The future of money: Banks rely on AI and digital transformation!

The future of money: Banks rely on AI and digital transformation!

The banking industry worldwide is facing a significant transformation driven by digital development. An event took place on May 27, 2025 that focused on banks' willingness to innovate in digital change. In particular, the use of artificial intelligence (AI) and big data for credit evaluation is being discussed more and more frequently. This allows banks to offer more flexible and faster unsecured loan packages, which is crucial for many businesses. Loud Vietnam.vn It also promotes the creation of a digital ecosystem by integrating payments and tax payments via APIs.

Ms Le Thi Thuy Sen, Editor-in-Chief of Banking Times, headlined the press conference on the progress to be made in the national digital transformation. Secretary-General To Lam described Resolution 57 as a fundamental pillar of science and technology, aiming to achieve comprehensive digital transformation of all people and processes by 2025.

Innovations in lending

Digitalization has also revolutionized lending. For example, at many credit institutions in Vietnam, over 90% of transactions are digital. New products and services, such as contactless payments and the use of voice and facial recognition, are already available. Vietcombank even allows its customers to register for digital signatures via the VCB Digibank app.

A notable aspect is the MISA lending platform, which bridges small and medium-sized enterprises (SMEs) and banks. Over 30% of MISA Lending affiliated companies have successfully borrowed capital, with the system facilitating a disbursement of VND22,500 billion. The aim is to provide companies with capital within 5 minutes, without collateral.

Algorithms and their effects

In a parallel process, BaFin is investigating the use of algorithms in lending. These automated systems evaluate customers’ creditworthiness based on various criteria. But a critical look shows that customers are often not informed about the use of machine learning in their loan inquiries. BaFin has held discussions with banking associations and IT service providers over the years to understand the extent of automation in the lending business.

The analysis showed that both partially automated and fully automated processes are used in private customer business. However, fully automated procedures in the area of ​​construction financing have not yet been established due to the complex requirements for collateral valuation. However, the clear benefits of algorithms have been criticized because they can reinforce existing discrimination. According to BaFin, some banks no longer include critical characteristics such as place of residence and origin in their ratings, which can be seen as progress.

The challenges of automated systems are diverse. Consumer protection organizations express concerns about excessive indebtedness and call for more transparency and information. The MaRisk amendment also calls for more consumer protection aspects to be included in the risk classification procedures. Therefore, documenting human decisions in these processes becomes essential.

Overall, it shows that the banking industry is on a dynamic path that focuses on both technological innovations and human-centered services. Digital transformation remains a key concern that must be accompanied with careful oversight and transparency to benefit both businesses and consumers.