Press release

6 Dec 2023 Hanoi, VN

Data-driven digital transformation in banking sector in AI era

HANOI, 6 OCTOBER 2023. SMART BANKING 2023, themed “Harnessing and Leveraging Data: Shaping the Future of the Banking Industry in the Digital Age”, was co-hosted by the IEC Group and the Vietnam Banks Association on 6 October 2023 in Hanoi.

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Nguyet Thu Vu
Nguyet Thu Vu

EY Vietnam, Brand, Marketing and Communications, Director

Passionate about connecting people with trusted sources of knowledge that contributes to and enables their business a sustainable growth.

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  • A data-driven digital transformation strategy requires banks to focus on addressing hurdles on data collection, governance, and application
  • Unlocking the power of AI can accelerate the digital transformation of banking sector in the new era

HANOI, 6 OCTOBER 2023. SMART BANKING 2023, themed “Harnessing and Leveraging Data: Shaping the Future of the Banking Industry in the Digital Age”, was co-hosted by the IEC Group and the Vietnam Banks Association on 6 October 2023 in Hanoi. EY Consulting Vietnam Joint Stock Company (EY Consulting VN), serving as Knowledge Partner for the event, offered attendees a series of topics in both the plenary and conference sections.

Conference section: “Data-Driven Strategies for Sustainable Banking Digital Transformation”, led by EY professionals and industry experts from other organizations, aims to explore the fascinating facets of this rapidly changing landscape, highlighting the opportunities and challenges and leading practices on data governance for AI’s input that banks in Vietnam can make use of.

Data-driven digital transformation strategies and barriers for banks

In today’s ever increasing connected world, data centricity is driving and predicting the most important decisions, processes, and interactions within banks and with clients. The Vietnamese market stands at a pivotal juncture, with many banks transforming their data landscape and internal procedure to prepare for their digital transformation and a data-driven future.

Most banks in Vietnam have embarked on digitalizing their operations, although to varying degrees. Notably, the digital landscape of the banks in Vietnam on the customer channel front is very evolved as nearly all of them have invested in emerging technologies to enhance digital customer experience.

Several key drivers underpin this transformation. Firstly, Vietnam boasts a young and digitally savvy customer base, requiring banks to enhance their digital agility to meet their demand. Secondly, financial technologies (Fintech) ecosystem continues to evolve, offering efficient services that are integral to the banking value chain. Lastly, the banking sector is becoming increasingly interconnected with other industries, demanding robust data handling capabilities to capitalize this interconnected landscape.

The data-driven digital transformation mirrors global trends and is poised to become the new norm in the future of the banking sector.

However, investments on the data-related capabilities side vary, and many banks are exploring how data can be utilized as an asset. As data platforms and analytics capabilities are implemented, we can expect more sophisticated data-driven strategies from a significant number of banks in Vietnam.

Experts attended the conference.

According to EY Tech Horizon 2022 Survey, businesses will face significant hurdles such as: collection and orchestrating data into consumable formats; unavailability of right architecture; missing data strategies; lacks data quality; and difficulties to gain right information at right time.

According to the Survey, data and analytics form the core – presenting the number one investment priority with 53% of respondents identifying it as their top investment priority, up from 35% in 2020. Hence it is very important to focus on solving the data challenges.

Leveraging the Power of Al to accelerate banking digital transformation

Data can’t be an asset without the empowerment of emerging technologies, especially AI. AI uses business data as its input. However, AI only maximizes its power when businesses establish an advanced data management system.

Mr. Sayantan Choudhury, Partner, Technology Consulting, EY Consulting VN emphasized the importance of data accuracy and sanctity for building trust in AI-driven results. "To ensure the AI algorithms continue to churn out trusted results, data need to be tested for accuracy on a regular basis. To do that, banks need to have a robust data management and governance in place."

Mr. Sayantan Choudhury, Partner, Consulting, EY Consulting Vietnam Joint Stock Company (2nd on the right) shares information at the panel discussion

In addition to challenges associated with data-driven strategies, the use of AI and data comes with various ethical considerations and potential pitfalls that banks should be aware before embarking any strategies led by data. Some of common ones include:

Consent and privacy: Organizations must obtain customer consent for collecting and using their personal data in AI algorithms while maintaining customer privacy by implementing necessary security policies and systems.

Data integrity for trust and security: Trusted AI is driven by trusted data, making it crucial to maintain data integrity through robust data governance and management. Banks must also have proper cybersecurity measures in place.

Bias in AI output: AI algorithms can generate biased output over time, leading to faulty decision-making. Maintaining data integrity and continuous monitoring AI output are compulsory.

Governance: Appropriate governance can address all the above aspects and ensure adequate accountability in case issues arise due to AI outputs.

Mr. Sayantan Choudhury, Partner, Consulting, EY Consulting Vietnam Joint Stock Company on his presentation

Ms. Duong Nguyen, Financial Services Organization Leader, EY Consulting VN said: “Data is the fuel for growth. Most banks have been made substantial investment digital transformation, customer experience enhancement and achieving their business goals. However, the rapid evolvement of Generative AI is about to usher a new era. It is crucial for banks in Vietnam to be well-prepared at this juncture, as AI is poised to revolutionize the way of communication, customers services and operations. Beyond that, certain roles within banks might be replaced by AI with advanced and supper generative capabilities.”

We’re stepping into the era of data and data analytics where they play a pivotal role in driving and predicting the most critical decisions, processes, and interactions within banks with the empowerment of emerging technologies and AI. Banks must be proactive and make preparation outright to avoid being left behind in the new race.   

Ms. Duong Nguyen, EY Consulting VN Chairwoman delivered opening speech 

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This news release has been issued by EY Consulting Vietnam Joint Stock Company, a member of the global EY organization that also does not provide any services to clients.

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