Bảo vệ người tiêu dùng tài chính: Thực tiễn và đề xuất chính sách đối với Việt Nam

Nội dung text: Bảo vệ người tiêu dùng tài chính: Thực tiễn và đề xuất chính sách đối với Việt Nam

1. INTRODUCTION In recent years, Vietnam is witnessing remarkable development in financial products and services, both in terms of quality and accessibility, which makes the task of effectively protecting financial consumers become urgent. This requires not only the good practices from financial services providers or the awareness of consumers themselves, but also the involvement of the authorities to develop and employ better policies in response to the need of the new, fast-moving financial service circumstances in Vietnam. In light of this matter, the International Webinar on “Financial Consumer Protection - Practice and Policy Recommendations for Vietnam” has been co-organized by The University of Economics and Business - Vietnam National University, Hanoi (VNU) and the Deposit Insurance of Vietnam. Supported by National Foundation for Science and Technology (NAFOSTED), the Webinar, as part an annual conference held by the International Academy of Financial Consumers (IAFICO), aims at creating an informative forum for domestic and foreign policymakers, academics and professionals to share knowledge, experience and practical solutions regarding financial consumer protection in Vietnam. With the aforementioned intention and objective, the co-organizers, guest speakers and researchers of the Webinars seek to address (1) discussion on policy recommendations for Vietnam in protecting financial consumers; (2) countries’ experience in building financial consume protection laws and the challenges in implementing these laws in the banking industry; (3) the current situation of digital financial consumer protection in Vietnam and other countries; (4) a bank’s practical experience in protecting clients’ finances. These issues are well analyzed and discussed in the exchanges and sharing at the Webinar as well as the contributing studies of various authors. These researches and insights provide the best foundation for better, practical solutions and policies that ensure financial consumer’s safety in Vietnam. The Organizers would like to extend the sincerest gratitude to the guest speakers, the researchers, supporters and the interested audience for making this Webinar a reality. This Webinar is expected to raise the awareness of all market players, and create an annual one-stop forum for the development of financial consumer protection in Vietnam.
2. LỜI GIỚI THIỆU Trong những năm gần đây, Việt Nam đang chứng kiến sự phát triển vượt bậc của các sản phẩm và dịch vụ tài chính cả về chất lượng và khả năng tiếp cận, thực trạng này khiến nhiệm vụ bảo vệ người tiêu dùng tài chính trở nên cấp thiết. Điều này không chỉ đòi hỏi nỗ lực từ các tổ chức cung cấp dịch vụ tài chính hay nâng cao nhận thức của chính người tiêu dùng, mà còn cần sự tham gia của các cơ quan quản lý để xây dựng và ban hành các chính sách thực tế, hiệu quả, nhằm đáp ứng các yêu cầu trong bối cảnh những dịch vụ tài chính mới đang phát triển nhanh chóng ở Việt Nam. Từ thực tế này, Hội thảo quốc tế về “Bảo vệ người tiêu dùng tài chính - Thực tiễn và đề xuất chính sách đối với Việt Nam” được đồng tổ chức bởi Trường Đại học Kinh tế - Đại học Quốc gia Hà Nội (ĐHQGHN) và Bảo hiểm tiền gửi Việt Nam. Hội thảo được hỗ trợ bởi Quỹ phát triển khoa học và công nghệ quốc gia (NAFOSTED) và nằm trong khuôn khổ Hội thảo thường niên của Học viện quốc tế người tiêu dùng tài chính (IAFICO). Chương trình là diễn đàn để các đơn vị quản lý, các nhà khoa học và chuyên gia đến từ trong và ngoài nước cùng trao đổi kinh nghiệm, quan điểm, kiến thức và các giải pháp thiết thực về vấn đề bảo vệ người tiêu dùng tài chính tại Việt Nam. Với mục tiêu trên, các diễn giả khách mời, các nhà quản lý và các nhà nghiên cứu đã đi sâu, phân tích các vấn đề về (1) thảo luận về những đề xuất chính sách đối với Việt Nam trong việc bảo vệ người tiêu dùng tài chính; (2) chia sẻ kinh nghiệm về xây dựng Luật Bảo vệ người tiêu dùng tài chính và những thách thức trong việc thực thi các quy định này trong lĩnh vực ngân hàng tại các quốc gia trên thế giới; (3) thực tiễn về bảo vệ người tiêu dùng kỹ thuật số tại Việt Nam và một số quốc gia khác; (4) trình bày kinh nghiệm thực tiễn của một ngân hàng trong việc bảo vệ tài chính của khách hàng. Những vấn đề này được phân tích và thảo luận chuyên sâu qua các trao đổi và chia sẻ tại Hội thảo cũng như các nghiên cứu đóng góp của các tác giả trong nước và quốc tế. Những nghiên cứu và thông tin chi tiết này sẽ là nền tảng tốt nhất cho các giải pháp và chính sách thiết thực nhằm đảm bảo sự an toàn của người tiêu dùng tài chính tại Việt Nam. Ban tổ chức xin gửi lời cảm ơn chân thành nhất đến các diễn giả khách mời, các nhà nghiên cứu, những người ủng hộ và khán giả quan tâm đã góp phần tạo nên thành công của Hội thảo. Hội thảo được kỳ vọng sẽ nâng cao nhận thức của tất cả các bên tham gia thị trường và tạo ra một diễn đàn thường niên về bảo vệ người tiêu dùng tài chính tại Việt Nam.
