QTSP and Remote Signing bring great competitive advantages to Vietnamese Financial – Banking organizations
With QTSP certification for remote signing models, HSM digital signatures, and electronic authentication services provided by a QTSP in Vietnam, digital signatures and electronic certificates will be widely recognized in all 27 EU countries. This will bring a great advantage to domestic organizations and businesses, especially in the finance and banking sector. QTSP and the challenge of secure electronic authentication in transactions One of the most difficult challenges in the digital finance and economy is the process of secure electronic identification and authentication in transactions. Previously, banks operated their own specialized CA systems for parties to register for services. However, this system quickly became overloaded when third parties or multiple financial institutions registered and authenticated each other, leading to an increasingly complex and difficult-to-control identity database, not ensuring interoperability according to an international standard for system security operations. This issue contradicts the purpose of expanding the digital finance ecosystem of the Payment Services Directive 2 (PSD2) and, more recently, the Open Banking strategy of countries worldwide, hindering the development of the financial market in particular and the digital transformation of the economy and society in general. To solve this difficulty for banks and financial institutions, the Common Technical Standards (RTS) for the Payment Services Directive 2 (PSD2) issued by the European Banking Authority (EBA) has accepted the use of qualified electronic signatures (QES) and qualified electronic seals (QSeal) issued by a Qualified Trust Service Provider (QTSP) for the identification and authentication process under the Open Banking model. This opens up a trusted, legal, and widely recognized authentication method for banks and financial institutions participating in the global digital economy. The eIDAS regulation applies QTSP certification as the highest standard of security, reliability, and confidentiality in electronic transactions. Currently, only QES qualified electronic signatures for individuals and QSeal qualified electronic seals for organizations provided by a Qualified Trust Service Provider (QTSP) are recognized throughout the EU with the same legal effect as handwritten signatures or seals without the need for any other assessment or explanation procedures. Without using the electronic identification and authentication services of a QTSP, organizations participating in the digital financial market cannot perform electronic authentication processes with regulatory authorities. Failure to comply with the QTSP’s assured identification and authentication service standards will lead to numerous potential risks for organizations participating in the digital finance and economy: In addition, the financial market is one of the most sensitive markets to constant security risks and the risk of document forgery. Along with the Payment Services Directive 2 (PSD2), the Open Banking strategy in Europe also allows the trusted services of QTSPs to be the only method to ensure trust between payment service providers, customers, and financial institutions. Competitive advantages of Vietnamese financial institutions and banks from QTSP and remote signing models In July 2021, SAVYINT officially became the first trusted QTSP service provider for digital signatures, electronic seals, remote signing models, and HSM digital signatures in Vietnam, in accordance with EU eIDAS regulations. This means that all 27 European countries fully recognize the digital signature and electronic seal services provided by SAVYINT under the remote signing model. Operating under the SCAL2 security authentication mechanism, the system ensures that only the signer has the right to activate the signing key stored securely on the HSM encryption device, uniquely controlling the signing key, and fully complying with the requirements for the SAM module with CC EAL4+ certification with EN 419 241-2. This will open up opportunities for Vietnamese organizations and businesses to conquer the European market, promote the development of cross-border electronic transactions and e-commerce, and enter the common playground of Vietnam with EU partners in the context of the Vietnam-EU Comprehensive Partnership Agreement and the EVFTA. For providers of electronic payment and transaction services such as financial institutions and banks, having a QTSP in Vietnam will help solve a major bottleneck in the digital finance ecosystem, digital banking, and open banking, aiming to expand the market and integrate into the international arena. This is the unification and interconnection in the process of secure electronic identification and authentication, creating a synchronized electronic transaction market according to a common technical standard, reducing congestion and transaction interruptions due to rejections by the parties involved. Quick application and full utilization of the advantages of electronic authentication and digital signature services from a trusted QTSP service provider will help financial institutions and banks modernize and comprehensively digitize electronic transactions, promote e-commerce, build digital banking and open banking systems, and aim to attract more new customers, new markets, and increase revenue and profits. Connect with SAVYINT now to get advice on specialized solutions for developing Digital Banking and Open Banking!
