Developing smart cities through open banking ecosystem

	Increase defense against fraud in the financial and banking sector
	New policy promotes green banking development in Việt Nam
	Closely and effectively managing State fund

According to Hanoi’s 2021-2030 master plan, the city aims to become a cultural hub, highly competitive and a major financial center. The vision for 2050 is to build Hanoi into a global, green and smart city.

Speaking at the workshop with the theme "Hanoi - Smart City and Open Banking Ecosystem" held on October 2, 2024, Ha Minh Hai, Vice Chairman of Hanoi People's Committee said that Hanoi determined that building a smart city is inevitable and urgent, to solve challenges related to population, environment, traffic...

Workshop "Hanoi - Smart City and Open Banking Ecosystem".

Therefore, the City has been focusing on developing information technology infrastructure. In which, the smart payment system plays a key role in helping Hanoi gradually change and make breakthroughs in the development process.

The Vice Chairman of the Hanoi People's Committee commented that from the implementation of cashless payment solutions in public services, transportation, social security to electronic invoices and smart payment streets, Hanoi has initially achieved important results in the process of developing a digital city.

Therefore, experts have emphasized the concept of Open Banking, when banks are currently sharing data with third parties through the Open API Portal, allowing third parties to register to connect and develop innovative financial and banking products and services.

Pham Anh Tuan, Director of the Payment Department (SBV), said that Mobile Banking applications and e-wallets of many credit institutions and payment intermediary service providers have allowed customers to access and use all banking utilities and services anytime, anywhere, as well as services on the national public service portal and non-banking services such as buying movie tickets, calling a car, ordering food, shopping online, etc.

For example, a representative of Vietcombank said that they are coordinating many activities with the Police Department on administrative management of social order (C06), including the application of personal data in smart cashless traffic payment activities.

NAPAS is also promoting the integration of cards on mobile phones, aiming to use mobile phones to "smart pay" for many services...

Therefore, according to the representative of the State Bank, open banking will have a great impact and has the potential to create a breakthrough in providing innovative banking products and services with many options, personalization and cost efficiency.

Also on this issue, Nguyen Quang Hung, Chairman of the Board of Directors of NAPAS said that, towards the model of building a smart city of the capital Hanoi, electronic payment solutions are integrated and applied in various fields, which will contribute to increasing convenience as well as bringing efficiency in implementing activities in general. Accordingly, NAPAS and its member banks are ready in terms of infrastructure and technology to deploy connections so that people can enjoy quality services.

However, according to banks, the development of the banking ecosystem towards an open banking model still faces a number of difficulties and challenges regarding security, data management, common standards, etc. Therefore, the State Bank needs to continue to research, develop and perfect the legal framework for managing open banking activities to help credit institutions deploy systematically, solving many financial service problems...