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Fintech changing face of banking and finance

Released at: 22:00, 20/08/2019

Fintech changing face of banking and finance

Photo: Ngoc Lan

Hanoi seminar hears of potential for fintech development in Vietnam.

by Ngoc Lan

The main topic of discussion at the “Fintech Management Policy” seminar held on August 20 in Hanoi was that, with the development of science and technology, in recent years the field of financial technology (fintech) has made remarkable developments and changed the appearance of the financial and banking system.

Mr. Ngo Van Duc, Deputy Head of the Monitoring Department of Payment Systems at the Payment Department under the State Bank of Vietnam (SBV), said fintech has grown strongly all over the world in recent years and Vietnam has great potential for its development. “Vietnam’s fintech ecosystem is growing, with 24 banks having implemented QR Code payment services, more than 50,000 points accepting QR Code payments, 76 organizations deploying internet payment services, and 44 organizations deploying mobile payment services,” he added.

He also introduced solutions to promote the implementation of non-cash payment policies, such as completing the legal framework for payments, building a management mechanism (Regulatory Sandbox) for fintech businesses, and researching and building a P2P lending management framework.

Mr. Varun Mittal, Vice Chairman of the Singapore Fintech Association and Head of Fintech Consulting Services in new markets at Ernst & Young Singapore, said Vietnam has substantial potential to develop fintech and catch up with developed countries in this regard. “However, if management agencies maintain a cautious approach and open up only gradually, fintech in Vietnam will not reach its full potential,” he added. “We must help fintechs develop, expand, access capital, and have flexible management mechanism to not only serve Vietnam but also become an Asian giant.”

Commenting on draft fintech management regulations, Mr. Phung Anh Tuan, Secretary General of the Vietnam Association of Financial Investors (VAFI), noted that as fintech is a new technology field it is necessary to have mechanisms to manage and control risks and not just traditional mechanisms for the banking and financial system. “Using bank management mechanisms on fintech will be ineffective and inhibit the development of the sector,” he said. “Policies should prioritize the benefits of the majority and not take a few cases of violations to limit the needs of the majority of users.”

Other experts also shared their experience and made recommendations on policy orientation for fintech. Strengthening management is particularly necessary to create a healthy business environment, as is improving security and safety for financial transactions and protecting users’ rights.

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