Digital transformation - a must to adapt to the new context: Expert

What are the benefits of digital transformation in reducing the impact caused by Covid-19 on the banking industry?

The Covid-19 pandemic has caused seriously negative economic impacts worldwide, including Vietnam. However, with a positive view, it has accelerated digital transformation in organizations, especially businesses.

Right from the outbreak, Military Bank (MB) has quickly built and applied three sets of solutions aiming at ensuring uninterrupted operations, carrying out social responsibility to support the community and adapting to changes. In addition to preparing a detailed response plan and accelerating digital transformation, it is the leaders’ determination and close monitoring along with a flexible implementation and solidarity of all managers and staff of the bank that have helped MB overcome Covid-19 successfully and develop sustainably.

Thanks to early investment in digital transformation and careful preparation for uncertainty, we have successfully got over the adversity and become stronger after the pandemic.

Head of Research & Corporate Development of Military Bank (MB) Dam Nhan Duc

Could you share with us the outlook for 2021?

We enter the year 2021 with strong determination. The business environment is forecast to be much more favorable than 2020, despite challenges and unpredictable factors that still exist, MB expects to come back to the trajectory of strong growth as in the last five years, in which the average growth (CAGR) of total assets, credit, deposit, revenue and profit is around 18%, 21%, 17%, 29% and 31% respectively.

Through the lessons from Covid-19, what role does digital transformation play in a business’ development strategy in the future?

It is clear that digital transformation is playing a crucial role as digitization will at least reduce human-to-human contact and prevent the spread of the Covid-19 pandemic and other epidemics ,which may break out in the future. Moreover, in the crisis, I think the application of big data and artificial intelligence (AI) in building stress testing and growth scenarios will help banks and businesses find out suitable solutions and be able to adapt to new circumstances and new variables.

The Covid-19 crisis has also enabled organizations to test new ways of working, such as meeting online, working from home, as well as testing different scenarios to ensure business activities’ continuity.

In addition to strictly applying Covid-19 prevention policies as instructed by the authorities, during the peak of the pandemic, MB has launched working from home policies, conducting online meetings, and working by shift, among other measures.

The negative influences of Covid-19 are obvious, but on the other hand, it has brought two positive impacts on organizations, including preparedness for adaption to new circumstances and a push for digital transformation to keep pace with the new context.

In your view, how will digital transformation affect businesses’ recruitment plans in the coming time? In your opinion, what skills do employees need to adapt to the new requirements?

In the digital age, besides essential skills and requirements such as problem solving, team work, computer and foreign language proficiency, employees need to pick up new skills such as the ability to use smart devices, QR scan and be empowered with digital communication skills (chat, voice call). This can be expanded also to collaborative activities in digital environment such as online meetings, online training, online conferences or ability to search for digital material.

Do you have any recommendation on banking policies to accelerate digital transformation?

The regulatory bodies have shown their strong determination to promote digital transformation in the business community with the introduction of new policies such as Resolution No. 01 / NQ-P on January 1st, 2020 referring to the pilot institutional framework (sandbox), Resolution No. 50 / NQ-CP on April 17th, 2020 introducing the policy actively participate in the Industry 4.0, Decision No. 316 / QD-TTg on the pilot implementation of using telecommunication payment accounts for small value goods and services, or Circular No. 16/2020 / TT-NHNN, allowing the application of technology in customers’ identity verification (eKYC).

From my perspectives, there are a number of factors that can be considered as transactions in digital platforms drivers, such as preferential tax policies for taxpayers using digital platforms to do business, pay for goods, service or policies on preferential fees for interbank transactions, or fees for payment acceptance points, or other regulations related to payment acceptance point.

Thank you for your time!