3. ORGANIZING COMMITTEE OF INTERNATIONAL WEBINAR “FINANCIAL CONSUMER PROTECTION – PRACTICE AND POLICY RECOMMENDATIONS FOR VIETNAM” 1. Assoc. Prof. Nguyen Anh Thu Vice Rector University of Economics and Business, VNU 2. Dr. Dinh Thi Thanh Van Acting Dean, Faculty of Finance and Banking University of Economics and Business, VNU 3. MBA. Phan Thi Thanh Binh Deputy General Director Deposit Insurance of Vietnam 4. MSc. Nguyen Mai Thanh Head of Research and International Cooperation Department Deposit Insurance of Vietnam 5. MSc. Nguyen Thi Viet Ha Deputy Head of Research and International Cooperation Department Deposit Insurance of Vietnam 6. MA. Luu Thi Mai Anh Head of Office of Journal and Publishing University of Economics and Business, VNU 7. MA. Nguyen Thi Thu Head of Office of Communication and Brand Management University of Economics and Business, VNU 8. Bui Thi Dung Staff, Office of Communication and Brand Management University of Economics and Business, VNU 9. MA. Nguyen Duc Lam Acting Head, Office of Research and Partnership Development University of Economics and Business, VNU 10. MA. Nguyen Thị Nguyet Nuong Deputy Head, Office of Research and Partnership Development University of Economics and Business, VNU 11. Ha Thi Minh Thu Staff, Office of Research and Partnership Development University of Economics and Business, VNU 12. MSc. Dang Thi Minh Nguyet Staff, Research and International Cooperation Department Deposit Insurance of Vietnam
4. 13. Nguyen Thanh Thanh Staff, Research and International Cooperation Department Deposit Insurance of Vietnam 14. Dao Thuy Linh Staff, Research and International Cooperation Department Deposit Insurance of Vietnam 15. MSc. Pham Duy Khanh Staff, Faculty of Finance and Banking University of Economics and Business, VNU 16. MSc. Nguyen Hong Minh Lecturer, Faculty of Finance and Banking University of Economics and Business, VNU 17. MSc. Pham The Thanh Lecturer, Faculty of Finance and Banking University of Economics and Business, VNU 18. MSc. Dinh Thi Quynh Anh Lecturer, Faculty of Finance and Banking University of Economics and Business, VNU
5. BAN TỔ CHỨC HỘI THẢO KHOA HỌC QUỐC TẾ “BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH – THỰC TIỄN VÀ ĐỀ XUẤT CHÍNH SÁCH ĐỐI VỚI VIỆT NAM” 1. PGS. TS. Nguyễn Anh Thu Phó Hiệu trưởng Trường Đại học Kinh tế, ĐHQGHN 2. TS. Đinh Thị Thanh Vân Phó trưởng khoa phụ trách, khoa Tài chính – Ngân hàng Trường Đại học Kinh tế, ĐHQGHN 3. ThS. Phan Thị Thanh Bình Phó Tổng giám đốc Bảo hiểm tiền gửi Việt Nam 4. ThS. Nguyễn Mai Thanh Trưởng phòng Nghiên cứu tổng hợp và Hợp tác quốc tế Bảo hiểm tiền gửi Việt Nam 5. ThS. Nguyễn Thị Việt Hà Phó Trưởng phòng Nghiên cứu tổng hợp và Hợp tác quốc tế Bảo hiểm tiền gửi Việt Nam 6. ThS. Lưu Thị Mai Anh Trưởng phòng Tạp chí xuất bản Trường Đại học Kinh tế, ĐHQGHN 7. ThS. Nguyễn Thị Thư Trưởng phòng Truyền thông và Quản trị thương hiệu Trường Đại học Kinh tế, ĐHQGHN 8. Bùi Thị Dung Cán bộ phòng Truyền thông và Quản trị thương hiệu Trường Đại học Kinh tế, ĐHQGHN 9. ThS. Nguyễn Đức Lâm Phó trưởng phòng phụ trách, phòng NCKH & HTPT Trường Đại học Kinh tế, ĐHQGHN 10. ThS. Nguyễn Thị Nguyệt Nương Phó trưởng phòng NCKH & HTPT Trường Đại học Kinh tế, ĐHQGHN 11. Hà Thị Minh Thu Chuyên viên phòng NCKH & HTPT Trường Đại học Kinh tế, ĐHQGHN 12. ThS. Đặng Thị Minh Nguyệt Cán bộ phòng Nghiên cứu tổng hợp và Hợp tác quốc tế Bảo hiểm tiền gửi Việt Nam
