Fintech growth puts financial stability and resilience in focus
Rapid advances in fintech and AI are creating opportunities to improve efficiency and expand financial inclusion but also intensifying the need for stronger risk management and operational resilience across the financial system
The rapid integration of digital technologies into financial services is reshaping the landscape of financial institutions, but it also raises concerns about financial stability and resilience. At the Vietnam-UK Economic Forum 2026 in Hanoi, Nguyen Thi Hong Thuy, vice rector of the University of Economics and Business, emphasized that while fintech, AI, big data, cloud computing, digital assets, and open finance offer numerous benefits, they also introduce new vulnerabilities.
A disruption in one institution can quickly cascade into broader operational or reputational issues, potentially undermining market confidence.
Thuy highlighted that technology has reduced transaction costs, expanded access to finance, and improved operational efficiency. However, it also necessitates a fundamental shift in business models, data architecture, workforce capabilities, and governance systems. Financial institutions must now consider risk management from a broader perspective, accounting for the potential impacts of technology failures on operational, liquidity, or reputational levels.
Regulators face the challenge of balancing innovation and stability, openness and security, and speed and resilience. While innovation is crucial, it must be accompanied by adequate safeguards to protect consumers and maintain market confidence. The UK's experience in this regard, particularly through its Financial Conduct Authority's regulatory sandbox, offers valuable insights for Vietnam.
The sandbox allows businesses to test new financial products and services in a controlled environment, fostering responsible innovation while ensuring effective regulatory oversight.
Smith, the UK's chargé d'affaires in Vietnam, stressed that successful financial development requires more than just technology, investment, and infrastructure. It also necessitates strong institutions, skilled professionals, and continuous knowledge exchange. Universities play a critical role in developing talent, boosting research, and identifying practical solutions to emerging challenges.
Smith expressed hope for mutual learning between the UK and Vietnam, acknowledging that both countries have valuable experiences and ambitions to share.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
