Vietnamobile has become the fifth operator licensed to provide 4G services in Vietnam, baodautu.vn reported.
Minister of Information and Communications Truong Minh Tuan signed a licence to establish a public telecommunications network and a licence to provide 4G service for Vietnamobile Telecom Joint Stock Company in mid-November.
The licence is valid until September 15, 2024.
The deal makes Vietnamobile the fifth network operator licensed to provide 4G services in Vietnam after Viettel, VinaPhone, MobiFone and Gtel.
In preparation for the new development, Vietnamobile has invested 20 million USD to deploy new information technology systems to increase the security and improve the customer experience.-
Experts say ransomware continues attacking businesses, and that cryptocurrency mining malware has appeared on websites in Vietnam, while spyware is attacking Android smartphones.
According to Kaspersky Vietnam, 26.2 percent of victims targeted by ransomware in 2017 are businesses, compared to 22.6 percent in 2016.
2017 will be recorded as a year of ransomware, with a high number of attacks aimed at businesses.
The biggest attacks included one by WannaCry on May 12, 2017, ExPetr on June 27 and BadRabbit in late October.
At least 65 percent of businesses attacked by ransomware in 2017 said they could not access large amounts of data or all data. One out of every six victims who accepted to pay money to get data back could not recover data.
Ransomware mostly targeted businesses for their attacks because it would be easier to blackmail businesses than individuals. In general, businesses are willing to pay money to be able to resume their operation.
According to Vo Van Khang from VNISA (Vietnam Information Security Association), a survey by the association found that ransomware increased by 167 times from 2015 to 2017. About 3.2 million attacks by ransomware were reported in 2014, while the figure rose to 3.8 million in 2015 and 638 million in 2016.
Also according to Kaspersky Vietnam, as of the third quarter of 2017, Vietnam ranked second in the world in terms of computer malware with 71.4 percent. At least 85 million malware have been identified in computer systems in Vietnam.
About 12 million malware attackin
Cybersecurity and anti-virus providers reported that in the first nine months of 2017 alone 120,000 users had spyware on Android smartphones, nearly twice as much as the same period last year (70,000). Android smartphone users account for two-thirds in the world.
Ransomware continues attacking businesses
According to Nokia, Android leads in terms of vulnerability. Among attacked operating systems, 68.5 percent occurred with Android phones, while 27.9 percent with Windows and 3.5 percent with others.
Nokia believes that Android is vulnerable because the platform allows users to install apps from third parties which could be sources of danger.
Meanwhile, VNCERT (Vietnam Computer Emergency Response Team) has detected security risks related to Coinhive, the cryptocurrency mining malware which is hiding on many websites in Vietnam.
The malware is installed in order to exploit victims’ resources (CPU, hardware and memory) to mine digital currencies such as Bitcoin and Monero.
Following HCM City’s lead, Hanoi authorities are installing fences along sidewalks in a pilot programme to prevent vehicles from encroaching them.
The sight of motorbikes and cars climbing onto sidewalks to seek an alternative route during traffic jams has been common in Hanoi for years. It not only endangers pedestrians but also destroys sidewalks which are not designed for vehicles.
Fences have been erected along sidewalks on some streets in downtown Hanoi like Ton Duc Thang, Nguyen Thai Hoc, Ngoc Hoi, Le Duan, and Dai Co Viet over the past year. The measure aims to protect pedestrians and ensure traffic order.
Nghiem Ngoc Tram, a resident living near Nguyen Thai Hoc Street told Thanh Nien (Young People) newspaper that since the fences were installed, cars and motorbikes were unable to climb over the sidewalks around Van Mieu Quoc Tu Giam (The Temple of Literature).
“My family totally supports the plan. Thanks to the fences, we feel more secure when kids and old people use the sidewalks as we don’t need to worry that motorbikes and cars will hit them,” she said.
Nguyen Hoang Hai, an expert on urban traffic said the installation of barriers to separate sidewalks from roads is a feasible measure to solve the problem.
“In some streets where the measure was adopted like Le Duan or Van Mieu, the result has been positive. The walking space was protected, creating the feeling of safety and comfort for pedestrians,” he said.
In a Ha Noi People’s Council Q&A session on December 6, deputy Nguyen Huy Duoc proposed the same measure to restore sidewalk order.
However, some people warned that if the plan is expanded, some issues need to be taken into account.
Le Dung, a resident of Ton Duc Thang street told Kinh te&Do Thi (Economic&Urban Affairs) newspaper that the fences have caused obstacles for some people.
“In some places, the space between fences is not enough for a wheelchair user to get through. Some shops along the street also face difficulties as the barriers stop their customers accessing the shop and parking their vehicles,” he said.
Dinh Quoc Thai, an expert on urban traffic said fences should not be installed on busy trading streets as it would harm people’s businesses which are their means of living.
“People would oppose the plan and even remove the fences themselves while authorities could hardly control it,” he said.
He suggested fences be installed on sidewalks mostly serving pedestrians or those near cultural spaces.
The installation should also be carefully considered so that the barricades do not obstruct wheelchairs and baby strollers, he said.
An alternative measure to replace fences is to increase the height of the sidewalk’s edge so vehicles cannot climb them, he added.
Nguyen Hoang Hai agreed that this is not a one-size-fits-all solution.
There should be city-wide surveys to decide which streets are suitable and which are not.
On streets where fences are not the solution, authorities can install cameras to record violations and later apply strict punishments, he said.
Along with Vinamilk and Vingroup, numerous Vietnamese brands have stopped advertisting on the world’s largest online video site YouTube after their advertisements were linked to clips containing poor content.
In the latest move, Vietnamese dairy giant Vietnam Soya Products Company (Vinasoy) has decided to pull their advertisements from YouTube because its brand’s advertisement was linked to a clip the contents of which are not suitable for children, bearing obscene and pornographic comments.
Previously, after finding that its brand was appearing on clips with improper content on YouTube, Vietjet sent a dispatch to Google reminding them that if the company cannot prevent such incidents, Vietjet will cut their telecommunications co-operation with Google.
