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Updated: 2021-03-02 16:33:35

Digital Transformation - The most appropriate and sustainable method

(VBSP News) In the 13th National Party Congress on 28/02/21, The minister of the Ministry of Information and Communication, Mr. Nguyen Manh Hung stated that digital transformation played as the revolution. The revolution will succeed if each person actively participates in and enjoys the benefits of the digital transformation. Due to digital transformations, people living in distant, borderlines areas and remote islands are able to approach online services effectively.

The digital transformation is being common to disadvantaged customers

Banking - The pioneer sector

Finance and banking are listed as the priority among 8 other sectors in the scheme of the National Digital Transformation Programme. The scheme mentioned that building electronic finance and establishing a modern and sustainable digital financial foundation is a must. Besides, the comprehensive application of digital technology in the tax, customs, treasury and securities industries should be deployed.

Before the establishment of the National Digital Transformation Programme in 06/2020, financial services were always active and considered as one of the pioneer sectors applying technology. People, especially city residents, get used to digital banking. The payment and consumption habits are being changed significantly due to the COVID-19 pandemic. Instead of paying money directly, people are using online services to protect themselves and prevent the pandemic.

According to the 2019 Vietnam ICT index report, banks tend to improve the IT application in order to upgrade the core banking. Internet banking becomes increasingly popular. Digital banking is actively developing, compared to the period of 2016-2019. According to the State Bank of Vietnam, 42% of Vietnam banks consider the digital bank as a priority in terms of business strategy; 94% invests in this sector at different levels. In the first half of 2020, the non-cash payment flow increased by 180%, the transaction rate at the branch was below 10%. These figures indicate that digitization in banking is increasingly growing.

For example, VBSP is strongly developing the digital transformation although it is difficult for the bank due to its target audiences. (100% of customers are listed as a poor and near-poor household)

Digital Transformation has spread to the poor

In 2019, VBSP and Oxfam, an NGO focusing on the alleviation of global poverty, signed a cooperation agreement to study and experiment with the access to financial education for the poor households and disadvantaged groups via mobile phones (short as financial education application). VBSP worked with Oxfam to conduct a survey of the financial education needs of clients in three different provinces, namely Hai Duong, Thanh Hoa and Quang Ngai. The results showed that over 80% of interviewed customers were aware of the benefits of financial education for themselves and their families.

This financial education study aims to support customers improve their financial understanding, capital efficiency, increase savings and manage their family spending, hence becoming familiar with digital technology, especially people living in remote areas. Besides, the study helps create equality and narrow the gap between urban and rural areas, between the poor and disadvantaged groups in society.

Nguyen Thi Thu — a leader of Savings and Credit group in The Youth Union of Ha Thai hamlet, Duyen Thai commune, Thuong Tin district, Hanoi — comments that the application was effective and helpful because it was not only friendly, easy-to-use but it also contained useful information for the Savings and Credit group leaders. Thu also shared that she can easily track her members, customers, as well as the process and the policy credit scheme.

Nguyen Thi Kieu Chinh, the Vice-chairman of the Women's Union of Thuong Tin district, Hanoi stated that this app helped many members understand how to calculate their income, interest rates, repayment schedules, saving deposits. Therefore, the app supports members to get used to the economy, create their capital to get rich. This application provides women with knowledge of personal and household financial management, support business and production, helping women know how to calculate loans and bank savings. Furthermore, the application includes helpful information about breeding, cultivation and handicraft production. Hence, members can easily apply to improve their production, increase their income. Chinh hopes that this application would be widely used by residents to approach the loan capital, manage the financial situation effectively.

As can be seen, the financial services provided to poor people through smart phones is a creative solution. This digital service has promoted financial knowledge to the majority of the poor in Vietnam, besides enhancing skills related to processing financial information. This digital service is the positive result of the digital transformation for the poor, disadvantaged. It is confirmed that digital transformation is the most appropriate and sustainable solution for further development in the technology revolution era.




Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year