6. 13. Nguyễn Thanh Thanh Cán bộ phòng Nghiên cứu tổng hợp và Hợp tác quốc tế Bảo hiểm tiền gửi Việt Nam 14. Đào Thùy Linh Cán bộ phòng Nghiên cứu tổng hợp và Hợp tác quốc tế Bảo hiểm tiền gửi Việt Nam 15. ThS. Phạm Duy Khánh Chuyên viên Khoa Tài chính – Ngân hàng Trường Đại học Kinh tế, ĐHQGHN 16. ThS. Nguyễn Hồng Minh Giảng viên Khoa Tài chính – Ngân hàng Trường Đại học Kinh tế, ĐHQGHN 17. ThS. Phạm Thế Thành Giảng viên Khoa Tài chính – Ngân hàng Trường Đại học Kinh tế, ĐHQGHN 18. ThS. Đinh Thị Quỳnh Anh Giảng viên Khoa Tài chính – Ngân hàng Trường Đại học Kinh tế, ĐHQGHN
7. AGENDA 08:00-08:30 Registration 08:30-08:40 Welcome Remarks Assoc. Prof. Nguyen Anh Thu, Vice Rector, VNU University of Economics and Business Ms. Phan Thi Thanh Binh, Deputy General Director, Deposit Insurance of Vietnam 08:40-09:05 Korea’s experience in building the Financial Consumer Protection Act Prof. Man Cho, Chairman, International Academy of Financial Consumers 09:05-09:30 Challenges in implementing consumer protection regulations in the Banking Industry – Risk Adequacy and Practical Feasibility Prof. Dr. Andreas Stoffers, SDI Munich, International University of Applied Science 09:30-09:55 A snapshot of digital financial consumer protection in Vietnam and other countries Dr. Dinh Thi Thanh Van, Associate Dean, Faculty of Finance and Banking, VNU-University of Economics and Business, Founder, Vietnam Financial Literacy Network 09:55-10:20 How the finances of Sparkasse Assen customers are protected – a practical report from the bank’s perspective Mr. Klaus Remmer, Sparkasse Essen, Germany 10:20-10:55 Discussion (Q&A): - Prof. Man Cho, Chair, International Academy of Financial Consumers - Prof. Dr. Andreas Stoffers, SDI Munich, International University of Applied Science - Dr. Dinh Thi Thanh Van, Associate Dean, Faculty of Finance and Banking, VNU-University of Economics and Business, Founder, Vietnam Financial Literacy Network - Mr. Klaus Remmer, Sparkasse Essen, Germany Moderator: Ms. Phan Thi Thanh Binh, Deputy General Director, Deposit Insurance of Vietnam 10:55-11:00 Closing Remarks
8. CHƯƠNG TRÌNH 08:00-08:30 Đăng ký đại biểu 08:30-08:40 Khai mạc PGS. TS. Nguyễn Anh Thu, Phó Hiệu trưởng, Trường Đại học Kinh tế, ĐHQGHN. Bà Phan Thị Thanh Bình, Phó Tổng giám đốc, Bảo hiểm tiền gửi Việt Nam 08:40-09:05 Kinh nghiệm xây dựng Luật Bảo vệ người tiêu dùng tài chính tại Hàn Quốc GS. Man Cho, Chủ tịch Học viện quốc tế Người tiêu dùng tài chính 09:05-09:30 Những thách thức trong việc thực thi các quy định về bảo vệ người tiêu dùng trong ngành Ngân hàng – Mức độ rủi ro và tính khả thi GS. TS. Andreas Stoffers, SDI Munich, Trường đại học quốc tế về Khoa học ứng dụng 09:30-09:55 Bức tranh tổng thể về bảo vệ người tiêu dùng kỹ thuật số tại Việt Nam và một số quốc gia khác TS. Đinh Thị Thanh Vân, Phó Trưởng khoa phụ trách Khoa Tài chính – Ngân hàng, Trường Đại học Kinh tế, ĐHQGHN, Founder, Mạng lưới Tài chính cá nhân Việt Nam 09:55-10:20 Khách hàng của Sparkasse Essen được bảo vệ tài chính như thế nào – báo cáo thực tiễn dưới góc độ ngân hàng Ông Klaus Remmer, Ngân hàng Sparkasse Essen, Đức 