In addition, FrieslandCampina Vietnam, the owner of the Dutch Lady brand, complained that it is unacceptable to link its brand with objectional content, seriously impacting its reputation as well as the 145-year-old brand.
Earlier in November, other brands like Lidl, Mars, Cadbury, Adidas, Deutsche Bank, and Hewlett-Packard flat out stopped advertising on YouTube after their ads were linked with clips containing poor content. Previously, other brands suspended their advertisements on YouTube after their logos or ads were showed during clips containing slanderous or anti-government content.
According to statistics from the Authority of Broadcasting and Electronic Information under the Ministry of Information and Communications (MIC), as of November 2017, two million clips on YouTube had vulgar content.
The authority received official dispatches from Vietnam Airlines, Mead Johnson Nutrition Vietnam, and Vinamilk, referring to an incident when their brands appeared in clips with pornographic, slanderous or anti-government content on YouTube.
Ninh Thi Thu Huong, director of the Basic Cultural Department under the Ministry of Culture, Sports and Tourism, said that enterprises’ pulling their advertisements is not enough to prevent the dissemination of clips with poor contents. The government needs to add regulations about the responses as well as appropriate penalties in the Vietnamese Penal Code.
Deputy director of the Authority of Broadcasting and Electronic Information Le Quang Tu Do said that the authority needs to remove clips with poor content from online video sites. Simultaneously, MIC needs to build channels with strickly moderated contents on YouTube.
Regarding legal firms, lawyer Vu Thai Ha, chairman of YouMe Law Company, said that in order to thoroughly resolve linking enterprises’ advertisements and clips with poor content, enterprises should continue to boycott and stop advertisements on YouTube to create pressure on online advertisement service providers to change.
The smartphone-based payment service market in Vietnam has become busy in the last six months, but Vietnam is still far from its ‘non-cash payment’ target.
The country had great opportunities to develop mobile payment services as the Vietnamese retail market, with high growth rates, is among the top 3 in Asia. According to GSO (General Statistics Office), the retail revenue of goods in 2016 reached $118 billion, up 10.2 percent over 2015.
Mobile Vietnam, a report released in April 2017 by Appota, the provider of smartphone-based platforms, said that 72 percent of Vietnamese had used smartphones by 2016 (the figure was 20 percent in 2013). By the end of June 2017, Vietnam had 48 million broadband mobile subscribers.
Bank cards and smartphones are increasingly popular in Vietnam. The State Bank of Vietnam (SBV) reported that more than 110 million bank cards had been issued in Vietnam by the end of the second quarter, and the figure is expected to rise to 150 million in 2018.
However, despite favorable conditions, payment service providers are still meeting difficulties,
Samsung Global’s deputy CEO admitted that problems occurred when it began launching Samsung Pay in Vietnam. Vietnamese laws only set regulations for businesses which act as payment intermediaries.
Vietnam is still far from non-cash payment target
Samsung Pay is not an intermediary, but is the provider of platform, apps and payment solutions. Therefore, it is not easy to apply current regulations to Samsung Pay’s services.
At least 50 percent of the population is working age but only 40 percent access finance services. Most of them live in cities.
A survey by the World Bank showed that the number of non-cash transactions per head in Vietnam is 4.9 percent, much lower than Thailand’s 59.7, Malaysia’s 89 and China’s 26.1 percent.
Also according to World Bank, 65 percent of adults send/receive money through unofficial systems, or pay for tuition and other services in cash.
An important barrier exists as 6.2 million adults cannot access finance services. 2.2 million say it is too expensive to use, 2.3 million find it difficult to open accounts and 1.1 million don’t have confidence in the financial system.
According to Can Van Luc, chief economist of BIDV, the first thing Vietnam needs to do is heighten public awareness of new payment methods.
Luc sees one advantage which can help increase non-cash payment methods: Vietnamese show an open attitude towards new payment methods.
According to Visa, nine out of 10 consumers are willing to try new payment methods, while 88 percent said they are likely to use a smartphone for payment.
Police in Vietnam have taken away thousands of counterfeit condoms and lubricants following a sudden raid on a facility.
The products are knock-offs of famous brands and were falsely labeled as being manufactured in Malaysia and Russia, officers in Dong Nai Province said on Tuesday.
Police eventually confiscated 1,919 boxes of condoms and 330 tubes of Croc massage gel with ‘made-in-Malaysia’ tags, and 137 tubes of ‘made-in-Russia’ Titan lube.
Officers also discovered and held 340kg of raw materials to make condoms, 53.5kg of packaging paper, 29kg of lube oil and 35kg of ‘erection oil,’ besides several pieces of equipment and machinery.
The facility, located in the provincial capital of Bien Hoa, is run by Nguyen Thi Xuan Vinh, 29, who failed to show officers her business license and any receipt for the raw materials.
Vinh confessed to police that she had imported all materials from dubious sources in China.
She would mostly distribute the counterfeits to Ho Chi Minh City and customers who placed orders online.
The seized counterfeit condoms are seen in this photo provided by the police. Photo: Ho Chi Minh City Police newspaper
Last year, Hanoi police seized one metric tons of counterfeit condoms, which were made from Chinese materials but sold as ‘made in Malaysia’ products.
The crackdown came only six months after police in the Vietnamese capital busted a similar facility and confiscated 700,000 fake condoms.
According to experts, counterfeit condoms will likely not protect against pregnancy and sexually transmitted diseases, not to mention that the low-quality materials they are made from can also cause health problems.
The fake products could cause allergy or even infertility to users, doctors warn.
Financial institutions struggle with complex regulations, legacy systems, new technologies and competitors, and an increasingly demanding customer base. Insights from a crowdsourced panel of 100 financial services influencers, industry analysts and banking providers combined with the results from a global research study helps identify future trends and strategies for long-term growth.
For the seventh consecutive year, we have surveyed a panel of over 100 global financial services leaders for their thoughts on retail banking and credit union trends and predictions. The crowdsource panel includes bankers, credit union executives, industry analysts, advisors, authors and fintech followers from Asia, Africa, North America, South and Central America, Europe, the Middle East and Australia.
