Deputy Governor of the State Bank of Vietnam (SBV) Pham Tien Dung proposed establishing an Open API hub for banks to share data in his address to the Open Banking Conference in Hanoi on December 7.

The conference was hosted by VnEconomy / Vietnam Economic Times and partners with the theme of transitioning business models from closed to open mode.

This is the first ever conference discussing the standardization of Open Banking on a large scale.

It was held in the context of digital transformation being considered the top priority in the banking sector, as it will help banks improve operational efficiency by streamlining and automating processes, improving the customer experience, and raising their competitiveness in a rapidly-changing ecosystem.

Digital transformation also helps improve banking services, reducing costs and increasing profits.

A breakthrough technology linked with Industry 4.0 that allows the sharing of data via the Open Application Programming Interface (API) has been applied by many Vietnamese banks in payment activities, recognizing online customers and providing innovation financial products and services.

The application of Open API and Open Banking will help connect data and customer transactions can be completed seamlessly, Mr. Dung said. At present, customers must install different apps of different banks and service providers.

However, there is a shortage of common standards for banks when applying Open API, he said.

Open Banking - Open API is a new field in terms of both technical and legal issues, not only in Vietnam but in other countries. Application, he said, faces difficulties not only in technology but also in raising customer awareness and changing the legal framework.

The successful introduction of a legal framework for Open API would create the necessary conditions for the fintech community to provide innovative services, meeting increasing demand among consumers, according to Mr. Dung.