This Decree provides for a Controlled Testing Mechanism in the banking sector (referred to as the Testing Mechanism) for the implementation of new products, services, and business models through the application of technological solutions (referred to as financial technology solutions).

Financial technology solutions (abbreviated as Fintech solutions) participating in testing at the Testing Mechanism include: a) Credit scoring; b) Data sharing via open application programming interface (Open API); c) Peer-to-peer lending.

Applicable subjects include: Credit institutions, foreign bank branches as prescribed in the Law on Credit Institutions (not applicable to point c above); financial technology companies; competent state agencies; customers and other organizations and individuals related to the Testing Mechanism.

Promoting innovation and modernization of the banking sector

According to the Decree, the aim of the Pilot Mechanism is to promote innovation and modernization of the banking sector, thereby realizing the goal of universalizing finance for people and businesses in a transparent, convenient, safe, effective and low-cost manner.

Create a testing environment to assess the risks, costs, and benefits of Fintech solutions; support the construction and development of Fintech solutions that are suitable for market needs, legal frameworks, and management regulations. Limit risks to customers when using Fintech solutions provided by organizations participating in the Testing Mechanism.

The results of the pilot implementation of Fintech solutions are used as a practical basis for competent state agencies to research, develop and perfect the legal framework and related management regulations if necessary.

Principles for reviewing organizations participating in the Testing Mechanism

To ensure fairness, objectivity, openness and transparency, the review of organizations participating in the Testing Mechanism is carried out according to the following basic principles:

The process of approving organizations to participate in the Testing Mechanism ensures transparency in criteria and conditions, evaluation and selection processes.

Participation in the Pilot Mechanism does not mean that the organization participating in the Pilot Mechanism will meet the business and investment conditions as prescribed by law.

Credit institutions, foreign bank branches, and Fintech companies that do not need to participate in the Testing Mechanism or have not been approved to participate in the Testing Mechanism must operate and comply with current laws on enterprises, investment, and other relevant laws.

Fintech solutions testing period up to 02 years

The Decree clearly states that the testing period for Fintech solutions is a maximum of 02 years depending on each specific solution and field, calculated from the time the State Bank issues a Certificate of Participation in the Testing Mechanism. The testing period may be extended according to regulations.

The validity period of the Certificate of Participation in the Testing Mechanism shall not exceed the validity period (if any) of the Establishment License and Business Registration Certificate of the organization participating in the Testing Mechanism.

The testing of Fintech solutions is limited to Vietnam territory, cross-border testing is not allowed.

Test range

Organizations participating in the Testing Mechanism may only provide Fintech solutions within the scope specified in the Certificate of Participation in the Testing Mechanism.

Depending on the Fintech solution and the specific proposal of the organization registering to participate in the Testing Mechanism in the Application for participation in the Testing Mechanism, the opinions of the ministries, the State Bank will decide the testing scope of the experimental Fintech solution in the Certificate of participation in the Testing Mechanism.

Peer-to-peer lending companies are only allowed to provide peer-to-peer lending solutions within the scope of testing in the Certificate of Participation in the Testing Mechanism granted by the State Bank to the peer-to-peer lending company in accordance with the provisions of this Decree. Peer-to-peer lending companies participating in the Testing Mechanism are not allowed to conduct other business activities not stated in the Certificate of Participation in the Testing Mechanism, are not allowed to provide security measures for customers' loans, operate as customers and provide peer-to-peer lending solutions to pawnbrokers.

This Decree comes into force from July 1, 2025.

Source: https://thoibaonganhang.vn/co-che-thu-nghiem-co-kiem-soat-trong-linh-vuc-ngan-hang-163572.html