The Role of AI in Vietnam’s Banking Digital Transformation
The integration of artificial intelligence (AI) is revolutionizing digital transformation initiatives in Vietnam’s banking sector, serving as a catalyst for significant breakthroughs in the digital age.
Insights from Industry Experts
This perspective was emphasized by Nguyen Hoang Minh, the chief of the Ho Chi Minh City Representative Office of the Vietnam Banks Association, during a recent seminar aimed at enhancing the financial sector through AI. The event took place from April 3 to 4, focusing on the impactful role of AI.
Enhancing Competitiveness Through AI
According to Minh, the banking and finance sectors, characterized by their constant demand for innovation, must implement AI solutions and develop advanced technological infrastructures to improve competitiveness. These initiatives lead to substantial enhancements, optimize operational processes, and elevate customer experiences through better risk management and data analysis capabilities.
Transformative Impacts of AI on Banking
Minh highlighted the transformative impacts of AI, citing examples such as the rise of digital banks, AI-driven payment systems, automated business processes, biometric authentication for transaction validation, and virtual financial assistants that personalize customer interactions. These advancements illustrate how AI is reshaping the banking landscape.
Improving Transparency and Compliance
Beyond enhancing commercial performance, AI applications are crucial for promoting transparency and ensuring regulatory compliance. By effectively reducing financial fraud, AI contributes significantly to developing a secure banking environment.
Showcasing Advanced AI Solutions
At the seminar, experts from Greennode—a division of AI VNG Cloud—and other tech leaders presented advanced AI solutions tailored for the banking, financial services, and insurance sectors. These solutions aim to optimize customer experiences and create competitive advantages in the market.
Principles for Successful Implementation
Hong Minh, president of VNG, shared valuable insights on the implementation of AI in banking. He emphasized the importance of taking incremental steps through small-scale projects across various departments, which fosters accelerated learning and execution without immediate reliance on return on investment.
Shifting Towards Cashless Transactions
As reported by the Vietnam Banks Association, by the end of 2024, Vietnam anticipates having over 2.2 million individual payment accounts, facilitating nearly 17 billion cashless transactions. Many banks are already achieving rates exceeding 95% in digitally processed transactions.
Enhancing Security with Biometric Authentication
The adoption of advanced authentication methods, particularly biometric authentication for banking transactions, has greatly improved the safety and convenience for customers. Currently, over 38 million accounts utilize biometric authentication, and the National Credit Information Center in Vietnam has verified approximately 43.9 million customer profiles.
Accelerating Digitalization Efforts
The ongoing efforts to digitize civil status and land data are progressing swiftly, with goals set for the completion of calendar status data by March 2025 and property data by June 2025. This digital transformation is essential for the overall development of Vietnam’s financial ecosystem.
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