The Development of Digital Banking: A Case Study of Vietnam

Abstract

Purpose: Thanks to the Fourth Industrial Revolution and the digital economy, digital banking has become an attractive business trend. Moreover, the spreading of the Covid-19 virus worldwide over the past two years has boosted the digitalisation of banking services. The development of digital banking is now becoming an uncontroversial issue that will attract the concern of scholars, bank managers, and policy-makers.Methodology: As an emerging country with a young population having significant digital appliance joy, Vietnam will be a perfect case study to research the development of digital banking. Besides, digital banks, as well as the appliances of artificial intelligence (AI) in the banking sector, have appeared in Vietnam’s banking system at several different levels.Findings: Moreover, most commercial banks in Vietnam are now in the race to complete their digital services to provide innovative digital banking services that add more value to their clients. Hence, the chapter will describe the overall picture of Vietnam’s current digital banking market.Implications: Based on the crucial features of the operations of several digital banks and the appliances of AI in the digital banking sector in Vietnam during the chosen period, the author would like to give information on the potential of the Vietnamese digital banking market and suggest the key policies which the Vietnamese government should consider to support the digital transformation of the banking sector in Vietnam.