Digital banking booms for payment in 4.0 age

01-Nov-2018 Intellasia | Dau tu Chung khoan | 6:26 AM Print This Post

The Industrial Revolution 4.0 is changing drastically all sectors and fields. Accordingly, banks, traditionally the pioneer field in the application of new technologies for the development of products and services, have quickly go with the flow when many banks have set up digital environments for their products, especially for payment services to catch up the non-cash payment trend spreading in Vietnam and in the world.

Safety is the top priority

According to a report released by the State Bank of Vietnam (SBV), the number of bank accounts has increased from 16.8 million in 2010 to 67.4 million in 2017.

In addition, Vietnam ranks in the top 20 countries with the highest internet penetration in the world; and 62 percent of internet users shop online.

By the end of 2018, it is forecasted that there will be 50,000 payment points via Quick Response (QR) code compared to 5,000 points in previous years. This shows the great potential of Vietnam to join the 4th Industrial Revolution trend in the world.

At present, the opportunity from the non-cash payment is most noticeable from the banking industry, especially when many successful models such as Uber, Grab, Alibaba, Amazon, etc. are applying technology linked with banking payment. This also means that banks must have their own strategies to attract customers and increase sales.

Not only non-cash payment, Industrial Revolution 4.0 is also an opportunity for the banking sector to join the global digital ecosystem with a combination of finance, health care, insurance, tourism, education, trade, real estate, and etc.

However, many experts worry that along with the strong development of technology, the risks related to technology, especially security, information safety and online transaction security will also increase.

At Orient Joint Stock Commercial Bank (OCB), network security, payment security and data confidentiality, etc. are seriously considered a challenge and a top priority in implementation of digital banking.

Accordingly, OCB has been researching, deploying, combining new and advanced solutions in terms of expertise and technology, building modern digital infrastructure, using Big data, artificial intelligence and ensuring the maximum level of security.

Products for payment in 4.0 age

Catching the wave of technology can provide the advantages for banks. Understanding this, many domestic banks have been prepared and started to show movements to keep up with the trend.

Among them, OCB is being a pioneer. In March 2018, the bank introduced the OCB OMNI channel and was the first bank in Vietnam to develop this model.

Omni-channel bank is said to be the latest development in this area. Previously, with traditional banks, customers have to directly go to banks to make transactions.

However, multi-channel banks were born with the introduction of eBanking, mobile banking, etc. bringing more convenience and ease for customer in making transactions, but still inconvenient when being interrupted without connections between channels. At present, Omni-channel technology allows integration and synchronisation of all transaction channels, from eBanking, mobile banking, call operator and automatic teller machine (ATM) to at-counter transactions.

Omni-channel technology also offers an outstanding advantage in integrating payment products in 4.0 age. Everyday transactions using cash such as payment of electricity bill, telephone bill, tuition fee, or air tickets, etc. can easily made online through OCB OMNI. Thanks to these features, OCB OMNI quickly attracts young customers who like innovation and frequently use bank accounts for financial transactions.

The OMNI platform also becomes a “weapon” for OCB to develop new products to meet the increasing demands of customers in the technological age.

The inevitable shift

Technology change brings about a shift in the banking industry. Many banks began to shift their products from traditional banking to digital banking. Instead of providing products at banks’ counter, some banks are starting to offer them online.

After the OCB OMNI channel bank, OCB continues to launch OCB GO portal, which is a channel to introduce, develop and provide products such as cards, loans, savings, insurance, etc.

With just one device connecting to the internet, customers can choose to use a product and then are delivered by the bank.

OCB GO is based on OCB OMNI, which is the basis for OCB to continue digitalising banking products. Thanks to the diversified and thorough application of technology, OCB has built a process of receiving, processing information completely online, from which, gives customers new experiences, saving much more time in banking transactions.

Online transactions also help banks to minimise personnel costs, thereby increase revenue and return to customers with more competing products.

Beside OCB, some other banks are about to launch their products online, with the initial step of allowing customers to register their products online. Though, how to build a smooth procedure, ensuring customer information security is still a challenge.

With this requirement, along with the existing information security platforms, OCB is continuing to expand, upgrade and deploy more systems and utilities to ensure providing customers, whether on a digital platform or traditional channels, with fresh, seamless and throughout banking experiences.

 


Category: Finance, Vietnam

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