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Application of new technology in cash transactions in Vietnam

Application of new technology in cash transactions in Vietnam

Thursday 02, 07 2020
Currently, the banking system is focusing on strongly implementing non-cash payments under the Prime Minister's approved project in early 2020.

General situation

SBV Deputy Governor - Nguyen Kim Anh said that changing the payment method from cash to non-cash in Vietnam was not difficult. The challenge comes not only from information technology infrastructure but also from the cash habits of consumers, especially in rural areas. With these obstacles, ensuring cash supply for the economy is still part of the task in the process of performing the monetary management role of the SBV in the coming time.

Being aware of this issue, in recent times, in parallel with the application of technological solutions to payment activities at the SBV's Transaction Office. The transaction center will act as a major cash transaction hub in the banking system, always meeting well the cash demand for credit institutions and foreign bank branches as prescribed. Performing this role, in recent years, the Exchange has always tried to do well the work of regulating, supplying, collecting - spending cash for customers. In particular, on peak occasions such as holidays, New Year, or the end of the year when the demand for cash in the economy increases, the Transaction Center must increase the cash supply to credit institutions to recharge ATMs or reimburse Customers service to withdraw money via account. According to initial statistics, the number of cash transactions at this time can reach an average of 80 transactions/day and the peak can reach over 100 transactions/day, equivalent to the amount of nearly VND 3,200 billion. copper. The demand for cash on holidays and Tet holidays of customers is often cyclical and takes place only in a short time, so it is invisible, creating pressure on delivery - receipt, and collection - payment of all kinds of denominations. Money not only for credit institutions but also for SBV. For the State Bank's Transaction Office and some major cities such as Hanoi and Ho Chi Minh City where the head offices of credit institutions and foreign bank branches have payment accounts in VND, the pressures on cash demand in this time is always hotter than any other province and city in the country.

The cash management is implemented through the "Management and Issuance of CMO Treasury" program that was launched in 2012. This system implements centralized warehouse management, detailed management of each structure. types of currencies and assets according to face value, status, warehouse, and fund. However, the CMO program is limited to customers who have payment deposit accounts at the Transaction Office or have Citad SBV's code (regular customers) so the transactions of revenue - expenditure, export-import of cash for occasional customers is not supported. The cash transactions for this customer object completely manipulated manually. Mistakes or errors in denominations, the structure of the kind of money collected or spent are inevitable, the handling of excess - shortage, fake money is also an issue worth attention. Another problem is also causing "difficulties" for cash work not only at the Transaction Office but also the general situation of the State Bank branches in provinces and cities, that is, the CMO application has a revenue-expenditure module. change categories, but there is no category for casual customers. However, in essence, each transaction of collecting and spending money is still counted as an independent revenue and expenditure transaction. Although the total value of the type change does not increase the value of cash, it has changed the structure of the face value of the coins issued by the Operation Fund in each unit. After the conversion is completed, the final data is aggregated and imported or integrated with the CMO application, without the need to use or change too many applications or users in the application program CMO till now. Therefore, the immediate requirement is that a relatively complete software product is needed to computerize this process to minimize risks and improve transaction efficiency as expected by users. With the increasing number of customers and the volume of cash transactions, the provision of services must also be fast, accurate, and absolutely safe. Meanwhile, the human resources responsible for this task in the Treasury department of the Transaction Office are only 2-3 people in each revenue or expenditure group.

In fact, a receipt/payment transaction with a customer corresponds to having to perform two transactions (01 export/import transaction at the Transaction Counter and 01 deposit/payment transaction at the Issuing operation fund). With the completion of such a large number of the transaction, the amount of cash on hand and cash out so large in such a short amount of time, it has really become a pressure for every cashier in the operational implementation process. This entire operational process is completely done and monitored manually, there is no computer tool to support the implementation, the stages of the process from the order entry, payment list, payment receipt, advance at the beginning of the day, monitoring the total revenue, total expenditure, repayment ..., to weigh data, make statistics at the end of the day must be done manually. With that manual method, confusion, errors, delays in tallying, delivery and collection, revenue and expenditure are entirely possible, and therefore, affect the progress and quality of work. In addition, the reconciliation, checking of cash - revenue in the day will also be difficult to be guaranteed.

