Finance & Banking

Last updated: Thursday, February 21, 2019


Banking Services Driven by Industry 4.0

Posted: Monday, October 08, 2018

The Fourth Industrial Revolution or Industry 4.0 has been occurring at a rapid pace, affecting all aspects of the world and gradually changing the face of the Vietnamese economy, especially the banking sector.

The Industry 4.0 will completely transform distribution channels and traditional banking products. In the past 10 years, the emergence of smartphones has changed the way people communicate and interact, leading banks to make transformational changes in distribution channels, sales networks, and product and service designing.

Taking the lead in providing new, superior products for customers in many segments, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is currently accelerating its technology projects in support of retail banking, wholesale banking and capital business while gradually researching and applying digital platforms of the Fourth Industrial Revolution to banking operations such as artificial intelligence (AI), internet of things (IoT) and big data. Recently, Vietcombank officially launched VCBPAY, a new service on the mobile banking ecosystem. AI-powered VCBPAY uses chatbot to help customers carry out basic services such as phone top-ups, mobile cash transfer and answers to frequently asked questions.

In early 2016, the lender launched its first digital transaction space in Vietnam called Vietcombank Digital Lab. The lab is part of a master project of building the Smart Branch model according to Vietcombank’s digital banking development strategy, reflects the bank’s strong investment for technology and digital application to delivery of banking services with the ultimate goal of satisfying customers when they experience the same services on all banking channels, from traditional to modern.

Besides, many other banks are applying technology to transactions. An Binh Commercial Joint Stock Bank (ABBANK) recently added many new incentives for Online Banking service and ABBANK Mobile service. With these two swift, modern and secure cash transfer services, ABBANK will help customers ease worries of local money transfer fees.

The bank has also provided Online Banking (Esaving) and Mobile (Msaving) saving services to enable immediate interests for customers’ savings. With a few simple operations, customers can open and close savings accounts anytime, anywhere without having to go directly to the bank nor bothering to keep savings books.

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) also launched a sophisticated digital bank service called YOLO. This application not only brings full financial and payment services of a modern digital bank but also integrates other utilities such as entertainment, taxi call, restaurant reservation or newsfeed. Powered by smart technology and uninterrupted connectivity with partners, YOLO enables payment for hundreds of different types of services and bills for busy users, from power, water and telephone bills to airplane and cable TV bills. Moreover, customers can set automatic payment schedules or share bills with friends. All transactions are encrypted and secured with high security standards.

In addition to promising big opportunities, the Industrial Revolution 4.0 poses numerous challenges to Vietnam's banking and finance in the integration period.

According to industry experts, by 2020, four most vulnerable FinTech fields are consumer banking, money transfer and payment, asset management, and insurance.

Moreover, policy gap requires new laws to catch up with banking technological reform, administer monetary policies and control cash flows amid growing popularity of electronic money.

Business models and financial resources used for banks’ basic construction investment need to be address to adapt to high-tech trends.

Quynh Anh

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