LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 06/2021)
1. LEGAL DOCUMENTS ARE ISSUED IN 05/2021
1.1. Decision No. 810/QD-NHNN on approving Plan for digital transformation of banking sector by 2025 with orientations towards 2030
v Name of legal document: Decision No. 810/QD-NHNN dated May 11, 2021 of the State Bank of Vietnam on approving Plan for digital transformation of banking sector by 2025 with orientations towards 2030 (referred to as the “Decision No. 810/QD-NHNN”).v Effective date: 11/05/2021.
Some content should be noted:
·
Firstly, stipulating on basic
objectives by 2025 for credit institutions and foreign bank branches.
Specifically, Clause 2.1.2
Subsection 2 Section III of Plan for digital transformation of banking sector
by 2025 with orientations towards 2030 (Promulgated together with Decision No.
810/QD-NHNN) stipulates:
...
...
2.1.2. For credit institutions and foreign bank branches (hereinafter
referred to as “credit institutions”):
a) Customers can perform at least 50% of banking operations completely
by digital means;
b) At least 50% of adults use electronic payment services;
c) At least 70% of customer’s transactions can be carried out via
digital channels (online channels between customers and banks);
d) More than 30% revenue of at least 60% of credit institutions come
from digital channels;
dd) At least 50% of disbursement and lending decisions of commercial
banks and financial companies for small loans and consumer loans of individual
customers are made in a digital and automated manner;
e) At least 70% of work dossiers of credit institutions are processed
and stored by digital means (excluding work dossiers concerning state secrets);”
·
Secondly, stipulating on the task of establishment
and development of digital bank models at credit institutions
and foreign bank branches in implementation of Plan for digital transformation
of banking sector by 2025 with orientations towards 2030.
Specifically, Section 5
of Appendix List of key tasks in implementation of Plan for digital
transformation of banking sector by 2025 with orientations towards 2030
(Promulgated together with Decision No. 810/QD-NHNN) stipulates:
“
|
No. |
Task name |
In-charge unit |
Cooperating unit |
Performing time |
Expected results |
|
... |
|||||
|
Establishment
and development of digital bank models at credit institutions |
|||||
|
5.1 |
Formulate and implement a
digital transformation plan/ strategy with a focus on development of digital
banking services based on modern core banking and information technology
systems in compliance with Vietnamese and international standards that meet
management requirements and are suitable for the needs, capacity and
potential of credit institutions. |
Credit institutions |
Intermediary payment service
providers, fintech companies and relevant units |
Annually |
A digital transformation plan/
strategy is promulgated (or incorporated into business development strategies/
IT strategies) and implemented. |
|
5.2 |
Research, develop and adopt
branch models that allow customers to make automatic and self-service
transactions based on digital technology application. |
Credit institutions |
Relevant units |
Annually |
Self-service branch models are
established. |
|
5.3 |
Promote research and use of
artificial intelligence applications and digital technology in provision of
banking products and services: analyze and forecast demand, optimize customer
journey and experience; detect frauds, store information, analyze data;
optimize internal business processes, reduce costs and provide customers with
instant support via virtual assistants and robots. |
Credit institutions |
Relevant units |
Annually |
Digital banking products and
services |
|
5.4 |
Research adoption of credit
scoring solutions for customer data warehouses, open data and third party
data and reliable scoring models to facilitate customer’s access to loans via
electronic means. |
Credit institutions |
CIC and relevant units |
Annually |
Digital banking products and
services |
|
5.5 |
Boost research on integration
and expanded connection with other sectors to establish a digital ecosystem
and provide diverse products and services aiming for new business models such
as open banking to provide friendly, safe, convenient and affordable products
and services. |
Credit institutions |
Credit institutions,
intermediary payment service providers, fintech companies and relevant units |
Annually |
Convenient and creative
products and services in cooperation with intermediary payment service
providers and fintech companies |
|
5.6 |
Formulate and adopt a general
risk management framework for at least operational, professional, information
technology and legal risks. |
Credit institutions |
Information Technology
Department, Banking Supervision Agency and relevant units |
2021- 2025 |
The general risk management
framework is promulgated and applied. |
|
5.7 |
Apply operating models and
product development methods in a simplified and flexible manner. |
Credit institutions |
|
Annually |
Simple and flexible operating
models |
|
5.8 |
Research and implement fee
policies suitable for small transactions via digital means to encourage use
of banking services via digital channels. |
Credit institutions |
Relevant units |
Annually |
Bank fee policies are
promulgated. |
”
