BIDV Thanh Vinh with efforts to master the digital future

Implementing Resolution No. 04-NQ/TV dated May 28, 2021 of the Party Committee of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) on leading the implementation of BIDV's digital transformation strategy to 2025, with a vision to 2030, the entire BIDV system strives to implement an action program with four pillars: 360-degree comprehensive digitalization - Building a diverse digital ecosystem - Building a digital transformation culture - Mastering the digital future. Branches in the North Central region in general, BIDV Thanh Vinh in particular, are not outside that cycle.

Picture of digital banking development at BIDV

Digital Banking is a model of banking system operations in which the operating process, products and services provided, etc. mainly rely on electronic platforms and data. Moreover, digital technology is the core value of banking operations. Digital banking is an inevitable development trend not only in Vietnam, but also worldwide.



As one of the large and prestigious commercial banks in Vietnam, BIDV focuses on comprehensively developing digital banking, deploying many digital banking products and services, improving customer experience and enhancing convenience. With positive results in developing products and services, applying modern technology and customer needs, showing an increase in the rate of transactions performed on digital platforms over the years 2021 - 2022 - 8 months of 2023 as follows: Number of transactions performed on Digital Banking/Total transactions: 27% - 36% - 42%; Transaction turnover performed on Digital Banking/Total transaction turnover: 23% - 28% - 30%; Service revenue from E-Banking/Total service revenue: 21% - 28% - 40%; Net income from Digital Banking/Total net income: 3.16% - 2.20% - 3.32%; Ratio of new individual customers with SMB transactions/Total new individual customers: 67% - 73% - 78%; Ratio of new institutional customers registering for IBank services/Total new institutional customers: 47% - 61% - 68%.

In June 2022, BIDV launched the Omni BIDV iBank digital ecosystem, a digital banking application for institutional customers. This application provides a consistent and seamless experience on both the website and mobile application platforms. Mobile transactions can be stored and continued to be processed on the website, allowing businesses to conduct financial/non-financial transactions anytime, anywhere without interruption. Omni BIDV iBank provides a seamless, interconnected and consistent experience. In addition, the application provides a diverse digital ecosystem, including financial, non-financial services and cash flow management for corporations and businesses. The Mobile App version of BIDV iBank has been completely upgraded with a friendly, modern and easy-to-use interface, along with many new technologies. Compared to other applications on the market, the Mobile App version provides full features for customers on mobile devices.

Since January 2021, the Core Banking system conversion project between BIDV and contractor Fidelity National Information Services has been underway. This is a core technology project, of particular importance and plays a decisive role in the effectiveness of BIDV's system operations in the coming years. The new Core Banking system will allow BIDV to increase flexibility and expand in integrating with new applications, customer interfaces and advanced technologies that the old system no longer meets the requirements and modern technology standards. From there, BIDV can optimize business processes and reduce operating costs. At the same time, system conversion allows BIDV to use new technologies such as cloud computing, artificial intelligence and blockchain to improve risk management, security and customer experience.

After nearly 3 years of efforts to implement the project with high determination, overcoming the diversity and complexity of structure and features. On September 1, 2023, the Corebanking Profile system - the central nucleus of the information technology system in BIDV's operations was pressed "go live".

The development of Digital Banking allows BIDV branches to access and expand the market more effectively. With the ability to transact online, BIDV customers can access banking services anytime, anywhere, without being bound by geography or time. This helps branches attract many new customers from within and outside the operating area.

In addition, Digital Banking provides powerful online marketing and promotion channels. BIDV branches can use social media channels, email marketing, online advertising and other digital advertising campaigns to reach and attract new customers. This helps increase awareness of the branch's brand and products.

Digital banking creates a convenient, fast and flexible customer experience. Customers can open accounts, make transactions and manage their finances conveniently through mobile applications or banking websites. This creates a good impression on customers, thereby creating a certain trust, making it easier for sales staff to cross-sell other products and services of the branch. Branches can also use customer data to analyze and segment target customer groups and the needs of potential customers. On that basis, personalize services and recommend products suitable to the characteristics of customer groups in their area. This creates a personalized experience and improves customer satisfaction.

