In July 2004, the State Bank of Vietnam allowed the establishment of the Vietnam National Financial Switching Joint Stock Company (BanknetVN), co-founded by the Vietnam Bank for Agriculture and Rural Development (Agribank), the Bank for Investment and Development of Vietnam (BIDV), Vietnam Industrial and Commercial Bank (ICB), Vietnam Datacommunication Company (VDC), Asia Commercial Bank (ACB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), East Asia Commercial Joint Stock Bank (EAB), Saigon Industrial and Commercial Bank (SaigonBank).
Built on advanced electronic payment technology platforms and specialised financial switching for inter-bank card payment, Banknetvn’s business operations are aimed at boosting the development of bank card services in Vietnam.
Because different banks use different systems of ATMs and POS, customers find it hard to use card services. So, many banks have teamed up to set up broader card payment networks.
Banknetvn was developed with the building of the national financial switching system to connect card payment systems in general and ATM/POS systems in particular. The linking will create favourable conditions for member banks to expand their service networks with suitable investment, and avoid overlapping installations of infrastructure and terminal equipment throughout the country. Hence, this will actively help boost the development of bank card services in Vietnam, as well as increase card payment services for users in Vietnam, as well as in the world, at any point of time.
Banknetvn has connected with the card payment networks of other banks throughout Vietnam as well as foreign financial roaming systems and card organizations like China UnionPay (China), NETS (Singapore), VISA, MasterCard, JCB and others. “The foundation of the Banknetvn switching system” is a project with complicated technology which must be completed in a short period of time. Meanwhile, the card payment system of Vietnam is encountering big challenges from regional and international economic integration, especially after Vietnam joins the World Trade Organisation (WTO). Besides, the related legal corridor is in process of being perfected; hence, the realisation of this target is very challenging. To overcome this weakness, Banknetvn focused on resolving strategic issues: Taking the advantage, intensifying and maintaining support and cooperation from management authorities and member banks to invest in research and development for all resources. It also disseminated knowledge for staff and heightened the understanding of the people about the banking service in general and the card payment services in particular by cooperating closely with training and communication agencies.
As an important element of the national financial switching system, to obtain more success Banknetvn is always active in sharing knowledge and experience with member banks and cooperating with Vietnamese and international card associations, on the basis of cooperation, equality, development and mutual benefit.
P.V
Vietnamese
