HANOI — Vietnam’s banking sector is accelerating efforts to modernize financial infrastructure and advance digital transformation, but challenges persist in providing adequate funding for innovative businesses, particularly startups and technology firms with limited tangible assets and unpredictable cash flows.

These issues were the focus of the 2026 Financial and Banking Innovation Forum, held in Hanoi on October 4 under the theme “Unlocking Resources for Innovation.” The event, jointly organized by the Banking Academy and the State Agency for Technology Innovation under the Ministry of Science and Technology, convened regulators, commercial banks, technology companies, and researchers to explore ways to better channel financial resources into innovation.

Pham Tien Dung, deputy governor of the State Bank of Vietnam (SBV), acknowledged that while the sector has made strides in digital transformation, financing for startups and science and technology enterprises remains inadequate. Traditional credit models and collateral requirements are often unsuitable because these businesses rely heavily on intangible assets, have unstable cash flows, and carry higher risks.

Vietnam’s capital market, particularly its venture capital segment, remains underdeveloped, increasing reliance on bank credit for medium- and long-term funding. Furthermore, risk-sharing mechanisms among the state, investment funds, credit institutions, and investors need better coordination to support innovation without compromising the stability of the financial system or customer interests, Dung said.

The forum took place amid ongoing implementation of Resolution 57-NQ/TW, which targets breakthroughs in science, technology, and national digital transformation. The SBV has established a sector-wide steering committee and issued a digital transformation strategy extending through 2030. Regulatory reviews have aimed to promote digital payments, digital banking, electronic lending, and reduce administrative barriers.

Cashless payment systems have been one of the most visible achievements this year. In the first eight months of 2026, Vietnam recorded more than 21 billion cashless transactions valued at nearly 261 quadrillion dong, representing a 34.56% increase in volume and a 13.26% rise in value compared to the previous year.

Cybersecurity and fraud prevention efforts have also intensified. By September 21, the banking sector's Simo system flagged over 5.4 million potential fraud risks, leading to suspension or cancellation of more than 1.8 million transactions involving over six trillion dong. Biometric verification of customers has been widely adopted, with more than 174.5 million individual and 2.92 million organizational records completed by late September.

Commercial banks are increasingly deploying artificial intelligence (AI), data analytics, and automation in their operations. VietinBank, for instance, has implemented over 50 AI-driven initiatives that have reduced credit assessment times from days to hours. BIDV reported that 91.2% of its transactions were conducted via digital channels as of November 2025, with its SmartBanking X platform integrating more than 2,500 services from 1,500 partners.

Despite progress, the report noted limited outcomes from the regulatory sandbox established under Decree 94/2025/ND-CP. Over a year since its inception, only two applications related to credit scoring and Open API data sharing had been processed, while most peer-to-peer lending applications remained under review.

Specialist sessions at the forum focused on innovative financing models, fintech, conversational banking, retail banking, and infrastructure funding. Meey Group advocated for a multi-tiered financing structure that includes research and development funding, seed and venture capital, growth financing, cash-flow-based innovation credit, and strategic investment.

Fintech solutions were also highlighted for extending formal financial services to underserved groups. Nguyen Van Dung, business director of BEAM Technology Services JSC, presented the Flexpay wage-access platform, launched in March 2023, which now serves over 150,000 workers through more than 80 corporate partners and reports an almost zero non-performing loan ratio.

Other discussions addressed enhancing data sharing with customer consent, standardizing Open API connections, defining responsibilities in bank-fintech collaborations, and developing risk-sharing mechanisms such as credit guarantees and co-financing arrangements with investment funds.