FPT Technology Drives Open Banking and Digital Economy Growth

At the Digital Transformation Day of the banking sector, FPT IS Chairman Tran Dang Hoa presented to Prime Minister Pham Minh Chinh, stating, "In the context of the digital economy, the key task set by the banking industry is to expand connectivity and develop the digital ecosystem. Organizations and banks will face several significant challenges."

Numerous technology solutions have emerged

Over the years, the banking industry has steadfastly reinforced its role as the "lifeblood" of the economy, consistently transforming and embracing modern management and business trends. Notably, the rise of financial technology (Fintech) in recent years has introduced a new playing field, fostering innovative business models and new market entrants, disrupting traditional financial institutions' "closed" position.

Instead of withholding customer files and avoiding links with external entities to protect customer data, banks are now striving to be as open as possible. Open Banking is emerging as an increasingly popular trend in Vietnam.

Prime Minister Pham Minh Chinh visited the FPT IS booth at the Digital Transformation Day of the Banking Sector on May 8.

FPT IS is dedicated to promoting open banking in Vietnam and connecting it to the global digital economy. On this journey, FPT IS researches and proposes technology solutions to address the challenges of seamless connectivity and processes between the systems of banks, credit institutions, and businesses, ensuring absolute safety and security.

Addressing the need for rapid, convenient, and secure service integration between banks and businesses, FPT IS has undertaken research, development, and proposal of the TradeFlat Digital Finance Ecosystem solution.

Currently, the development of Open API infrastructure is primarily localized, with each bank independently constructing its own system. This approach results in varying standards for connectivity and core technology platforms, leading to cross-collaboration, resource consumption, and cost management challenges.

TradeFlat emerged to address significant challenges, ensuring seamless connectivity and compatibility across all operations among parties. It provides a unified end-to-end trading platform, resolving major issues such as Letters of Credit (L/C), Supply chain financing (SCF), Electronic guarantee (eGuarantee), and Business Financial Health Monitor.

Simultaneously, aiming to enhance access to capital for both individual and corporate customers, FPT IS devised the comprehensive loan management solution, Lendvero. This solution arose amidst challenging economic conditions impacting lending activities. In particular, for individual customers and small to medium-sized enterprises, loan processes proved intricate and time-consuming to review, resulting in instances of "black credit".

Thus, the Lendvero solution comprehensively addresses consumer loan challenges, spanning from loan origination to debt collection, all within a single platform. In the realm of loan origination, Lendvero seamlessly integrates appraisal operations with satellite software on the platform, streamlining the implementation process. This integration results in intuitive updates and reduces the estimated initiation time from 40 to just 5 minutes.

In debt collection operations, leveraging previously compiled data, the system conducts analysis and generates reports to aid organizations in tracking metrics such as recovery rate and the age of debt collection. This analysis employs cutting-edge technology, combining AI and Big Data, alongside a deep understanding of credit institution operations. Consequently, organizations can devise tailored recovery programs, customized to each customer's needs, based on the insights provided by the system.

Expanding and interconnecting the digital ecosystem

Expanding the banking ecosystem to include multiple parties introduces the challenge of managing vast amounts of data, making it a prime target for cybercriminals. To address this issue and mitigate the risk of data breaches, FPT IS has implemented a chip-embedded Citizen Identity Card (ID Card) authentication service. This solution aligns with the objectives of Project 06/CP, titled "Development of data applications on population, Electronic identification and authentication serving national digital transformation in the 2022-2025 period, vision to 2030."

As a result, FPT IS became the first private entity in Vietnam to attain full compliance with the standards necessary to receive licensing from the Ministry of Public Security. This licensing enables the provision of chip-embedded ID card authentication services through the FPT.IDCheck solution. Equipped with state-of-the-art identity authentication technologies, this solution ensures accuracy rates of up to 100%. in addition to leveraging the chip-embedded ID card authentication services mandated by the Ministry of Public Security, FPT...

FPT.IDCheck is a robust tool that facilitates organizations and businesses in digitizing the user authentication process for various services in the finance-banking sector, including opening new bank accounts, registering for consumer loans, transferring funds, withdrawing funds, registering to issue digital certificates, and electronically signing contracts.

In addition, to address the comprehensive challenges in digital transformation within the banking sector, FPT has developed a sustainable strategy framework comprising six key pillars: Building a standardized core system; Modernizing IT infrastructure and bank data management on the FPT Cloud platform; Streamlining operations management through the akaBot business process automation solution and the paperless office suite (FPT.eContract, FPT.eSign, FPT.eInvoice,...); Implementing the FPT HR DX suite of digital transformation solutions (FPT.eLearning, FPT.iHRP, PeopleX Hiring, etc.); Enhancing customer experience with FPT.AI and Utop solutions; Ensuring absolute information security with the FPT.EagleEye solution.