The application of technology in the lending process of Vietnamese commercial banks

Abstract

Adapting to the digital transformation trend, Vietnamese commercial banks in recent years have quickly caught up and implemented various software and applications to support the lending process. However, there are not many studies that focus on analyzing the detailed activities and the level of digitization in the lending process at Vietnamese commercial banks. Therefore, this article looks at the current situation of technology application at each stage of the lending process for three groups of commercial banks (large-scale, medium-sized, and small-sized) and for two different customer groups (individuals and businesses). The research utilizes a survey method to collect data from employees currently working at commercial banks. The descriptive analysis results show that the level of technology application in improving the lending process is uneven across stages (primarily focusing on the document creation and decision-making stage). Moreover, digital transformation in the lending process is implemented more rapidly in medium- sized banks and primarily focuses on individual customers.