Quang Tri accelerates digital transformation in policy lending

In line with the digital transformation initiative of the Party and the Government, the Quang Tri branch of the Vietnam Bank for Social Policies has actively implemented digital technologies and developed a digital banking model in its policy-based lending operations. These efforts have continuously improved service quality, provided safe and convenient banking products, enhanced user convenience and experience for low-income individuals and other policy beneficiaries, thereby contributing to the successful implementation of the national digital transformation agenda.

Director of the Quang Tri Branch of the Vietnam Bank for Social Policies, Tran Duc Xuan Huong, stated that to accelerate digital transformation, the branch has focused on implementing the bank’s information technology modernization project. The project aims to provide customers with new utilities and services, ensure compliance with information technology processes and regulations, and guarantee the security of information and systems.

The transaction office of the Vietnam Bank for Social Policies in Trieu Phong disburses job support funds to residents of Trieu Trach commune. Photo: Le Minh

The branch has prioritized developing a modern and fully equipped technology infrastructure, investing in new technology applications, and researching the development of digital tools for management, operations, and statistical reporting. Several stages of operational procedures have been digitized and automated to replace manual work, thereby improving productivity.

Since February 2014, the Intellect Corebanking system—serving as the core banking software—has been officially implemented across the entire network and has met the operational requirements of the Vietnam Bank for Social Policies. The Intellect system has significantly enhanced the bank’s ability to monitor and control operations. It also provides automated processing mechanisms, reducing the manual workload of staff and minimizing errors in task execution.

Due to the nature of conducting transactions in rural areas with limited telecommunications infrastructure, the Quang Tri Branch has deployed the Intellect Offline application software to accommodate these special operational needs. This solution supports transactions at 119 commune-level service points across the province.

At these service points, the application of the one-stop transaction model has helped the bank serve borrowers more quickly and accurately, while improving control and reducing transaction time. Each unit adjusts the number of transaction staff based on the number of clients in each commune, ward, or township to ensure service quality.

In addition, the branch has launched multiple applications to manage and provide credit resources to the public. Among these is the Policy Credit Management application, designed for individuals involved in policy credit work, including group leaders of savings and loan programs, village heads, commune-level poverty reduction officers, chairpersons of commune-level People’s Committees, leaders of socio-political organizations, representatives at all levels, and staff of the Vietnam Bank for Social Policies.

The application has proven highly useful for daily management tasks, especially for group leaders and chairpersons of local authorities. The Policy Credit Management application is a smartphone-based software providing information on policy credit activities and enabling users to perform certain lending procedures in a digital environment. It has now been officially deployed to 100 percent of targeted users, allowing them to promptly track and manage real-time policy credit activities.

The VBSP Smartbanking application is a mobile banking service designed for all customers, particularly low-income households, ethnic minority communities, and people living in remote and isolated areas. It enables 24/7 transactions anytime, anywhere. The application provides convenient features such as money transfers, interest payments, transaction inquiries, account balance checks, savings, and loan information.

It also offers services such as bill payments for electricity, telecommunications, train and airline tickets, tuition fees, insurance, e-wallets, financial loans, tax payments, securities, and QR code transactions. These services empower customers to manage their own banking activities on smartphones without the need to visit a physical bank branch.

Furthermore, the branch has widely implemented a mobile application for managing delegated lending activities. This application is used by staff from mass organizations authorized to manage loans and by Vietnam Bank for Social Policies staff in the area. It includes features for accessing delegated lending data from different organizational levels, detailed account statements for each customer and savings-and-loan group, updates on the bank’s provincial operations, and notifications about changes or additions to credit policies for low-income households and other eligible groups. It also provides approved loan recipient lists and disbursement schedules.

In terms of internal management and operations, the Quang Tri Branch has implemented several other software systems across the network, such as systems for human resource management, awards and recognition, training, and document administration. Notably, the Operational Support System is a web-based application that assists with executive management, monitoring, supervision, and statistical reporting. This system also digitizes many stages of the lending process, shortens processing times, and improves accuracy for both customers and bank staff.

To ensure the timely deployment of new digital tools, the Quang Tri Branch of the Vietnam Bank for Social Policies has actively researched and applied information technology in its operations. The branch has developed and implemented numerous innovations and improvements, particularly in the field of information technology, which have proven effective in enhancing the management and delivery of policy credit resources to the public.

In October 2022, the Quang Tri Branch of the Vietnam Bank for Social Policies launched the Mobile Banking application. After two years of implementation, more than 4,000 customers have registered to use the service. It is known that this application offers a wide range of utilities with both financial and non-financial services, allowing customers to avoid waiting at transaction counters and instead access services from anywhere, as long as they have a smartphone connected to the internet.

In addition to Mobile Banking, the Quang Tri Branch of the Vietnam Bank for Social Policies has also implemented the installation and user guidance of the Policy Credit Management application. Currently, this application has 3,534 out of 3,534 users, including chairpersons and members of the representative boards of directors at all levels; leaders and some staff handling delegated tasks from four socio-political organizations at all levels; chairpersons of commune-level People’s Committees; commune-level poverty reduction committees; village heads; group leaders of savings and loan groups; and leaders and staff of the Vietnam Bank for Social Policies.

This application is highly regarded for its usefulness in the daily work of policy credit managers. In the coming time, the Quang Tri Branch of the Vietnam Bank for Social Policies will continue to maintain the Policy Credit Management application to ensure that the management and operation of policy credit resources are carried out increasingly effectively.

At the same time, the branch will focus on promoting, supporting, guiding, consulting, and answering questions related to Mobile Banking services for customers, especially people in mountainous regions, where access to online banking services remains difficult and limited.

To ensure effective digital transformation across the system, the Quang Tri Branch of the Vietnam Bank for Social Policies will continue to receive and efficiently use new software handed over by higher authorities. The branch will focus on technological innovation, diversifying modern and secure banking products and services. It will also provide training on policy credit operations for credit officers, socio-political organizations involved in delegated lending, commune-level poverty reduction staff, village leaders, and group leaders of savings and loan programs. This will help improve financial literacy, enhance the effectiveness of capital use, and gradually familiarize rural, remote, and isolated customers with digital technology.

As a result, the progress of information technology application and digital transformation in policy credit operations will be accelerated, moving toward comprehensive financial service provision for customers. This will contribute to achieving the goals set out in the digital transformation strategy of the banking sector and the nation.

Ngoc Mai - Le Minh