CASHLESS DAY 2023: DIGITAL PAYMENTS DRIVE FINANCIAL TRANSFORMATION

With non-cash transactions surging by 53 per cent in volume and internet-based transactions skyrocketing by 88 per cent in volume, Vietnam's drive towards a cashless society is gaining momentous growth, empowering 75 per cent of its population with active bank accounts and registering over 3.71 million mobile money accounts.

Pham Anh Tuan, head of the Payment Department at the State Bank of Vietnam (SBV), revealed at the “Cashless Day 2023” on May 26 that the SBV, with the Ministry of Public Security, will spearhead the National Digital Transformation Project for Population Data, Identification, and Electronic Authentication.

This venture, set to unfold between 2022 and 2025 with a forward-looking vision extending to 2030, will be dedicated to harnessing the power of data analytics, citizen profiling, and cutting-edge electronic verification processes to propel the nation's digital evolution.

“Of particular focus will be the synergistic utilisation of the national population database to refine customer data, amplifying its efficacy and fortifying the operational frameworks within the banking sector,” Tuan shared.

The latest statistical insights from the SBV illuminate a positive trajectory, with non-cash payments registering continuous growth during the initial quarter of this year.

Transactions conducted through automated teller machines (ATMs) experienced a decline of 2.37 per cent in volume and 4.02 per cent in value, indicating a shifting trend towards non-cash payment methods.

Indicative of the nation's accelerating embrace of digital financial infrastructure, an impressive 74.63 per cent of Vietnamese citizens now possess active bank accounts.

In a testament to the growing popularity of digital payments, non-cash transactions have surged exponentially. Noteworthy highlights include a remarkable 53.5 per cent increase in transaction volume via various digital channels, including 88.1 per cent surge in internet-based transactions by volume and 7.4 per cent rise in value.

Mobile banking, a veritable cornerstone of the cashless revolution, witnessed a striking growth rate of 65.5 per cent in volume and 13.3 per cent surge in value.

Additionally, the utilisation of QR code-based payments experienced an exceptional upswing, with 160.7 per cent surge in volume and 43.8 per cent escalation in value.

The total number of registered and active mobile money accounts surpasses an awe-inspiring 3.71 million, with nearly 8,880 strategically located business points facilitating seamless transactions and 15,300 entities embracing digital payment acceptance.

“The advent of advanced banking services, now effortlessly accessible through digital channels, epitomises simplicity, swiftness, and the gratification of instant results. Notably, more than 11.9 million eKYC-enabled payment accounts and 10.8 million eKYC-verified cards are currently operational, serving as indisputable testimony to the success of this paradigm shift," Tuan said.

By April 2023, together with the Ministry of Public Security, the SBV successfully verified over 25 million credit information records of borrowing customers against the national population database.

As Vietnam pushes forward with its cashless society agenda, these developments in digital payments pave the way for greater financial inclusivity and convenience for its population. The country's concerted efforts to embrace technology and enhance data-driven solutions underscore its commitment to transforming into a digitally advanced economy.

Source: VIR