RESEARCH ON THE DEVELOPMENT OF DIGITAL TECHNOLOGY IN BANKING ACTIVITIES IN VIETNAM TOWARDS SUSTAINABILITY

Abstract

In Vietnam, the digital banking model has undergone rapid development in recent years. This paper evaluates the current state of digital banking development in Vietnam from several aspects: (i) the legal framework for digital banking development; (ii) market participants in the digital banking sector; (iii) methods of digital banking development; and (iv) the quality of digital banking services, thereby identifying the current level of digital banking development in Vietnam. According to the research team's assessment, digital banking in Vietnam is currently in the formative stage, with significant potential for growth. The application of digital technology in banking operations in Vietnam has had a positive impact on operational models, driving a strong transformation in internal business systems and in the provision of advanced products and services to customers. The application of digital technology in banking is considered the next phase after digitalization in the digital transformation process, serving as an important support for the digital banking strategy of the banking industry.

This study aims to discuss digital technologies applied in banking operations, such as Artificial Intelligence (AI), Machine Learning (ML), the Internet of Things (IoT), Big Data, Cloud Computing, Distributed Ledger Technology (DLT), Blockchain, Biometrics, and the products and services created by financial technology companies (Fintech). The application of Big Data in banking is particularly significant for building and managing data resources in the finance and banking sector. Currently, an increasing number of banks are adopting Big Data in their operations to keep pace with the rapid development of modern society, where customers seek simplified, fast, and convenient procedures. Big Data is a powerful tool that can help banks achieve this goal. However, the implementation of Big Data in banks still faces certain challenges.