We used the findings from our panel as the foundation to develop a global survey of executives involved in the financial services industry which provided a prioritization of our trends. Our global survey also provided an opportunity to do an end-of-year review of last year’s projections. Finally, the survey collected insight into strategic priorities for 2018 and the fintech players that the industry believes will have the greatest impact in the upcoming year.
By collecting insights from leading influencers, ranking the trends using an industry survey, and including extensive analysis around each trend, we have developed the most comprehensive annual trend report in the banking industry. For the third consecutive year, the research, analysis and Digital Banking Report entitled, 2018 Retail Banking Trends and Predictions, are sponsored by Kony, Inc.. The report will be available right after Christmas.
Top 10 Retail Banking Trends for 2018
The ranking of the top 10 trends and predictions was done by providing a list of trends identified by our crowdsourced panel and asking banks, credit unions and the supplier community globally to provide their top 3 predictions for 2018. Of the organizations that provided their top 3 trends, the highest ranking prediction was that the industry was going to remove friction from the customer journey (61%). The next two most mentioned trends were the improved use of data and advanced analytics, and refinements in multichannel delivery (mentioned by 57% and 42% respectively).
Interestingly, with the exception of one trend (testing and use of blockchain technology), the trends and order of these trends were the same as last year. Last year’s trend of investment in innovation did not make the top 10 this year. The importance and underlying components of each trend differed in this year’s research compared to the predictions for 2017.
The fact that the list of trends identified by the financial services industry has remained relatively consistent could be a symptom of a greater problem. The banking industry is moving much too slow, and legacy firms are failing to differentiate themselves. According to Forrester, “In a market where one-third of all customers say ‘all banks are basically the same,’ it would make sense for executives and their teams to obsess over how to differentiate. Unfortunately, 2018 will look more like a digital arms race between warring incumbents than a year in which firms find new ways to specialize and create value for customers.”
Regarding changes in emphasis for this year’s trends, removing friction from the customer journey increased in importance from last year, with 61% of organizations placing this trend in the top three, compared to 54% last year. The trend around the use and application of data also increased in importance from last year, with 57% of those surveyed placing this in the top 3 for 2018, compared to 53% in predictions for 2017. Other notable shifts of importance included a greater belief that open banking APIs would be important, less emphasis on regulatory changes and a greater belief that advanced technology would have an impact in 2018.
Top 10 Retail Banking Trends for 2018
Top 10 Strategic Priorities for 2018
When we asked financial services organizations worldwide about their top three strategic priorities for 2018, there was a significant change in priorities compared to last year’s research. While the order of the top three priorities remained the same as last year, the priority of reducing operating costs dropped from 41% last year to only 32% for 2018. At the same time, the priority of investment in innovation dropped from the 4th position to 7th, with the number of firms mentioning innovation falling from 26% to 22%.
The biggest jumps in strategic priority in 2018 were seen with the emphasis on automating core business processes (up 13%) and recruiting talent (up 8%). These shifts illustrate the growing importance of becoming a digital bank and the impact of this transformation on the types of employees required to address new challenges.
Top 10 Strategic Priorities for 2018
1. Removing Friction from the Customer Journey
While the banking industry has talked about ‘customer-centricity’ and ‘improving the customer experience’ for decades, most organizations have had difficulty breaking down product silos or leveraging internal data to deliver a contextual digital experience. “Long-term sustainable growth in the banking industry seems only possible with a radical departure from a sales- and product-obsessed mindset to one of genuine customer centricity, and further rationalization of strategies to target the right markets, customer segments, and solutions,” states Deloitte.
According to the 85-page report, Improving the Customer Experience in Banking, the objective of delivering a positive customer experience has become secondary to other bank priorities, resulting in a transactional banking relationship for the customer. For financial organizations to change this dynamic, and meet the evolving needs of today’s customers, there are five areas that have emerged as crucial priorities:
Move focus of digital engagement from cost reduction to experience enhancement.
Leverage advanced analytics, machine learning and contextual engagement to provide a highly personalized experience.
Allow the consumer to engage with their bank on the channels they prefer at the times they want to engage.
Transition advisory and sales activities from being reactive to being proactive.
Engage end-to-end throughout the customer journey, from shopping to account opening, to onboarding and through relationship expansion.
A positive customer experience is channel sensitive, with customers placing a higher weight on digital customer experiences more than physical or call center channels. In fact, in a recent J.D. Power, survey, the largest banking organizations improved in overall customer satisfaction, while midsize banks declined and regional banks plateaued. This was attributed primarily to improved mobile and online satisfaction.
As the banking industry responds to the “Age of the Individual”, big data and advanced analytics will define the winners from the losers. It is critical for banks and credit unions to deliver on the personalization promise to win the battle of having the best customer experience.
How customer insight is used can make a big difference to the customer experience – and ultimately to the profitability of the organization. The right information, analyzed in the right way, can ensure that the financial institution can provide the right offer at the right time – along with a seamless service at a lower cost. And that has to be good for everyone involved.
2. Expanding Use of Data and Advanced Analytics
Over the past 18 months, the Digital Banking Report has seen a growing gap between the organizations that are embracing the power of contextual insights and the potential of digital transformation vs. those that continue doing things the same way they have in the past. There is no reason to see this gap narrowing in 2018.
Best-in-class financial institutions will apply advanced analytics and artificial intelligence to increase automation, improve personalization, reduce costs, enhance the customer experience and even assist with compliance. The potential of advanced analytics grows exponentially over time. Each iteration, additional data source and performance measurement results in learning that enhances the accuracy of the predictive models. It also allows organizations to refine data sources as opposed to simply adding more and more data.
Finally, with each iteration, predictability goes up while costs can go down, improving marketing efficiency. From the customer’s perspective, the messaging in more “on target,” improving the customer experience, satisfaction and lifetime value.
According to David Gerbino, Principal of @dmgconsulting, “Financial institutions that effectively leverage data and advanced analytics across the enterprise will be in a position to capitalize on newer technologies such as machine learning and automation. Those firms who fall behind will need to quickly overcome barriers that are preventing them from enjoying the benefits of advanced analytics or they will find themselves too far behind to catch up.”
