IT Plays Pivotal Role in Non-Cash Payment

During last two decades or so IT has revolutionized the world and is both helping and affecting every aspect of human life that matters. Technological development in the areas of payment applications and processing has provided avenues for customers to carry out Banking and ecommerce transactions, without even knowing where their banks and suppliers are. Internet banking and payment cards operations form the backbone for success of such initiatives. These are proven initiatives and working to the satisfaction of all stakeholders, providing convenience, round the clock banking and other operations for users and on the other hand cost effective and efficient working by banks and other service providers. For Vietnam to attain the set goal, the good news is that the basic infrastructure and technological base, including human resources, are sufficiently strong and available. What is required is to effectively implement and maintain the data security requirements and ensure the system’s tools and technologies are in place to monitor potential threats of fraud and compromise. Effective compliance to the requirements of the standards like PCI DSS and PA DSS which include the requirements to safeguard against malicious attacks, vulnerabilities and others will boost the confidence in all stakeholders leading to successful and timely execution of the set plan.

 

In recent years, the cash-payment proportion in total payment methods has significantly reduced, but is still high compared to the world. The non-cash payment service is in use in Vietnam for many years but does not constitute significant part of monetary transactions on account of both actions required towards strengthening of security for data protections also need for promoting the initiatives which are to be led by banking industry. Customers must have confidence in the process and must know the benefits.

They are primarily related to data security and lack of customer awareness of benefits through non-cash payment services.

 

Mr Tuck Chan, Director, FSI Solutions Consulting, Aspect  Service quality in like other parts of the world will be key in bringing on board new clients as well as retaining existing clients.  Current technology allows for a bank to better serve their clients through enhanced interactions and engagements, building a more personal relationship with the client, having the right knowledge at the right time for all client enquiries, and making sure that any campaigns are targeted to the right audience.   A lot of Vietnamese banks went through a core bank enhancement exercise about 3 years ago and are now starting to reach out and create a bigger market share. Enhanced customer service is one area they can differentiate themselves.  What differentiates a bank from another is the level of service they provide and how deep they build relationships with their client base. A bank that does this well will not only grow its market share, but also have very loyal clients.

What should be done to improve non-cash payment service?

Non-cash payment has been a major and successful development for payment transactions in all developed countries, and developing countries are fast catching up. With e-commerce booming, this has become mandatory. E-Commerce business has been having exponential growth all around. With the fast growing economy in Vietnam and sound technological base which is further expanding, non-cash payments will catch up very fast if the data security during storage, transmission and processing of data can be ensured. Central Bank and regulatory bodies should include the requirements for compliances to the strong regulations like PCI DSS for service providers and PA DSS for payment applications as mandatory requirement for all those entity involved with storage, processing and transmission of sensitive data. This will help confidence building in customers not only from Vietnam but from across the globe who will be happy to provide desired impetus to this important initiative.