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Finance & Banking

Last updated: Thursday, September 20, 2018

 

Banks Lead Industrial Revolution 4.0

Posted: Tuesday, September 11, 2018


At the advent of the Fourth Industrial Revolution, Vietnam's banking system will have more opportunities to extend their arms beyond the national boundaries, expand their business reach and build up their brand names on the international market.

According to experts, the remarkable advances of the Fourth Industrial Revolution such as the internet of things (IoT), big data, artificial intelligence (AI) and blockchain technology are offering huge opportunities for the Vietnamese banking system in many aspects. To lead this technological mega-trend, the Vietnamese banking industry has taken the initiative in researching and investing to develop many Industry 4.0 applications for their products, services, operations and administration.

The advent of cloud computing, open source software, 3G/4G mobile communication data, smartphones, data analysis and social networks stimulated startup businesses to engage in financial market and create opportunities for financial technology (FinTech) development. At present, the development of artificial intelligence, blockchain, data science, digital identification and biometrics has formed an important infrastructure in changing assets, from using humans to artificial intelligence, digital identity has become fundamental for identification and is secured with biometric factors such as voice or fingerprints.

Some big banks in Vietnam have totally digitalised their new banking services, for example TienPhongBank (TPBank) with automatic bank LiveBank; Vietnam Prosperity Bank (VPBank) with banking application Timo; Orient Commercial Bank (OCB) with a digital banking conversion strategy; Bank for Foreign Trade of Vietnam (Vietcombank) with digital banking space Digital Lab; Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) with new generation corebank and modern enterprise data warehousing (EDW); Military Bank (MB) with 24x7 virtual chatbot on social networks.

Many other 4.0 services have also been deployed, including SMS & Wap charging, internet banking, digital banking and mobile banking as well as non-banking services like information exchange, flight ticket information, investment management and information search.

Despite removing geographic boundaries and time and simplifying procedures, the Industrial Revolution 4.0 requires banks to quickly transform their governance model, business model, product and service structure to adapt to customer trends and the economy in the digital age and establish frameworks and effective mechanisms to prevent cybersecurity risks and secire customer information. Therefore, the State Bank of Vietnam (SBV) proactively proposed the Government to build up the legal groundwork for the Industrial Revolution 4.0; establishing a legal framework for piloting the use of new financial products and services by fintech firms in the banking sector; and using a common database on population and organisation to help bank operate more actively and more effectively.

Le Minh








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