The application of Fintech in promoting financial conclusion in Vietnam

Abstract

In practice, digital and Fintech achievements are an important driving force and a means to achieve
breakthrough financial results in many countries in recent years. Through Fintech, financial institutions can
develop e-banking service supply channels, remove spatial and temporal barriers, allowing financial services
supply to be cheaper, thereby creating conditions for the poor people in remote areas to access to banking
services anytime, anywhere. Currently, in Vietnam the level of financial inclusion is still low, according to the
State Bank of Vietnam (2018), about 90% of people’s transactions are still cash transactions, only 39.8 % of
adults have accounts at financial institutions. In particular, 69% of the population in rural areas still face with
difficulties in accessing financial services. Meanwhile, the percentage of people using smart mobile phones
is quite high (55%), which is an opportunity for people to easily access to financial services. Therefore, this
research paper will focus on researching the status of Fintech development, from which to introduce some
solutions to apply Fintech in promoting financial inclusion in Vietnam.