On August 19, 2023, TYM held a conference to evaluate non-cash payment activities at TYM. The meeting was attended by the Board of Directors of TYM, branch management, the Head/Deputy Head of Department/group/department of the Head Office.
Non-cash payment is considered an inevitable development trend in the context of the industrial revolution 4.0, in order to ensure safety in transactions, bring convenience to people and facilitate the development of socio-economic development. In that context, the State Bank of Vietnam (SBV) has carried out many activities to implement Decision No. 1813/QD-TTg dated October 28, 2021 on approving the non-cash payment development project in Vietnam in the 2021-2025 period by the Prime Minister.
As for TYM, from April 2022, TYM has had a number of branches which pilot signing cooperation agreements with commercial banks on the provision and use of collection and payment services. Accordingly, TYM members and customers, if requested, can register to pay TYM’s loan principal and interest and deposit savings through a bank account instead of performing cash transactions as usual. Currently, this pilot is taking place at 06 branches: Nam Dinh city branch (April 2022), Hai Hau branch (10/2022), Nam Truc branch (12/2022), Y Yen branch (August 2022), Hai Phong branch (October 2022) and Hai Duong branch (December 2022). Previously, since April 2020, when the Covid-19 epidemic broke out, TYM has adjusted its policy so that customers can repay the principal and deposit by bank transfer.
At the conference, Mr. Phung Dinh Kien, Head of Research & Development Department presented a report evaluating TYM’s non-cash payment activities: By the end of May 31, 2023, there were 3,980 TYM customers use the service under the pilot program. In which, the number of customers using non-cash services at Nam Dinh branch is 31%, Y Yen branch 08%, Hai Hau branch 03%, Hai Phong branch 08%, Nam Truc branch 07%, Hai Duong branch 04%. Through the pilot implementation, the representative of the R&D department also offered some advantages as follows:
– For TYM’s customers:
+ Transactions are done quickly, accurately and safely, especially with large transactions, transactions with odd numbers. Customers do not take time to go to the center to make payment in cash;
+ Reduced procedures for customers (no need to sign many documents for savings withdrawal, no need to wait until the end of the collection session to withdraw savings);
+ Clear, transparent and accurate in deposit/withdrawal transactions. Customers can easily control the transaction amount;
+ Customers who are older find it easier and more convenient to not have to perform money transfers;
+ Each customer can choose a repayment frequency suitable to their needs, no need to agree on a frequency with the whole center).
+ Customers feel more secure when using TYM’s services
– For center leader:
+ Reducing cash collection at the center, limiting cash risks;
+ Reduce collection time;
+ Reduce the workload at the center such as recording the customer’s receipts and expenditures, urging customers to be on time at the center to make payment according to regulations, …
– For TYM:
+ Increase the prestige and enhance the image of TYM to customers and local authorities;
+ Increase competition with other credit institutions;
+ Increase customer experience with flexible payment/collection forms;
+ Reduce the work and time of collecting money, transporting money for some job positions, thereby improving the labor productivity of staff;
+ Transactions are done securely. Limit risks during money transfer and other risks about money (such as torn money, counterfeit money, …);
+ Transactions are fast, transparent, authenticate easily and limit the problem of money abuse;
+ Control the payment time of customers.
In addition, the report also outlines some TYM problems that customers still encounter during the pilot implementation. Accordingly, many of TYM’s current customers are living mainly in rural areas, with little access to technology, no smart phones, and no digital banking experience. do not have a bank account) so they still cannot use the service or face many difficulties in the process of opening a transaction account, manipulating and transferring money to the account to make transactions. They still have the habit of using cash, and are afraid to accept new technology, afraid of safety and security when using online payments… The branch network and infrastructure payments of service providers are mostly concentrated in urban areas, while in rural areas, although they are well developed, the “coverage” is not as expected, so customers also encounter some problems during the transaction.
To accompany customers, TYM staff assisted them in opening a bank account, guided them through each operation as well as always reminded customers of the steps to take to help them have an easy initial experience.
Speaking at the conference, TYM General Director Pham Thi Thuy Linh affirmed that in the coming time, TYM will continue to promote non-cash payments to ensure the targets set out in the project to develop non-cash payments in Vietnam for the period of 2021 – 2025 and the National Financial Inclusion Strategy to 2024, with a vision to 2030.
Over the past time, not only in the pilot areas, TYM is making efforts to encourage customers to use e-banking services, build payment habits, and pay electronically. At the same time, TYM accompanies the State Bank of Vietnam and Vietnam Television (VTV) in popularizing financial knowledge through programs such as Smart Money, Key Box Hand. TYM also strengthens communication to raise people’s awareness and skills in accessing and using financial and banking services and digital technology: skills in security, safety when using the Internet, avoiding being hacked, loss of money in the account; warn of fake news, scams to appropriate money in the account, …
It can be said that the piloting of non-cash payment activities at TYM has initially had certain successes, although it has also encountered many difficulties, especially when the majority of TYM’s customers have not yet been accessed to digital technology. However, TYM also identifies this as an important task to help customers and organizations meet the inevitable needs of today’s society, contributing to the implementation of TYM’s plan in implementing the orientation of the Government, the State Bank of Vietnam with the National Comprehensive Financial Strategy to 2025, with orientation to 2030, the Project on the development of non-cash payments in Vietnam in the 2021-2025 period.