Quyết định 810/QD-NHNN

DECISION

APPROVING PLAN FOR DIGITAL TRANSFORMATION OF BANKING SECTOR BY 2025 WITH ORIENTATIONS TOWARDS 2030

THE GOVERNOR OF THE STATE BANK

Pursuant to the Politburo’s Resolution No. 52-NQ/TW dated September 27, 2019 on a number of guidelines and policies for active participation in the fourth industrial revolution;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and Law on Amendments to Law on Credit Institutions dated November 20, 2017;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 on functions, duties, powers and organizational structure of the State Bank of Vietnam;  

Pursuant to the Prime Minister’s Decision No. 986/QD-TTg dated August 08, 2018 approving strategy for development of Vietnam’s banking sector by 2025 and vision to 2030;

Pursuant to the Prime Minister’s Decision No. 749/QD-TTg dated June 03, 2020 introducing program for national digital transformation by 2025 with orientations towards 2030;

At the request of the Director General of Payment Department.

HEREBY DECIDES:

Article 1. The plan for digital transformation of banking sector by 2025 with orientations towards 2030 (hereinafter referred to as “Plan”) is approved.

Article 2. This Decision takes effect from the date on which it is signed.

Article 3. Head of Office of the State Bank, Director General of Payment Department, heads of affiliates of the State Bank, Chairpersons of Boards of Directors/ Boards of Members and General Directors (Directors) of credit institutions and foreign bank branches, and intermediary payment service providers shall implement this Decision./.

PLAN

DIGITAL TRANSFORMATION OF BANKING SECTOR BY 2025 WITH ORIENTATIONS TOWARDS 2030(

Promulgated together with Decision No. 810/QD-NHNN dated 11/5/2021 by Governor of the State Bank)

I. GROUNDS FOR PLAN FORMULATION

1. Politburo’s Resolution No. 52-NQ/TW dated September 27, 2019 on a number of guidelines and policies for active participation in the fourth industrial revolution.

2. Government’s Resolution No. 17/NQ-CP dated March 09, 2019 on certain key tasks and solutions for development of the electronic Government for the period 2019 - 2020 with vision towards 2025.

3. Government’s Resolution No. 50/NQ-CP dated April 17, 2020 introducing action program on Politburo’s Resolution No. 52-NQ/TW dated September 27, 2019 on a number of guidelines and policies for active participation in the fourth industrial revolution.

4. Prime Minister’s Decision No. 986/QD-TTg dated August 08, 2018 approving strategy for development of Vietnam’s banking sector by 2025 and vision to 2030.

5. Prime Minister’s Decision No. 749/QD-TTg dated June 03, 2020 introducing program for national digital transformation by 2025 with orientations towards 2030.

6. Prime Minister’s Decision No. 2289/QD-TTg dated December 31, 2020 promulgating national strategy for the fourth industrial revolution by 2030.

7. Prime Minister’s Decision No. 127/QD-TTg dated January 26, 2021 promulgating national strategy for artificial intelligence research, development and application by 2030.

8. Decision No. 1726/QD-BTTTT dated October 12, 2020 by Ministry of Information and Communications approving scheme for creation of digital transformation indexes applicable to ministries, ministerial-level agencies, governmental agencies, provinces and central-affiliated cities and national digital transformation index.

9. Decision No. 34/QD-NHNN dated January 07, 2019 by Governor of the State Bank of Vietnam promulgating action program on strategy for development of Vietnam’s banking sector by 2025 and vision to 2030.

10. Decision No. 528/QD-NHNN dated March 29, 2019 by Governor of the State Bank of Vietnam promulgating action program of State Bank of Vietnam on Government’s Resolution No. 17/NQ-CP on certain key tasks and solutions for development of the electronic Government for the period 2019 - 2020 with vision towards 2025.

11. Decision No. 2655/QD-NHNN dated December 26, 2019 by Governor of the State Bank of Vietnam approving information technology development strategy for Vietnam’s banking sector by 2025 with vision to 2030.

12. Decision No. 1238/QD-NHNN dated July 08, 2020 by Governor of the State Bank of Vietnam promulgating action program of banking sector on Government’s Resolution No. 50/NQ-CP dated April 17, 2020 introducing action program on Politburo’s Resolution No. 52-NQ/TW dated September 27, 2019 on a number of guidelines and policies for active participation in the fourth industrial revolution.

