Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam

Tien Phat  Pham; Hoc Thai  Huynh; Boris  Popesko; Sinh Duc  Hoang; Tri Ba  Tran

Tien Phat Pham School of Economics, Can Tho University, Vietnam, and Tomas Bata University in Zlin, Czech Republic
Hoc Thai Huynh Faculty of Information Technology, School of Technology, Van Lang University, Ho Chi Minh City, Vietnam, and Tomas Bata University in Zlin, Czech Republic
Boris Popesko Tomas Bata University in Zlin
Sinh Duc Hoang International University, National University of Vietnam
Tri Ba Tran Can Tho University

Keywords: Fintech, Bank Performance, Text Mining, Vietnam

Abstract

In recent years, fintech has exploded in popularity and importance in the finan- cial industry. Its impacts have spread widely throughout the world, including Vietnam. This study aims to investigate the effect of fintech’s development on bank performance in Vietnam. Based on the unstructured data about fintech on the financial expert web- sites from Vietnam, the word frequency statistic technique of the text mining approach is applied for measuring fintech’s development under the support of Python-based solu- tions. The bank-level data of 15 Vietnamese banks for the period from the first quarter of 2019 to the second quarter of 2021 are collected from the quarterly financial statements in the Vietstock organization. Python programming and text mining techniques are used to compile this dataset by gathering information from popular and relevant websites. The generalized least squares method is used for estimating the panel models. The estimation result shows the significant impact of fintech’s development on bank profitability, but the net interest margin does not associate with the fintech variable. Besides, some interesting findings are revealed: The slow banking transformation to adapt to the rise of fintech and the COVID-19 pandemic increased bank profitability. Furthermore, suggestions for the banks and fintech companies are recommended, and the limitations and directions for further research are also proposed.

Author Biographies

Tien Phat Pham, School of Economics, Can Tho University, Vietnam, and Tomas Bata University in Zlin, Czech Republic

Pham, Phat Tien, is a lecturer at the School of Economics at Can Tho University, Vietnam. He obtained a doctoral degree in Finance from Tomas Bata University in Zlin, Czech Republic, in 2023. His research interests include Fintech, Finan- cial Management, and Bank Performance. He has published numerous articles in peer-reviewed journals, including the Journal of Eastern European and Central Asian Research, SCMS Journal of Indian Management, Investment Management and Financial Innovations, etc.

Author’s contact detail: Address: 122F/3, 3/2 street, An Binh ward, Ninh Kieu dis- trict, Can Tho city 94000, Vietnam; phone number: +84916243175; Email: pptien@ ctu.edu.vn

Hoc Thai Huynh, Faculty of Information Technology, School of Technology, Van Lang University, Ho Chi Minh City, Vietnam, and Tomas Bata University in Zlin, Czech Republic

Huynh, Thai Hoc, is a lecturer at the Faculty of Information Technology in the School of Technology at Van Lang University in Ho Chi Minh City, Vietnam. He received his B.S. in Mathematics and Computer Science from the University of Science in Vietnam in 2002 and his M.S. in Geographic Information Systems from the Uni- versity of Technology in Vietnam in 2007. Currently, he is pursuing a doctoral degree in Software Engineering at Tomas Bata University in Zlín, Czech Republic. Huynh's research interests include deep learning and regression models. He has published articles in peer-reviewed journals such as IEEE Access, Mathematics, Informations, and the Geojournal of Tourism and Geosites.

Author’s contact detail: Address: 69/68, Dang Thuy Tram street, 13 ward, Binh Thanh district, Ho Chi Minh city 70000, Vietnam; phone number: +84909883847; Email: hoc.ht@vlu.edu.vn

Boris Popesko, Tomas Bata University in Zlin

Popesko, Boris, is a full professor of Economics and Management at Tomas Bata Univer- sity in Zlin, Czech Republic. His research interests include Management, Business, Accounting, and Finance. He has published extensively in peer-reviewed journals, including the Journal of Hospitality and Tourism Management, Measuring Busi- ness Excellence, Finance Research Letters, Frontiers in Public Health, etc.

Author’s contact detail: Address: Mostní 5139, 760 01 Zlín, Czech Republic; phone number: +420576032120; Email: popesko@utb.cz

Sinh Duc Hoang, International University, National University of Vietnam

Hoang, Duc Sinh, iwas a lecturer at Ho Chi Minh City University of Foreign Languag- es and Information Technology (HUFLIT). Now, he is a lecturer and researcher at International University, National University of Vietnam. He obtained his doctoral degree in Management from Tomas Bata University in Zlin, Czech Repub- lic in 2023. His research interests include Finance, Management, Marketing, and Sustainable Tourism. He has published multiple articles in international peer-re- viewed journals with high impact factors and citation scores.

Author’s contact detail: Address: Quarter 6, Linh Trung Ward, Thu Duc District, HCM City, Vietnam; phone number: +84944235780; Email: hdsinh@hcmiu.edu.vn

Tri Ba Tran, Can Tho University

Tran, Ba Tri, is a lecturer at the School of Economics, Can Tho University, Vietnam. He is currently pursuing a doctoral degree in Finance at the same institution. His re- search interests are in Financial Management, Bank Management, and Business Analysis. He has published articles in peer-reviewed journals, including the SCMS Journal of Indian Management and the Journal of Management, Economics, and Industrial Organization.

Author’s contact detail: Address: Campus 2, Can Tho University, Ninh Kieu dis- trict, Can Tho city 94000, Vietnam; phone number: +84917025271; Email: tbtri@ ctu.edu.vn

References

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