During the recent event titled 'Digital Transformation in Banking 2026' on August 18, Governor Pham Duc An of the State Bank of Vietnam shared significant insights regarding the digital transformation of the banking sector over the past five years. He highlighted that the value of cashless payments is expected to exceed 28 times the GDP by 2025, with QR financial transactions experiencing an impressive average annual growth rate of over 100%.

According to the Governor, nearly 89% of individuals aged 15 and above now possess payment accounts. The overall number of cashless payment transactions has increased by an average of approximately 59% annually over the past five years. This rapid growth has been facilitated by the effective use of resident data, electronic identification, and enhanced solutions for verification, alert systems, and fraud prevention, which have significantly improved online service delivery and customer protection.

Despite these advancements, Governor An emphasized that the achievements thus far are merely the beginning. He noted that as digital transformation deepens, new challenges related to institutional frameworks, data security, cyber fraud, privacy protection, and artificial intelligence governance are emerging rapidly. Therefore, there is a pressing need for continued, focused, and controlled innovation, with tangible effectiveness as the primary measure of success.

Furthermore, the Governor stressed the importance of refining the legal framework to promote innovation while effectively managing risks, particularly concerning banking operations in the digital environment. Issues arising from artificial intelligence, data management, open banking, and digital banking models also require careful attention.

Governor An called for the responsible and value-driven application of artificial intelligence in areas such as data analysis, risk management, fraud detection, process optimization, customer service, and product development. He also highlighted the necessity of establishing governance principles for AI to ensure accountability, data protection, and the safeguarding of customer rights.

In light of the increasing sophistication of crimes utilizing AI and deepfake technology, banks are urged to shift from reactive incident responses to proactive prevention strategies. This includes enhancing investments in cybersecurity, data security, and fraud prevention to protect both the banking system and its customers. Governor An firmly stated, 'We must not compromise safety, privacy, and user trust for the sake of digital transformation growth.'

Additionally, the banking sector must prioritize developing human resources in data management, AI, technology, and cybersecurity. Leaders within these institutions must take direct responsibility for the outcomes of digital transformation initiatives, ensuring that each task has clearly defined objectives, products, accountability, resources, deadlines, and measurable indicators.

As of July 31, the State Bank reported that over 167.8 million personal customer records and more than 2.78 million organizational customer records have successfully undergone biometric verification using chip-enabled ID cards or the VNeID application. Since the implementation of the SIMO system, over 4.9 million customers have been alerted to suspicious activities related to their payment accounts and e-wallets, leading to more than 1.6 million customers temporarily halting or canceling transactions amounting to over 5.5 trillion VND.