13. Decision No. 1345/QD-NHNN dated August 04, 2020 by Governor of the State Bank of Vietnam promulgating plan of State Bank of Vietnam for implementation of Decree No. 47/2020/ND-CP on management, connection and share of digital data of regulatory agencies.

14. Decision No. 260/QD-NHNN dated March 04, 2021 by Governor of the State Bank of Vietnam promulgating plan for information technology application, digital Government development and cybersecurity in operations of State Bank of Vietnam for 2021 - 2025.

II. VIEWPOINTS REGARDING PLAN FORMULATION

1. Closely follow guidelines and orientations of the Communist Party and Government regarding policies for active participation in the fourth industrial revolution, national digital transformation program and strategy for banking sector development by 2025 with orientations to 2030.

2. Legal framework reform and completion are important factors for promoting digital transformation in the banking sector.

3. Renovation, innovation, improvement of product and service provision quality, enhancement of customer experience and meeting customer’s needs are useful indicators for digital transformation.

4. Digital transformation must be connected with protection of legitimate interest, rights, security and safety of customers and sustainable and efficient development of the whole Vietnamese banking system.

5. Adopt international breakthrough solutions for further application of modern science and technology to accelerate achievement of objectives concerning digital transformation of Vietnam’s banking sector.

III. OBJECTIVES

1. General objectives

1.1. Reform management operations of the State Bank in a comprehensive and modern manner based on utilization of achievements of the fourth industrial revolution, meeting all digital transformation criteria and indicators of the Government.

1.2. Develop digital bank models, enhance utilities and customer experience, and achieve objectives concerning financial inclusion and sustainable development based on further application of new technology in management and provision of services and products with professional operation optimization and automation.

2. Some specific objectives

2.1. Basic objectives by 2025

2.1.1. For State Bank:

a) 100% of public services of the State Bank are eligible for upgrade to level 4;

b) 100% of level-4 public services are integrated to the national public service portal;

c) 90% of work dossiers of the State Bank are processed and stored online (excluding work dossiers concerning state secrets);

d) At least 50% of inspections by the State Bank are carried out via digital means and information systems of the State Bank;

dd) 100% of reports under the management of the State Bank (excluding state secrets) have digital signatures and are sent via the information technology system supporting direction and management;

e) 100% of transactions on the public service portal and single-window information system of the State Bank are authenticated electronically.

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);

2.2. Basic objectives by 2030

Maintain achieved basic objectives by 2025 and strive for the following objectives:

2.2.1. For State Bank:

a) At least 70% of inspections by the State Bank are carried out via digital means and information systems of the State Bank;

b) 100% of work dossiers of the State Bank are processed and stored online (excluding work dossiers concerning state secrets).

2.2.2. For credit institutions:

a) Customers can perform at least 70% of banking operations completely by digital means;

b) At least 80% of adults use electronic payment services;

c) At least 80% of customer’s transactions can be carried out via digital channels;

d) More than 30% revenue of at least 80% of credit institutions come from digital channels;

dd) At least 70% 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 90% of work dossiers of credit institutions are processed and stored online (excluding work dossiers concerning state secrets).

IV. TASKS AND SOLUTIONS

1. Mindset change, promotion of communications activities and enrichment of knowledge about digital transformation in banking sector

1.1. Heads of regulatory bodies and organizations shall take direct responsibility for digital transformation in the bodies under their management; connect digital transformation objectives and tasks with development strategies, action programs and plans of each regulatory body and organization.

1.2. Introduce and celebrate "Digital Transformation Day" of the banking sector on an annual basis.

1.3. Develop communications programs and organize refresher training classes, activities and events to raise the awareness of officials at all levels of digital transformation’s roles and benefits.

1.4. Launch financial education programs for people and enterprises to improve their financial management skills, knowledge and safe and efficient use of banking products and services on digital platforms.

1.5. Incorporate tasks in the Plan into emulation movements launched by the Governor of the State Bank; commend and reward groups and individuals with great achievements in digital transformation.

