Policy makers create impetus for cashless payments

15-Jan-2020 Intellasia | Thoi bao Ngan hang | 6:02 AM Print This Post

Immediately after the Conference on Implementation of the Banking Industry 2020, the SBV Governor issued Directive No. 01/ CT-NHNN on organising the implementation of key tasks of the Banking industry. In particular, one of the general goals and tasks set out is to request cashless payment, especially via bank payment for public services; to ensure stable, safe and efficient payment systems and intermediary payment services. The Directive stated that it is necessary to “renovate and perfect the information technology infrastructure, apply modern technologies to develop digital banking services; enhance security, safety and confidentiality in banking activities”.

Promoting commercial shopping centres and providing online public services at level four are also among the key solutions in the government’s Resolution No. 02/ NQ-CP on continuing to perform key tasks and solutions to improve the business environment and national competitiveness in 2020.

In Resolution 02, the government assigns SBV to assume the prime responsibility and coordinate with the Ministry of Justice and relevant agencies in studying and proposing the prime minister to issue a Decision on piloting the use of telecommunications accounts to pay for Small-value services (Mobile-Money), piloting new payment service models while there is no law to timely ensure management, especially for cross-border payment activities.

Minister of Information and Communications Nguyen Manh Hung said that in Vietnam, over 90 percent of transactions below 100,000 dong are in cash, Mobile Money will be a strong solution to promote shopping centres. 2020 is the year of digital transformation, so according to the minister of Information and Communications, besides investing in digital infrastructure, cybersecurity, research and development and innovation. Some industries will be prioritised to convert first, including banking industry as banking is the foundation to promote the digital economy.

SBV Governor Le Minh Hung also informed that SBV cooperated closely with the Ministry of Information and Communications on this issue, but this was a new model, it needed to be piloted so it must wait for comments from the Ministry of Finance on the implementation in 2020.

Before waiting to pilot Mobile Money, in 2020, the goal of SBV is to continue to improve the legal corridor in the direction of strictness, safety, and facilitate the digital transformation process in Banking industry, promoting innovation in the spirit of Resolution 52-NQ/ TW of the Politburo, creating favourable conditions for people to access banking services. In the immediate future, according to Pham Tien Dungdirector of Payment Department, SBV focused on completing a new Decree on commercial shopping centres and timely issuing guiding documents; a framework for testing financial technology activities (fintech) in the banking sector. SBV will also complete the Proposals on the development of commercial shopping centres in the period of 20162020, the scheme of promoting payment via banks for public services, and the strategy of supervising payment systems in Vietnam for the period of 2014-2020 and research and propose solutions for the new period.

The report of the Payment Department (SBV) shows that, by the end of November 2019, there were over 78 organisations implementing Internet payment services and 47 organisations providing mobile payment services, all The market currently has 19,048 ATMs (up 2.61 percent over the same period in 2018), 287,440 POS (up 11.38 percent compared to the same period last year) and more than 50,000 points that accept payment via QR Code.

In addition to traditional banks, up to now, 32 non-bank organisations have been granted licenses to provide intermediary payment services, allowing the introduction of many new payment products and services with many fast and safe utilities.

The banking industry is also gradually building a centralised and standardised data warehouse and digital infrastructure that allows sharing and integrating to create a digital ecosystem across many industries and fields such as: connected mobile banking ecosystem with public services, finance, telecommunications, electricity, transportation, and health.

As a result, customers can use more utilities on mobile phones than they do direct transactions at banks. In 2019, the payment activity achieved many impressive results reflected by the commercial and business centre targets increasing from two to three numbers. Compared to the same period in 2018, domestic payment via bank card increased by 42.5 percent in volume and 35.4 percent in transaction value; Internet transactions increased by 69.4 percent in volume and 37.1 percent in value; Mobile transactions increased by 196.8 percent in volume and 225.1 percent in value.

There are many stories that can be discussed in promoting business centres, but according to experts, the key factor to promote commercial shopping centres lies in technology and awareness. Le Duc ThoChair of VietinBank’s Board of directors proposed to expand the application of electronic signatures, e-KYC, promote banking cooperation with Fintech companies. Accordingly, it is necessary to strengthen the coordination to ensure safety, security in digital banking solutions based on digitalisation, to optimise customer experience in using products and services at digital channels, enhance interoperability between banks and customers, and create new experiences.

Frankly acknowledging, Nguyen Tuan Luongdeputy general director of VNPay said that the development of commercial shopping centres must first build consumer confidence. If e-commerce systems as well as payment systems can support to strengthen consumer confidence, related to the quality of goods and services, it will be the driving force for more commercial consumers.

For a Fintech company, the biggest challenge is how to introduce new technology to change users’ habits and behaviours. In fact, Fintech companies in Vietnam are mostly those with relatively modest ages, small scale, so the way they can access to large banks and organisations is limited. With the role of one of the leading and invested Fintech companies, VNPay deputy general director shared that the new Fintech companies joining the market could link their ecosystems into that of VNPay to connect more easily with banks and large organisations.

 


Category: Finance, Vietnam

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