The competition among digital banking services is heating up in Vietnam, with the participation of not solely ancient banks but conjointly technology firms.
Recent statistics show that up to 96% of banks in Vietnam have designed development ways to support business 4.0 technologies, and 92% of the banks have developed net and mobile applications. Technology corporations have also collaborated with banks to make their digital banking services, comparable to Grab, Shope,e, Be, and Cake, in addition to e-wallets such as MoMo and Moca.
Realizing the nice potential of the Vietnamese digital payment market, the Forum on Digital Transformation within the industry - good BANKING 2022 was recently co-organized by the Central Economic Commission, the bank of Vietnam, and therefore the IEC cluster in Hanoi. The event gathered quite 1,000 participants who are representatives of business banks, specialists, and policymakers.
At the forum, experts mentioned the newest problems relating to digital transformation in the banking industry and solutions to develop digital banking. They detected the common issues facing businesses in digital banking.
Recently, the banking business is changing wider and channels and products are getting detailed. several banks are attempting to include varied digital technologies to adapt to the current amendment and are functioning on digital transformation. However, in many cases, digital transformation has been done inefficiently and therefore the effectiveness of digital transformation has been restricted because the focus remains on the effort and the straightforward problems ahead of bank staff.
Mr. Takayuki Morino, ABeam's digital transformation skill and manager, said: "Digital transformation in Vietnam is developing very fast, resulting in issues comparable to a shortage of qualified human resources. Also, laws on conversion are perpetually changing, and typically not up to date to cater to the newest technology and services, resulting in disorientation in e-banking development."
“To solve this situation, the conception of ‘regulatory sandbox’ is going to be effective and it's already started in another country,” he said.
several other participants at good BANKING 2022 were conjointly expressing similar opinions as Mr.Morino.
Determination of acceptable investment targets and scope is another problem. Mr. Morino mentioned common mistakes when implementing digital transformation.
“The banks typically have silo structure organization and digital transformation tends to be closed at intervals each silo that restricts the results of digital transformation. Also, bank workers are accustomed to their banking operations, and are available up with digital transformation target business/operation while not analyzing the holistic business/operation. This tends to finish up in tiny digital transformation which solely helps to enhance straightforward and minor business operations,” he said.
Several new technologies sound catchy comparable to AI, Automation, Blockchain, and massive knowledge Analysis which magnetize banks that are considering digital transformation strategies. However, there's a entice once they begin wondering about digital transformation. If banks simply attempt to implement solutions while not rigorously analyzing problems in their current business deeply before implementation, the answer won’t be effective as a result it'll solely improve some superficial issues and would possibly lead to a waste of money.
ABeam will begin the digital transformation by analyzing this (i.e. As-Is) business to grasp the businesses/operations of its consumer-supported made-to-experience and knowledge of monetary projects, then contemplate that issue to rate and what digital transformation solution would be the simplest to right those issues.
In addition, one of the distinctive options of ABeam is to accompany shoppers to appreciate the solution that ABeam planned till it's realized. this can be the embodiment of ABeam's company saying "Real Partner”.
Mr. Morino said: “Vietnamese customers are extremely inquisitive about new banking products and services due to their curiosity and don't hesitate to experiment. However, taking care of a long-run relationship with a gaggle of loyal customers is very tough. though it's new and attractive, if it’s not user friendly, is difficult to use, has poor security, has high group action fees, customers can simply leave for different services.”
in keeping with Mr. Morino, implementation of digital transformation solutions isn't a goal of the journey. the important goal is going to be achieved only the targeted effects are realized.
ABeam often holds conferences with senior members of neighboring countries’ offices to exchange comprehensive views of worldwide changes, and trends in countries thereby putting businesses on the correct track.
It is aforementioned that building a Digital Bank could be a long and complex project, however, ABeam can work with shoppers to get the primary bricks to make a solid foundation and work along to make the right decisions, develop and grow to unleash the complete potential of the client's business.
