Vietnam owns special advantages for fintech development: ADB economist hinh anh 1Governor of the State Bank of Vietnam (SBV) Le Minh Hung (Photo: VNA)

Hanoi (VNA) – Vietnam owns special advantages, especially in the IT sector, which can be a basis for the development of financial technology (fintech) towards financial inclusion, according to Dominic Mellor, senior economist of the Asian Development Bank (ADB).

He made the remark at the Fintech Vietnam Forum 2018 in Hanoi on May 30, noting that the ADB is always ready to assist the SBV in both encouraging fintech development and perfecting legal framework in the field.

At the event, participants shared fintech development trends in the time ahead and management measures in this field in some countries.

Governor of the State Bank of Vietnam (SBV) Le Minh Hung said fintech and banking can contribute to financial inclusion, poverty reduction, social equality and sustainable economic development. Over the past years, the central bank has actively held dialogues with fintech businesses to remove obstacles in a timely manner and help them enter the market.

Since 2008, the SBV has permitted many companies to provide payment services on a trial basis to meet market demand. After setting up a relatively clear legal framework, it has officially licensed 27 intermediary payment service providers.

A steering committee on fintech was also established by the SBV in March 2017 to devise solutions to facilitate the development of fintech enterprises in Vietnam, he noted, adding that many banks have cooperated with fintech companies to provide relevant services, which has been a growing cooperation trend in recent years.

The development of fintech and cooperation between fintech firms and banks are considered prerequisites for promoting Vietnamese users’ access to financial and banking services.

SBV Deputy Governor Nguyen Kim Anh, head of the steering committee on fintech, noted the central bank will ask for the Prime Minister’s permission to build a regulatory sandbox framework for fintech businesses and start-ups to test their new products and services under the SBV’s supervision, thus minimising risks for clients and relevant sides.

Through the Mekong Business Initiative, the Fintech Vietnam Forum was co-organised by the ADB, the Australian Government, and the SBV.-VNA