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LEGAL INSIGHT

In recent years, the business environment in banking sector has fundamentally transformed and diversified through the development of technology. The term “Fintech” (Financial Technology) is rapidly expanding and dramatically altering the banking and finance industries in the entire world. With Vietnam’s favorable conditions, especially the rising trend of non-cash payments, the prospect of Fintech development banking sector is undeniable with diverse branches. However, the snappy growth of financial technology activities has made it challenging for regulators in Vietnam as well as many other nations to govern and supervise financial institutions, enterprises, and consumers. The risk of money laundering, network security, consumer data protection, ect. may threaten individuals and organizations at any time. As a result, the Government and the State Bank of Vietnam are gathering opinions and drafting a Decree regarding the regulatory sandbox in banking sector (hereinafter referred to as the “Draft Fintech Decree”)

Fintech in the banking sector includes many areas such as: Credit extension using technology, Credit scoring, Data sharing via open application programming interface (Open API), Peer to peer lending (P2P Lending); Application of Blockchain Technology, Decentral Ledger Technology in Banking activities... This article is focusing on 03 main areas:

• Payment intermediaries (e-wallets)
• Peer-to-peer lending (P2P); and
• Insurtech

Please find our detailed article here.