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Saturday, June 22, 2024

New market trends to shape Vietnam’s banking system – report

The Saigon Times

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HCMC – Emerging trends in digital payment, artificial intelligence (AI) and sustainable development present both opportunities and challenges that could impact banks in Vietnam this year, according to experts.

The statement was given in a recent report by Temenos about the prospects of Vietnam’s banking system in 2024.

The rapid growth of digital wallets and Government’s efforts to bolster cashless transactions will provide potential revenue sources for banks, particularly via channel-agnostic payment solutions, said Swapnil Deshmukh, regional director of Infinity Digital Banking at Temenos APAC.

Channel agnostic refers to a customer engagement strategy that prioritizes providing seamless and convenient service experiences to customers, instead of preferring any specific communication channels.

With AI-powered support, banks can provide intelligent financial services, such as hyper-personalized recommendations and offers.

Still, it is worth noting that responsible and secure AI implementation will be essential to mitigate ethical and legal concerns.

Given Vietnam’s climate vulnerability, experts recommended that banks develop action plans to integrate practices relating to the environmental, social, and corporate governance (ESG) framework into operations.

Regarding green finance, banks should carefully consider the evolving regulatory conditions, technological risks, and changing customer expectations.

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