The State Bank of Vietnam (SBV) has released the second draft of a decree on regulatory sandbox for financial technology (Fintech) operations in the field of banking which is expected to foster innovation, creativity and modernization of the sector.
Accordingly, six Fintech solutions would be applied on a pilot basis in the banking sector, including: grant of credit on technology platforms; credit scoring; application programming interface (API) data sharing; peer-to-peer (P2P) lending; application of blockchain and distributed ledger technology (DLT) in banking activities; and other technologies in banking operations and innovative business cooperation models in line with objectives of the sandbox.
However, it must be noted that in the process of participating in the pilot mechanism, P2P lending companies would not be allowed to perform such acts as providing loan security; providing the service of information brokerage for borrowing loans for stock investment and other high-risk activities; and using funds mobilized from customers in an unauthorized manner. Acts of abusing Fintech solutions to alter information, commit swindling or fraud or appropriate property would be prohibited.
Additionally, managerial staffs of P2P lending companies must neither be owners, managers or administrators of financial or credit service companies, pawnshops and multi-level marketing firms nor perform jobs related to banking, payment intermediary or e-wallet services.
The maximum duration of application of Fintech solutions would be two years, counting from the time the SBV issues a certificate of participation in the pilot mechanism, and might be adjusted by the central bank based on the actual situation.- (VLLF)