3. Improving Multichannel Delivery
Banks and credit unions will see less than half their customers face to face in 2018. Instead, an increasingly digital customer base will use self-service touchpoints as a first point of contact, only reaching out to contact-center agents or branches for the most complex engagements. This movement of transactional interactions to digital channels will mean that branch and contact-center interactions are more important than ever in building human relationships with customers.
Winning financial services organizations will provide all customer contact personnel with the digital tools required to access answers quicker, and will invest higher trained personnel who are better equipped to use these tools and present high value responses to inquiries.
The traditional definition of convenience in banking has revolved around the proximity of the branch. With the growth in digital technology and the increased acceptance of online and mobile banking, access to banking products and transactions is no longer tethered to a physical location, resulting in a redefinition of convenience. Today, while convenience is still the primary driver of initial consideration, the importance of branches in that definition has gone down.
Novantas found the correlation between ‘perceived convenience’ and ‘consideration’ to be slightly stronger than the correlations between ‘perceived convenience’ and ‘purchase’, with both being very strong. The biggest news is that the drivers of ‘perceived convenience’ start with an organization’s digital capabilities. In fact, the importance of branch-centric factors have dropped in each of the past three years of the study. This is especially true for consumers aged 18-54.
Aligned with the preference to shop digitally, there has been a corresponding increase in the preference to open accounts digitally, according to Novantas. Over a third of consumers prefer to open their account digitally, with the number being significantly higher (46%) if the consumer shopped using digital channels exclusively. In fact, the mobile channel has replaced other channels as the centerpiece of the banking relationship.
4. Embracing PSD2 and Open API Banking
While APIs are not new to banking and are nothing more than a structure for how software applications should interact, they provide the gateway for innovative, contextual solutions that would be difficult to offer without Open Banking. As outlined by the World Retail Banking Report 2017, published by Capgemini in conjunction with Efma, there are three types of APIs:
Private APIs: These are APIs that are used within the traditional banking organization, reducing friction and enhancing operational efficiency. A vast majority (88%) of banks viewed private APIs as essential in 2015.
Partner APIs: These are usually between a bank and specific third-party partners, enabling the expansion of product lines, channels, etc.
Open APIs: In this scenario, business data is made available to third parties that many not have a formal relationship with the bank. Because of the structure of open APIs, many banks have a greater concern around security.
Most banks ease into the use of APIs, moving from private, to partner and sometimes to open APIs. It is believed that, over time, APIs will evolve to the more extensive options in response to the consumer desire for greater digital solutions not currently provided by legacy organizations. This will also occur as both fintechs and traditional banking organizations understand that they need each others strengths. This collaboration will enable both banking organizations and fintech firms to offer more to customers than previously possible.
Deloitte believes there are four distinct strategic options for banks and credit unions in the future. In two scenarios, an institution remains in control of the customer/member relationship. In the other two, products and distribution become unbundled.
Incumbent as a full-service provider
Incumbent as a utility
Incumbent as a supplier
Incumbent as an interface
It must be mentioned that the options are not mutually exclusive. Organizations may want to play in multiple quadrants. For instance, they may want to be a supplier of services as well offering products in a third-party interface.
Perhaps the greatest risk of open banking is that it will allow consumers and merchants to execute direct transactions without going through banks, making it more difficult for banks to have a full view of the customer transactions and maintain customer relationships. It is hoped that the open banking concept can avoid this demise, as traditional banks and fintech firms work together to build the customer’s trust and offer products and services that will improve a consumer’s lifestyle.
The foundation of these partnerships will be the data that can be collected and cultivated for the benefit of the customer, the bank and the fintech firms. If applied diligently, the improvement in customer experience could be the differentiator that retains the overall banking (and non-banking) relationship.
5. Building Fintech Partnerships
In the past, many traditional banking organizations looked at fintech start-ups as more of a nuisance than a threat. Today, many are viewing these non-traditional providers as a threat as well as either a partner or potential acquisition.
In its latest Global Fintech Report, PwC found that 88% of legacy banking organizations fear losing revenue to financial technology companies in areas such as payments, money transfers and personal loans. The amount of business at risk has grown to an estimated 24% of revenues.
In related DeNovo’s research from PwC, it was found that 30% of consumers plan to increase their usage of nontraditional financial services providers, with only 39% planning to continue using solely traditional service organizations. This is an additional wake-up call to legacy organizations to determine how they will retain the key components of an existing banking relationship.
In response to this threat, 82% of traditional financial organizations stated a plan to increase collaboration with fintech companies in the next three to five years. Similarly, almost 50% of financial services firms are planning to acquire fintech startups over the same period.
Fintech startups realize that it takes more than a great solution to attract a scalable customer base. To reach beyond early adopters and the tech-savvy takes massive amounts of capital for promotion and product support. Partnering with an established banking organization who will support the expansion of users among their client base seems like a logical means to an end.
Alternatively, legacy banking organizations, struggle to keep up with consumer expectations. Size, organizational structure (silos) and even traditional leadership styles hamper the ability to deliver the new digital solutions consumers receive from other industries. Partnering with a fintech startup alleviates some of these issues, allowing the established organization an opportunity to keep pace with marketplace demands.
Fintech collaboration is not about grabbing for the ‘next shiny object’ — it’s about intuitive product design, ease of use, and 24/7 accessibility.
6. Expansion of Digital Payments
Despite increased adoption of digital payments, cash remains a primary form of payment for many, especially for low-value transactions and by certain demographic groups. Attributes of cash contributing to continued use include speed, universal acceptance, anonymity, lack of fees, etc. Some emerging markets also still lack a modern payments infrastructure while certain cultures don’t have trust in the banking system. In other words, the reports of the death of cash are still exaggerated.
While e-payments are expected to grow at a CAGR of 17.6% from 2015 – 2019, the yearly growth rate is expected to decrease, as more transactions move to mobile payments (m-payments). Mobile payments are expected to have a CAGR of 21.8% from 2015 – 2019, helped by an increased proliferation of mobile devices. As with many of the payment trends, the impact of China on growth numbers is significant.