10:20-10:55 Phiên thảo luận (Hỏi đáp): 1. - GS. Man Cho, Chủ tịch Học viện quốc tế Người tiêu dùng tài chính 2. - GS. TS. Andreas Stoffers, Trường đại học quốc tế về Khoa học ứng dụng Munich, Đức 3. - TS. Đinh Thị Thanh Vân, Phó Trưởng khoa phụ trách Khoa Tài chính – Ngân hàng, Trường Đại học Kinh tế, ĐHQGHN, Founder, Mạng lưới Tài chính cá nhân Việt Nam 4. - Ông Klaus Remmer, Ngân hàng Sparkasse Essen, Đức Điều hành phiên thảo luận: Bà Phan Thị Thanh Bình, Phó Tổng giám đốc, Bảo hiểm tiền gửi Việt Nam 10:55-11:00 Tổng kết, bế mạc
9. SPEAKERS AND MODERATOR BIGRAPHY Prof. Man Cho, Chairman, International Academy of Financial Consumers Man Cho is a full professor at KDI School of Public Policy and Management in Korea, and is currently serving as Chairman of International Academy of Financial Consumers, an international academic association with over 100 members from more than 20 countries. His teaching and research areas include FinTech, credit risk management, real estate finance, and and urban and regional economics. Before joining KDI School in May 2007, he worked for Fannie Mae, one of the major MBS (Mortgage Backed Security) issuers in the U.S., in which he involved with various R&D projects such as mortgage and MBS pricing, collateral (property) assessment, and mortgage default and prepayment modeling and also served several managerial positions. Prior to Fannie Mae, he worked for the World Bank as a long-term consultant (1991~92), and taught at the Johns Hopkins University as an adjunct professor (2004~07). He holds a Ph.D degree in Applied Economics and Managerial Science from the Wharton School of the University of Pennsylvania in 1991. Dr. Dinh Thi Thanh Van, Associate Dean, Faculty of Finance and Banking, VNU – University of Economics and Business, Founder, Vietnam Financial Literacy Network Dr. Van is the Associate Dean, Faculty of Finance and Banking, VNU – University of Economics and Business, Founder, Vietnam Financial Literacy Network. Dr. Van is also a Fulbright scholar at University of California, Berkeley (2013 -2014). She is working as a lecturer, researcher and financial analyst for more than 15 years. Her main research interests include personal finance, financial inclusion, digital finance and fintech. Beside working at the university, she is teaching
10. financial literacy courses for K12 students, college students and rural women, disabilitites and other minority groups in Vietnam and US. She is also the Editor of several financial education books such as Finance for Kids, Personal Finance for Women, Financial Management Manual for Students, and the co-author of Boardgame Financial Competition. Prof. Dr. Andreas Stoffers, SDI Munich, International University of Applied Sciences Prof. Dr. Andreas Stoffers studied political science and economics with a focus on International Relations and completed his PhD on German – Thai relations. Andreas has many years of practical management experience in the areas of sales organization, sales management, leadership of strategic projects and business development in Germany and Southeast Asia. As a long-time member of Deutsche Bank AG Vietnam Executive Board, he was responsible for successful market intelligence and opening up of new