Digital Transformation in Vietnamese Commercial Banks in Recent Years

Abstract

The fourth industrial revolution (IR 4.0) has strongly affected the financial service industry in many countries around the world. Vietnamese commercial banks have been keeping up with trend and being the process of digital transformation. The purpose of the article is to analyze the current situation of the digital transformation process and provide solutions for Vietnamese commercial banks in recent years. To achieve the research objectives, we used qualitative analysis, statistical methods, descriptive data from Worldbank's secondary data, and a survey of the Settlements Department - State Bank of Vietnam concerned to digital transformation. The research results show that Vietnam is a very potential country where banks are ready for the digital transformation. In 2019, the ICT application index is mostly above 0.4 points and 43 percent of a total of 63 banks have been developing a digital transformation strategy. In order to facilitate the promotion of digital banking, the most important and prerequisite solution today is that the SBV needs to quickly issue a Decree on a controlled trial mechanism (Sandbox).