Banks have to speed up the application of modern technology to improve services, or they will lose out to rivals on home turf.
Domestic and international bankers shared the view at the two-day Banking Vietnam 2013 conference which opened in Hanoi on May 15 to discuss increasing trends in the banking sector.
They said fierce competition requires banks to better their services through using modern and convenient technologies, aiming to woo more clients.
Electronic payments and modern banking services such as mobile banking and data archives are no longer new to Vietnamese people, but not all users have benefited from these services.
Digitalising services is considered an effective tool for domestic banks to keep up with international trends, experts said.
On May 15, experts also suggested solutions for resolving bad debts – a thorny problem of the banking sector – and accelerating the restructuring of the sector in order to improve its risk management capacity and modernize its technology.
In another round-table on fueling innovation in banking services, delegates examined ways to transform delivery channels for the financial sector and the rapidly evolving trends in mobile payments, which create both challenges and opportunities for financial institutions.
Banking Vietnam 2013 is jointly organised by the State Bank of Vietnam (SBV) Information Technology Department and the International Data Group (IDG) Vietnam.
Featuring the theme “Leveraging new technological trends to build governance capacity, operational excellence and service innovation”, the conference will touch upon the impact of information and communication technology (ICT) in enhancing competition, growth and performance of the banking sector.
Vietnamese banking system has to cope with the highest non-performing loan (NPL) ratio in the region, accounting for 8.82 percent of total loans, according to an SBV report in June 2012.
2013 is considered to be an important milestone for Vietnam’s banking system, when economic experts say the impact of the global economic crisis may bottom out and a new period of economic growth could begin.