Title: The Impact of Fintech Adoption on Labor Restructuring and Financial Performance in Vietnamese Banks
Authors: Ha Son Hai
Volume: 9
Issue: 9
Pages: 79-86
Publication Date: 2025/09/28
Abstract:
This research focuses on evaluating the financial effects of adopting Fintech on the Vietnam's banking industry's workforce restructuring and profitability. Within the frameworks of skill-biased technological change, cost efficiency, and digital transformation, which is estimated by the IT spending, share of digital transactions, and the rate of mobile banking adoption, we investigate its impact on staff cost ratios, labor productivity, and financial performance. We collected a balanced panel of 17 Vietnamese commercial banks for the period of 2013 to 2022 and applied Fixed-Effects, Feasible GLS, and System-GMM estimations. We found that the adoption of Fintech significantly reduces cost of operations and improves both ROA and ROE. Increasing bank size leads to disproportionate advantages which confirms the existence of economies of scale. We found that digital transformation improves cost efficiency and profitability, but with strategic workforce planning in banks and policy support for sustainable digital banking.