million messages have been successfully sent to some 5.9 million customers who registered their mobile phone numbers with the bank, accounting for 90% of the total customers of the bank. For customers, receiving advance notifications via text messages about repayment dates and saving closures has enabled them to be more proactive and better plan their financial management and savings.
Meanwhile, after nearly 2 years, the credit management app has been used by 47,786 people from 26 cities and provinces, some 25,700 of them heads of saving and loan groups.
As for the VBSP SmartBanking app, within nearly 3 months of deployment, there have been 75,000 accounts created, with over 642,000 transactions valued at over 5.4 trillion VND (225 million USD).
Michael DiGregorio, Asia Foundation's Vietnam Country Representative, said one of the benefits of digital financial education for customers is the improvement of saving awareness and the ability to plan for loan repayment. It reduces the time customers spend on repayment activities, manages loan capital for group leaders, and enables participation in income-generating activities. Additionally, female customers will gain more confidence in discussions, decision-making regarding income-generating activities, and fostering opportunities for community engagement, and the bond between group leaders and the VBSP./.
