Open Banking Revolution in Vietnam

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Open banking is the new revolution in the banking sector, Vietnam is introducing open ApIs to keep up with the rapid financial landscape .Digital transformation in Vietnam is a Clear indication which gives us a idea of digital transformation strategy, about 94% of the banks have initially implemented and 35% of banks are in the process for the same.

In a recent webinar Saigon Commercial Bank has shared plans to contrivance open banking practices, developer portals are launched by Joint Stock Bank and Orient Commercial joint stock bank with open ApIs in January 2020. The Regulatory reality Open banking is the actual practice in jurisdictions such as Uk, the European Union and Australia.

The Central bank has been actively pursuing partnership opportunities to accelerate development. Sbv is the leader in digitalization towards banking and financial services industry, Vietnam has signed a Memorandum Memorandum of Understandings (MoU) with Korea’s National IT Industry Promotion Agency (NIPA) and Korea Financial Telecommunications and Clearings Institute (KFTC) to develop a standardized Open API in the banking sector.

Innovation in electronic know-your-customer (ekyc) was established in March 2017 peer-to-peer (P2P) lending, digital payments, blockchain and open APIs.  One of the committees is to research and develop an open API platform.

SBV governor Le Minh Hung said in September 2020 that the central bank is now in the process of revising existing regulation to create a complete framework for fintech and support digitalization in banking.

In addition to that, it will be revising existing legislations to support banks and financial institutions applying new technologies including new guidance in cashless payment, the adoption of remote verification process (eKYC), and the revision of the Law on Prevention of Money Laundering, among others.

Compared to Singapore, Malaysia, the Philippines and Thailand, Vietnam is lagging behind when it comes to open banking.

In the Philippines, the central bank released in December 2020 the first version of the draft Circular on Open Finance, a proposed framework to implement open banking in the country.

Meanwhile, Singapore has adopted an organic approach to open banking with adoption being nevertheless facilitated by the Monetary Authority of Singapore (MAS).

In Thailand, open banking has been driven by banks themselves, but the introduction of the Personal Data Protection Act (PDPA) last year suggests a move to open banking frameworks could be imminent.

Similarly, to Singapore, SBV governor Le Minh Hung SBV governor Le Minh Hung said in September 2020 in September 2020 has taken a market-driven approach to open banking with a non-mandatory guideline framework for working with open data and open APIs.

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