Breaking! Vietnam's Banking Sector Undergoes Rapid Digital Transformation Amid AI Integration

Vietnam's banking industry is experiencing a significant transformation, driven by the integration of artificial intelligence (AI) and digital finance initiatives. This shift aims to position Vietnam as a regional and global financial hub, aligning with the government's National Digital Transformation Programme and the State Bank of Vietnam's (SBV) Plan for Digital Transformation of the Banking Industry to 2025 with an orientation to 2030. 

AI Integration in Banking Operations

Prominent Vietnamese banks have been at the forefront of adopting AI technologies to enhance operational efficiency and customer service. For instance, Techcombank has implemented AI-based analytics platforms to empower relationship managers with actionable insights, contributing significantly to the bank's operating income. Similarly, TPBank has integrated face recognition technology into its LiveBank automatic banking channel, bolstering security and convenience for customers. 

Other banks, including Vietcombank, VietinBank, and BIDV, have utilized AI for various functions such as chatbots for customer support, asset management, security, fraud prevention, and analysis of customer behavior. These advancements not only optimize operational costs but also enhance customer support and enable efficient process automation.

Digital Payment Landscape Evolution

Vietnam's digital payment ecosystem has witnessed significant growth, with advancements in AI-driven payment solutions and increased adoption of QR code payments. According to Visa’s 2023 Consumer Payment Attitudes study, 88% of respondents have attempted to use cashless payments, and 62% of Vietnamese consumers use QR codes, up from 35% in 2021. This trend has been supported by partnerships between Visa and Vietnam's top e-wallet apps, enabling seamless QR payments for users.

The 'buy now, pay later' (BNPL) services have also gained popularity, with payments expected to grow by almost 42% annually to reach $3.33 billion in 2024. Domestic firms are competing with regional players to scale up their operations, forming strategic partnerships to assess customer creditworthiness and introduce BNPL services on various platforms.

Government Initiatives and Regulatory Support

The Vietnamese government has been proactive in promoting digital transformation within the banking sector. The SBV introduced a two-phase biometric verification mandate, extending to all digital banking users, to enhance security and build digital trust. Additionally, the Digital Technology Industry Law reflects Vietnam’s intent to build digital trust through law, technology, and execution.

Furthermore, the ASEAN Integrated QR Code Payment System, initiated in 2023, aims to integrate QR code payment systems across ASEAN countries, reducing dependence on certain currencies and facilitating cross-border transactions. 

Challenges and Future Outlook

Despite the rapid advancements, challenges remain in integrating generative AI on a large scale within Vietnam's banking sector. The country faces a shortage of skilled workers, with the current AI workforce supply satisfying only 10% of recruitment demand. Additionally, strict regulations on data security and privacy limit the volume of usable data, hindering progress. 

Breaking News: Vietnamese Banks Close En masse as News of AI Support and Strong Digital Finance Upgrades. The goal is to make Vietnam a regional and global financial center. pic.twitter.com/cBkscEVvea

— OKcoins (@OK_coins) May 21, 2025

Nevertheless, the banking sector continues to invest heavily in technology, with many banks revealing larger-scale and more in-depth technology investment plans. For example, TPBank plans to carry out in-depth digitalization and apply new data-driven technology, including GenAI, ML, and ChatGPT applications in banking activities. 

Conclusion

Vietnam's banking sector is undergoing a significant transformation, driven by AI integration and digital finance initiatives. These advancements aim to position Vietnam as a regional and global financial center, aligning with government strategies and responding to evolving consumer behaviors. While challenges remain, the continued investment in technology and regulatory support indicate a promising future for Vietnam's banking industry.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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