Tiếng Việt
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한국어Digital transformation in the financial and banking sector is the trend of the current digital era, the application of a digital technology platform to functions, products and services at all levels. in the banking and financial sector. This is the common goal of the entire banking industry in Vietnam in the coming time. And the Covid – 19 pandemic has brought impetus for this field to have a chance to develop.
About Digital transformation?
Digital transformation in the banking and finance sector is understood as the integration of digitization and technology into all areas and services of the bank. The meaning of this transformation will help the bank integrate with the general trend of the world, creating favorable conditions for optimizing policies for customers when using services at the bank. Moreover, it helps banks save costs and streamline operational processes.
In addition to the opportunities and potentials that digital transformation brings to the financial and banking sector, such as: helping businesses maximize profits, making it easier to find and build a customer network, access to With advanced technology, especially digital technology, digital transformation still faces challenges related to law. Specifically, the legal framework for digital banking is still slow compared to the current rate of technology development. The banking and finance sector is considered an industry that plays a very important role in the economy, regulating and operating cash flows in circulation. Therefore, all operating banks must strictly follow the law. However, in reality, the promulgation of legal regulations requires a lot of time, the promulgation process and procedures are complicated and relatively long to implement, and this is in contrast to the rapid development speed. of science and technology.
Legal problems?
Many problems revolve around the provisions of the Law on Electronic Transactions 2005. Over 15 years of implementation, up to now, the Law on Electronic Transactions of 2005 has been much outdated compared to reality. A number of legal documents have empowered credit institutions to decide on implementation methods on the basis of self-determination and self-responsibility. However, some operations have guiding documents with specific regulations on the application of electronic methods, and some other operations do not have regulations on the application of electronic methods. This is the reason why credit institutions are still concerned about legal risks. In addition, a series of other issues also need to be specified, such as the legal value and evidence value of data messages. Another legal issue revolves around the Law on Cybersecurity, although this Law has relatively new provisions on information security in cyberspace, its scope is limited to activities of protecting national security and ensuring national security. social order and safety in cyberspace and the responsibilities of relevant agencies, organizations and individuals without mentioning a number of issues related to financial services such as: (i) regulations on data control and processing when performing outsourced contracts; (ii) regulations on cross-border data transfers; (iii) regulations on reporting breaches related to personal data.
Legal solution?
Accordingly, it is necessary to amend and supplement the Law on Electronic Transactions in 2005 with the following basic contents to better suit the rapid changes in the digital transformation process of the financial and banking industry.
First, clear regulations on the levels of electronic signatures. An electronic signature is created in the form of words, letters, numbers, symbols, sounds or other forms by electronic means, attached or logically associated with data messages, capable of identifying acknowledge the signer of the data message and confirm that person’s consent to the content of the signed data message. The levels of electronic signatures can be understood as the fact that the electronic signature will be applied specifically to what types of contracts and transactions, whether all smart contracts are required to have an electronic signature. death.
Second, the issue of entering into an electronic contract. This Law and its guiding documents should have clearer and more specific provisions on the conclusion and performance of electronic contracts. Currently, the regulations related to the conclusion and performance of electronic contracts are only fairly general from Article 33 to Article 38 of the 2005 Law on E-Transactions, not covering all relevant issues of this type. this contract. For the most part, these regulations tend to prioritize the agreement of the parties and so, there are cases where it is mandatory for the parties to use an electronic contract when entering into, or when a conflict occurs. legal conflict between two types of contract is a traditional contract and an electronic contract when they share the same content.
Regarding information security, the current Law has relatively specific regulations to adjust such as the Law on Cyberinformation Security in 2015, the Law on Cybersecurity in 2018 and other guiding documents. However, the security of information still faces many limitations. According to the EU’s General Data Protection Regulation (GDPR), the issue of personal data privacy is regulated very specifically, there are rights that our country’s Law has not yet provided for or provided but only information oriented. Therefore, our country’s law needs to be supplemented with the empirical approach of GDPR such as the data subject’s right to be informed.
In short, the trend of international integration and trade liberalization is deepening, in addition to the post-Covid-19 context, which has created favorable conditions to promote the process of argument shifting in the banking and finance sector. done faster than ever. In addition to the opportunities and potentials that the banking industry can receive from the digital transformation process, there are still many challenges to overcome, typically issues around the legal framework. Therefore, banks need to make the most of existing opportunities, research and approach the digital transformation process of major banks in the world from which to draw experience for the financial sector. banks in our country.