What is the solution offered by the SBV?

In recent years, the SBV's Transaction Center has actively researched and applied information technology to handle cash transaction processes with customers and considered it an effective solution to optimize processing time the transaction, reduce the pressure in the process of operation for staff working in the treasury work at the unit.

According to Decision No. 144 / QD-VCL dated January 31, 2018, of the Director of the Vietnam State Bank's Strategy Institute on approving the SBV's List of basic science and technology tasks in 2018, the State Bank of Vietnam preside over and develop a "Software program of management of revenues and expenditures for other customers at the State Bank of Vietnam Transaction Office". With the development and application of informatics in this operational process, the tellers will be assisted by the tool in instantly updating the amount of money in stock, knowing exactly the structure of different types of par. the collected money price, thereby, proactively implementing cash payment operations, creating favorable conditions for the Treasury department at the unit to complete the work smoothly and safely. The characteristics of this customer are not maintaining a payment account and customer code in the management system of the State Bank. Therefore, a feature of the application that can not be ignored is that it can manage details of each customer according to each revenue and expenditure statement, control total revenue, and expenditure by customers, which was previously handled Manual will take too long to the statistic. With the control of revenue and expenditure at the same time during the implementation process, through querying and exploiting reports on the number of immediate receipts and payments, operational errors may occur such as errors, mistakes of the amount to fix cash vouchers as before will be minimized. At the same time, the application of this software also helps create the initiative for the management of the Issuing Operation Fund at the Transaction Office in the entry-and-exit at the beginning of the day, arising in the day and checking the fund at the end of the day as prescribed. Currently, the SBV has not had tools to deal with this problem. Therefore, the research, development, and application of revenue and expenditure software application programs for other customers in treasury transactions are extremely objective and necessary.

What is the solution offered by the SBV?

Result

After 08 months of research, construction, product development, and 02 months of commissioning (October 2018), by December 2018, the SBV's Transaction Office officially applied the software program into the process. cash collection and payment management for other customers at the Treasury Department. With the application of this software program, the process of performing revenue and expenditure transactions with other customers has been automated, allowing the flexible operations in converting the par value structure of currencies to customers (also called restructuring) when there is demand in treasury activities at the State Bank's Transaction Office. Basically, the application has supported the immediate management of cash transactions, thereby, facilitating the exploitation and extraction of revenue, expenditure, and import statements at the time of transaction. ensure the effectiveness in the management and monitoring of the amount, structure, and cash value currently available at the Depot's vaults as well as the customers who have demand for cash transactions at the Issuing Profession Fund.

 Application of new technology in cash transactions in Vietnam

Application designed and built using Microsoft Access tool. In addition to the rich and diverse programming language tools, Microsoft Access database management system has many features such as data definition, data control necessary to manage large amounts of data, Help users in organizing, project planning, searching, storing, performing information, saving time. This is an intuitive object-oriented database management system that takes the Basic language as the root. This is an advanced application of Microsoft Window, using object-oriented programming software on Windows will make the program easy to use and convenient for users because of the ability to create objects using the interface instead of language. Language, connectivity, and query tools help users organize their information quickly when the database has been created. With the advantages of this tool and its use on the Windows platform, the Exchange has researched and decided to use the Microsoft Access tool version 2007 to build an application program for business management. revenue and expenditure at the Exchange. The application is shared and decentralized to each user through the State Bank intranet. The general menu has the CI code, including basic icons that allow updating information such as the amount of advance payment at the beginning of the day, additional advances in the day, customer information paid/received, etc. At the same time, the software also allows search/print reports or customer information or a history of transactions made.

In addition, this application has also contributed to resolving the situation of errors and confusion in the operational process for cash collection and payment operations with other customers, optimizing business processes, saving reduce transaction time and wait for transaction results of customers, from ½ - 1 day to 1-2 hours/transaction. Improve the efficiency of the monitoring and management of treasury activities at the unit, promptly and quickly address cash needs (all denominations) for customers.

Complied by Vietnam Credit

Categories
Banking & Finance

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