Overcoming difficulties, mastering digital technology

However, the development of digital banking inevitably leads to some difficulties in adaptation, implementation and acceptance by branches at many different levels and aspects.

The first thing to mention is the reduction of staffing needs at branches. It is undeniable that the benefits of staff reduction will bring BIDV in saving operating costs. Because staff is an important part of the apparatus and the costs related to salaries, insurance, benefits and training can be very large. Streamlining the apparatus means reducing the above costs, thereby increasing competitiveness with other banks. However, to implement this task in practice is not easy.

To have a ready mindset for branch staff requires good transition management and psychological support for staff in the process of adapting to change.

Over the years, BIDV has built communication programs and organized events to provide information, propaganda and training to raise awareness of officials at all levels about digital transformation; Promote the role and proactively participate in the comprehensive digital transformation of internal activities.

BIDV Training and Research Institute has built a mandatory training program framework according to the position title, in addition to the professional knowledge and skills required for each position group at the branch, it also includes general contents such as corporate culture and information technology knowledge. In parallel, the Human Resources Department has researched and built Job Descriptions for positions and career development roadmaps for officers and employees.

In particular, in 2022, the Institute successfully organized the Workshop "Metaverse banking - The future of banking in the virtual world". In the first six months of 2023, the number of training classes organized by the Institute increased by 30% over the same period last year and the number of students increased by 71% due to the promotion of training on the new Core Banking system for target groups throughout the system, with the end-user group in the form of Elearning having about 65,000 students. In addition, each branch sent staff to participate in the "mini-lecturer" training class on using the new Core Banking system, these are the core staff who retrain other staff at the branch.

When the bank converts to a digital banking model, there needs to be changes and retraining for existing staff at the branch. Determining that, BIDV branches nationwide in general, and the North Central region in particular, apply a comprehensive digital transformation approach in three aspects, in addition to technology and business, digital culture and management are also focused on. Using digital transformation KPIs, enhancing training to improve information technology skills for staff throughout the system. From there, develop high-quality human resources with knowledge and skills in information technology and digital transformation.

Not stopping there, BIDV has completed the mechanism for scientific and technological research activities and initiatives. In 2021, successfully organizing the "Digital Transformation Initiative" Contest created a premise for continuing a series of activities to implement the Digital Transformation Strategy, promoting the spirit of innovation and creativity at BIDV. In 2022, evaluating and approving 111 scientific research topics/projects to be included in the list of system-level tasks in 2022 for 30 units (branches or Departments/Centers at the Head Office) with a total estimated budget of nearly 9 billion VND. At the same time, reviewing and approving the list of scientific tasks in 2023 with 120 topics/projects of 29 units; successfully accepting 115 system-level scientific and technological tasks with a total budget of about 8 billion VND.

In addition to the training courses organized by BIDV Training and Research Institute (in 2022, nearly 500 training courses with about 139,000 students), at branches, training is also proactively deployed in many forms such as disseminating documents and materials for officers and employees to self-study or organizing internal self-training through gathering officers to exchange and discuss processes, operations, and policy mechanisms.

Introducing and selling digital banking products requires staff to have a deep understanding of the features, benefits and related processes. Therefore, in addition to retraining to improve the qualifications of existing staff, recruiting additional young human resources with knowledge and skills in technology as well as digital banking products is absolutely essential.

However, the provinces and cities in the North Central region, when compared to large cities such as Hanoi and Ho Chi Minh City, often have smaller economic scales, so the ability to provide salaries and career opportunities will be less attractive than large urban centers. As a result, human resources with specialized knowledge and skills often tend to seek employment opportunities in large cities. This reduces the attractiveness of attracting and retaining talent in the North Central region. Limitations in this skilled human resource create barriers to the deployment and development of digital products, digital business processes and exploitation of digital data systems at bank branches.

