BANKING ACADEMY FINANCE FACULTY GRADUATION THESIS TITLE: DEVELOPING PRODUCTS AND SERVICES APPLYING FINTECH IN VNDIRECT SECURITIES COMPANY Student name: Ha Quynh Trang Class: K22CLCC Academic year: 2019-2023 Student ID: 22A4010481 Instructor: PhD. Tran Thi Thu Huong Hanoi, May 2023 DECLARATION I hereby declare that the graduation thesis entitled "Developing products and services applying Fintech in VnDirect Securities Company" was carried out by myself and submitted to the Finance Faculty of the Banking Academy of Vietnam. I further declare that the data in this research is presented truthfully, and all of the secondary data used in the research is cited and referenced fully and correctly according to the regulations of the Banking Academy. I ensure that I have not copied any other authors' work or used any material from other sources without acknowledgment.
Student name Ha Quynh Trang i ACKNOWLEDGEMENT Becoming a student at the Finance Faculty Advanced Program of the Banking Academy of Vietnam has been a journey replete with unforgettable experiences. Without the assistance and support of my instructors and family, I would not have been able to complete both that journey and this graduation thesis. First of all, I would like to express my sincere gratitude to all my lecturers at the Banking Academy in general and the Finance Faculty in particular, who have given me useful knowledge from the lessons I took during my four-year course. Their lectures have been great opportunities for me to broaden my horizons.
Secondly, I am very thankful for my instructor, Ph. Tran Thi Thu Huong, who has dedicated a considerable amount of time and effort to instruct me on my graduation thesis. Her detailed guidance and valuable suggestions have made a significant contribution to the completion of my graduation thesis. Last but not least, I would like to thank my parents, who have always been the greatest motivation for everything I have done in my life.
Their love and support mean the world to me. ii TABLE OF CONTENTS DECLARATION. ii LIST OF ABBREVIATIONS. vii LIST OF TABLES.
viii LIST OF FIGURES.1 Overview of foreign studies .2 Overview of the studies in Vietnam .3 Research gap and research question .15 CHAPTER 2: THEORY FRAMEWORK OF DEVELOPING PRODUCTS AND SERVICES APPLYING FINTECH IN SECURITIES COMPANIES. Overview of Financial technology. Concept and features of Fintech. Financial technology classification.
The role of Fintech. Overview of securities company. The definition and characters of securities company. The role of securities company.
The activities of the securities company. Developing products and services applying Fintech in securities company. The definition of developing products and services applying Fintech. Several products and services with financial technology applycation in securities company.
Criteria for evaluating the development of Fintech application products and services in securities companies. The factors influencing the development of fintech application products and services in securities company.42 CHAPTER 3: EVALUATE THE CURRENT STATUS OF DEVELOPING PRODUCTS AND SERVICES APPLYING FINTECH VNDIRECT SECURITIES COMPANY. Current status of Fintech in Vietnam. Overview of VnDirect Securities Company.
The process of formation and development. The organizational structure of of VnDirect Securities Company. The VnDirect Securities Company’s business results over the period from 2019 to 2021. Current status of fintech application in products and services in VnDirect Securities Company.
Products and services applying Fintech variety. The number of customers using products and services applying Fintech. The increase of revenue and brokerage market share. Survey methods and data collection .65 According to the survey results, the majority of investors are pleased with the products and services of VnDirect Securities' Fintech applications.
Evaluate the current status developing products and services applying Fintech in VnDirect securities company. The subjective reasons. The objective reasons .82 CHAPTER 4: SOLUTIONS TO DEVELOP PRODUCTS AND SERVICES APPLYING FINTECH IN VNDIRECT SECURITIES COMPANY. Orientation to develop Fintech application into products and services of securities companies in Vietnam.
Orientation to develop Fintech in Vietnam. Orientation to develop Fintech application into products and services of VnDirect Securities Company. Solutions to develop products and services applying Fintech in VnDirect Securities Company. Expanding Fintech investment.
Enhance systems and facilities. Creating superior human resources. Limit fintech risks. Recommendations for the Government.
Building a legal framework on financial technology for securities. Improve technology literacy and Internet coverage.99 vi LIST OF ABBREVIATIONS Numerical order Abbreviations Meaning 1 Fintech Financial technology 2 AI Artificial intelligence 3 IoT Internet of Thing 4 IT Intelligence technology 5 FSB Financial Stability Board 6 VND VnDirect securities company 7 eKYC Electronic Know Your Customer 8 API Application Programming Interface 9 EA Expert Advisor 10 ICOs Initial coin offerings 11 VNPAY Vietnam Payment Solution Joint Stock Company 12 M_Service Joint Stock Company of Online Mobile Services 13 P2P Peer-to-peer lending 14 PwC PricewaterhouseCoopers 15 UOB United Overseas Bank 16 HNX Hanoi Stock Exchange 17 UPCOM Unlisted Public Company Market 18 SSC State Securities Commission 19 KRX Korea Exchange vii LIST OF TABLES Table Page Table 1: VNDIRECT securities company’s consolidated business results 49 over the period from 2019 to 2022 Table 2: 5 Securities companies with the largest listed stock brokerage 56 market share in the first 6 months of 2020 Table 3: Scale encoding 59 Table 4: The result of Cronbach's Alpha reliability test 61 viii LIST OF FIGURES Figure Page Figure 1: Number of Fintech sectors in 2021 44 Figure 2: VND’s organizational structure. 48 Figure 3: The number of individual accounts of VND in the period from 55 2017 to 2021 Figure 4: Survey statistics on the age group, Workplace, and the level of 64 online financial transaction services use of the respondents. Figure 5: Survey statistics by type of fintech application financial products 65 and services used by investors Figure 6: Survey statistics on the “Usefulness” of VND's fintech 66 application products and services Figure 7: Survey statistics on the “Easy to use” of VND's fintech 67 application products and services Figure 8: Survey statistics on the “Safety and Security” of VND's fintech 68 application products and services Figure 9: Survey statistics on the “Convenience” of VND's fintech 70 application products and services Figure 10: Survey statistics on the “Accuracy” of VND's fintech 71 application products and services.
