1. LEGAL DOCUMENTS ARE ISSUED IN 05/2021
Decision No. 810/QD-NHNN on approving Plan for digital transformation of banking sector by 2025 with orientations towards 2030
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Name of legal document: Decision 810/QD-NHNN dated May 11, 2021 of the State Bank of Vietnam on approving Plan for digital transformation of banking sector by 2025 with orientations towards 2030 (referred to as the “Decision No. 810/QD-NHNN”).
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Effective date: 11/05/2021.
Some content should be noted:
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Firstly, stipulating on basic objectives by 2025 for credit institutions and foreign bank branches.
Specifically, Clause 2.1.2 Subsection 2 Section III of Plan for digital transformation of banking sector by 2025 with orientations towards 2030 (Promulgated together with Decision No. 810/QD-NHNN) stipulates:
“III. OBJECTIVES
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2. Some specific objectives
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2.1.2. For credit institutions and foreign bank branches (hereinafter referred to as “credit institutions”):
a) Customers can perform at least 50% of banking operations completely by digital means;
b) At least 50% of adults use electronic payment services;
c) At least 70% of customer’s transactions can be carried out via digital channels (online channels between customers and banks);
d) More than 30% revenue of at least 60% of credit institutions come from digital channels;
dd) At least 50% of disbursement and lending decisions of commercial banks and financial companies for small loans and consumer loans of individual customers are made in a digital and automated manner;
e) At least 70% of work dossiers of credit institutions are processed and stored by digital means (excluding work dossiers concerning state secrets);”
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Secondly, stipulating on the task of establishment and development of digital bank models at credit institutions and foreign bank branches in implementation of Plan for digital transformation of banking sector by 2025 with orientations towards 2030.
Specifically, Section 5 of Appendix List of key tasks in implementation of Plan for digital transformation of banking sector by 2025 with orientations towards 2030 (Promulgated together with Decision No. 810/QD-NHNN) stipulates:
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No. |
Task name |
In-charge unit |
Cooperating unit |
Performing time |
Expected results |
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… |
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5 |
Establishment and development of digital bank models at credit institutions |
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5.1 |
Formulate and implement a digital transformation plan/ strategy with a focus on development of digital banking services based on modern core banking and information technology systems in compliance with Vietnamese and international standards that meet management requirements and are suitable for the needs, capacity and potential of credit institutions. |
Credit institutions |
Intermediary payment service providers, fintech companies and relevant units |
Annually |
A digital transformation plan/ strategy is promulgated (or incorporated into business development strategies/ IT strategies) and implemented. |
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5.2 |
Research, develop and adopt branch models that allow customers to make automatic and self-service transactions based on digital technology application. |
Credit institutions |
Relevant units |
Annually |
Self-service branch models are established. |
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5.3 |
Promote research and use of artificial intelligence applications and digital technology in provision of banking products and services: analyze and forecast demand, optimize customer journey and experience; detect frauds, store information, analyze data; optimize internal business processes, reduce costs and provide customers with instant support via virtual assistants and robots. |
Credit institutions |
Relevant units |
Annually |
Digital banking products and services |
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5.4 |
Research adoption of credit scoring solutions for customer data warehouses, open data and third party data and reliable scoring models to facilitate customer’s access to loans via electronic means. |
Credit institutions |
CIC and relevant units |
Annually |
Digital banking products and services |
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5.5 |
Boost research on integration and expanded connection with other sectors to establish a digital ecosystem and provide diverse products and services aiming for new business models such as open banking to provide friendly, safe, convenient and affordable products and services. |
Credit institutions |
Credit institutions, intermediary payment service providers, fintech companies and relevant units |
Annually |
Convenient and creative products and services in cooperation with intermediary payment service providers and fintech companies |
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5.6 |
Formulate and adopt a general risk management framework for at least operational, professional, information technology and legal risks. |
Credit institutions |
Information Technology Department, Banking Supervision Agency and relevant units |
2021- 2025 |
The general risk management framework is promulgated and applied. |
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5.7 |
Apply operating models and product development methods in a simplified and flexible manner. |
Credit institutions |
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Annually |
Simple and flexible operating models |
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5.8 |
Research and implement fee policies suitable for small transactions via digital means to encourage use of banking services via digital channels. |
Credit institutions |
Relevant units |
Annually |
Bank fee policies are promulgated. |
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