Banking sector: Digital transformation to better serve people and businesses

Currently, the banking sector in the province is making strong strides in digital transformation with many new and modern services to meet the increasing demands of customers in the industry 4.0. Thereby, the sector helps customers and businesses to access convenient services and smart transactions.

As one of the leading banks in digital transformation, over time, Joint Stock Commercial Bank for Investment and Development of Vietnam Lang Son Branch (BIDV Lang Son) has gradually built and completed the process in banking activities, digitalized activities from providing services to customers, actively implementing many new products and services, to optimizing customer experience with modern payment methods.

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Mr. Hoang Van Huy, Deputy Director of BIDV Lang Son said: In order to keep up with the trend of digital transformation, over the past time, BIDV Lang Son has built an ecosystem, implemented new business models, researched and implemented the digitization of lending decisions; customer-centric, actively deploying digital banking to help customers facilitate transactions. As a result, up to now, 45,000 accounts have registered for BIDV’s SmartBanking digital banking applications; the amount of cash transactions through the bank at the counter decreased by 70%; business processes are digitized, reducing the amount of papers, records, vouchers and administrative procedures for customers (estimated to decrease by 50% compared to 2017).

Mr. Hoang Van Hai, Chairman of the Board of Directors, Director of Lang Son Traffic Construction Consultant Joint Stock Company said: From 2018 to now, the company has applied the salary payment service package through BIDV Lang Son, whereby, 100% of employees and employees at the company pay their salaries through their accounts. Paying salary through the account helps the unit save time and costs, every month, employees do not have to queue to sign for salary. In addition, when paying salary via card, employees use electronic payment applications for shopping and consumption.

The trend of Digital Transformation is not only spreading to commercial banks but also to policy banks. Catching up with the trend, at the Bank for Social Policies(VBSP) , the provincial branch also promoted the simplification of lending procedures, actively coordinate with socio-political organizations to receive entrustment, improve the efficiency of commune transaction points, diversify products and services… Mr. Pham Manh Ha, Deputy Director of VBSP provincial branch said: In order to improve the quality of customer service, from the end of 2022 until now, The provincial VBSP has deployed the VBSP Smart Banking application in the whole province with full functions, automatic transactions, saving time and costs. This is a smart mobile banking service that helps customers transact with the bank anytime, anywhere. At the same time, the bank also installed a mobile surveillance camera system at 100% of transaction points in communes, wards and townships. Thereby, it contributed to improving management efficiency and creating favorable conditions in handling unexpected incidents during transaction time.

There are 16 banks in Lang Son province. Following the direction of the Government and the Provincial People’s Committee, over the past time, banks in the province have actively implemented collusion. This is a new step to better serve customers. To implement Digital Transformation, the State Bank of Vietnam (SBV) provincial branch has closely directed branches of credit institutions in the area to actively, proactively implement and apply new and modern payment services according to the trend of digital banking development; expand electronic payment applications for the provision of online public services. At the same time, They also implemented solutions to prevent and combat crimes against fraud, appropriating assets through bank accounts; be alert to suspicious transactions in order to promptly detect, prevent and coordinate with competent agencies in crime prevention and combat.

In the coming time, the provincial State Bank branch will continue to direct credit institutions in the area to focus on developing, supplying and enhancing communication about appropriate products and services in the direction of customer-centricity; promote integration and connection of products, services and platforms with other industries and fields to establish a digital ecosystem and provide products and services with a seamless and seamless experience for customers, which focuses on the fields of: health, education, transportation, public administration…

With undeniable benefits such as: reducing transaction costs, increasing profits, improving service quality, increasing user experience…, Digital transformation is really a necessary step for the banking sector.  However, with the increasing requirements of people and businesses, banks need to focus on ensuring payment products and services with high safety and increased security, contribute to promoting the process of digital transformation of the province.

Digital transformation in the banking sector is the process of transforming traditional operations into online and automated activities using digital technology. These technologies can include mobile applications, online payment systems, artificial intelligence and more. From issuing credit cards to transferring funds and managing accounts, Digital Transformation in the banking sector helps banks create a safe and convenient online operating environment for customers.