Fintech Applications in Banking in Vietnam: Opportunites and Challenges

Abstract

On September 27, 2019, Party General Secretary and State President, on behalf of the Politburo, issued Resolution No.52-NQ/TW on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution. Although the above-mentioned guidelines and policies are lagging far behind the ever-changing evolution in the development of the science and technology on the world, Vietnam still has some remarkable achievements in the application of scientific and technological advances in business, production and trade activities. Among these, the applications of financial technology (fintech) in banking. Are not only supported by researching and building the regulatory framework (Sandbox) but also create a positive driving force for development by potential opportunities like adaptability, consumer demands, infrastructure of financial technology, etc. Besides, the trend of online transactions has become popular especially when the Covid-19 pandemic has broken out on a global scale. However, from its the advantages and opportunities, the finance and banking industry in Vietnam has also faced with many risks and challenges such as the adequacy of related regulations, safety and confidentiality of information, financial crime, the quality of human resources for the operation and development of financial technologies.