How technology is changing the finance industry?

The wave of industrial revolution 4.0 has a strong impact on all aspects of life and the outbreak of the Covid-19 pandemic worldwide as a catalyst to increase the demand for digital-based services. The financial enterprises have early grasped the changes of technology and take the lead in bringing new digital technologies such as artificial intelligence, Big data, Blockchain, Internet of Things, and so on to their products and services to bring a smooth, convenient, and personalized experience to customers.

The advantages of applying digitalization in finance service

As part of global fintech trend, Vietnam in recent years has also witnessed an extensive growth in the application of technology solutions in financial services because of the variety of competitive advantages including:

• Business efficiency: Technology applications have contributed significantly to improve the interaction of businesses with customers, satisfying customers’ needs more quickly, flexibly and personally.
• Cost savings: Technology is one of the keys for businesses to cut operating costs by replacing manual labor with automated applications supported by Big data that is processed and analyzed in real time.
• High accuracy: The technology platform also helps to reduce errors in calculation, processing and recording of financial transactions.

• Enhanced security: To make transaction, customers will receive a security code to verify to minimize all risks that may happen with the account

The challenges to face in digitalization era

Along with opportunities, many challenges are posed to Vietnamese financial enterprises such as:

• The legal corridor is not really complete, especially for new technologies. The time for legal updates, amendments and supplements is slower than speed of technology development.
• Vietnam's technology infrastructure has not yet met the requirements of high-tech development, especially security technology.
• Customers are still unaware of the confidentiality of personal information such as full name, identity card number, passport, address, date of birth, account number, etc. This easily increases the risks and affects the accounts of consumers themselves as well as financial institutions.

The introduction of the iOTP feature - a secured solution for financial transactions

In order to protect customers, financial enterprises launch various financial solutions integrated with new technology to better customer experience.

Catching up with the trend, Shinhan Finance has recently launched the iOTP on the iShinhan with 3 outstanding advantages:

• More convenient: When all transactions take place on the screen of iShinhan application, users do not need to log out to check the OTP code via SMS.
• More secured: iOTP algorithm ensures the highest security as the iOTP code displayed right on the iShinhan application to avoid the risks of stealing information software. Each different mobile device needs to enable iOTP individually.
• More efficient: With the iOTP code, customers can make transactions with the iOTP code anywhere even when they are outside the network coverage area and cannot use SMS.

The new iOTP not only helps Shinhan Finance bring safer experience to customers but also mark the important achievements on the company's development journey in the digitalization era.