The industry is known for adopting new technology and facilitating exposure to new markets. But, there are legal issues involved. Smaller fintechs are subject to many of the same regulations as larger financial institutions, and they must keep up with rapidly evolving rules in several different sectors.

This article will explain what measures should be taken to boost the growth of financial companies in the long run.

How to boost the growth of legal and financial applications in Vietnam?

Several strategies could help boost the growth of legal and financial applications in Vietnam:

  1. Increase awareness: 

One of the first steps to boosting the growth of legal and financial applications in Vietnam is to increase awareness among the public and businesses about the benefits of using these applications. This could involve running targeted marketing campaigns and working with local media outlets to promote the advantages of using legal and financial applications.

  1. Improve infrastructure: 

To support the growth of legal and financial applications, it is vital to ensure that the necessary infrastructure is in place. This includes high-speed internet connections, reliable electricity supply, and sufficient storage and computing resources.

  1. Provide incentives: 

The government and other stakeholders could provide incentives to encourage the developing and adoption of legal and financial applications in Vietnam. This could include tax breaks, taking loans from Tamo, grants, and other financial assistance.

  1. Foster collaboration: 

Collaboration between legal and financial institutions, tech companies, and other stakeholders can help to drive innovation and the development of new applications. Encouraging open data sharing and collaboration could help legal and financial application growth.

  1. Support education and training: 

It is essential to support education and training programs to ensure that Vietnam has a skilled workforce capable of developing and using legal and financial applications. This could involve working with universities and vocational schools to offer courses in coding, data science, and other relevant fields.

By implementing these strategies, Vietnam can create an environment conducive to the growth of legal and financial applications, which can, in turn, help drive economic growth and development.

Are financial companies in Vietnam a regulated industry?

Yes, the State Bank of Vietnam (SBV) and other relevant government agencies regulate financial companies in Vietnam. The SBV regulates and supervises financial institutions, including commercial banks, non-bank credit institutions, financial leasing companies, and other financial service providers.

The SBV issues license to financial companies that meet specific criteria, such as minimum capital requirements and monitors their activities to ensure compliance with regulations on capital adequacy, risk management, and consumer protection. The SBV also sets guidelines and regulations for the operations of financial companies, including rules on loan disbursement, interest rates, and foreign exchange transactions.

How do regulations help to make a fintech future-proof in Vietnam?

Regulations can play a critical role in ensuring that a fintech company in Vietnam is future-proof, meaning it can adapt to changes in the market and remain competitive over time. 

Here are a few ways that regulations can help:

  • Ensure compliance with laws and regulations: 

Regulations can help financial companies comply with laws and regulations related to data privacy, consumer protection, and financial stability. By complying with these regulations, fintech companies can avoid legal and regulatory challenges that could otherwise jeopardize their ability to operate in the long term.

  • Encourage innovation and experimentation: 

Regulations designed to encourage innovation and experimentation can help financial companies develop new products and services that meet the evolving needs of consumers. For example, regulations that allow for sandbox testing can help fintech companies to test new products and services in a controlled environment before launching them to the public.

  • Foster collaboration with traditional financial institutions: 

Regulations can promote collaboration between financial companies and traditional financial institutions like banks. Companies and traditional financial institutions can leverage each other’s strengths to create new products and services that benefit consumers by working together.

  • Build trust and credibility: 

Regulations that require financial companies to meet specific standards can help to build trust and credibility with consumers. When consumers know that a fintech company is regulated and held to specific standards, they may be more likely to use its products and services.

Overall, regulations can help to create a stable and supportive environment for fintech companies in Vietnam, which can help these companies to be more future-proof and successful over the long term.