This article investigate the impact of financial technology (Fintech) on the operations of Vietnamese commercial banks, specifically in terms of profitability and stability. The study uses panel data from 14 Vietnamese commercial banks listed on the stock exchange, covering the period from 2013 to 2022. The analysis employs a panel regression model using the generalized least squares (GLS) method to evaluate the relationship between Fintech and bank profitability and bank stability in Vietnam. The study indicates that Fintech, as reflected by the number of Fintech companies and the prevalence of Fintech, has a positive and statistically significant impact on the profitability and stability of Vietnamese commercial banks. Additionally, the study shows that bank equity is associated positively with bank stability and bank profitability. In contrast, the cost-to-income ratio shows an inverse relationship, and banks without state capital have higher profitability. Based on the empirical results, the study discusses several policy implications for regulators and Vietnamese commercial banks, suggesting that foster Fintech development could enhance the long-term stability and profitability of the banking sector. These insights are particularly relevant for emerging economies seeking to leverage technological advancement to strengthen their financial systems.
