Allow peer-to-peer lending testing from 1-7

After three years since the draft decree, peer-to-peer lending has been licensed for testing - Photo: DAD

Peer-to-peer lending to be tested for 2 years

The Government issued Decree 94 on the controlled testing mechanism (sandbox) and financial technology (fintech) solutions in the banking sector. Accordingly, one of the fintech solutions that the Government agreed to test is peer-to-peer lending (P2P Lending).

Peer-to-peer lending companies are only allowed to provide testing solutions when licensed by the State Bank.

Peer-to-peer lending is a form of direct connection between lenders and borrowers through an online platform, without the need for traditional financial intermediaries such as banks.

P2P Lending pilot operations will be licensed for 2 years, but not applicable to foreign banks.

Credit institutions and financial technology companies are allowed to participate in the review of the testing mechanism, but this does not mean that they will meet the business and investment conditions as prescribed by law. The testing results are the basis for management agencies to research, develop and perfect the legal framework related to this lending field.

200 peer-to-peer lending companies

According to the State Bank, the number of companies operating or participating in providing fintech services and solutions in Vietnam has increased rapidly, from about 40 companies at the end of 2016 to about 200 companies by 2022. These companies operate in many different fields and sectors such as: payment, peer-to-peer lending, credit scoring.

The State Bank also acknowledges the fact that some companies using the P2P Lending model take advantage of people's lack of knowledge to deceive, cheat, and advertise falsely.

There are companies that promise high profits and high interest rates to defraud and appropriate people's capital to invest in this lending model or deceive borrowers about interest rates and loan conditions while applying "exorbitant" real interest rates, negatively affecting people's lives.

Some agreements between the parties involved in the P2P Lending model (P2P Lending company and investor, P2P Lending company and third party, P2P Lending company and borrower...) are unclear, lack legal binding, and do not have a monitoring and post-audit mechanism for the proper use and management of loan capital by the borrower, which can lead to disputes and lawsuits between the parties.

The aim of the pilot scheme is to promote innovation, support the modernization of the banking sector, and contribute to financial inclusion in a transparent, safe and efficient manner.

The results of the pilot implementation of Fintech solutions are used as a practical basis for competent state agencies to research, develop and perfect the legal framework and related management regulations if necessary.

The approval of participating organizations will be based on the principles of transparency, objectivity and publicity. Organizations participating in the trial will not automatically be considered qualified to do business or invest when moving to the official commercial stage. For units not participating in the trial, they must still fully comply with current regulations of law.

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Source: https://tuoitre.vn/cho-phep-thu-nghiem-cho-vay-ngang-hang-tu-1-7-20250501200139123.htm