Figure 11: Survey statistics on the “Attitude of investors” of VND's fintech 72 application products and services. The necessary of the topic The 4th industrial revolution, also called the industrial revolution 4.0, is based on the basic platforms of artificial intelligence (AI), the Internet of Things (IoT), and Big Data. It is affecting all parts of social and economic life around the world, including Vietnam. Along with banking and finance, the securities industry is also being changed a lot by this revolution, especially with the strong growth of Fintech and the use of IT in the securities industry.
The growth of Fintech has had a big impact on the growth of the financial market as a whole and on the growth of financial institutions. Fintech is getting a lot of attention from investors, financial institutions, consumers, even government regulators and investment around the world, so it's important to think about innovation, risk, and the current regulatory landscape (Lin Lin, 2019) Fintech has many benefits, such as lower costs, a wider range of products, and an easier experience for investors and service providers alike (Clements 2019). But for investors to be interested in using Fintech and for it to reach all of the market's needs, it is important to build the right infrastructure, especially in the field of innovation. Regulators need to make rules to encourage the growth of Fintech, take advantage of the benefits it brings, and create conditions that encourage innovation and competition.
However, Fintech also poses significant risks to investors, businesses, and securities firms in particular. Fintech does not fundamentally alter the risks of the financial market, but it can cause risks to become hidden, unexpected, rapidly spread, and systemic. This has long-term negative effects on the financial markets. In Vietnam, Fintech is now used in a variety of fields within financial institutions, including payment, lending, and daily transactions.
Fintech has developed a variety of customer- and business-friendly services for the securities industry. 1 VnDiect (VND) is one of the largest securities companies in Vietnam, a pioneer in selecting technology as a core competitive advantage; investment budget for technology is always VnDirect's top priority; its products and services are designed to provide customers with the best possible experience. In addition to the benefits consumers receive from utilizing VnDiect's Fintech application services and products, the company faces numerous obstacles and challenges. As stated by Ms.
Pham Minh Huong, Chairman of the Board of Directors of VnDIrect Securities Company, this requires the company to improve, thereby enhancing product quality to provide customers with exceptional experiences. This is also the reason why the author selects the topic: “Developing products and services applying Fintech in VnDirect Securities Company. Research purpose Synthesize the theoretical basis of financial technology and application of financial technology to the development of products and services at securities companies Analyzing the development status of Fintech and applying fintech to products and services of VnDirect securities company. Providing solutions and recommendations to improve the ability of securities companies to apply Fintech to their product and service models.
Research object and scope Research object: Developing products and services applying Fintech in VnDirect securities company. Research scope: Scope of time research: in the period from 2018 to 2021 2 Scope of space research: VnDirect securities company 4. Research method Documentary research is a technique for discovering issues related to the research topic through books, newspapers, the Internet, and previously published research articles. Comparative and analytic method: a method based on collected data that compares, evaluates, and clarifies the factors that influence the decision to use Fintech in services and products.
Synthetic method: a technique for synthesizing gathered data in order to draw conclusions and make evaluations. Method for collecting data: Select the survey sample and distribute questionnaires to collect the opinions of individual VNDirect customers and employees. Following are the steps required to conduct the investigation: Step 1: Build a questionnaire The questionnaire for the survey is composed of multiple-choice questions with a variety of variables and answers. These variables are derived from previous research and modified and edited to fit the topic's reality and research conditions.
The survey questionnaire contains two primary sections: Part 1 - General information, including questions about the respondents' personal information and questions to determine whether or not the sample is valid. Part 2 - Feelings of individual customers and employees of VnDirect Securities after using Fintech services in their securities activities. This is the primary section of the questionnaire, which consists of numerous factors categorized into distinct groups. Step 2: Collect customer feedback 3 This study investigates a large population, including customers and employees of the VnDirect securities company.
Method of sampling: convenience method. The sample will include all successful subjects who agree to participate in the survey. Step3: Data processing After conducting the survey, valid questionnaires related to the research topic must be filtered for factor analysis. The quantitative research method used is the 5- level average statistical scale, and the reliability of Cronbach's Alpha on SPSS software is tested using the author survey collected between April 18, 2023, and April 29, 2023, in order to evaluate the level of investor satisfaction with the Fintech application services of VnDirect Securities Company and provide recommendations to enhance service quality.
Literature review There have been a number of studies carried out in foreign nations, in addition, to the study carried out in Vietnam, on the growth of fintech and its applications in a variety of areas of daily life, including the financial sector. To be more specific, Fintech has made major contributions to the promotion of the development of the financial market in general and the financial sector in particular, one of which is the stock market.