Vietnamese banks are among the top in discovering AI-generated content.

The 'Financial Service: State of the Nation Survey 2023' found that 91% of CFOs in Vietnam said their organization is interested in Generative AI – the highest figure of all markets surveyed. Of these, 58% have already deployed 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 implementing embedded finance and Banking as a Service (BaaS). According to a Finastra survey, 58% of Vietnamese financial institutions have implemented or improved embedded finance capabilities in the past 12 months, higher than the global average of 41%, and ranked second in implementing or improving BaaS capabilities (55%, compared to 48% globally).

Vietnam is leading the world in the implementation of embedded finance and Banking as a Service (BaaS).

This reflects the strong interest of Vietnamese financial institution executives in emerging banking models, with 89% saying these models are 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 restricted investments in technology and digital banking.

This proportion is highest in Vietnam, with 87% saying that institutional investment has been restricted, of which 32% have been severely restricted. However, 67% have continued to fully invest, or expect 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 disruption in the financial sector. 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 generation 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 collecting, processing and analyzing ESG data or classifying 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 organizations over the next 12 months, especially as they look to enhance and personalize 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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