Digital Transformation in Banking: A Case from Vietnam

Abstract

This article aims to examine the literature on digital transformation in the banking sectors and the current commercial banks’ digital transformation landscape in Vietnam. The paper provides examples of some local commercial banks to show that digital banking should be considered an integral part of smart cities. The paper also analyzes the challenges facing Vietnamese banks in their digitalization process to become smarter banks. Next, the study makes some recommendations about how to leverage the digitalization process in the Vietnamese banking system. It can be concluded from this research that digital transformation is key to the banking industry creating value for the customer and keeping pace with innovation in smart cities where people expect real-time, instant gratification. This paper also suggests further research directions.

Artificial Intelligence in Developing Countries: Bridging the Gap Between Potential and Implementation

“…In Vietnam, AI is being utilized to promote financial inclusion. The National Payment Corporation of Vietnam (NAPAS) employs AI-driven chatbots to provide financial information and services to individuals without access to traditional banking (Ha andNguyen, 2022, Binh, 2018). These chatbots enable secure and convenient financial transactions, fostering financial inclusion in regions with limited banking infrastructure.…”

Digital Finance and Commercial Banks' Risk

“…In addition, in the era of digital finance, the introduction of digital technologies such as cloud computing and big data technology by commercial banks will expose them to the data risks of the Internet industry (Cheng et al, 2022;Ha & Nguyen, 2022;Liang et al, 2023;Quach et al, 2022), and immature technology, consumer privacy protection, financial fraud, and liquidity risk contagion problems may increase the risk-taking of commercial banks (Boamah et al, 2023). According to Luo (2022), the risk of financial innovation products has become more hidden, and the risks of technological attributes such as data, network, privacy, and third-party technological dependence are all potential factors for risk contagion, creating a market risk that is more penetrative and contagious.…”