2. Formulation and completion of legal frameworks facilitating digital transformation in banking sector

2.1. Research, review and propose matters needing to be made into law as appropriate to actual situation and trends in application of digital technology to banking operations, gradually create strong legal foundations for development of digital bank models.

2.2. Review, research and propose promulgation of or amendment to regulations of law to facilitate digital transformation of the banking sector with a focus on the following matters:

2.2.1. Regulations on cashless payment and management and supervision of payment, domestic payment and cross-border payment to facilitate provision of diverse, modern and safe payment services and products, meeting increasing demand of customers.

2.2.2. Lending regulations to enable electronic lending and automation of procedures for lending to customers of credit institutions.

2.2.3. Regulations facilitating application of digital technologies (such as cloud computing, big data, blockchains, artificial intelligence, machine learning, etc.) in banking operations.

2.2.4. Regulations on collection, use, processing and sharing of customer data with third parties, aiming for open banking and diverse banking ecosystem.

2.2.5. Regulations on e-transactions in the banking sector.

2.2.6. Regulations on cybersecurity, confidentiality and provision of banking services online of the banking sector.

2.2.7. Develop and launch fintech regulatory sandboxes for the banking sector.

2.2.8. Research matters concerning central bank digital money.

2.3. Formulate and promulgate data standards and technical standards for the banking sector for data connection, sharing and use within the banking sector and between the banking sector and other sectors.

3. Digital infrastructure development

3.1. Modernize payment infrastructure and improve connectivity:

3.1.1. Upgrade and modernize interbank payment systems (IBPS) and aim to operate these systems according to international rules and standards; improve connectivity with other systems of the economy and be ready to connect with real-time gross settlement systems (RTGS) of other countries in the region following appropriate roadmaps.

3.1.2. Expand and develop switching and clearing systems for retail payments to establish synchronized payment infrastructure capable of integrating and connecting with other sectors, providing the basis for expansion of the digital ecosystem and launch of 24/7 payment services; support new connection models and payment methods (QR code payment, e-wallets, mobile money, card payments, checking accounts, etc.); establish connections for cross-border payments.

3.2. Expand information provision and connection infrastructure:

3.2.1. Upgrade infrastructure for credit information provision and classification and data processing based on application of digital technologies such as big data, artificial intelligence, blockchains, etc.

3.2.2. Upgrade the information portal connecting the National Credit Information Center of Vietnam with credit evaluation and risk management systems of credit institutions to enable online use and inspection of customer’s credit information.

3.3. Research and launch centralized infrastructure to enable data connection, use and sharing with the national population database, enterprise database and databases of other sectors for use and consolidation of data of use to information verification and customer classification and evaluation.

3.4. Develop and complete the data connection and sharing platform of the State Bank to provide the platform for establishment of e-Government at the State Bank and connect and share data with national databases and information systems from central to local levels of the Government and other ministries via data sharing and integration platforms of the Government.

4. Establishment and efficient operation of e-Government at State Bank

4.1. Digitalize operations of the State Bank according to the 2.0 e-Government architecture.

4.2. Launch information technology application plan according to the State Bank’s plan.

4.3. Promote application of digital technology in management, inspection, supervision and internal operations of the State Bank.

5. 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.

5.2. Research, develop and adopt branch models that allow customers to make automatic and self-service transactions based on digital technology application.

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.

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.

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.

5.6. Formulate and adopt a general risk management framework for at least operational, professional, information technology and legal risks.

5.7. Apply operating models and product development methods in a simplified and flexible manner.

5.8. Research and implement fee policies suitable for small transactions via digital means to encourage use of banking services via digital channels.

6. Development and efficient use of digital data

6.1. Upgrade centralized databases of the State Bank and credit institutions following big data models and promote collection and cleaning of data from digital contact points and other data sources.

6.2. Enhance knowledge discovery and analysis to support product and service individualization, optimize operations and improve performance.

7. Cyber safety and security assurance

7.1. Improve capacity for protection of computer networks, databases and information systems exchanging data online in accordance with Vietnamese and international standards.

7.2. Regularly review and assess risk throughout the processes of design, operation and provision of products and services online to promptly adopt preventive plans and responding solutions.

7.3. Efficiently maintain internal control of information security and safety to promptly detect, warn about and take solutions to prevent risks arising from internal operations and professional operations.

