Peer-to-peer (P2P) lending officially tested...

The Government has just issued Decree No. 94/2025/ND-CP regulating the controlled testing mechanism in the banking sector, officially effective from July 1, 2025.

Accordingly, credit institutions, Fintech companies and related units will be allowed to conduct controlled trials of new products, services and business models applying financial technology (Fintech) such as credit scoring, data sharing via open application programming interface (Open API), and peer-to-peer lending (P2P Lending).

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

According to the new Decree, only companies licensed by the State Bank are eligible to participate in the trial. Specifically, including credit institutions, foreign bank branches as prescribed (not applicable to point c on peer-to-peer lending); financial technology companies; competent state agencies; customers and other organizations and individuals related to the Trial Mechanism.

Organizations participating in the Testing Mechanism may only provide Fintech solutions within the scope specified in the Certificate of Participation in the Testing Mechanism.

Depending on the Fintech solution and the specific proposal of the organization registering to participate in the Testing Mechanism in the Application for participation in the Testing Mechanism, the opinions of the ministries, the State Bank will decide the testing scope of the experimental Fintech solution in the Certificate of participation in the Testing Mechanism.

Peer-to-peer lending companies are only allowed to provide peer-to-peer lending solutions within the scope of testing in the Certificate of Participation in the Testing Mechanism granted by the State Bank to the peer-to-peer lending company in accordance with the provisions of this Decree. Peer-to-peer lending companies participating in the Testing Mechanism are not allowed to conduct other business activities not stated in the Certificate of Participation in the Testing Mechanism, are not allowed to provide security measures for customers' loans, operate as customers and provide peer-to-peer lending solutions to pawnbrokers.

One notable point is that this pilot activity does not apply to foreign banks. Meanwhile, domestic credit institutions and financial technology companies will be considered for participation, if they meet the prescribed conditions.

Currently, Vietnam has about 100 companies operating in the field of peer-to-peer lending, with many units having foreign investment capital. In recent years, the State Bank has warned about the lack of transparency in some P2P Lending models, especially regarding the use and management of loans.

Not only stopping at P2P Lending, Decree 94 also expands the scope of the pilot to other fintech services, including credit scoring and financial data sharing through open application programming interfaces (Open API). These are solutions that are expected to change the approach to traditional financial services, bringing greater transparency and convenience to users.

According to the Government, this pilot mechanism not only aims to promote innovation in the banking sector, but also aims at a broader goal of improving efficiency, reducing costs, and expanding access to financial services for people and businesses. Creating a risk control environment right from the pilot phase is considered a strategic step, helping to protect users and creating a foundation for the sustainable development of the fintech ecosystem in Vietnam.

Source: https://baodaknong.vn/hoat-dong-cho-lending-ngang-hang-p2p-chinh-thuc-duoc-thu-nghiem-theo-co-che-co-kiem-soat-trong-vong-2-nam-251273.html