Vietnam's banking sector emerges as a global leader in generative AI
Vietnam's banking sector emerges as a global leader in generative AI
Finastra's global survey for 2023 released on November 28 shows Vietnam's financial institutions are keen on new technologies and banking models, even with limited tech investments due to tough economic conditions.
According to Finastra, Vietnam leads in interest in generative AI, with 91 per cent of finance executives showing enthusiasm, the highest among surveyed markets. Although behind Hong Kong in AI implementation, Vietnam's interest outshines others, with only 3 per cent disinterested.
Vietnam tops in advancing embedded finance (58 per cent vs 41 per cent globally) and is a front-runner in improving BaaS (55 per cent vs 48 per cent globally). This mirrors their strong belief in these models as key to business growth, with 89 per cent viewing them as revenue drivers, second only to Hong Kong.
However, economic challenges have hindered technology and digital banking investments globally. In Vietnam, 87 per cent of institutions face investment constraints, with 32 per cent heavily affected. Yet, there is optimism, as 67 per cent plan to fully resume or have resumed investments by mid-2024.
Vietnam also sees high potential in green lending and ESG-focused finance, with 91 per cent recognising it as a major disruptor. A significant 82 per cent view green lending as a growth opportunity. Generative AI is seen as crucial, especially for environmental, social, and governance (ESG) data processing, with 44 per cent in Vietnam planning to use it, a global high.
“Despite the challenging economic climate, it's clear from our research that investment in AI, BaaS, and embedded finance remain key priorities for financial services organisations over the next 12 months, particularly as they seek to enhance and personalise the customer experience,” said Simon Paris, CEO at Finastra.
“We share the industry's ongoing commitment to ESG initiatives, to collaboration around Open Finance, and excitement in using advanced technologies like AI to help deliver on the opportunities ahead.