7.4. Further share information on risk to cybersecurity between organizations in the banking sector.

7.5. Research and establish a security operations center for the State Bank.

8. Human resource development

8.1. Provide incentive policies to attract high-quality workers who possess information technology knowledge and qualifications and digital transformation skills.

8.2. Regularly launch programs on training in digital transformation knowledge and skills for workers of the banking sector.

8.3. Revise undergraduate and postgraduate programs in banking - finance in terms of banking operations in connection with digital transformation and digital bank models.

8.4. Promote international cooperation, application of international experience and employment of foreign experts for training activities; participate in network of experts in digital transformation of the banking sector.

9. Some other solutions and tasks

9.1. Enhance cooperation and exchange and sharing of experience concerning digital transformation of the banking sector with foreign partners; actively participate in regional and international bilateral and multilateral cooperation forums in relation to renovation and innovation; take charge of application of some ideas for digital transformation in the banking sector.

9.2. Promote scientific research and digital technology application in banking operations.

9.3. Organize a conference for bank - digital transformation enterprise connection on an annual basis; closely cooperate with local governments in launching incentive credit programs (programs on lending for stimulation of investment demand, concessional loans) for digital technology enterprises to support key digital transformation products and enterprises undergoing digital transformation.

V. FUNDING

1. The Plan shall be funded by state budget, concessional loans, sponsorship from international and Vietnamese organizations, funding from credit institutions and intermediary payment service providers and other lawful funding sources.

2. Prioritize funding for activities supporting mindset change, institution formulation, digital infrastructure development, digital platform development, trust building, cyber safety and security assurance, international cooperation, research, development and innovation in the digital environment, and skill transformation in the digital environment and other tasks and projects in charge by state agencies.

VI. IMPLEMENTATION

1. Establish a steering committee for digital transformation of the banking sector, which shall conduct research and propose guidelines, strategies, mechanisms and policies providing the legal environment for digital transformation and expedite and direct implementation of the Plan. The Governor of the State Bank shall be the head of this committee. The Governor of the State Bank has the power to decide functions, duties, regulation on operations and personnel of this steering committee.

2. Assignment of a number of main tasks:

2.1. Affiliates of the State Bank and Chairpersons of Boards of Directors/ Boards of Members and General Directors (Directors) of credit institutions and intermediary payment service providers shall proactively organize the implementation of this Plan within their competence and Appendix on main tasks promulgated together with this Decision. Report on results of the implementation of this Plan to the Governor of the State Bank (via Payment Department) before November 15 of every year for monitoring and consolidation purposes.

2.2. Payment Department shall:

2.2.1. Organize, provide guidelines for, expedite and assess the implementation of this Plan and prepare reports on difficulties arising from such implementation and assessment of results of such implementation on an annual basis.

2.2.2. Take charge and cooperate with Information Technology Department, Communication Department and relevant units in advising the Governor of the State Bank on selection, announcement and annual celebration of “Digital Transformation Day” of the banking sector. Concurrently, cooperate with Communication Department in relevant communications activities, mindset change and enrichment of knowledge about digital transformation of the banking sector.

2.2.3. Take charge and cooperate with relevant units in:

a) In 2025, conduct preliminary assessment of Plan implementation, and propose objectives and targets as well as revising tasks and solutions (if necessary) of the following period;

b) In 2030, summarize and assess Plan implementation.

2.3. Department of Credit for Economic Sectors shall take charge of advising the Governor of the State Bank on organization of the annual conference for bank - digital transformation enterprise connection and launch incentive credit programs (programs on lending for stimulation of investment demand, concessional loans) for digital technology enterprises to support key digital transformation products and enterprises undergoing digital transformation.

2.4. Information Technology Department shall:

Take charge and cooperate with Office of the State Bank and relevant units in tasks and solutions concerning digital transformation at the State Bank.

2.5. Emulation - Reward Department shall:

Cooperate with Payment Department and relevant units in selecting and proposing commendation of groups and individuals with excellent achievements in digital transformation for preliminary and summary assessments of Plan implementation.

2.6. Finance - Accounting Department shall:

Allocate funding for regular operations of the State Bank concerning research and performance of the tasks and solutions provided for in this Decision./.

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 dated 11/5/2021 by Governor of the State Bank)