Nguyen Thi Kim LIEN, Thu-Trang Thi DOAN, Toan Ngoc BUI / Journal of Asian Finance, Economics and Business Vol 7 No 9 (2020) 419–426 419 419 Print ISSN: 2288-4637 / Online ISSN 2288-4645 doi:10.13106/jafeb.2020.vol7.no9.419 1 First Author. Faculty of Finance and Banking, Industrial University of Ho Chi Minh City (IUH), Vietnam. Email: nguyenthikimlien@iuh.edu.vn 2 Corresponding Author. Faculty of Finance and Banking, Industrial University of Ho Chi Minh City (IUH), Vietnam [Postal Address: No. 12, Nguyen Van Bao Street, Ward 4, Go Vap District, Ho Chi Minh City, 700000, Vietnam] Email: doanthithutrang@iuh.edu.vn 3 Faculty of Finance and Banking, Industrial University of Ho Chi Minh City (IUH), Vietnam. Email: buingoctoan@iuh.edu.vn © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. Fintech and Banking: Evidence from Vietnam Nguyen Thi Kim LIEN 1 , Thu-Trang Thi DOAN 2 , Toan Ngoc BUI 3 Received: July 01, 2020 Revised: July 19, 2020 Accepted: August 10, 2020 Abstract The paper focuses on understanding fintech and the application of fintech in the banking sector in Vietnam. To solve this research objective, the authors analyze fintech development trends, especially the fintech application in the banking sector in Vietnam. To improve the quality of fintech services at banks, the authors conducted consideration of factors affecting customers’ intention to use fintech services. To accomplish this, the authors collected data through a survey of 620 customers of the banks located in Ho Chi Minh City – the largest economic center in Vietnam. For the analytical method, the authors used multivariate regression to estimate the research model. Research results show that fintech service is very important for the banking sector in Vietnam. Moreover, this paper has achieved great success by identifying the factors that influence customers’ intention to use fintech services. Accordingly, the intention to use fintech (INT) services is positively affected by the perception of usefulness (PU), social impact (SI), customer trust (TRU), and perceived ease of use (PEU). Based on the results of this study, bank managers will have a basis to improve the quality of fintech services. Not only that, the results of this study are also valuable for policymakers and researchers. Keywords: Banking, Financial Technology, Fintech, Intention, Vietnam JEL Classification Code: G00, G21, O16 formed based on new innovative ideas, or maybe outdated but provided in a new way with the purpose to simplify transaction procedures and help to improve access to financial services of customers (Gomber et al., 2017; Milian, Spinola, & Carvalho, 2019; Phan, Nguyen, & Bui, 2019). Therefore, fintech plays a significant role in the development of the banking industry. Indeed, fintech has gradually broken the traditional banking model, giving customers more options when accessing banking services with the lowest cost (Berger, 2003). Since its first appearance in 1950, fintech has gained worldwide attention. Today, fintech has been widely applied in many countries, especially in countries with good background in economics and information technology such as China, Korea, India, Finland and the United Kingdom (Kim, Choi, Park, & Yeon, 2016). However, in developing countries like Vietnam, fintech is still quite new and promises to have breakthrough developments in the future. In Vietnam, fintech has received much attention from policy makers, researchers, and especially regulators in the banking industry. Fintech is also the subject of much discussion in forums and conferences. However, virtually no empirical research has been conducted to learn about fintech and fintech applications in the banking sector in Vietnam. 1. Introduction Financial technology (fintech) is a combination of “finance” and “technology” (Hu, Ding, Li, Chen, & Yang, 2019; Thakor, 2020). Therefore, fintech is the term used to describe the use of technology in financial services (Nguyen, 2020; Nguyen, Dinh, & Nguyen, 2020; Thakor, 2020). In other words, fintech can be understood as the application of technological innovations to provide financial services (Gomber, Koch, & Siering, 2017). These services may be