1006 analyzing the impact of fintech on joint stock commercial bank for foreign trade of vietnam 2023

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY PHAM MINH ĐAT ANALYZING THE IMPACT OF FINTECH ON JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM GRADUATION THESIS MAJOR: FINANCE – BANKING CODE: 7340201 HO CHI MINH CITY, 2022 BANKING UNIVERSITY OF HO CHI MINH CITY PHẠM MINH ĐẠT ANALYZING THE IMPACT OF FINTECH ON JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM GRADUATION THESIS MAJOR: FINANCE – BANKING CODE: 7340201 SUPERVISOR: Ph.D DUONG THI THUY AN i TÓM TẮT Thế giới trải qua tổng cộng cách mạng công nghiệp chứng kiến ảnh hưởng cách mạng công nghiệp 4.0 xây dựng tảng công nghiệp số 3.0 Các công nghệ 4.0 bao gồm Artificial Intelligence (AI), the Internet of Things (IoT) and Big Data,… tác động lên ngành nghề Việt Nam, làm thay đổi cách vận hành mơ hình kinh doanh Riêng ngành ngân hàng chịu tác động đến từ cơng nghệ tài (hay cịn gọi Fintech) cơng nghệ mơ sản phẩm dịch vụ tài ngân hàng mức đại Từ đó, ảnh hưởng đến nhiều khía cạnh ngân hàng thương mại Việt Nam (cách thức thực giao dịch, kênh cung cấp, phân phối sản phẩm, cách thức quản trị ngân hàng, quan hệ khách hàng,…) Vietcombank ngoại lệ Nghiên cứu sử dụng phương pháp nghiên cứu định tính để trả lời câu hỏi nghiên cứu phân tích tác động Fintech Vietcombank Nghiên cứu sử dụng liệu liên quan đến tình hình hoạt động Fintech Việt Nam năm gần đây, cụ thể tình hình lĩnh vực hệ sinh thái Fintech (ví dụ ví điện tử, vay ngang hàng, cơng nghệ bảo hiểm,…), từ tìm lĩnh vực Finetch có ảnh hưởng lớn tới ngân hàng Bên cạnh đó, hoạt động chuyển đổi số Vietcombank trước sau Fintech xuất liệt kê nhằm làm rõ thay đổi trình phát triển công nghệ ngân hàng Nghiên cứu tác động Fintech lên Vietcombank thể qua công nghệ mà ngân hàng áp dụng để chuyển đổi số, tác động từ Fintech tạo rủi ro cho Vietcombank trình chuyển đổi số áp dụng cơng nghệ tài Tổng kết lại, kết nghiên cứu sở để đưa giải pháp khuyến nghị dành cho Vietcombank nói riêng ngân hàng thương mại Việt Nam nói chung ii ABSTRACT The world has experienced a total of industrial revolutions and is currently witnessing the effects of industrial revolution 4.0 which was built on the foundation of industry number 3.0 4.0 technologies including Artificial Intelligence (AI), the Internet of Things (IoT) and Big Data, etc have been affecting many industries in Vietnam, changing operations and business models The banking industry in particular is affected by financial technologies (also known as Fintech) because these technologies can simulate banking and financial products and services at a more modern level Since then, it affects many aspects of Vietnamese commercial banks (transaction execution methods, product supply and distribution channels, banking management methods, customer relations, etc.) and Vietcombank is not an exception This study uses qualitative research methods to answer research questions and analyze the impacts of Fintech on Vietcombank The study uses data related to Fintech's operations in Vietnam in recent years All the areas in the Fintech ecosystem (such as e-wallets, peer-to-peer loans, insurance technology, etc.) will be evaluated to find out which area of Fintech has a great influence on the bank In addition, Vietcombank's digital transformation activities before and after Fintech appeared are also listed to clarify the change in the development of banking technology Research shows that the impact of Fintech on Vietcombank is reflected in the technologies that the bank is applying for digital transformation Besides, Fintech also creates risks for Vietcombank in digital transformation and in the application of financial technologies PLEDGE I reaffirm the thesis "ANALYZING THE IMPACT OF FINTECH ON JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM" iii is my own article and there are no copies from other authors' material This thesis is the author's own research work, the research results are honest, in which there are no previously published contents or content made by others except for citations fully cited in the thesis I will take full responsibility for my pledge Author Pham Minh Dat THANK YOU First, I would like