SAVYINT and Konsentus accelerate open banking in Vietnam
Hanoi and London, 8 March 2024, SAVYINT and Konsentus have created an operational structure for open banking in Vietnam. SAVYINT, one of the country’s leading providers of digital capabilities, and a key supplier of technology services to the Vietnamese financial services community, engaged Konsentus, a global provider of open banking advisory services and trust infrastructure, to collaboratively create a legal and operational framework for open banking. In support of the country’s vision to develop an advanced and high-quality connected digital society for all individuals by 2030, SAVYINT sought support from Konsentus to create a framework for an innovative and cutting-edge open banking infrastructure to enable further growth and development. Konsentus has worked collaboratively with SAVYINT to: This open banking framework will provide the foundational bedrock for open banking in Vietnam and will allow the market to take the next step towards an open data-sharing ecosystem It puts the nation amongst other market leaders in the region. Konsentus, advisors to central banks, regulators, and market infrastructures, is renown internationally for providing expert support to help jurisdictions shape the future direction of open finance. They work with, and for, the local market to champion accessibility to financial services and drive competition, innovation and financial inclusion. SAVYINT provides trusted digital products, solutions, platforms and services in strict compliance with Vietnamese and international standards. Their transformation solutions support all industry verticals ranging from government and healthcare to BFSI and telco. Mr. Van Hoang Nguyen – Chairman of the Board of SAVYINT “Open banking can enable economic growth and social development. It provides a comprehensive view of all financial data to customers and enables businesses to access a wider range of financial services. Banks cooperate with third-party providers to optimise the user experience when using financial products and services. With open banking ecosystem, consumers can execute direct payments to merchants from their bank accounts, eliminating the necessity for card-based transactions. Konsentus has been a crucial partner in understanding global best practice and defining the appropriate structure for the Vietnamese market. We are sure that what we’ve delivered together is tailored for the market and will set the country up for future success.” Jim Wadsworth, EVP Strategic Market Development, Konsentus “Our international footprint and in-depth understanding of global open banking ecosystems has enabled us to streamline processes and develop a framework tailored to local Vietnamese market requirements. Vietnam is a burgeoning economy but 44% are still unbanked and 70% still live in rural or remote areas. Open banking can support financial inclusion and the broader digital transformation agenda. Konsentus looks forward to supporting Vietnam on its open banking journey.” About SAVYINT SAVYINT is a leading provider of trusted digital products, solutions, and services with deep expertise in PKI systems, digital signature solutions, data encryption/privacy, open banking, blockchain & key management, cybersecurity services and AI and cloud applications… Committed to international standards, SAVYINT delivers top-tier solutions designed to meet the highest security and compliance requirements. Its advanced technical infrastructure supports digital transformation across diverse sectors such as government, healthcare, finance, education, logistics, transportation, telecommunications, and broadcasting. With a strong focus on innovation and security, SAVYINT is a reliable partner for organizations seeking to enhance operational efficiency and data security in the digital era. About Konsentus Konsentus provides specialist advisory services and technology solutions to support the national implementation of open finance ecosystems. Subject matter experts, Konsentus advisors have a proven track record in navigating complex, multi-stakeholder ecosystems and understanding individual regulatory and market requirements. Konsentus’ award-winning technology powers national open finance infrastructures. Modular and scalable by design, our solutions are tailored to individual market requirements, enabling ecosystem participants seamlessly to identify each other and interact within a safe and trusted environment. Founded in 2018, Konsentus is active across 37 markets and counts many of the largest global financial institutions as clients. Konsentus is ISO 27001 certified.
SAVYINT Presents at the “Hanoi – Smart City and Open Banking Ecosystem” Symposium
On the morning of October 2nd, Mr. Hoang Nguyen Van, Vice Director of the Institute of Innovation and Digital Transformation (VIDTI) and Chairman of the Board of SAVYINT, delivered a presentation on the topic “The Benefits and Challenges of Implementing the Open Banking Ecosystem” at the symposium. The “Hanoi – Smart City and Open Banking Ecosystem” symposium was part of the 2024 Vietnam Card Day event series. It saw the participation of the Hanoi City leadership, Deputy Governor of the State Bank of Vietnam, and leading representatives from the financial and banking sectors, coming together to discuss and exchange ideas for a smart, clean, and digital Hanoi. Speaking at the symposium, Mr. Ha Minh Hai, Vice Chairman of the Hanoi People’s Committee, emphasized that in the context of international integration and the development of the fourth industrial revolution, building a smart Hanoi is both essential and urgent. This forms the foundation for improving residents’ quality of life, optimizing urban management, and achieving sustainable, green, inclusive development. Mr. Pham Tien Dung, Deputy Governor of the State Bank of Vietnam, shared similar views, stating that the transition to a smart city and digital transformation in the banking system are closely intertwined, with the emergence of the open banking ecosystem being a key factor. This transformation is linked to the integration of technology platforms, payment solutions, and data sharing to develop a strong digital and open banking ecosystem. Following this, Mr. Hoang Nguyen Van elaborated on the advantages open banking brings and the challenges faced in its implementation in Vietnam. According to Mr. Van, in recent years, as the trend of digital banking has grown, banks have increasingly sought to acquire new customers, reduce operational costs, and foster innovation. These needs have given rise to a new ecosystem—open banking. Third parties have emerged to help banks solve challenges related to increasing customer acquisition, improving service quality, and optimizing ecosystem integration at the most efficient costs. In the open banking ecosystem, all participants benefit. Banks and third parties gain new revenue streams by leveraging each other’s strengths, which in turn fosters the development of innovative products and services. Individual users enjoy personalized services and enhanced data security, while businesses benefit from easier access to banking services, expanded customer and partner networks, and optimized operational efficiency. Despite the numerous benefits, implementing open banking in Vietnam still presents challenges. While Vietnam has introduced personal data protection regulations (Decree 13/2023/ND-CP) and the State Bank of Vietnam’s regulations (Decision 2345/QD-NHNN), there is still a lack of clear standards on technical requirements, open API connectivity, and operational guidelines. After highlighting countries like India, Singapore, and South Korea, which have successfully implemented open banking through strong legal frameworks, Mr. Van stressed, “Only a clear legal framework can create favorable conditions for the open banking ecosystem to thrive and benefit all stakeholders.” Concluding his presentation, Mr. Van proposed a four-step implementation model for banks, starting with initial analysis and assessment, deployment models (legal framework, service models, templates), application of rules and processes, and finally, design and technical standards. This model serves as a guide for banks participating in the open banking ecosystem. Throughout the two working sessions, SAVYINT representatives and experts discussed various issues related to urban management, technology solutions, and enhancing the legal framework for the open banking ecosystem. Building a smart city requires more than technology and expertise—it also demands government support in terms of institutions, laws, and management methods. Particularly in a large city like Hanoi, with its extensive economy and population, these challenges must be carefully considered to ensure comprehensive development. With a wealth of experience both domestically and internationally, SAVYINT continues to research and provide cutting-edge technology solutions in the fields of digital transformation, information security, and fintech. In the emerging field of open banking, SAVYINT offers specialized Open Banking Solutions and Services tailored to the financial sector, meeting both legal and technological requirements while fostering connectivity and building a digital financial ecosystem. With its expertise and technological capabilities, SAVYINT is confident in supporting and advancing open banking in Vietnam.