Digitizing the process, banks actively lend online

Many banks deploy online lending

Loans can be made with a 100% digital process

In recent directions from the Prime Minister, the Government and the State Bank (SBV), promoting digital transformation, actively implementing credit growth solutions, directing credit to production, business, priority areas and growth drivers... are always emphasized.

In particular, it highlighted the requirement for credit institutions to increase lending to serve daily life and consumption, and promote lending through electronic and online forms; diversify banking credit products and services to suit each customer segment and market, type, and production and business needs of people, businesses, cooperatives...

Therefore, many banks have deployed credit granting online. According to the State Bank, so far, there are at least 28 credit institutions applying technology to lending.

According to enterprises, in the past, in order to borrow money from banks, they had to prepare a loan application with dozens of files, including corporate legal, corporate finance, collateral proof... Then, they had to wait for appraisal and approval at least 2-3 months. However, with the current form of online lending, the time for procedures and documents is only 1-3 days and all operations, including approval, disbursement. Enterprises do not need to go to the transaction office but can carry out 100 percent of the process on digital banking.

As at MSB, with the strength of technology and making the most of tax and invoice data, combined with the bank's national population database, nearly 5,000 businesses have been granted credit on digital channels with nearly VND52,000 billion granted limit , of which, nearly VND1,000 billion in limit  was granted through embedded and integrated solutions for customers on partner platforms...

According to Ms. Dinh Thi To Uyen, Deputy General Director of MSB, with the capabilities of machine learning and data, the bank can approve in 4 minutes. Along with that, the bank combines solutions with financial technology companies (Fintech), connecting with tax data... thereby instantly updating information about the status of businesses. Thus, it can evaluate the model to be able to offer a loan solution as soon as the customer registers and provides basic information.

Similarly, BIDV also digitized the lending process from receiving loan needs to implementing and managing loan accounts for corporate and individual customers. SHB also has a series of products that are implemented end-to-end on the online channel such as opening an eKYC account, online overdraft, mortgage loans on savings book.

In addition, Mr. Nguyen Dinh Tung, Member of the Board of Directors of OCB Bank shared that online lending helps create conditions for people with average incomes or higher to borrow from banks with 100 percent digitized, fully automated credit approval... In addition, Mr. Mai Huy Phuong, Deputy Director of MB's Digital Banking Division, also said that based on the cash flow transaction history at the bank, it can immediately propose and grant credit to customers when needed.

Promote technology investment

According to experts, in order to develop online lending, the banking industry is increasing investment in technology systems to ensure information safety and security in the transaction process, while applying large databases (Big Data) and artificial intelligence (AI) technology... thereby, helping to evaluate credit history, spending ability, payment ability, or production and business efficiency to decide disbursement limit s for customers.

The State Bank has also closely coordinated with the Ministry of Public Security in crime prevention and especially has pioneered the effective implementation of tasks in Project 06/QD-TTg to apply population data to serve clean data, accurately identify/authenticate customer information, support consumer lending activities on electronic channels, electronic guarantees as well as contribute to ensuring the safety of banking operations. 24 credit institutions have signed with C06 (Police Department for Administrative Management of Social Order - Ministry of Public Security) to deploy customer data cleaning...

Therefore, banks assess that a series of regulations on online lending that are about to be legislated and efforts to connect population data will help the banking system take advantage of online lending opportunities.

However, with this development, security and network security in online lending must also be strengthened, minimizing risks for all parties, especially when the "war" in financial security in the cyber environment is still going on with many new tricks constantly appearing.

Along with that, we must promote communication so that people and businesses understand the process and benefits of borrowing money online from reputable credit institutions, not borrowing money from "black credit" applications with high interest rates...