The 'Financial Services: State of the Nation Survey 2023' found that 91% of CFOs in Vietnam said their organization was interested in Generative AI – the highest figure of all markets surveyed. Of these, 58% have either implemented Generative AI in some way, or are researching and testing the technology.
Strong growth in BaaS and embedded finance
Vietnam is leading the world in deploying embedded finance and Banking as a Service (BaaS). According to a Finastra survey, 58% of Vietnamese financial institutions have deployed or improved embedded finance capabilities in the past 12 months, higher than the global average of 41%, and ranked second in deploying or improving BaaS capabilities (55%, compared to 48% globally).
This reflects the strong interest of Vietnamese financial institution executives in emerging banking models, with 89% citing these models as tools to generate business growth and income – the second highest after Hong Kong (95%).
Economic conditions limit investment plans
The difficult global economic situation has affected banks' investment plans, with a high proportion across all markets saying their financial institutions have limited investments in technology and digital banking.
This proportion was highest in Vietnam, with 87% saying that institutional investment had been restricted, of which 32% had been severely restricted. However, 67% had continued to fully invest, or expected to do so in the second half of 2024.
Green lending growth potential
Environmental, Social, and Governance (ESG)-focused finance is expected to benefit both financial institutions and the community, with 91% in Vietnam agreeing that a focus on ESG and sustainability will be the next big thing in finance. This is the highest globally, and 10% higher than the global average (79%).
Specifically, 82% of finance leaders in Vietnam believe that green lending offers growth and revenue opportunities. One of the keys to tapping this potential is Generative AI. Among banks interested in the technology, the most common application of Generative AI in green lending is the collection, processing and analysis of ESG data or the classification of lending criteria (36%).
In Vietnam, 44% of banks plan to use Generative AI in green lending. This is the highest rate globally, second only to Saudi Arabia (47%).
“Despite challenging economic conditions, our research clearly shows that investments in AI, BaaS and embedded finance remain top priorities for financial services organisations over the next 12 months, particularly as they look to enhance and personalise the customer experience.
We are strongly committed to ESG initiatives, collaboration around Open Finance and using cutting-edge technologies like AI to capture the opportunities ahead,” said Simon Paris, CEO at Finastra.
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