Digital credit scoring: The key to improving quality and reducing interest rates

(Chinhphu.vn) - Online credit scoring and risk management are becoming an indispensable platform in modern banking operations. This is a way to reduce costs, lower interest rates and expand access to capital for businesses and individuals.

Deputy Governor of the State Bank of Vietnam Pham Tien Dung speaks - Photo: VGP/HT

This is the opinion of Deputy Governor of the State Bank of Vietnam Pham Tien Dung at the seminar organized by the Vietnam Banks Association (VNBA) in coordination with the Vietnam National Credit Information Center (CIC) on July 30 in Hanoi .

From his experience working with FICO Group - a global credit scoring unit, Mr. Dung believes that Vietnam needs to learn a new approach, instead of relying only on credit history, it is necessary to evaluate cash flow, consumer behavior, and non-traditional data. He asserts that any bank that does not apply digital technology or update advanced technology will be left out of the game.

To implement online lending, the key task of Project 06, the prerequisite is to build a credit scoring and risk management system entirely on a digital platform. The State Bank of Vietnam has issued Circular 12/2024/TT-NHNN allowing online lending up to 100 million VND and is continuing to adjust policies to suit reality.

Opportunity to improve credit quality

From the perspective of the Banking Association, Mr. Nguyen Quoc Hung said that new technologies such as AI and big data are opening up opportunities to improve credit quality. However, the current system still lacks connections between data sources such as taxes, social insurance, and telecommunications, leading to inconsistent credit scores between banks and CIC.

According to Mr. Le Anh Tuan, Deputy General Director of CIC, it is necessary to standardize and integrate data to avoid duplication and reduce costs. Banks also emphasize the role of CIC as a data center, with 56 million individual customers, especially in the context of loan approval taking only a few minutes.

International experts say that CIC scores can become a “standard measure” for the entire industry, helping to evaluate customers fairly and consistently. If traditional and alternative data are effectively combined, the banking industry will have a more comprehensive and accurate picture of borrowers – the foundation for safe and sustainable credit.

Mr. Minh

Source: https://baochinhphu.vn/cham-diem-tin-dung-so-chia-khoa-nang-chat-luong-giam-lai-vay-102250730141948088.htm