The integration of customer analytics, improved fraud management, dynamic wallet solutions and other value-added services will have a positive impact on both the consumer and the merchant. It is expected that ongoing improvement in biometrics and secure payments will become mandatory in the future, while integration real-time financial management solutions will become commonplace.
Finally, as fintech firms continue to bypass traditional value chain components, traditional financial services organizations will need to determine if they should partner with, buy or ignore these new competitors. Given that most of the fintech activity in the payments space has targeted the most lucrative components of the payment value chain, significant decisions are necessary.
There is no clear path to success in the new payments ecosystem, with many variables, opportunities and challenges still in an embryonic state. It does seem to be clear that success will require collaboration between players and markets. Especially as new technologies and new structures of solutions emerge in connection with open banking APIs, AI and big data, organizations will need to determine their best role in the new ecosystem.
In the end, the consumer and commercial marketplace will determine the winners, but there are tremendous opportunities for firms that embrace collaboration of insight and solutions to develop an improved value-added proposition that can address the need for speed, insight and security.
7. Navigating Compliance and Regulatory Changes
Similar to what we saw in 2017, most banks and credit unions worldwide are continuing to do business under a cloud of regulatory uncertainty that is expected to a challenge for the foreseeable future. Even though lawmakers and regulators aren’t expected to make many definitive changes, most financial institutions continue to do their best to meet risk and compliance parameters and supervisory expectations.
Since most institutions realize that they don’t have the ability to wait to see how things will eventually end up, many banking organizations are making progress, trying to keep in alignment with what is anticipated from a risk and business perspective. As one banker stated this past year, we are in a position to ‘beg for forgiveness’ rather than ‘asking for permission.’
According to Deloitte, “Banking organizations need to keep moving forward as planned, with deliberate linkage between regulatory strategy; business strategy; and building infrastructure for governance, regulatory reporting, and risk management that scales and is flexible.The good news is that many of the changes banking organizations are currently implementing make good sense from a business perspective—not just a regulatory perspective—and are worth doing no matter how the future unfolds.”
8. Exploring Advanced Technologies
At a time when most organizations are still playing catch-up, a new wave of digital technology has the potential to change the way organizations deliver banking services even further. These new technologies include artificial intelligence (AI), the internet of things (IoT), blockchain, open banking platforms with application program interfaces (APIs) and robotic process automation (RPA).
With the potential to increase efficiency, decrease costs and enhance the customer experience, these digital-enabled technologies will result in disruption of the way people do their banking and potentially what organizations deliver these services. We are already seeing organizations testing many of these digital technologies, hoping to win the battle to become the ‘bank of the future.’
As quickly as past technologies have become the norm, a new wave of emerging technologies will combine digital technologies and the power of data to set new standards. According to PwC, these ‘essential eight’ technologies include:
The Internet of Things (IoT)
Artificial Intelligence (AI)
Robotics
3-D Printing
Augmented Reality
Virtual Reality
Drones
Blockchain
Obviously, the prioritization and investment in each of these technologies will vary based on the industry, business model and strategic goals of each organization. For instance, while the marketplace as a whole does not foresee investing much in blockchain technology, the financial services industry ranks this as a high priority.
That said, investment in emerging technologies as a percentage of overall technology investment has not increased since 2007 (across industries). In fact, the share of the overall technology budget that is allocated to emerging technology is only 17.8%, according to the PwC research.
Especially for the financial services industry, it is imperative to think beyond individual emerging technologies. With the advent of open banking APIs as a way to bring external technologies and innovations directly to banking customers, and the emergence of non-traditional banking ecosystems that may include non-banking services, combinations of technologies will become the norm.
For instance, the use of customer data insights and advanced analytics may be combined with IoT technologies to allow payments directly from smart home devices. Likewise, the the expanded use of conversational AI and VR devices may come together, providing methods of banking interactions only imagined in sci-fi movies.
Being a leader in emerging technology is no longer a luxury only for the big players. It is important for all financial organizations to make emerging technology a ‘core competency,’ with engagement throughout the organization (not just the very top). In addition, the focus of every implementation much be both internal and external human experiences, as opposed to revenue, profit and cost savings.
9. Competing with New Challengers
Modest-sized fintech firms and large tech giants continue to make retail banking inroads worldwide, providing services that leverage the best in digital technology to deliver a customer experience that removes cumbersome steps from both routine and more involved banking engagements. Relative financial newcomers like AliPay (China), WeChat (China), Rakuten (Japan), Atom (UK), Monzo (UK), Starling (UK), N26 (Germany) and Revolut (UK) have joined household names like PayPal, Amazon and Google to disrupt the banking ecosystem, leveraging modern infrastructures and innovative cultures.
According to Bain, “Many of the tech giants possess the ingredients of success: digital prowess, large customer bases, organizations well versed in improving the customer experience, and ample leeway to extend their corporate brands into banking.” More concerning may be that some of these firms are generating a level of trust previously reserved only for traditional banks and credit unions. As a result, an increasing percentage of consumers are willing to use financial products offered from these non-traditional firms – especially where the experience is superior to that offered by legacy organizations.
It is expected that demand for products and services from fintech firms and large tech companies will only increase as more consumers become familiar with new digital offerings. This is especially true for younger consumers, who have grown up with digital devices. More and more, people will get annoyed when they’re forced by bank policies and processes to use non-digital channels for everyday banking business, states the Bain research. This includes rudimentary transactions as well as being able to open new accounts or apply for loans.
The best way to prepare for the inevitable increase in competition that the continued expansion of banking services offered by Amazon, Google, PayPal, Facebook and an increasing number of start-up banks will bring is to be proactive in the development of personalized digital solutions. This will most likely involve new partnerships inside and outside of traditional banking organizations and a redefinition of what a banking ecosystem includes.
In other words, if banks don’t reorient their approach and radically accelerate their rate of progress, loyalty will suffer, and they will watch technology firms poach more business. Meanwhile, their economics will erode as too many routine transactions continue to flow through expensive branch and call-center networks.
