Banks are strongly stepping up online lending services via digital channels as this method saves time and costs for both the borrower and the lender.

Banks are focusing on developing and perfecting technology solutions to support or replace previous manual operations.

Previously, to borrow money from banks, it took enterprises at least two to three months as they had to prepare and apply a lot of loan documents at bank transaction offices, and wait for appraisal and approval. However, the time is currently shortened to only one to three days as borrowers do not need to go to bank transaction offices and all loan procedures and process can be done through digital banking.

For example at MSB, with its strength in technology and advantages of the country’s tax, invoice and national population database, the bank has so far lent more than 5,000 enterprises VNĐ52 trillion through digital channels, with approval time of only a few minutes.

Đinh Thị Tố Uyên, Deputy General Director of MSB, said with the capabilities of machine learning and data, MSB could approve loan granting in four minutes. MSB could offer instant loan solutions to customers as soon as the customers register and provide basic information.

Besides providing online loans to corporate customers, banks are also deploying online loans to individual customers through payroll.

Nguyễn Đình Tùng, member of the board of directors of OCB said the bank could lend fully automated through digital banking. Borrowers would not need to go to bank transaction offices, but could immediately have a credit limit.

Notably, according to Tùng, after borrowing, if borrowers want to continue to get more loans, they do not need to make a new application or wait for approval as banks can grant the additional loans after considering their cash flows online.

Mai Huy Phương, Deputy Director of MB's Digital Banking Division, said based on the history of cash flow transactions at the bank, the bank could immediately propose and grant credit at the time the customer needs.

Many enterprises are also choosing to borrow money online to avoid wasting time and costs. Lê Hoàng from Tai Ryong Vietnam Co., Ltd said his company applied an online loan option to help reduce time and costs by up to 70 per cent.

Not only benefiting borrowers, banks say implementation of online lending also helps them save operation costs.

To further develop online lending, the banking industry is increasing investment in technology systems and application of big data and artificial intelligence (AI) to ensure information safety and security in the transaction process. The application will help banks evaluate borrowers' credit history, spending and payment ability, and production and business efficiency to determine the loan limit.

Experts expect the banking system can take advantage to make the online lending boom in the coming time when regulations on online lending are officially legislated. — VNS