Impact analysis of peer-to-peer Fintech in Vietnam’s banking industry

Abstract

This paper aims to analyze the factors affecting customer satisfaction and loyalty when using peer-to-peer (P2P) services, thereby drawing some conclusions for the banking industry. The second objective is to determine whether P2P Fintech and traditional banks should collaborate under current circumstances or if they make for healthy competition, and collaboration is optional. The SEM model, IBM SPSS Statistics 20, and IBM SPSS Amos software are used to process data from an official survey of 254 people who have used P2P Fintech from January 5 to February 23, 2022. The results show that P2P Fintech provides products with a better customer experience, and there is a change in customer payment trends. Therefore, bank managers should create appropriate policies for the sustainable development of their banks that would involve establishing their P2P activity and ensuring their customers’ satisfaction. Commercial banks need to clarify their responsibilities with service providers and clearly define the data provided to Fintech in order to avoid unintended cases: legal risk that service providers are prohibited or prevented from functioning; potential capital loss or payment delay, ... Moreover, there are risks when using a P2P fintech system, such as technology development, or when the software is discontinued, the level of risk will be very high.

Interaction between decentralized financial services and the traditional banking system: A comparative analysis

“…The traditional banking model faces challenges in effectively screening and lending to small borrowers. The emergence of peer-to-peer lending platforms demonstrates alternative lending models that use technology for verification, offering insight into how traditional banks can adapt to improve their lending practices and reduce risk (Iyer et al, 2009;Diep & Canh, 2022). Morris (2011) and Kozmenko and Savchenko (2013) determine that a more focused approach to the main banking functions can help in better risk management and ensuring financial stability.…”

The effect of financial technology (Fin-tech) on the conventional banking industry in India

“…Unbundling refers to the unbundling of banks' products so that customers may now choose from a single source while commoditization refers to the loss of banks' ability to differentiate themselves from other financial institutions. Disintermediation refers to the process by which banks progressively lose contact with their clients since they may now receive financial services from other sources [25,33]. According to the EY Fintech Adoption Index [34], the most popular types of financial technology products in 2015 were related to savings and investments (16.7 percent: online stockbroking and spread betting, online budgeting and planning, online investments, equity and rewards crowdfunding, peer-to-peer lending), money transfers (17.6 percent of active digitally active users have at least once used services such as nonbank money transfers, online forex exchange, overseas remittances) and insurance (7.2 percent).…”