markets. Since 2014, Andreas is Professor of International Management at the International University/SDI Munich. Moreover, he is Visiting Professor at University of Malaya in Kuala Lumpur Malaysia and at Vietnamese-German University VGU in HCMC. In December 2019, Andreas became director of Friedrich-Naumann-Foundation Vietnam FNF in Hanoi. Mr. Klaus Remmer, Sparkasse Essen, Germany Klaus Remmer is a qualified banker with a complementary degree in business administration. For the last 15 years of his professional life, he was managing director of a subsidiary of Sparkasse
11. Essen with up to 100 employees. Since 1997, in addition to his job, he has been a consultant for financial institutions in developing and emerging countries, focusing on strategy and organization. Since the beginning of 2020 he is retired and uses the gained time for an even more intensive support of partners; especially in South and Southeast Asia. Ms. Phan Thi Thanh Binh, Deputy General Director, Deposit Insurance of Vietnam Ms. Phan Thi Thanh Binh is the Deputy General Director of the Deposit Insurance of Vietnam (DIV). She is responsible for the DIV’s research activities regarding deposit insurance policy, international cooperation and training. With more than 20 years experience in deposit insurance and banking, Ms. Binh has made substantial contributions to the building of several legal documents on deposit insurance, especially the Law on Deposit Insurance in 2012. Ms. Binh also acts as the coordinator of DIV’s international cooperation projects and is entrusted with the management of many international projects funded by the World Bank, the Asian Development Bank Ms. Binh has several publications on deposit insurance, banking and corporate governance. She holds an MBA degree and bachelor degree in international economics.
12. GIỚI THIỆU VỀ CÁC DIỄN GIẢ TRÌNH BÀY VÀ BÌNH LUẬN CHÍNH Giáo sư Man Cho, Chủ tịch Học viện quốc tế Người tiêu dùng tài chính Ông Man Cho là giáo sư chính thức tại Trường Quản lý và Chính sách Công KDI ở Hàn Quốc, và hiện đang giữ chức Chủ tịch Học viện quốc tế Người tiêu dùng Tài chính, một hiệp hội học thuật quốc tế với hơn 100 thành viên đến từ hơn 20 quốc gia. Các lĩnh vực giảng dạy và nghiên cứu của ông bao gồm FinTech, quản lý rủi ro tín dụng, tài chính bất động sản và kinh tế đô thị và khu vực. Trước khi gia nhập Trường KDI vào tháng 5 năm 2007, ông đã làm việc cho Fannie Mae, một trong những tổ chức phát hành MBS (Mortgage Backed Security) lớn ở Mỹ, khi đó ông đã tham gia vào nhiều dự án R&D khác nhau như thế chấp và định giá MBS, đánh giá tài sản bảo đảm, và mô hình trả trước và vỡ nợ thế chấp, đồng thời cũng giữ một số vị trí quản lý. Trước Fannie Mae, ông làm việc tại Ngân hàng Thế giới với tư cách là cố vấn dài hạn (1991 ~ 92), và giảng dạy tại Đại học Johns Hopkins với tư cách là giáo sư trợ giảng (2004 ~ 07). Ông có bằng Tiến sĩ về Kinh tế Ứng dụng và Khoa học Quản lý tại Trường Wharton thuộc Đại học Pennsylvania năm 1991. TS. Đinh Thị Thanh Vân, Phó Trưởng khoa phụ trách Khoa Tài chính – Ngân hàng, Trường Đại học Kinh tế, ĐHQGHN, Founder, Mạng lưới Tài chính cá nhân Việt Nam TS. Đinh Thị Thanh Vân là Phó Trưởng khoa phụ trách Khoa Tài chính Ngân hàng, Trường ĐH Kinh tế, ĐHQGHN. Bà Vân