Resources from cross-border payments and online lending

The workshop “Cross-border payments and online loans: Digital utilities for business and consumption” took place on the afternoon of September 11. (Photo: PV)

In the field of digital finance, the promotion of non-cash payments and the development of digital banking have grown rapidly in recent times and created a solid foundation, helping people and businesses access financial services quickly and conveniently. In particular, cross-border payments and online lending have made many important strides in recent times.

Speaking at the workshop, Mr. Nguyen Ngoc Hien, Member of the Presidium of the Vietnam General Confederation of Labor, Editor-in-Chief of Lao Dong Newspaper, said: “In the context of globalization and strong development of e-commerce, cross-border payment activities have become an inevitable need, contributing to promoting trade, economic connection and creating convenience for both businesses and consumers. Along with that, online loans open up opportunities for faster, more transparent and convenient access to credit, especially in the trend of digital transformation taking place widely in the banking and finance industry.”

Mr. Nguyen Ngoc Hien, Member of the Presidium of the Vietnam General Confederation of Labor , Editor-in-Chief of Lao Dong Newspaper spoke at the Workshop.

As evidence that cross-border payments have become popular in many countries around the world , Mr. Nguyen Hoang Long, Deputy General Director of the National Payment Corporation of Vietnam (Napas) recounted his own experience when shopping in China. With an international payment card, he could not make a transaction. When using cash instead, payment also became difficult because shopping malls in China almost do not use cash.

“The popular cross-border payment methods and models are via cards and bank accounts, currently mainly via QR codes,” said Mr. Hoang Long. However, the payment ecosystem in Vietnam is still fragmented: international cards, domestic cards, e-wallets, QR codes… exist in parallel but there is no effective cross-border connection.

Mr. Nguyen Hoang Long - Deputy General Director of Vietnam National Payment Corporation (Napas) said that the payment ecosystem in Vietnam is still fragmented.

Similarly, online lending activities of Vietnamese commercial banks have potential and room for development, but are not yet widely applied.

Ms. Nguyen Thi Ngoan, Chief Financial Officer of MISA Group, CEO of Jetpay, cited that small and medium-sized enterprises mainly borrow through traditional methods and often encounter many difficulties in loan procedures. Meanwhile, online lending has become one of the fastest growing segments in the global financial industry.

General assessment of the difficulties in cross-border payments and online lending in Vietnam, those are challenges from the incomplete legal corridor for digital signatures and electronic identification, the digitalization process in borrowing capital, the expansion of the cross-border payment ecosystem is not complete, and there are still many loopholes in ensuring the safety and security of customer information.

These are urgent requirements that need to be realized in the coming time, requiring synchronous coordination between many sectors and levels, along with a strong enough technical infrastructure to effectively deploy digital banking solutions and services.

Mr. Pham Anh Tuan, Director of the Payment Department, State Bank of Vietnam, said: "Digital financial utilities are always closely linked to the digital transformation process and digital economic development of the country".

In his concluding remarks and suggesting solutions, Mr. Pham Anh Tuan, Director of the Payment Department, State Bank of Vietnam, said that to promote cross-border payment connectivity, it is necessary to have a synchronous modern technical infrastructure, a complete legal framework, safety, security, inter-sectoral coordination and extensive international cooperation. As a state management agency in the field of currency and banking activities, the State Bank will continue to implement synchronous policies and solutions to promote cross-border payment connectivity in the region and the world, meeting the needs of fast, safe and convenient payments of people and businesses.

Regarding online lending activities, the State Bank is studying and reviewing the draft Circular amending Circular 39; in which it is expected to amend a number of provisions on lending activities by electronic means to continue to create conditions for credit institutions to conduct lending by electronic means to ensure safety, efficiency and create favorable conditions for accessing bank credit capital.

QUYNH TRANG

Source: https://nhandan.vn/nguon-luc-tu-thanh-toan-xuyen-bien-gioi-va-vay-von-truc-tuyen-post907491.html