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Vietnam urged to establish legal framework for open banking

The Saigon Times

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HCMC – Experts have stressed the significance of creating a favorable legal framework to boost open banking development in Vietnam.

This information was shared at a seminar held in Hanoi on December 7, organized by VnEconomy news site in collaboration with the State Bank of Vietnam (SBV) and the National Payment Corporation of Vietnam (NAPAS).

Open banking, also known as open bank data, involves banking practices that enable third-party financial service providers to access consumer data from banks and financial institutions, typically through the use of application programming interfaces (APIs).

Nguyen Hoang Long, deputy general director of NAPAS, said the banking system can connect all economic entities, not limited to the fintech industry and finance, but also including retail and logistics service companies, thereby offering improved banking services to customers.

Pham Tien Dung, deputy governor of the SBV, stated digital transformation in the banking industry allows customers to use services seamlessly on mobile devices. The development of open banking will make it easier for customers, as all payment data will be displayed on one platform, he added.

To promote open banking practices in Vietnam, experts suggested that authorities establish a clear regulatory framework, particularly concerning information sharing and security. Banks also need to agree on common standards for products, services, and operational activities.

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