Current status of digital banking development in Vietnam:

with each other to create a shared data set of digital identifiers. They can also see Mobile Money as a channel to educate financial habits for those who do not have one. Bank account.

Mobile money helps businesses get used to and access banking services through the network.

Initially, they only paid a few hundred thousand…but when the demand reached millions of dong, they had to go through the bank. Then the bank must cooperate to receive it because the network operators can only do some simple things. So think less about the opponent, think about the partner, and cooperate more.

The rapid development of the digital economy is driving electronic payments with Fintech, e-wallets and other non-banking solutions to fill the gap left by traditional banks.

From the analysis of the four main contents of digital banking above, it can be understood that digital banking is a combination of new and developed technology applications and digitization of banking activities from traditional distribution channels. and modernize operational processes, decision-making processes and banking products and services in order to improve services and customer experience effectively, improve adaptive capacity, and adapt to changes in the banking system. changes in the business environment inside as well as outside the bank, affirming its position and increasing competitiveness in the market.

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of artificial intelligence generate (AI); (ii) The participation of big technology companies (Big Tech) in providing banking services; (iii) Transforming Core Banking and (iv) Digitizing Assets. It can be seen that banks around the world in order to be successful in applying new technologies, all transform their business models, support transactions with customers (customer contact, customer care, improve customer experience). customer experience) and operational management changes.

Challenges of digital banking

i) Security and privacy: This is the most important challenge in digital banking. Everyone has doubts about the privacy and security of digital banking. They don’t believe in digitization. They only prefer cash transactions. Most customers do not change their perception of the bank. They argue that with the development of technology, some problems also arise. Clients don’t want any chance with the money they earn in life full of effort and hard work. With digitalization, anti-virus software also comes and destroys your life.

ii) Knowledge of digitization: Many people do not understand the concept of digitization.

This system wants to Update from time to time to improve its accuracy. This digitization only works when the customer is educated and knowledgeable about it. This is the challenge that it wants to cover more and more customers. For this knowledge is the most important.

iii) Internal barriers: The banking industry has the same departments as other industries. With the change in technology affecting the departments of the organization. Just like customers &

bankers are the most important part of the banking system. Since the customer’s knowledge of digital transactions is important, the employee’s knowledge of digitalization is also important. If employees don’t know this then how can they influence customers. So the banking system can train its employees so that they can keep themselves updated with the changing technology. It can increase employee performance and productivity.

iv) Non-financial institutions: Like the Government. banks, some other organizations like Google, facebook, paytm etc. provide the same services as banks offer to their customers. These non-financial institutions provide a platform where customers can deposit money directly into someone’s bank account. These organizations are not bound by any rules and regulations. But financial institutions are bound to a number of rules. This is the most challenging concept for financial institutions.

v) Digital banking system: Nowadays, the demand for digitization is increasing at a high speed. But most banks don’t have the guts to adopt this technique quickly. For this, the best and skilled management is required so that their policies and strategies will benefit the organization.

Some want a ready-made system and some want to build one and then deploy it. It takes a lot of time to make decisions that benefit the organization. This creates a challenge for the organization in which system to adopt as every decision has some cool-and-burn point.

The impact of digital banking on the development of the private economy in Vietnam:

Information technology in the banking industry has brought the banking industry to focus, collect and process information electronically. The bank uses the latest technology to survive and thrive in the market environment. In this way, the bank can provide the necessary conditions to the customers and come up with the best solutions for their products or services.

Technological advances in the banking sector such as digital banking, e-banking, mobile banking, telecommunications, ATMs and credit cards have led to improvements in payment and settlement systems.

Modern banking technology eliminates manual effort in all banking operations and focuses on automation. The most prominent feature of technology is that banking is more convenient and convenient for private sector customers. Online banking is always available. The entire banking process is transparent and captureable thereby automatically reducing corruption. Better transparency in financial transactions can be achieved by providing a valid credit card to the bank for currency exchange. Systematic records of financial transactions facilitate and minimize cash transfers. With more digital or internet transactions, the country can access a cashless digital economy. Digital banking promotes private sector finance through the introduction of banking services within the scope of financial services. Through digital transactions, a lot of money is put into circulation and can be used for economic development.

All banks in Vietnam aim to provide a fast, accurate and quality banking experience to their customers. Banks not only reduce digital systems, human error and save time, but also lead to transactions that reduce cashless circulation of counterfeit money in the market. This has a positive impact on the economy. The Banks have also benefited in many ways through the use of new technologies and resulted in significant spending cuts and profit generation through various channels. The number of subscribers also increased. up for the convenience of ‘Banking Anywhere’. Digitization minimizes human error. Users can access and analyze the data at any time by the bank providing a powerful reporting system.

Advantages of digital banking:

- Transparency and accountability make it easy to track cash flow with every transaction recorded with buyers, sellers and regulators, making the system more transparent and interoperable.

In the long term, this has resulted in greater business and investment potential for the economic sector, and currency in the bank will mean money flowing into the economy with high liquidity.

- Reduce bureaucracy through cashless transactions, electronic vehicle tracking, electronic exchange tracking and citizen reporting cut corruption and increase service time.

- Banks in general and commercial banks in particular when digitization has significantly reduced bank operating costs. This allows banks to lower fees and offer higher interest rates on deposits. Low operating costs mean more profit for the bank.

- Economic entities in rural areas, benefit from banking services. Most people in rural areas have been involved in the banking process with the development of digital banking.

- There are convenient technologies for banks and economic entities to get excellent services just by accessing the system. These services include financial planning, budget preparation and prediction tools, credit calculators, investment analysis, and stock trading. The Forum has a simple program on the Bank’s website. In addition, most banks will provide a way to calculate tax forms for the unit.

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Disadvantage of digital banking:

- The cashless economy will increase the theft of information of individuals and entities in the private sector via the Internet, such as debit and credit cards, passwords, card numbers. and other sensitive information due to the increase in digital transactions. In general, cybercrime will only increase if security measures are used only when strange phenomena occur on the Internet.

- Low internet base, low internet speed, limited range of smartphones and internet problems, OTP, PoS, are less an obstacle to complete digitization between economic sectors. and between locations.

- In the flaws of digital transactions, there is no mechanism to resolve problems immediately.