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The State Bank of Vietnam is about to have a mechanism to allow the testing of P2P Lending


The State Bank of Vietnam recently said that some companies using the name P2P Lending model took advantage of people's ignorance to deceive, promising high profits to defraud and appropriate people's capital.


Ngân hàng Nhà nước Việt Nam

The State Bank has just published a Draft Decree regulating the Controlled Testing Mechanism in the banking sector.

According to the Draft, Fintech solutions in the banking sector are allowed to be tested at the Testing Mechanism including the following areas:

1. Credit scoring.

2. Share data via an open application programming interface (Open API).

3. Peer-to-peer lending (P2P Lending).


The Draft Decree regulates the conditions for participating in the Testing Mechanism for Fintech Companies in two groups: conditions apply to Fintech Companies registering to participate in testing the credit scoring solution and sharing data via open application programming interface (Open API), does not include peer-to-peer lending solutions and conditions apply to Fintech Companies that are Peer-to-Peer Lending Companies.


The State Bank said that in recent times, the world banking industry in general, and the Vietnamese banking industry, in particular, have witnessed a strong trend of applying new technologies associated with the achievements of the 4.0 Industrial Revolution.


In Vietnam, the Fintech development trend is also clearly shown through the participation of technology startups and non-bank organizations (non-banks) with technological strengths participating in various activities. in the field of banking - finance (Fintech company) in the form of developing solutions to support banking activities without directly providing services to end-users or directly providing solutions. new law independently.


The rapid development and expansion of the scope of Fintech has caused financial and monetary management agencies of many countries to face difficulties and challenges in management and supervision such as the risk of money laundering. and terrorist financing (AML/CFT), ensuring network security, protecting user data, protecting the rights of consumers and investors...


Like many management agencies in the world, the State Bank and several related agencies are also encountering new challenges in State management with the emergence of Fintech companies supplying or participating in and cooperating. Providing services and solutions in many different industries and fields such as payment, P2P Lending, credit scoring, etc. Most of these areas and fields of activity of the above Fintech companies are currently unknown. There is a comprehensive legal framework or specific legal regulations to regulate, so there may be potential risks and negative consequences in several aspects such as fair competition, financial stability, and protection of rights. consumers, cyber security. In addition, the development trend intertwined with "cooperation - competition" mentioned above poses many challenges in terms of policies and regulations for state management agencies in harmonizing the promotion of innovation. innovation, fair competition between traditional financial institutions and Fintech companies to ensure financial stability, consumer protection, and network security.


For example, in the P2P Lending activity that has emerged in Vietnam recently, the State Bank said that some companies using the name P2P Lending model take advantage of people's lack of knowledge and understanding to deceive and commit fraud. lying, false advertising, promising high profits, high-interest rates to defraud, appropriating people's capital to invest in this loan model, or deceiving borrowers about "low" interest rates. preferential loan conditions while calculating and applying "exorbitantly" high real interest rates, negatively impacting people's lives. Some agreements between participating parties in the P2P Lending model (P2P Lending company and investors, P2P Lending company and third parties, P2P Lending company and borrowers...) lack clarity and transparency. There is a lack of legal constraints, and there is no monitoring and post-inspection mechanism for the borrower's use and management of loan capital for the right purposes, which can lead to disputes and complaints between the parties.


On the regional and international level, many countries around the world have taken a proactive approach by establishing a controlled testing mechanism for Fintech activities in response to the emergence of Fintech as an independent entity ( such as Fintech startups) or as technology solutions applied and deployed in providing services and solutions by traditional financial institutions.


The pilot mechanism is one of the most popular policy tools and approaches applied by many countries to accelerate innovation, enhance competition, and improve efficiency in the banking and finance industry. by allowing testing of Fintech solutions with real transactions in a controlled environment, limited in scope, scale, and testing time. Fintech solutions participating in the Testing Mechanism will be placed under regular and continuous supervision of the banking and financial management agency to minimize the risks and consequences that arise. Information, data, and testing results for solutions participating in this Testing Mechanism will be the basis for management and supervision agencies as well as potential service providers to participate in the Mechanism. The testing mechanism evaluates the feasibility, benefits, and risks of the solution, thereby making decisions and appropriate next actions.


In the above trend and context, Vietnam needs to soon build a management framework in the form of a Decree stipulating a testing mechanism for Fintech activities to promote innovation and limit unfair competition. healthy, preventing violations of the law in the name of Fintech, and protecting the interests of service users; At the same time, the process of operating this framework provides a practical basis for relevant State management agencies to amend and supplement current regulations, complete the legal framework, and promulgate management regulations according to the law. direction to facilitate and adapt Fintech activities in the banking sector in the coming time.

(Theo An ninh tien te)







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