At a recent conference held by the Banking Strategy Institute and the Banking Academy, on the subject of “Data Management in Banking and Finance” experts said that the big data, data sharing and security are the top concerns for the nations banks.
Nguyen Kim Anh, Deputy Governor of the State Bank of Vietnam (SBV) said that the banking sector “has been proactive in accessing research, building policies and facilitating the application of data in management and developing products and services over the past time, which created a driving force for digital transformation in the banking sector.”
An SBV survey In September reported that 50% of local banks have built a centralised data warehouse and have applied data analysis to optimize their operating processes, increasing operational efficiencies and managing risks. At the same time, the other 50% of local banks have recognised data management as a basis for innovative activities, but have no action plan on data management issues.
Can Van Luc Chief Economist of the Bank for Investment and Development of Vietnam (BIDV) said that data cleaning has not been a critical issue for many banks and the result is and that banking data is still largely dispersed, the amount of junk information is quite large and data quality is quite low.
According to the SBV, banks in Vietnam are open to sharing their data with fintech, electricity, telecommunications and water companies through application programming interface (API) portals. However, because of the lack of a legal framework relating to data management, sharing and responsibility, banks have resisted moving forward until a legal framework is in place.
Le Anh Dung, Deputy Director of the SBV’s Payment Department, said he expected the Ministry of Information and Communications (MoIT) would soon submit to the government its recommendations on electronic identification, and that the Ministry of Public Security (MPS) would soon complete its recommendations to protect personal data so that banks have the ability to utilize data.
Dung from SBV, also suggested the government enforce the current laws that relate to data protection and data privacy of users in order to create a clear legal framework for data management that relate to banks, fintech service providers and the whole economy.