Bank-fintech firm cooperation to bolster cashless payments: survey
Bank-fintech firm cooperation to bolster cashless payments: survey
A recent survey by Vietnam Report has revealed that local banks and fintech enterprises are willing to cooperate closely to boost the cashless payment market in Vietnam, but there remain many concerns regarding this trend, according to Thanh Nien Online website.
Statistics from the Payment Department of the State Bank of Vietnam show domestic transactions made with bank cards rose by over 18.4% year-on-year in the first quarter of 2019, whereas the number of online payments soared 66%.
Online payments, especially mobile payments, rocketed by 97.7% in volume and 232% in value during the period. Banks have no choice but to strengthen cooperation with fintech company to bolster cashless payment.
However, some experts still expressed concern over the growth of fintech firms, claiming that cooperation between the two sides may have an adverse impact on the banking sector.
As fintech becomes inevitable, banks must quickly improve their technology, capital and manpower infrastructure.
Large banks, despite having enough capital for technology investment, still have to consider the cost-effectiveness as well as their priorities for their development strategies this year when engaging deeper with fintech. Besides this, there will be concerns over cyberattacks and customer data leaks as the banking sector has seen a rise in scams in recent years.
The development of fintech companies may also complicate currency circulation management by the Government and the central bank. The nation expects to see nearly 100 fintech firms established in the future, requiring new regulations to control their operations.
The central bank should adjust and supplement regulations on payment activities, international money transfers and intermediate payment service provision to minimize financial risks, according to the paper.
