Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam
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 ab...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Universitas Gadjah Mada
2024-01-01
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| Series: | Gadjah Mada International Journal of Business |
| Subjects: | |
| Online Access: | https://journal.ugm.ac.id/gamaijb/article/view/71040 |
| _version_ | 1797365953070104576 |
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| author | Tien Phat Pham Hoc Thai Huynh Boris Popesko Sinh Duc Hoang Tri Ba Tran |
| author_facet | Tien Phat Pham Hoc Thai Huynh Boris Popesko Sinh Duc Hoang Tri Ba Tran |
| author_sort | Tien Phat Pham |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-08T16:56:17Z |
| format | Article |
| id | doaj.art-db014a5c377045c99a7ed1aa57aa1c67 |
| institution | Directory Open Access Journal |
| issn | 1411-1128 2338-7238 |
| language | English |
| last_indexed | 2024-03-08T16:56:17Z |
| publishDate | 2024-01-01 |
| publisher | Universitas Gadjah Mada |
| record_format | Article |
| series | Gadjah Mada International Journal of Business |
| spelling | doaj.art-db014a5c377045c99a7ed1aa57aa1c672024-01-05T02:11:13ZengUniversitas Gadjah MadaGadjah Mada International Journal of Business1411-11282338-72382024-01-0126112210.22146/gamaijb.7104035181Impact of Fintech’s Development on Bank Performance: An Empirical Study from VietnamTien Phat Pham0Hoc Thai Huynh1Boris Popesko2Sinh Duc Hoang3Tri Ba Tran4School of Economics, Can Tho University, Vietnam, and Tomas Bata University in Zlin, Czech RepublicFaculty of Information Technology, School of Technology, Van Lang University, Ho Chi Minh City, Vietnam, and Tomas Bata University in Zlin, Czech RepublicTomas Bata University in Zlin, Czech RepublicInternational University, National University of Vietnam, VietnamSchool of Economics, Can Tho University, VietnamIn 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.https://journal.ugm.ac.id/gamaijb/article/view/71040fintechbank performancetext miningvietnam |
| spellingShingle | Tien Phat Pham Hoc Thai Huynh Boris Popesko Sinh Duc Hoang Tri Ba Tran Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam Gadjah Mada International Journal of Business fintech bank performance text mining vietnam |
| title | Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam |
| title_full | Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam |
| title_fullStr | Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam |
| title_full_unstemmed | Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam |
| title_short | Impact of Fintech’s Development on Bank Performance: An Empirical Study from Vietnam |
| title_sort | impact of fintech s development on bank performance an empirical study from vietnam |
| topic | fintech bank performance text mining vietnam |
| url | https://journal.ugm.ac.id/gamaijb/article/view/71040 |
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