Impact of fintech companies on the performance of listed commercial banks in Vietnam

Abstract

The study was conducted to evaluate and supplement statistical evidence to answer the question of how the relentless "rise" in the number of Fintech companies in Vietnam will affect the firm performance of Vietnam's commercial banks. The study used an observation sample of 26 commercial banks listed on the stock market in Vietnam and data on the establishment of Fintech companies in the 10-year period from 2012-2021. The analysis is based on important theoretical foundations and uses the regression model to select the best model for the research paper using the Stata 15 application to provide reliable evidence. The results of the study found that the increase in Fintech companies had a negative impact on the performance measurement indicators of banks including ROA, ROE and NIM with a correlation coefficient magnitude of 0.0020696, 0.017861 and 0.0020308 respectively. The result implied that commercial banks should consider applying technology in operation process in order to keep their competitive edge.