Digital transformation in the banking sector: The future direction of financial services

DNHN - In the digital age, the banking industry needs to undergo digital transformation to drive development and improve customer experience. This transformation brings safety and efficiency while shaping the future direction of financial services.

Recently, Prime Minister Pham Minh Chinh, Chairman of the National Committee on Digital Transformation, chaired the 9th session of this committee and the Task Force for implementing the Government's Project 06. The mid-year review conference on national digital transformation for the first half of 2024 was held online, connecting the Government Headquarters with the People's Committees of provinces and centrally-run cities.

Prime Minister Pham Minh Chinh emphasized that digital transformation has spread to "every alley, every house, every person," becoming an inevitable trend and a strategic choice for many countries. Project 06 is seen as one of the "bright spots" and "good models" in the digital transformation plan. Under the decisive direction of the Prime Minister, the Government has synchronized solutions to effectively and practically promote national digital transformation, enhancing digital transformation across various fields, focusing on building and perfecting institutions, mechanisms, and policies to promote the development of digital government, digital economy, digital society, and digital citizens.

Meanwhile, Ms. Nguyen Thi Hong, Governor of the State Bank of Vietnam (SBV), stated that the SBV has approved its 2024 action plan, which includes digital transformation measures and solutions to ensure security, safety, and confidentiality in banking operations. The SBV is one of 16 ministries and sectors that have completed their digital transformation tasks and plans for 2024, and has achieved several targets for its 2025 digital transformation plan. The SBV has also issued a plan to monitor the implementation of digital transformation in the banking sector.

Currently, digital transformation in the banking sector lays the foundation for leveraging technology to provide better financial services. The combination of artificial intelligence (AI), machine learning, blockchain, and other advanced technologies enables process automation, enhances security and risk management, and provides intelligent data analysis. For example, AI technology can be used to detect account and transaction fraud, offer personalized financial suggestions, or forecast market trends. This helps banks make smarter decisions and improve customer interactions.

One of the main benefits of digital transformation in the banking sector is improving customer experience. Customers no longer need to spend time visiting traditional banks to perform basic transactions. Instead, they can use mobile apps or access bank websites to conduct transactions, check balances, and manage accounts anytime, anywhere. Additionally, customer service through chatbots or online chat also helps customers receive support quickly and conveniently. By optimizing the customer experience, the banking sector creates a convenient and flexible financial environment.

With the use of modern technology, digital transformation in the banking sector enhances safety and information security. Two-factor authentication systems, data encryption, and monitoring can be implemented to ensure that customers' personal and financial information is securely protected. At the same time, blockchain technology helps verify and record transactions transparently and immutably. This prevents fraudulent activities and significantly increases customer trust in the banking sector.

Therefore, digital transformation is not just about applying new technologies to the banking sector, but also about comprehensively integrating and expanding existing systems. By connecting banking systems, data can be shared and accessed quickly and easily, enhancing the flexibility and efficiency of the banking sector. Moreover, scalability allows banks to expand services and reach new customer segments, including those without traditional bank accounts.

In summary, digital transformation has become an inevitable trend in the modern banking sector. Leveraging the potential of technology, improving customer experience, ensuring safety and information security, along with comprehensive integration and scalability, creates a bright future for financial services. The banking sector must continuously adapt and lead in the application of new technologies to meet the increasing demands of customers and create a convenient, safe, and efficient financial environment.

Nhan Phong