24th MEB Conference - Budapest, 24.04.2026

Due to the ongoing global debate regarding the relationship between fintech and banks, including developing countries, this study aims to investigate this relationship in the case of Vietnam, an emerging nation. Using a sample of 27 Vietnamese commercial banks from 2012 to 2023, we construct a fintech index tailored to the Vietnamese banking industry based on data from Google Trends. This index reveals substantial growth in fintech adoption within the Vietnamese banking sector over the study period. Our empirical analysis demonstrates a significant inverted U-shaped relationship between fintech development and bank stability. At moderate levels, fintech adoption positively contributes to bank stability; however, when fintech adoption becomes extensive, it introduces risks that may offset these stability benefits. This study provides important insights for bank managers, investors, and policymakers seeking to optimize fintech integration for sustainable banking stability.