THE IMPACT OF FINANCIAL TECHNOLOGY ON E-BANKING PERFORMANCE - EMPIRICAL EVIDENCE IN VIETNAM

Abstract

Recently, digital transformation in the economy and financial sector has promoted the development of financial technology, both supporting rapid digital banking and increasing competition in providing products and services. This study applies the VECM model to examine the impact of financial technology on e-banking in Vietnam during the period 2000–2021. The results show that financial technology brings both opportunities and challenges to banking operations. In addition, the study emphasizes the important role of infrastructure and technology investment in the digitalization of banking. However, large investment costs require careful consideration from banks. Given the rapid changes in the financial services industry and the demand for technological innovation from customers, banks need to focus on innovation to develop e-banking and promote the advancement of national financial technology.