There is a great advantage in the customer and member insights that traditional financial institutions possess. The key is to apply these insights in ways that directly and positively impact the digital experience, similar to how large tech firms currently improve shopping, social, search and payments.
10. Testing Blockchain Technologies
Satoshi Nakamoto, the unknown person or persons who designed the cryptocurrency, went on to say “digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending” in the original whitepaper.
In the proposed solution, the “network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed.” He further described the concept of miners where “a majority of CPU power” would generate the longest chain and outpace attackers or malicious intent.
Today, blockchain is no longer just about bitcoin or the broader category of cryptocurrency; it’s an exploded view of the underlying technology. It’s unique and differentiated in that it’s an immutable ledger with a single version of the truth of the transaction.
And unlike other immutable datastores, it is also a shared or distributed ledger across a peer-to-peer private or public network. It leverages a consensus mechanism to create permanent records of transactions through a distributed and decentralized network, removing the need for a central authority.
Ultimately it intends to create a trustless exchange of goods, services and/or real assets in a more trustworthy way. And with a potentially much lower cost of transaction.
Why should we all care? While financial services is the sector most likely to be disrupted, blockchain technology is poised to improve customer experience, streamline product features, and enable our global economic system to reshape market structures that will impact us from Wall Street to Main Street.
Financial services marketers, retail bankers, product managers and customer service executives will all be impacted by the progress of blockchain technology. One of the first overarching impacts could be in the development of a system of universal identity verification, that will impact everything from new account opening to cybersecurity.
Leaders must be prudent and act now in evaluating blockchain as the types of deployments evolve, while regulators need to re-evaluate policies and processes given the enhanced transparency the technology promises.
By: Jim Marous is co-publisher of The Financial Brand and publisher of the Digital Banking Report, a subscription-based publication that provides deep insights into the digitization of banking, with over 150 reports in the digital archive available to subscribers. You can follow Jim on Twitter and LinkedIn, or visit his professional website.
HO CHI MINH CITY (Reuters) – A unit of Thai Beverage (SI:TBEV) won the auction to buy a $5 billion or 54 percent stake in top brewer Sabeco (HM:SAB) in the country’s biggest ever privatization process, an official from the Ho Chi Minh City Stock Exchange said on Monday.
The anticipated sale of the state-owned maker of Bia Saigon gained momentum in recent months. Thai Beverage emerged as the only buyer for a majority stake as global brewing groups stayed out of the auction.
Foreigners may be allowed to make savings deposits at local banks, according to a draft circular recently released by the State Bank of Vietnam (SBV)
Non-residents with presence in Vietnam may be allowed to make termed savings deposits in both Vietnam dong and foreign currency at local banks.
To make it clearer, the draft circular defines that a non-resident with presence in Vietnam may be a foreign legal person operating in the country in the form of branch, representative office, executive office, operational office, diplomatic representative mission or consulate or a foreigner living in the country for a period of less than 12 months or coming to the country for medical treatment, study or tourist purpose, or working for the above-mentioned agencies.
As explained by the SBV, the regulation, if approved, would help restrict hot money flows and at the same time, protect lawful interests of non-residents with presence in Vietnam.
The rule is highly appreciated by economic and banking experts who all considered it a positive move of the central bank which would probably help local banks meet diversified demands of customers and raise foreign-currency capital.
However, experts remained worried about the provisions requiring foreigners, when withdrawing foreign-currency deposits, to transfer the received amounts to their foreign-currency payment accounts or sell such amounts to licensed banks.
This means that foreigners would receive both principal and interest in Vietnam dong, regardless of whether they make deposits in Vietnam dong or foreign currencies, banking expert Huynh Van Minh commented.
“Assuming that foreigners feel good to receive back their deposits in Vietnam dong, in case they do not spend up all these money amounts before leaving Vietnam, what will they do with the remainder? Will they be allowed to buy foreign-currency cash from local banks or have to make transactions at the black market?” he asked.
The draft should allow foreigners, when leaving the country, to purchase foreign-currency cash not exceeding the total savings amount they have deposited at local banks, Minh suggested.
Economic expert Can Van Luc added that the draft should also contain provisions on the process for inspecting large sums of money, extraordinary sums of money and sums of money of unclear origin so as to prevent and combat money laundering.
Your guide to the best places to learn Vietnamese in Saigon.
Vietnam is becoming an ideal destination for foreigners because of its international economic integration and cooperation. Therefore, demands for studying Vietnamese are currently increasing rapidly, especially in a dynamic city like Ho Chi Minh City. Teaching Vietnamese in a Vietnamese environment is currently attracting a lot more attention from foreigners. We would like to introduce to you some of the most prestigious Vietnamese schools in Ho Chi Minh City.
1. 123Vietnamese
Established in 2010, 123Vietnamese is recognized as one of the leading institutions for teaching Vietnamese to foreigners.
123Vietnamese creates a dynamic and creative study environment and has experienced and skillful Vietnamese teachers. In addition, its carefully designed teaching material includes 16 main lessons, six cultural lessons and six revision modules. Learners can improve their Vietnamese skills while learning about Vietnam’s culture, people and attractions.
123Vietnamese designs flexible courses to meet learners’ particular requirements, namely conversational Vietnamese, elementary Vietnamese, intermediate Vietnamese, advanced Vietnamese, and Vietnamese for overseas Vietnamese. If you cannot attend classes at the center, you can also learn via the website at www.123vietnamese.com.
123Vietnamese currently has branches in Hanoi, Ho Chi Minh, Hai Phong and Da Nang. 123Vietnamese center’s study programs are totally flexible to suit different levels and time constraints.
2. Faculty of Vietnamese Studies – University of Social Sciences and Humanities – Vietnam National University Ho Chi Minh City
The Faculty of Vietnamese Studies is one of the leading Vietnamese teaching organizations for non–native speakers.
You can study Vietnamese according to your level under the guidance of experienced lecturers at the university. Study programs are well–organized to help learners to approach Vietnamese easily and effectively. Moreover, the university offers short–term training programs for international students.
