Sharing mechanism needed for fintech development
Experts at a recent seminar discussed the need for a “regulatory sandbox” and a sharing mechanism for the development of Vietnam’s fintech industry. The current legal framework in Vietnam is unclear and does not support the development and implementation of new financial technology products, according to Nguyễn Thanh Bình from RMIT University. A regulatory sandbox would provide a space for testing and development, helping fintech companies and start-ups to hasten their growth. The fintech sector has the potential to greatly impact the country’s banking-finance industry by introducing new technology-based financial instruments.
However, there are also challenges facing the growth of the Vietnamese fintech sector, including a lack of cooperation between commercial banks. Banks do not share customer data with application developers, making it difficult for customers to connect different bank accounts through a single application. The commercial banks need to work together to address this issue, while also considering data security concerns.
Vietnamese fintech firms should also be allowed to participate in the regulatory sandbox to develop and test their ideas. This would provide a space for innovation and improvement, and allow the government to better control and supervise the technology industry. The seminar was organized by the Israeli Export Institute and the Israeli Ministry of Economy and Industry’s Foreign Trade Administration.