Financial technology and bank credit in Vietnam
Main Article Content
Abstract
Credit markets around the world are undergoing a profound transformation. Fintech and large technology companies are supporting bank credit activities provided to customers. This study examines how financial technology supports and brings risks to the credit-granting activities of banks in Vietnam. The VECM model was selected for regression with quarterly data from the first quarter of 2000 to the fourth quarter of 2021. The research results show that the level of financial technology in the banking credit sector has not yet been achieved. as much as other operations, but research results also show that the influence of financial technology on bank credit does not tend to decline in the long term. Therefore, regulatory agencies must increase and better manage credit activities with fintech platforms, ensuring stability in financial activities and market efficiency.
Article Details
Keywords
Bank credit, Financial technology, Vietnam
References
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Qiu, Z., Wang, J., Wu, K., & Yang, S. (2023). The value of FinTech innovations for the finance industry: Evidence from China. Economic and Political Studies, 12(1), 1-19. https://doi.org/10.1080/20954816.2023.2222447
Schweitzer, M., & Barkley, B. (2017). Is' Fintech'Good for Small Business Borrowers? Impacts on Firm Growth and Customer Satisfaction. FRB of Cleveland Working Paper, No. 17-01. https://dx.doi.org/10.2139/ssrn.2926964
Sutherland, W., & Jarrahi, M. H. (2018). The sharing economy and digital platforms: A review and research agenda. International Journal of Information Management, 43, 328-341. https://doi.org/10.1016/j.ijinfomgt.2018.07.004
Sheng, T. (2021). The effect of fintech on banks’ credit provision to SMEs: Evidence from China. Finance Research Letters, 39, 101558. https://doi.org/10.1016/j.frl.2020.101558
Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833. https://doi.org/10.1016/j.jfi.2019.100833
Zhang, Y., Ye, S., Liu, J., & Du, L. (2023). Impact of the development of FinTech by commercial banks on bank credit risk. Finance Research Letters, 55, 103857. https://doi.org/10.1016/j.frl.2023.103857
Zhang, A., Wang, S., Liu, B., & Liu, P. (2022). How fintech impacts pre‐and post‐loan risk in Chinese commercial banks. International Journal of Finance & Economics, 27(2), 2514-2529. https://doi.org/10.1002/ijfe.2284
Zhu, H., Rajan, U., & Parlour, C. A. (2019). Fintech disruption, payment data, and bank information. NBER Working Paper, 22476. https://financetheory.org/public/storage/event_paper/S19.URajan.pdf
Begenau, J., Farboodi, M., & Veldkamp, L. (2018). Big data in finance and the growth of large firms. Journal of Monetary Economics, 97, 71-87. https://doi.org/10.1016/j.jmoneco.2018.05.013
Berger, A. N., & Sedunov, J. (2017). Bank liquidity creation and real economic output. Journal of Banking & Finance, 81, 1-19. https://doi.org/10.1016/j.jbankfin.2017.04.005
Buchak, G., Matvos, G., Piskorski, T., & Seru, A. (2018). Fintech, regulatory arbitrage, and the rise of shadow banks. Journal of Financial Economics, 130(3), 453-483. https://doi.org/10.1016/j.jfineco.2018.03.011
Claessens, S., Kose, M. A., & Terrones, M. E. (2012). How do business and financial cycles interact? Journal of International Economics, 87(1), 178-190. https://doi.org/10.1016/j.jinteco.2011.11.008
Cheng, M., & Qu, Y. (2020). Does bank FinTech reduce credit risk? Evidence from China. Pacific-Basin Finance Journal, 63, 101398 https://doi.org/10.1016/j.pacfin.2020.101398
Cornelli, G., Frost, J., Gambacorta, L., Rau, P. R., Wardrop, R., & Ziegler, T. (2020). Fintech and big tech credit: a new database. BIS Working Papers. No 887. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3707437
Daud, S. N. M., Khalid, A., & Azman-Saini, W. N. W. (2022). FinTech and financial stability: Threat or opportunity?. Finance Research Letters, 47. https://doi.org/10.1016/j.frl.2021.102667
Demirgüç-Kunt, A., & Detragiache, E. (1998). The determinants of banking crises in developing and developed countries. Staff Papers, 45(1), 81-109. https://doi.org/10.2307/3867330