The University of Social Sciences and Humanities also offers courses in different languages such as Korean and Japanese, so you will have a chance to mix with different cultures while interacting with the Vietnamese students to help improve your Vietnamese.
3.Faculty of Literature – Ho Chi Minh City University of Education
The faculty started teaching Vietnamese for non–native speakers in 1998. The faculty currently has two training programs.
– Vietnamese training for advanced learners who want to use Vietnamese proficiently or to research and study in Vietnam.
Students who take part in this program will study for four years. First year students will learn 4 language skills: listening, speaking, writing and reading. Students will continue studying advanced Vietnamese as well as other subjects such as language studies and Vietnamese literature over the remaining three years. Students will receive a bachelors degree upon graduation.
– Short–term Vietnamese training courses for non–native speakers who wish to learn communication skills.
The duration of courses are based on each learner’s requirements. These courses can last from one month to one year. Different levels are available and a certificate is issued by the university upon course completion.
Students will be equipped with appropriate course material to meet their demands and levels. In addition, foreign learners can stay in the university’s halls if they wish.
The faculty cooperates with Paris Denis Diderot University, Bing Dong Taiwan University of Education and Chiangmai Rajabhat University to help foreign students access the Vietnamese language.
4. Saigon Language School
Established in 2005, Saigon Language School provides Japanese training courses for Vietnamese students and Vietnamese training courses for non–native speakers. The school is highly regarded by learners in Ho Chi Minh City. Furthermore, the school was named in the top 30 educational organizations by Ho Chi Minh City’s Department of Education and Training from 2010 to 2013 thanks to its outstanding teaching and study programs.
Its training programs are split into elementary, intermediate and advanced Vietnamese. The school also offers specialized courses such as Vietnamese for foreign tourists, Vietnamese for the office and Vietnamese for business in order to create a practical and dynamic study environment. Learners can choose to study in a group or in a private class.
Learning the language of an adopted country is an essential and basic need. Therefore, studying Vietnamese for non–native speakers in Vietnam will help people to live and work in Vietnam more successfully and broaden their knowledge of Vietnamese history and culture. To study Vietnamese effectively you need a high quality teaching institution. Hopefully, you can choose an appropriate study environment thanks to our tips and recommendations.
Some 25 per cent of CEOs or board directors in Việt Nam are women, surpassing the figures for Malaysia, Singapore and Indonesia.
Bloomberg cited a report from the Boston Consulting Group (BCG) as saying women hold 14 per cent of CEO or board level positions in Malaysia and 10 per cent in Singapore. Indonesia came in last among the four countries, at 6 per cent.
More Vietnamese women, compared with their Singaporean and Malaysian peers, look for a promotion, the BCG report said after surveying more than 2,000 employees. Malaysia has the largest proportion of female respondents who intend to stay in their current roles.
“Women in Việt Nam lead or own many SMEs and large enterprises which provides positive, visible and diverse role models to other women,” Ian Grundy of Switzerland-based employment firm Adecco Group AG, the world’s largest provider of temporary workers, was quoted by Bloomberg as saying.
Emerging countries outperform developed countries in Asia in women’s representation on company boards, Grundy noted. Việt Nam’s progress in gender diversity is partly due to measures by the Government and businesses to foster female talent, he said.
“Having said that, it is important to remember that Southeast Asia still lags behind Europe and North America,” Grundy added.
According to another study by Deloitte in June 2017, 17.6 per cent of board members in a survey of 50 Vietnamese companies were women — more than double Asia’s average of 7.8 per cent. — VNS
A coffee-serving robot has become the main attraction of a coffee shop in the capital.
Located on Pho Lac Trung Street, Hai Ba Trung District, Hanoi, a coffee shop called Robocafe has lived up to its name: having its coffee served by a robot.
The futuristic staff member, which is 1.3 meters high and weighs about 20 kilograms, can function continuously for 15 hours.
The robot was created at a cost of more than VND200 million (US$8,780) and can speak several sentences.
“One of us went to a coffee shop in Japan where robots served coffee. Then we asked ourselves ‘Why don’t we have one like this in Vietnam?’” said Hoang Quoc Anh, manager at Robocafe.
With one of the three investors being an engineer, the group created the robot themselves.
The final product is a result of nine months of hard work.
The robot is programmed to move along a metal line on the floor and bring drinks to the customers.
It is also accompanied by high-tech surroundings, making the coffee shop look like a time machine.
“This blue robot is so adorable. This is the first time I have been served by a robot. It feels modern and intelligent, especially in a high-tech era like this,” commented Nguyen Thi Thu Huyen, a first-time comer.
The group plans to make more robots in the future.
The robot can work continuously for 15 hoursA touch screen allows the bartender to control the robot
A new World Bank report, jointly launched on Thursday with Vietnam’s Ministry of Finance, will support the development of a sound financial reporting institutional framework, by improving the understanding of high-quality corporate financial reporting and auditing.
The report, entitled ‘Reports on the Observance of Standards and Codes (ROSC): Accounting and Auditing’ and part of a global initiative to improve compliance with internationally recognized standards and codes, focuses on accounting and auditing standards and practices for public interest entities, as well as the institutional framework that underpins the corporate financial reporting system.
“As part of the World Bank Group’s support for Vietnam’s Vision 2030 on Accounting and Auditing, we hope that this report will contribute to the successful implementation of the country’s long-term strategy for sustainable and inclusive development,” Ousmane Dione, World Bank country director for Vietnam, was quoted as saying on the bank’s website.
Linked to complementary reforms in the financial sector, the report recommends that Vietnam’s accounting law and the law on independent auditing could benefit from simplification during the next revision process.
It also advises that Vietnam fully adopt international financial reporting standards and related guidelines from the International Financial Reporting Interpretations Committee for public interest entities.
“We echo the report’s point of view that the benefits of IFRS adoption is undeniable. Once IFRS is adopted, the quality of corporate financial reporting will improve significantly through enhanced accountability, transparency and comparability, providing users with useful information for management, governance and investment decision-making. In addition, the IFRS adoption also promotes the international recognition of Vietnam as a full market economy, and eventually the FDI flow,” Vu Thi Mai, Vice-Minister of Finance, said.