In the North Central region, the market share of customers with a lower level of access and use of technology than in big cities. This is reflected in the relatively low rate of modern customers in 2021 - 2022 - 8 months of 2023 at branches in the North Central region (ratio of new individual customers with SMB transactions/Total new individual customers: 74% - 79% - 84%; Ratio of new institutional customers registering for IBank services/Total new institutional customers: 47% - 63% - 74%) compared to big cities (Hanoi and Ho Chi Minh City: 88% - 92% - 94%; 75% - 85% - 86%).

Using digital banking products and services requires knowledge and skills in using technology, and if customers are not aware of the benefits and conveniences of these services, the need to use them will not arise. At the same time, this also creates many barriers for branch staff when introducing and persuading customers to use the bank's digital products and services.

Provinces in the North Central region also tend to have a more traditional cultural and psychological environment than larger cities. A significant number of customers are wary of changes towards modernity and still prefer and stick to the habit of using traditional transaction methods such as direct transactions at branches or using cash. This is reflected in the proportion of demand for digital banking services at branches in the North Central region (number of transactions performed on Digital Banking/Total transactions: 32% - 60% - 82%; Transaction turnover performed on Digital Banking/Total transaction turnover: 29% - 36% - 45%; Service revenue from e-Banking/Total service revenue: 21% - 29% - 49%; Net income from Digital Banking/Total net income: 2.62% - 1.97% - 2.93%) lower than in other locations (Hanoi and Ho Chi Minh City: 52% - 69% - 85%; 38% - 42% - 50%; 28% - 35% - 55%; 3.60% - 2.50% - 3.80%).

To overcome the above difficulties, officers and employees of each branch must invest a lot of time and effort in marketing and instructing customers on the use of technology and applications related to digital banking.

BIDV Thanh Vinh Branch was established in 2015 on the basis of merging MHB Nghe An branch into BIDV. Although it is still young compared to BIDV's 66-year history of formation and development, the branch has quickly joined the game, developed business activities and implemented digital transformation.

To achieve the plan and goals of digital transformation activities, the Party Committee, Board of Directors, officers and party members of the Branch have actively grasped and mastered new technologies and effectively implemented plans and instructions from superiors on digital technology; Thoroughly grasped and synchronously deployed to Party cells and departments on digital transformation work.

In the meetings of the Party Committee and Party Cells, Digital Banking activities are always included in the discussion to evaluate and analyze, thereby proposing measures, solutions, initiatives, and good practices to direct specialized departments to implement. Therefore, the digital transformation work of BIDV Thanh Vinh Branch in recent years has achieved encouraging results, in all business areas of the unit. Many initiatives of officers and employees on digital transformation have been recognized and implemented. From 2020 to 2022, the Branch has 16 initiatives recognized at the branch level, 4 initiatives recognized at the system level, of which 1 typical initiative won the Third Prize.

From the reality that the branch's existing customer base is thin, the Resolution of the 4th Party Congress of BIDV Thanh Vinh determined the task throughout the 2020 - 2025 term is to develop the customer base, especially digital customers. From there, the branch always innovates the implementation method and takes timely actions to dominate the market.

Implementing the Resolution of the Branch Party Congress, the Board of Directors of BIDV Thanh Vinh Branch has actively participated, directing the Trade Union and Youth Union to coordinate with the professional to launch the emulation movement "Promoting digitalization of customer base" with the participation of not only the departments/officers of the direct business sector but also the response and participation of the departments/officers of the operational support sector. Implementing Project 06 of the Government, moving towards cashless transactions of people, the Branch coordinated with the locality so that on Saturdays and Sundays, officers went to each ward and commune to support people in opening accounts and registering for electronic banking services. At the same time, strengthening coordination with schools to introduce products and services aimed at student customers to increase customers opening ATM cards and registering for new services...

With new determination, new spirit, with the goal of "Change to master the future", all officers and employees of BIDV Thanh Vinh Branch are making every effort in the digital transformation, developing digital banking, digital customers; becoming a trusted address for customers in Nghe An province and the North Central region for banking and financial services according to the criteria of modernity, convenience and quality.