Fuster, A., Plosser, M., Schnabl, P., & Vickery, J. (2019). The role of technology in mortgage lending. The Review of Financial Studies, 32(5), 1854-1899. https://doi.org/10.1093/rfs/hhz018
Guo, P., Cheng, M., & Shen, Y. (2024). FinTech adoption and bank risk-taking: evidence from China. Applied Economics Letters, 31(7), 594-602. https://doi.org/10.1080/13504851.2022.2140755
Guo, L., & Zhu, K. (2022). FinTech, bank risks, and business performance: From the perspective of inclusive finance. China Economic Transition= Dangdai Zhongguo Jingji Zhuanxing Yanjiu, 5(2), 242-261. https://doi.org/10.3868/s060-014-022-0012-8
Huang, Y., Zhang, L., Li, Z., Qiu, H., Sun, T., & Wang, X. (2020). Fintech credit risk assessment for SMEs: Evidence from China. IMF Working Paper No. 20/193. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3721218
Hu, D., Zhao, S., & Yang, F. (2022). Will fintech development increase commercial banks risk-taking? Evidence from China. Electronic Commerce Research, 24(1). 37-67 https://doi.org/10.1007/s10660-022-09538-8
Jakšič, M., & Marinč, M. (2019). Relationship banking and information technology: The role of artificial intelligence and FinTech. Risk Management, 21, 1-18. https://doi.org/10.1057/s41283-018-0039-y
Jagtiani, J., & Lemieux, C. (2018). Do fintech lenders penetrate areas that are underserved by traditional banks?. Journal of Economics and Business, 100, 43-54. https://doi.org/10.1016/j.jeconbus.2018.03.001
King, W. R., & He, J. (2006). A meta-analysis of the technology acceptance model. Information & Management, 43(6), 740-755. https://doi.org/10.1016/j.im.2006.05.003
Lqbal, M., & Llewellyn, D. T. (Eds.). (2002). Islamic banking and finance: new perspectives on profit sharing and risk. UK: Edward Elgar Publishing.
Livshits, I., Mac Gee, J. C., & Tertilt, M. (2016). The democratization of credit and the rise in consumer bankruptcies. The Review of Economic Studies, 83(4), 1673-1710. https://doi.org/10.1093/restud/rdw011
Mention, A. L. (2019). The future of fintech. Research-Technology Management, 62(4), 59-63. https://doi.org/10.1080/08956308.2019.1613123
Mirchandani, A., Gupta, N., & Ndiweni, E. (2020). Understanding the Fintech Wave: A Search for a Theoretical Explanation. International Journal of Economics and Financial Issues, 10(5), 331-343. https://doi.org/10.32479/ijefi.10296
Okoli, T. T. (2020). Is the relationship between financial technology and credit risk monotonic? Evidence from the BRICS economies. Asian Economic and Financial Review, 10(9), 999. https://doi.org/10.18488/journal.aefr.2020.109.999.1011
Pierri, M. N., & Timmer, M. Y. (2020). Tech in fin before fintech: Blessing or curse for financial stability? International Monetary Fund.
Qiu, Z., Wang, J., Wu, K., & Yang, S. (2023). The value of FinTech innovations for the finance industry: Evidence from China. Economic and Political Studies, 12(1), 1-19. https://doi.org/10.1080/20954816.2023.2222447
Schweitzer, M., & Barkley, B. (2017). Is' Fintech'Good for Small Business Borrowers? Impacts on Firm Growth and Customer Satisfaction. FRB of Cleveland Working Paper, No. 17-01. https://dx.doi.org/10.2139/ssrn.2926964
Sutherland, W., & Jarrahi, M. H. (2018). The sharing economy and digital platforms: A review and research agenda. International Journal of Information Management, 43, 328-341. https://doi.org/10.1016/j.ijinfomgt.2018.07.004
Sheng, T. (2021). The effect of fintech on banks’ credit provision to SMEs: Evidence from China. Finance Research Letters, 39, 101558. https://doi.org/10.1016/j.frl.2020.101558
Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833. https://doi.org/10.1016/j.jfi.2019.100833
Zhang, Y., Ye, S., Liu, J., & Du, L. (2023). Impact of the development of FinTech by commercial banks on bank credit risk. Finance Research Letters, 55, 103857. https://doi.org/10.1016/j.frl.2023.103857
Zhang, A., Wang, S., Liu, B., & Liu, P. (2022). How fintech impacts pre‐and post‐loan risk in Chinese commercial banks. International Journal of Finance & Economics, 27(2), 2514-2529. https://doi.org/10.1002/ijfe.2284
Zhu, H., Rajan, U., & Parlour, C. A. (2019). Fintech disruption, payment data, and bank information. NBER Working Paper, 22476. https://financetheory.org/public/storage/event_paper/S19.URajan.pdf
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