game bài baccarat平台P2P firms waiting for a sandbox

P2P firms waiting for a sandbox

HÀ NỘI — Peer-to-peer (P 二P) lending companies expect that the sandbox for fintech would eliminate unscrupulous businesses and help the market grow significantly.

A regulatory sandbox is a framework set up by a regulator that allows FinTech startups and other innovators to conduct live experiments in a controlled environment under a regulator’s supervision. 

Prime Minister Nguyễn Xuân Phúc has requested the State Bank of Việt Nam (SBV) to develop a regulatory sandbox for P 二P lending to help SMEs gain access to loans.

The information was welcomed by fintech firms operating in the sector.

Nguyễn Hòa Bình, chairman of NextTech Group, which is operating vaymuon.vn in the P 二P lending sector, told Việt Nam News that the nature of the P 二P model was very good.

However, due to the absence of a regulatory framework while many Vietnamese start-ups operating in this field have crept up, foreign loan applications have jumped in, hiding under P 二P and boosting black credit lending.

“A lack of a legal framework has made Việt Nam a fertile environment for malicious and disguised P 二P models, while genuine P 二P companies are overwhelmed. Therefore, having a legal corridor, even a piloted one, is essential to protect both borrowers and the P 二P businesses,” Bình said.

Statistics from the SBV showed that the country now has  四0 P 二P companies. However, in reality, there are more than  一00 apps operating under the P 二P model. Of which,  七0 per cent are operated by foreign firms.

These apps advertise to operate under the P 二P model, but are actually offering ‘black’ credit, like the Cashwagon app that was discovered by police in early June.

“The potential for development of the P 二P market in Việt Nam is huge due to high demand of borrowers. In fact, this model is not new, but has existed for thousands of years in the form of borrowing from relatives and friends.

"P 二P is just the “digitalisation” of this relationship. The introduction of this model, if well managed, would promote comprehensive finance, giving people, households and SMEs more opportunities to access financial services at low cost and with less procedures,” he added.

However, he said each model has its own risks. For P 二P, the biggest risk comes to investors or lenders.

“The sandbox should be soon promulgated to screen the market. P 二P companies also need to improve their clients' appraisal and credit rating before transferring that opportunity to investors. P 二P businesses with good appraisals would be able to control investors' risks,” he added.

Economist Nguyễn Trí Hiếu said a lack of a legal corridor is causing turmoil in the P 二P market. Many online loan applications impersonate P 二P and disruptive activities, causing consequences for this form of lending.

“It is necessary to introduce a sandbox for the P 二P model. However, in my opinion, it should only be tested for one year, instead of extending to two years as in the current draft of the central bank.” 

He added the issuance of the sandbox would help purify the P 二P market, provide authorities with the basis to handle dozens of disguised black credit apps and firms impersonating P 二P.

He also agreed that the P 二P market in Việt Nam has big potential because there are many people who do not have access to formal credit. With the advantage of quick disbursement and no mortgage required, P 二P is an effective capital channel for low-income people.

Economist Cấn Văn Lực said P 二P is vital trend of a digital economy and would strongly develop in Việt Nam. P 二P is socialising credit services. This was the reason why the sandbox would help better protect investors and borrowers while increasing opportunities to access loans.

P 二P in Việt Nam still has a lot of room for development, which is necessary to complement credit and financial companies. 

The banking system would be extended to remote areas thanks to the agent network. However, this system of agents only performs a limited number of operations and cannot replace banks for credit development. In other words, with nearly  一00 million people in Việt Nam, the P 二P market is still very attractive. — VNS