Building digital finance with Big Data and AI

To address major issues in Finance industry, FPT Information System Corporation (FPT IS) suggests numerous high-tech solutions focusing on Big Data, AI, Blockchain…, helping the industry consolidate its position and accelerate digital transformation.

6 problems of public finance sector in adopting digital technologies 

Being responsible for state finance – budget management with large and complex scope of management, determining IT as the core, the Ministry of Finance has always been leading towards computerization and technology adoption in Vietnam. Catching up with the trends of digital transformation, the Finance industry has been strongly promoting digital transformation in various fields, achieving positive results and delivering huge efficiency to the society, such as: shortening the time to perform tax and customs procedures; reducing paperwork, time and costs for companies and people. For consecutive years, the Ministry of Finance has always taken the lead in terms of ICT index.

Recently at Vietnam Digital Finance 2022 seminar – exhibition on Digital finance for State budget management, themed “Promoting digital transformation and comprehensive modernization of Finance industry”, Mr. Nguyen Dai Tri, Director of Department of Financial Informatics and Statistics, Ministry of Finance, says, digital transformation in the finance industry will be one of the key factors promoting general digital transformation as well as transformation in other areas.

Mr. Nguyen Dai Tri, Director of Department of Financial Informatics and Statistics, Ministry of Finance, emphasizes the key role of digital transformation in finance industry.

To gain more accomplishments and realize the goals of digital transformation in finance – state budget sector, the Ministry of Finance has determined to further promote digital transformation towards management, operation, and performance of procedures on digital environment. Thereby, the Ministry can reduce operational costs, create favorable conditions for people and companies to engage more into the Ministry’s activities to jointly create values, benefits, and enhance satisfaction for the society.

Accompanying the finance industry over the past 27 years, FPT IS has been analyzing perspectives and approaches, and suggesting strategic solutions to address major issues of the industry. Delivering a presentation on “Promoting digital transformation and comprehensive modernization of the financial industry & Building digital finance platform with Big Data and AI”, Mr. Le Viet Thanh, Deputy Director of Data Platform & Analytics Center, FPT IS, says data analysis and data discovery should be core focus of the industry. Technology, including new tech such as Big Data and AI, will be a strategy to turn the mentioned matter into advantages. Mr. Thanh points out 6 major problems of public finance sector to which such technologies should be adopted, including: Tax management for new business types; Determination of taxable amounts for state agencies; Risk management; Handling of records and data of public services; Securities transaction monitoring; Financial and securities crime prevention.

Mr. Le Viet Thanh, Deputy Director of Data Platform & Analytics Center, FPT IS, says adopting Big Data and AI will help the finance sector address 6 major problems.

“These are 6 major problems of the public finance sector, requiring capabilities to handle complex data with increasingly huge volumes as the market expands. To comprehensively address such problems requires a decent approach and implementation method. Building a solid data foundation is the key to effectively and successfully deploying Big Data and AI solutions”.

FPT IS presents the technology solutions to senior leaders of the Government and the Ministry of Finance.

Adopting Big Data, AI, Blockchain… will help the finance industry accelerate transformation

Speaking of current technology trends, Mr. Thanh presents statistics from a Gartner’s report in 2021 to demonstrate that technology literally helps change the world. Accordingly, up to 25% of leaders believe AI technologies will dominate while more than 20% of leaders favor data-related solutions. The numbers prove that digital transformation is a game depending on technology development, especially AI and Big Data. Over the past decade, AI and Big Data solutions have boomed and been deployed in companies of all sizes. As such, companies and organizations eyeing to deploy AI and Big Data solutions need to have decent determination and should start quickly to avoid being left behind.

At the event, Mr. Le Viet Thanh again emphasizes the importance of proper policies, visions, as well as action plans to handle the mentioned problems. Data is an extremely valuable asset that needs to be managed and exploited in an optimal way even for SMEs, let alone large, multinational, multi-branch companies, especially in public finance sector.

For 6 problems mentioned above, Mr. Thanh suggests adopting technologies such as Big Data, Social Listening to identify taxpayers, thereby building and synthesizing a detailed database on personal income for tax purposes. In addition, such technologies also assist in building risk scoring model, optimizing resources, and enhancing efficiency in tax collection. Regarding financial crimes, eKYC technology allows early detection of ID fraud, consolidating security for digital transactions, thereby providing high-quality experience for users.

Deeply understanding the situation, FPT IS has developed a comprehensive FPT Data Platform (FPT.dPlat), helping companies and organizations collect, analyze, and exploit structured and unstructured data sources in an optimal way. The amount of data is superbly huge but has been left unattended since there has yet been an appropriate way to handle it. FPT IS’ solutions allow to use available data of different levels to directly respond to in-depth requirements of business processes, thereby enhancing competence of business management and service delivery.

Data and AI integrated architecture of the platform.

FPT IS’ FPT.dPlat solution provides a complete ecosystem to collect, process, discover, and exploit data based on open sources, as well as diverse, feature-rich utilities to optimize costs, performance, and security. FPT IS suggests the Finance industry takes Big Data and AI as the highest priority to maximize the value of data to increase budget revenue and enhance fraud detection capabilities. FPT.dPlat solution is built on the basis of Data and AI, capable of mining advanced data. The solution will assist state leaders and officials in daily work and enhance performance”, emphasized Mr. Thanh.

Besides, FPT IS also notices inadequacies in management of budget revenue documents, as tax payment information and documents between relevant agencies such as General Department of Taxation, General Department of Customs, State Treasury and tax-collecting banks are not real-time synchronized. This remarkably affects the work of inspection and cross-checking, delays related public services and activities of organizations and companies.

At the seminar, Mr. Duong Tat Toan, Technology Director of Government Sector of FPT IS, suggests agencies and organizations adopt Blockchain technology to manage budget revenue documents in a more efficient way. Blockchain, acting as a Decentralized Ledger, will connect all involved parties in a single chain of transaction. Transaction information is aggregated into a single ledger, keeping parties updated in real time for better processing.

Mr. Duong Tat Toan, Technology Director of Government Sector of FPT IS suggests agencies and organizations adopt Blockchain technology for management of budget revenue documents.

“Adopting Blockchain technology, tax payment documents, such as prescribed tax amount generated at Tax or Customs authorities, information of tax-collecting banks, accounting information at the State Treasury, will be processed in near real time, streamlining processes for the people. With transparent information from the general ledger, people and companies can actively monitor the status of their tax documents. This will contribute to improving the quality of public services and degree of satisfaction for people and companies”, said Mr. Toan.

FPT IS advises on Big Data, AI, Blockchain solutions for financial organizations.

On the journey of digital transformation, FPT IS suggests Finance sector takes Big Data, AI, Blockchain as the highest priority to maximize the value of data to increase budget revenue and enhance fraud prevention capabilities. With in-depth understanding of the industry’s pain points and leading competence in implementation of digital solutions, FPT IS is always committed to accompanying the Finance industry to consolidate its position in digital transformation with new methods of digital budget management, thereby creating leverage for fast yet sustainable growth for Vietnamese organizations and companies.