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4.0; (ii) Develope a Regulatory Sandbox Framework for avoid possible moral hazard and adverse selection; and
Fintech. Some countries such as Thailand, India, China, (v) Compete, but at the same time, cooperate with the
Korea have developed these forms of Fintech. Viet Nam Banking industry to capitalize on their potential customer
can completely learn from those models. base and market on a mutually beneficial basis.
- In addition, SBV needs to coordinate with relevant
ministries and sectors to unify the application of Fintech Conclusion
in banking governance activities such as the Ministry of In the past time, along with the wave of the digital
Public Security and the Ministry of Justice on the issue of transformation revolution, financial technology has
e-KYC acceptance and sharing. share national information emerged, exploded across the globe and is expected
data on customer identification, reduce high-tech crime; to continue to grow strongly in the future. Not out
The Ministry of Planning and Investment on bidding of the global trend, Fintech Viet Nam has also grown
to select Fintech start-ups when implementing projects impressively in the past few years and has impacted
with banks whose main equity is held by the State; many aspects of banking activities. In addition to the wide
Ministry of Finance on the issue of electronic documents development prospects, the Vietnamese Fintech market
and taxes related to Fintech; Ministry of Education on faces many challenges. The paper aims to give a general
financial education nationwide; Ministry of Science and picture from which to make some recommendations for
Technology on ensuring network security and applying development in the coming time.
new technologies in the field of finance and banking.
References:
For Vietnamese commercial banks
1. ADB (2022). Moving towards greater financial inclusion: An assessment of the
(i) Select suitable cooperation methods with Viet Nam case, Internal Report of ADB TA 8587-VIE on Supporting Microfinance
Fintechs, take advantage of fintechs to develop more Development Program.
comprehensive banking operations and governance. 2. ADB (2017). Fintech Viet Nam Ecosystem Report, Internal Report of Mekong
Banks can choose to buy solutions from fintechs, enter Business Initiative project.
into joint ventures or open their own Fintech subsidiary. 3. Banjo, S. (2018). “It’s Becoming Harder to Use Cash in China”, Bloomberg,
Personalize potential deals, optimize innovation and February 13, 2018. https://www.bloomberg.com/news/articles/2018-02-13/
creativity of Fintechs to complement their imperfections. it-sbecoming-harder-to-use-cash-in-china.
Choose the right Fintech companies to not affect the 4. Briggman, S. (2015). Oc 28, 2015, Crowdfunding vs Peer to Peer Lending,
position and trust of customers, always ensuring the https://www.crowdcrux.com/crowdfunding-vs-peer-to-peer-lending/.
safety of the bank and the whole system; (ii) In the 5. Browne, R (2018). HSBC says it’s made the world's first trade finance transaction
short term, use Fintechs to focus on the retail customer using blockchain, https://www.cnbc.com/2018/05/14/hsbc-makesworlds-first-
market, and gradually experiment with more difficult trade-finance-transaction-using-blockchain.html, Published 6:16 AM ET Mon,
areas such as international trade finance; (iii) understand 14 May 2018.
the strengths and weaknesses as well as the differences 6. Dorfleitner, G., L. Hornuf, M. Schmitt & M. Weber (2017). FinTech in Germany,
of fintechs and banks, especially cultural differences Chapter 1, Springer.
(fintechs are agile models, take risks, while banks are 7. Janowitz, A & L. Biagi (2018). “Fintech Report 2018 – Digital Payment”,
customer is a firm, prudent institutional model, putting Statista Digital Market Outlook - Segment Report, https://www.statista.com/
safety first), from which there are solutions to reconcile study/41122/Fintech-report-digital-payments/.
differences to optimize the strengths of fintechs; (iv) 8. Mackenzie, A. (2015). “The Fintech Revolution”, London Business School Review,
Learn lessons from good experiences and failures of 28 September 2015, https://doi.org/10.1111/2057-1615.12059.
banks around the world in working with fintechs, 9. Menon, P (2017). E-KYC Explained, July 14, 2017, https://www.5paisa.com/
especially in ASEAN countries. articles/e-kyc-explained.
For Fintech companies 10. Proffitt,B. (2013). “What APIs Are And Why They're Important”, Readwrite,
September 19, 2013, https://readwrite.com/2013/09/19/api-defined/.
(i) Use appropriate technology, thereby expanding the 11. The Economist (2015). "Blockchains: The great chain of being sure about
network to increase the level of better access to potential things", The Economist. 31 October 2015. https://www.economist.com/ briefing
customers in providing e-banking financial services; /2015/10/31/the-great-chain-of-being-sure-about-things.
(ii) Ensure high quality, safe service at a reasonable 12. Viet Nam Digital Landscape (2018). “Viet Nam Digital in 2018 in Viet Nam”,
cost to satisfy needs and build trust with customers; https://www.slideshare.net/kiditer/Viet Nam-digital-landscape-2018 .
(iii) Understand the orientation, strategy, risk appetite, 13. WEF (2017). “Beyond Fintech: How the Successes and Failures of New Entrants
position and market share of the partner bank to develop Are Reshaping the Financial System”, Part of the Future of Financial Services
products in line with the bank's mission and core values; Series – Prepared in collaboration with Deloitte, August 2017.
(iv) Use more PR methods, especially through word of
mouth or story telling campaigns to let customers know Author’s information:
about banking and financial products; (iv) More thorough PhD. Student, MSc. Nguyen Thi Thanh Huyen - FBU
training of agents and careful selection of agents to Email: Huyenntt4782@gmail.com

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