Popularizing basic financial products and services

Tuesday, 30/06/2020, 23:30 [GMT+7]

Popularizing basic financial products and services

Nguyen Hoai Chieu - Director of the State Bank (SBV) - Khanh Hoa Branch said that implementing the national comprehensive financial strategy to 2025 and the orientation of the province to 2030, Khanh Hoa Province People's Committee has promulgating an action plan towards popularizing basic financial products and services provided by licensed organizations, including payment, money transfer, savings, credit and insurance.
 
 
 
- Could you tell us some main contents of the plan?
 
- The overall goal of the plan is that all people and businesses access and use safely and conveniently financial products and services in accordance with their needs and reasonable costs. In particular, special attention will be paid to groups of people who have not been able to access or have little access to financial products and services such as people living in rural areas and remote areas; the poor, low-income people, women and other vulnerable people; small and medium-sized enterprises, micro enterprises, cooperatives, and production, business households.
 
The plan sets a number of targets till 2025: At least 80% of adults will have transaction accounts at banks or other authorized organizations; each adult will have at least one account at a bank or other authorized organizations by 2030. There will 20 branches and transaction offices of commercial banks on each 100,000 adults; 50% of the communes have financial service supply points (like branches, transaction offices of credit institutions and bank agents, except for the points of financial services provided by the Bank of Social Policy; 25% - 30% of adults will deposit at credit institutions; the number of non-cash payment transactions will increase by 20% - 25% annually; at least 6,000 small and medium-sized enterprises have outstanding loans at credit institutions. Credit balance for agriculture and rural development will make up 25% of total credit outstanding to the economy; at least 70% of adults have credit history in the SBV's credit information system.
 
Currently, the whole province has 180 transaction points of commercial banks. By the end of December 2019, the number of individual payment accounts in the province was 1,001,117; the whole province had 343 ATMs and 4,412 POS devices, issuing 1,022.00 ATM cards; transactions via POS reached over 6.2 million with VND14,180 billion in value, increasing by 61.09% and 22.62% over the same period in 2018, respectively; there were 13.9 million transactions via ATM with VND 41,930 billion, increasing by 9.91% and 11.38% compared to the end of 2018, respectively. In 2019, there were 3,280 small and medium enterprises with outstanding loans at credit institutions, growing by 16.89%. By the end of 2019, the total credit balance for agriculture and rural development was VND25,860 billion, accounting for 28.7% of the total outstanding loans of the whole province ... Thus, some targets have been achieved, some targets need more striving to achieve.
 
- To achieve the set goals, what solutions should be implemented well, sir?
 
- The plan identifies 5 main groups of tasks and solutions, including developing a variety of supply organizations and distribution channels to support people and businesses to access and use basic financial products and services conveniently and affordably; gradually deploying activities of banks agents, promoting payment via mobile devices, and developing digital products and services as well as digital finance strongly for people living in rural, remote and isolated areas; diversifying basic financial products and services; promoting non-cash payments; improving and increasing the efficiency of using financial infrastructure, facilitating transaction fees reduction, meeting the requirements of comprehensive financial promotion, educating finance to raise financial capacity and knowledge, protecting financial consumers and other support solutions.
 
- Thank you for your answers.
 
Interviewer: N.D
 
Translator: T.T