Do Vietnamese banks use fintech in the right way?

Abstract

“Banks can partner with fintech to build an ecosystem where the size of the pie grows for the banks and third parties.” – Mike Henry, Scotiabank. Nowaday, the industry is bringing banking into the digital age. Fintech is equipping the banking industry with tools that make it more efficient than ever before. So if fintech really has a "magical" as rumor, will it have the ability to reduce credit risk - the leading source of problems in banks world-wide ever? The research uses the word frequency and two-way fixed effect, system GMM and DID approach method on the bank system in Vietnam to find out the truth. And as predicted, in life nothing is perfect, the research results show that Fintech can help banks in many good ways, but it can’t reduce credit risk. The main reason may come from there are many limitations in the way Vietnamese banks use Fintech. The research also gives recommendations to promote all Fintech’s abilities.