to thank all the teachers at the Banking University of Ho Chi Minh City for providing and supporting me with the necessary knowledge during my study at the school Such knowledge is the luggage that helps me to complete the thesis In particular, I would like to thank my instructor, Ph.D Duong Thi Thuy An, she helped me in the process of completing my thesis as well as guiding me to correct my shortcomings I would also like to thank my family and friends who have been by my side and supported me during this time Due to limited practical experience and time, the thesis cannot avoid errors I look forward to receiving your comments so that I can complete my thesis Finally, I would like to wish the teachers of the Banking University of Ho Chi Minh City, have a lot of health and achieve much success in work as well as in life Author Pham Minh Dat TABLE OF CONTENTS ABSTRACT ii PLEDGE iii THANK YOU iv TABLE OF CONTENTS .v LIST OF ABBREVIATIONS viii LIST OF TABLES ix LIST OF CHARTS x CHAPTER I: INTRODUCTION 1.1 Summary 1.2 Research objectives 1.3 Research questions .2 1.4 Subjects and the scope 1.5 Methodology 1.6 Research contribution 1.7 Literature review 1.8 Research structure CHAPTER II: THEORETICAL BASIS ABOUT FINTECH AND JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM 2.1 Theoretical basis about Fintech 2.1.1 The Fintech concept .7 2.1.2 Fintech ecosystem 2.1.3 Foreign Fintech companies 2.1.4 The advantages of Fintech 11 2.1.5 The disadvantages of Fintech .13 2.2 Theoretical basis about commercial bank 15 2.2.1 Commercial bank concept 15 2.2.2 History of commercial banks 15 2.2.3 The role of commercial banks 16 2.2.4 Commercial bank services 17 2.3 The relationship between Fintech and commercial banks 19 2.3.1 Competitive relationship .19 2.3.2 Cooperating relationship .20 2.4 About Vietcombank 20 CHAPTER III: THE IMPACT OF FINTECH ON JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM .26 3.1 Fintech's operation status in Vietnam 26 3.1.1 Compare to the world 26 3.1.2 Vietnam's Fintech Companies .27 3.1.3 Fintech development trend in Vietnam .29 3.1.4 Fintech investment activities in Vietnam 30 3.1.5 Fintech development orientation of the State of Vietnam 34 3.2 Vietcombank banking technology in the early stages 35 3.3 Relationship between Vietcombank and Fintech 38 3.3.1 Cooperating relationship .38 3.3.2 Competitive relationship .39 3.4 The impact of Fintech on Vietcombank 40 3.4.1 The impact of Fintech'stechnological advancement 40 3.4.2 The impact of e-wallets 41 3.4.3 The impact of 4.0 technologies 47 3.4.4 The risks from Fintech .49 3.5 The causes behind the impacts 51 3.5.1 Covid-19 epidemic and e-commerce platforms 51 3.5.2 The Fourth Industrial Revolution 52 3.5.3 The absence of legal and regulatory framework for Fintech .53 3.6 Strengths and weaknesses exist in Vietcombank and Fintech 54 3.6.1 Strengths of Vietcombank and Fintech 54 3.6.2 Weaknesses of Vietcombank and Fintech 56 CHAPTER IV: SOLUTIONS AND RECOMMENDATIONS 61 4.1 Solutions .61 4.1.1 Solutions for Vietcombank 61 4.1.2 Solutions for Fintech companies 62 4.2 Recommendations 64 4.2.1 Recommendations for Vietcombank 64 4.2.2 Recommendations for Fintech companies 66 OVERALL 68 REFERENCES .69 Acronyms LIST OF ABBREVIATIONS Meaning IoT Internet of Things AI Fintech Artificial Intelligence Financial Technology Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam ASEAN Association of South East Asian Nations E-wallet Electronic wallet P2P Lending Peer-to-peer Lending Insurtech Insurance Technoloy AML Anti-money Laundering CFT Counter-Finance Terrorist SWIFT Society for Worldwide Interbank Financial Telecommunication SMEs Financing Small and Medium Enterprise ATM Automatic Transaction Machine SMS Short Messaging Service LIST OF TABLES Table 2.1 Top 10 Fintech countries in the world as of June 29th, 2021 .10 Table 2.2 Vietcombank's current business operations 22 Table 3.1 Ranking of Fintech countries in Southeast Asia as of June 29,2021 .26 Table 3.2 Ranking of Fintech cities in Southeast Asia as of June 29, 2021 26 Table 3.3 Vietnamese Fintech companies by sector .28 Table 3.4 Fintech deals in Vietnam in 2021 32 Table 3.5 List of E-wallets directly linked with Vietcombank .38