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Banking sector profits from IT innovations
The banking sector in Laos has been developing gradually over the years and now banks are flourishing and providing diverse banking and financial services to the public.
“IT applications in banking are considered a strategic development that helps to enhance the prestige and position of the Lao banking sector,” Bank of the Lao PDR (BOL) Governor Mr Somphao Phaysith said.
Mr Somphao was speaking yesterday at the opening of the two-day Lao Banking and Telecom World Conference and Expo 2011 in Vientiane.
Mr Hiem Phommachanh, the Minister of Post, Telecoms and Communication, also attended the event.
Lao businesses are increasingly finding ways to incorporate IT based solutions to improve their daily operations. “Thus, investors realise there is a lot of potential in promoting IT applications to the banking sector,” Mr Somphao said.
The banking sector has steadily expanded and is experiencing more intense competition, which has forced banks to improve and develop a variety of products and services to respond to changing market demand.
This includes the provision of prompt and convenient financial access to banks through Internet banking, e-banking, bill payments through ATMs and the expansion of ATM networks nationwide.
“The purpose of providing this kind of service is to reduce the use of cash payments for domestic economic transactions,” Mr Somphao said. The development and advancement of information and technology systems has made it essential to incorporate them in Lao business operations.
Lao companies also have to align themselves with the Asean objectives of enhancing cooperation in the field of settlement linkages to make it more developed and sophisticated, increasing the delivery of banking services within member countries and to enable Asean to link with the rest of the world.
The Asian Development Bank (ADB) and BOL worked together to upgrade BOL's Credit Information Bureau system to become web-based.
Information technology and information management systems at the Agricultural Promotion Bank were upgraded and strengthened, which directly led to better performance by the bank,” Country Director of the ADB Laos Resident Mission Mr Chong Chi Nai said. Economic agents, including private investors and companies, will demand that an efficient, secure and seamless payment and settlements system be developed in tandem with, and integrated into, the core services of the banking industry.
They will also need more advanced commercial banking services to facilitate their economic transactions, both in the domestic and international markets.
“To meet these needs, an advanced information technology infrastructure must be created which is grounded on a comprehensive legal, regulatory, and supervisory framework. It is therefore imperative that the BOL continues to promote the development of a modern commercial banking sector,” Mr Chong said.
Mr Le Thanh Tam, CEO of International Data Group Asean, said some banks have already made improvements, such as BCEL, which has made a strong commitment to lead the way in modernising the banking industry in Laos.
Banking services have also increased, especially ATM machines, and many private currency exchange services have also opened.
Mr Le Thanh Tam said the growing banking sector is also benefiting Lao businesses that are seeking the funding they need to expand.
vientiane times
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