Integrating Digital Technology into Policy Credit Operations

To enhance service quality for poor households and other policy beneficiaries, the VBSP Lang Son Branch has effectively implemented its digital transformation strategy. A key milestone has been the deployment of the VBSP SmartBanking application, which offers a wide range of convenient banking features. The application has created new opportunities for poor households, particularly those living in ethnic minority communities across the province, to access banking services more quickly, safely, and transparently. Through digital technology, VBSP is helping bring financial services closer to disadvantaged populations while improving service efficiency and accessibility.

VBSP staff and Ms. Trieu Thi Tien, an ethnic Dao resident of Nooc Mo Village, Hung Vu Commune, Dual Benefits from Policy Credit and Digital Technology in Lang Son

Dual Benefits from Policy Credit and Digital Technology in Lang Son

Travelling along the winding roads characteristic of the mountainous areas of Lang Son Province, we accompanied staff from the VBSP Bac Son Transaction Office to Nooc Mo Village in Hung Vu Commune. Amid the vast greenery of the mountains and forests, the livelihood model developed by Ms. Trieu Thi Tien, an ethnic Dao woman, stands out as a remarkable example of determination and sustainable poverty reduction.

As she guided us through her thriving acacia plantation, Ms. Tien could not hide her pride. With a loan of VND 120 million (approximately USD 4,700) under the lending program for poor households, she steadily invested in forestry development. Today, her family owns eight hectares of acacia, eucalyptus, and cinnamon forests. Her acacia plantation, now more than six years old, is expected to generate over VND 300 million (approximately USD 11,800) upon harvest. Thanks to the effective use of policy credit, her family has successfully escaped poverty on a sustainable basis.

However, what impresses Ms. Tien most is the transformation in the way she interacts with the bank. Previously, she had to travel difficult roads to the commune transaction point each month to make interest payments.

“Since being guided by VBSP staff to install the VBSP SmartBanking application, I can make monthly interest payments from home. It is faster, more convenient, and saves travel costs. I can also monitor my outstanding loans and savings deposits directly on my phone, making everything transparent and easy to manage”, she shared enthusiastically.

Like Ms. Tien, many borrowers across Lang Son Province, particularly poor households and other policy beneficiaries, have been introduced to and trained in using the application by VBSP staff. To date, more than 1,700 customers in the province have installed and actively used VBSP SmartBanking. This reflects a positive shift in public awareness and digital banking habits, especially among residents in rural and mountainous areas.

Digitalizing Policy Credit Management at the Grassroots Level

The application benefits not only borrowers but also Savings and Credit Group leaders by improving management efficiency.

Ms. Doi Thi Bac, Head of Savings and Credit Group No. 27 in Ky Lua Ward, explained: “Our group has 60 borrowers. Previously, managing records and information for all members was time-consuming. Now, information on outstanding loans, interest payments, and savings deposits is updated instantly on my mobile phone. I can quickly access and provide information to members whenever needed, making loan management and debt collection much more convenient”.

According to Mr. Nguyen Thanh Lang, Director of the VBSP Bac Son Transaction Office, QR codes containing information on policy credit programs and administrative procedures have been displayed at commune transaction points throughout the district. Instead of reading traditional notice boards, residents can simply scan the QR codes with their smartphones to access all necessary information.

Since 2023, the VBSP Lang Son Branch has actively promoted and guided customers in installing and using the VBSP SmartBanking application. Designed specifically for poor households and other policy beneficiaries, the application enables customers to make loan interest payments, check outstanding loan balances and transaction histories, and monitor repayment schedules. For social housing borrowers, monthly interest payments can be made directly through the application, making transactions faster and reducing the need for travel.

Mr. Phan Anh Thang, Deputy Director of the VBSP Lang Son Branch, noted that as a policy bank implementing the Government’s preferential credit programs for poor households and other policy beneficiaries, VBSP operates an extensive network covering communes and wards throughout the province. Given that transactions have traditionally been conducted in person at monthly commune transaction sessions, digital technology has become an essential tool for modernizing service delivery and improving convenience for customers.

To bring digital technology closer to local communities, the branch has adopted a hands-on approach. Bank staff directly assist customers during regular transaction sessions, guiding them step by step through the application’s interface and security features until they become familiar with its functions.

The deployment of VBSP SmartBanking represents more than a change in transaction methods; it is a strategic initiative aimed at enhancing service quality and expanding financial inclusion. More importantly, the application has opened the door for poor households and policy beneficiaries to directly access and experience the advantages of modern digital banking services. It serves as an important catalyst for advancing comprehensive digital transformation in policy credit operations across the province.

In the coming period, the VBSP Lang Son Branch will continue directing its Transaction Offices to work closely with entrusted mass organizations to strengthen communication and outreach activities, encouraging more customers to install and use VBSP SmartBanking. Particular attention will be given to increasing adoption rates in remote and mountainous communes, ensuring that the benefits of digital banking reach all segments of the population.

Thu Ha