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Banking & Finance

Banking innovation now a top priority

Released at: 16:47, 09/10/2015

Banking innovation now a top priority

Conference in Hanoi hears of the changing technological landscape in Vietnam's banking sector.

by Hung Nguyen

The Institute of Manpower, Banking and Finance (BTCI) organized the Annual Conference - ASEAN Region 2015 on October 9 with the theme of Banking & Finance Innovation.

Speakers raised matters concerning Vietnam’s banking sector regarding technological innovation and the context of the TPP being signed and the ASEAN Economic Community (AEC) approaching.

Mr. William Anthony Jennings, Vice Chairman and Acting CEO of BTCI, said that in recent years Vietnam has seen huge improvements in its banking sector, of which innovation in providing services has been a top priority of local banks.

He added that Vietnam’s banking sector has continued to see the development of retail banking. Government pressure on renewal and restructuring in the sector has encouraged banks to offer competitive new products and improvements in operational processes and procedures and to focus on developing high-quality human resources.

Mr. Douglas Jackson, Partner and Managing Director of the Boston Consulting Group, said that since the first ATM was installed by Barclays in the country, which conducted very simple banking transactions, digital banking has developed very quickly and provides much more complex services. Customers can now conduct an array of banking activities online. The development of technology has seen costs fall significantly and the banking sector can easily take advantage of innovation to develop new services with the support of high technology.

In regards to the gap between the application of technology in foreign banks and local banks, Mr. Jackson told VET that this is understandable because Vietnamese consumers are yet to fully adapt to digital banking activities while the cost of internet use remains relatively high and e-commerce is still in the early stages of development. In order to improve the application of technology in the near term, he suggested banks invest more and gain a deeper understanding of consumer behavior and identify what digital banking services are needed in daily life.

In terms of technological innovation in Vietnam when the AEC comes into being, Mr. Nguyen Huu Thai Hoa, former Chief Strategy Officer at the FPT Corporation, said that information technology in Vietnam will hold major advantages during the integration process.  

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