Tens of thousands of bank employees are at risk of losing their jobs.

The popularity of technology and the rapid adaptation of customers have caused a series of banks to rush into the race to improve services. However, many banks are afraid of being late to the game and being eliminated while tens of thousands of employees are afraid of losing their jobs due to technological innovation.

Technology race

A representative of the Bank for Foreign Trade of Vietnam (Vietcombank) said that each year the bank spends tens of millions of USD on technological innovation, and in 2015 alone, the results showed that there were nearly 2 million new customers using electronic services.

In the past 2 years, a mid-sized bank in the banking system has also implemented a very important project. The services of this project were launched in mid-2016 with many new experiences, bringing a new approach to young people, those who use mobile devices (smartphones, tablets) and love stylish lifestyles.

Many services are performed on the web and delivered in a non-traditional space, perhaps like a coffee shop… The project is expected to be a landmark push that can help this unit enter the top of the system.

Banks race to develop digital banking.

A series of services related to digital banking have been deployed, from initial preliminary forms such as Internet banking, SMS banking, mobile banking... to well-invested projects like the above-mentioned bank.

Together with FinTech companies, startups working in the economic and financial fields, banks have combined to provide many services such as TM, MoMo, Sen Pay, 123Pay, POS support management system... Maritime Bank also provides comprehensive service packages, not only internet banking. VietCapitalBank applies online money deposits, Vietcombank implements bill payments, tax payments... TPBank combines internet banking and mobile banking to provide multi-utility services...

According to Mr. Douglas Jackson, Managing Director of Asia Pacific, Boston Consulting Group (BCG), the trend of banks applying digital banking is inevitable. Vietnam's population is young, and its workforce is at its golden age. This is an opportunity to create a generation of young workers applying digital technology.

Mr. William Anthony Jennings, Vice Chairman of the Board of Directors of BTCI Institute, also commented that this is the digital technology phase of banks. Accordingly, in the coming time, many banks will operate digital banking systems. And in fact, up to 50% of customers say they want to switch to digital technology platforms.

Many challenges

Most domestic and foreign experts believe that applying digital banking is a very good trend. However, not all banks can do it, it depends on financial capacity and ability to apply technology.

According to Mr. Douglas Jackson, BCG conducted a study on 200 financial institution clients and found many difficulties. Many banks have a roadmap but do not have a common vision for digital. In addition, there are: local solutions - interfaces and systems are not integrated; outdated infrastructure, fragmented and outdated processes and systems; unreliable operations, unable to respond to digital speeds with sufficient reliability; poor multi-channel data access, data is often unavailable and not updated.

Banking services development.

In addition, many Vietnamese customers depend on cash transactions. This is also a difficulty that prevents banks from promoting digital services.

According to Mr. Phan Thai Dung, Deputy Director of the Department of Information Technology, State Bank, ensuring the security of digital banks is also a challenge for banks. Attack methods on banks are increasingly complex and diverse.

In the new trend considered inevitable - digital banking, according to experts' warnings, machines and technology will replace tens of thousands of workers. In the plan to switch to digital banking of a bank in the Netherlands, it is expected that about 6 thousand people will lose their jobs.

Sharing about this new trend, Deputy Governor Dao Minh Tu said that this is both an opportunity and a challenge, as well as a driving force for the development of the banking industry. This is a type of banking that has many differences compared to the traditional banking model… Therefore, it requires banks to learn from the experiences of leading countries.

The application of information technology is an inevitable objective trend. This can be both a driving force and a requirement for the banking industry. This forces traditional banks to determine the direction of innovation and product development according to new trends.

According to Vietnamnet