Therefore, the Ministry of Finance is promptly working on the development of a proposal on updating Vietnam’s corporate standards for submission to the government’s approval for IFRS adoption, he added.
The report recommends specific policy measures relating to statutory frameworks, accounting standards, public oversight and monitoring, accounting education, and public accountancy organizations, in order to promote transparency and investor confidence, mitigate risks stemming from financial volatility, and foster market efficiency as well as private sector-led economic growth.
The findings of a review by independent bodies of the decade-long implementation of compulsory helmet legislation for riders were announced in a conference in Hanoi last week.
Helmeted motorcyclists now account for more than 90 percent of all motorcycle users in Vietnam, which is reportedly chiefly responsible for a reduction in annual traffic accident fatalities to 9,000 as well as a reduction in serious brain injuries, said Khuat Viet Hung, vice chairman of the National Traffic Safety Committee, and the organizer of the meeting on December 15.
In contrast to this news, a mere 35 to 40 percent of child passengers wore helmets during a ride in 2017, compared to above 50 percent in 2013, according to the World Health Organization.
Thanks to helmet use, as many as 500,000 brain traumas and 15,000 deaths were averted, according to a study by the AIP (Asia Injury Prevention) and FIA Foundation.
As for helmet quality, the WHO highlighted stats that said the percentage of riders utilizing helmets compliant with safety standards was now 70 percent in Vietnam, but this was offset by a 2013 study, which said that only 40 percent of new, certified helmets actually passed impact absorption tests.
In addition, the vast majority – 90 percent – of students who rode e-bicycles failed to wear a helmet of any kind.
Meanwhile, confusion amongst officials surrounding penalties for using ‘counterfeit’ or unsafe helmets has yet to be clarified.
Historically, prior to the enactment of the helmet law, Resolution 32, advocates of compulsory helmet wearing were met with strong opposition, making its execution practically impossible.
However, headgear as a new social norm has become a fact just a few years later, due to widespread recognition of its obvious safety benefits.
Three-star-hotels are affected the most because they focus on the same market as accomodation-sharing services.
A room with a comfy clean bed, free wifi and a nice hot shower might sound like the perfect spot for tourists. But the simple formula no longer seems to be so attractive to young local and foreign visitors to Vietnam as accommodation-sharing services such as Airbnb grow increasingly popular.
The service is competing with traditional hotels to attract visitors who want to enjoy local life for up to half the price.
“Rather than staying in hotel rooms, many visitors prefer to stay in homes,” said a representative of Luxstay, an Airbnb-like business that offers properties for rent in Vietnam.
The rising number of people visiting Vietnam has created the momentum for growth in the accommodation-sharing businesses, according to experts.
Vietnam is on track to receive 12.8 million foreign tourists this year, up 28 percent against 2016, having already broken the record of more than 10 million with still two weeks to go until the year-end.
Official data from the General Statistics Office shows that more than 11.6 million foreign tourists arrived in Vietnam between January and November this year, up 28 percent against the same period last year.
Since officially launching in Vietnam in 2015, Airbnb has enjoyed explosive growth. There are now over 6,500 active Airbnb listings in Vietnam, with Saigon alone offering 4,000 places to rent. Hanoi has been slower to embrace the service with around 2,500 listings, according to a recent report by accounting and consulting firm Grant Thornton.
The driving force shifting consumer attention to Airbnb in Vietnam is a willingness to experience something new and affordable when it comes to rented accommodation, said Grant Thornton.
According to a Nielsen report, 76 percent of respondents in Vietnam like using shared products or services, compared to 66 percent of consumers globally.
In a country with strong entrepreneurial spirit where people want to run their own businesses or have a side venture in addition to their day jobs, many locals have snapped up the opportunity.
Forty-year-old construction engineer Nguyen Van Bao has been renting out four rooms in one of his properties in Hanoi’s Old Quarter for the past six months. Each room costs $18 per night. He did not reveal how much he has earned from Airbnb, but said that his property is nearly occupied on most nights.
Home sharing is also becoming increasingly common, and some people have turned the service into a full time job.
Nguyen Thuy Hoa, a 44-year-old property host in Hanoi, has turned her new house into two listings on the service. She has equipped her home with everyday necessities for families such as cookware, changing tables and high chairs, and rents each part of her home out for $20 per night.
She said that family-friendly amenities are important to guests who want to continue their usual daily routines and sleeping schedules while they’re on holiday.
Hoa said most of her guests are young and from western countries. “I like meeting people from different cultures.”
Hotel reactions
Tony Chisholm, general manager of Hotel Pullman Saigon Center, said that booming home-sharing services are competing with traditional hotels. Three-star-hotels are the most affected by the competition because of the market they focus on, he said.
This has forced some hotels to cut their room rates, according to industry insiders. According to a report by Ho Chi Minh City’s tourism department, average prices at 3-5 star hotel rooms fell 11.3 percent in the first half of 2017 compared to the same period in 2014.
However, many other hotel operators are unperturbed by the growth of the service.
Forbes quoted general manager of the five-star Reverie Saigon Hotel Kai Speth, who previously helmed the iconic Metropole Hotel in Hanoi, as saying that Airbnb might make for a good fit in destinations such as New York and London. But there were some challenges worth considering when opting for such alternative choices in emerging markets.
“In Vietnam, issues such as power outages, noise pollution and loss of internet connectivity and hot water for indefinite periods are not uncommon,” he said.
“Well-established hotels such as ours, however, that have been built to meet the most stringent of international standards, can ensure that such challenges won’t mar holidays that people have spent months planning. And having unrestricted access to experienced professionals can make all the difference.”
However, theses issues do not concern hosts like Bao, the construction engineer in Hanoi.
“These problems happen sometimes, but mostly in rural areas, not in big cities like Hanoi and Ho Chi Minh City. I believe guests will continue to use the service because of quality and price,” he said.
“I’m thinking about putting another property on Airbnb to earn more from this lucrative market.”
