Development of Digital Banking: A Foundation for Efective Application of Credit Derivatives at Vietnamese Commercial Banks

Abstract

Developing digital banking not only helps commercial banks to comprehensively innovate banking business, they also bring great benefits to risk management activities; especilly risk management throught the use of credit derivatives. So the question is what factors affect the development of digital banking? Benefits of the development of digital banking to use of credit derivatives? The purpose of this article is analyzes the advantages and disadvantages of Vietnamese commercial banks in developing digital banking; at the same time, it proposes solutions and recommendations to accelerate the diffusion of innovation through the development of digital banking in Vietnamese commercial banks. In order to achieve these objectives, the author used the synthetic method and descriptive statistical method, differently from Briggs (2019), Khrennikova (2019). The research results show that, besides some advantages, the biggest difficulties of Vietnamese commercial banks in developing digital banking is related to the awareness and development of human resources about digital banking