cũng là Sáng lập, Mạng lưới Tài chính cá nhân Việt Nam. Bà Vân cũng là học giả Fulbrighter, nghiên cứu sau tiến sĩ tại Trường ĐH tổng hợp California, Berkeley, Mỹ (2013-2014). Bà Vân có hơn 15 năm nghiên cứu và giảng dạy trong lĩnh vực tài chính ngân hàng. Chủ đề nghiên cứu chủ yếu của bà Vân bao gồm tài chính cá nhân, phổ cập tài chính, tài chính số và fintech. Ngoài việc nghiên cứu và giảng dạy, bà Vân cũng tham gia giảng dạy về tài chính cho học sinh phổ thông, cho phụ nữ nông thôn, người khiếm thính ở Việt Nam và Mỹ. Bà là Chủ biên tập
13. san Tài chính học trò, Tài chính gia đình, Cẩm nang quản lý tài chính cho sinh viên, Sổ tay Quản lý tài chính cho phụ nữ và nhiều ấn phẩm khác về giáo dục tài chính. Giáo sư, Tiến sĩ Andreas Stoffers, SDI Munich, Trường đại học quốc tế về Khoa học ứng dụng Giáo sư Tiến sĩ Andreas Stoffers nghiên cứu khoa học chính trị và kinh tế tập trung vào Quan hệ quốc tế và hoàn thành bằng Tiến sĩ về quan hệ Đức - Thái. Andreas có nhiều năm kinh nghiệm quản lý thực tế trong các lĩnh vực tổ chức bán hàng, quản lý bán hàng, lãnh đạo các dự án chiến lược và phát triển kinh doanh tại Đức và Đông Nam Á. Là thành viên lâu năm của Ban điều hành Deutsche Bank AG Việt Nam, ông chịu trách nhiệm về thành công trong việc tìm hiểu thị trường và mở ra các thị trường mới. Từ năm 2014, Andreas là Giáo sư Quản lý Quốc tế tại Đại học Quốc tế / SDI Munich. Ngoài ra, ông còn là Giáo sư thỉnh giảng tại Đại học Malaya ở Kuala Lumpur Malaysia và tại Đại học Việt Đức VGU tại TP.HCM. Vào tháng 12 năm 2019, Andreas trở thành giám đốc FNF Friedrich-Naumann-Foundation Vietnam tại Hà Nội. Ông Klaus Remmer, Ngân hàng Sparkasse Essen, Đức Ông Klaus Remmer là một chuyên gia ngân hàng nhiều kinh nghiệm với bằng cấp về quản trị kinh doanh. Trong 15 năm qua, ông là giám đốc điều hành của một công ty con của Sparkasse Essen với gần 100 nhân viên. Từ năm 1997, ngoài công việc của mình, ông còn là nhà tư vấn cho các tổ chức tài chính ở các nước đang phát triển và mới nổi, tập trung vào chiến lược và tổ chức. Kể từ đầu
14. năm 2020, ông nghỉ hưu và sử dụng thời gian có được để hỗ trợ các đối tác chuyên sâu hơn nữa; đặc biệt là ở Nam và Đông Nam Á. Bà Phan Thị Thanh Bình, Phó Tổng giám đốc Bảo hiểm tiền gửi Việt Nam Bà Phan Thị Thanh Bình hiện là Phó Tổng giám đốc Bảo hiểm tiền gửi Việt Nam, bà chịu trách nhiệm nghiên cứu, đề xuất các vấn đề liên quan đến chính sách bảo hiểm tiền gửi và hoạt động hợp tác quốc tế và đào tạo của tổ chức. Với hơn 20 năm kinh nghiệm trong lĩnh vực bảo hiểm tiền gửi và ngân hàng, bà đã tham gia xây dựng và soạn thảo các văn bản pháp lý về bảo hiểm tiền gửi đặc biệt là Luật Bảo hiểm tiền gửi năm 2012. Bà là đầu mối điều phối các chương trình hợp tác quốc tế của Bảo hiểm tiền gửi Việt Nam và có nhiều kinh nghiệm trong quản lý các dự án quốc tế do các tổ chức quốc tế tài trợ như Ngân hàng Thế giới, Ngân hàng Phát triển Châu Á Bà Bình đã tham gia xuất bản nhiều ấn phẩm về ngân hàng, bảo hiểm tiền gửi và quản trị công ty trong ngân hàng. Bà có bằng Thạc sỹ quản trị kinh doanh và Cử nhân kinh tế quốc tế.
15. TABLE OF CONTENTS MỤC LỤC PART 1: ENGLISH PAPERS/ PHẦN I: CÁC BÀI VIẾT TIẾNG ANH 1. DETERMINANTS AFFECTING DIGITAL FINANCIAL CONSUMER PROTECTION: EVIDENCE FROM 135 COUNTRIES IN THE WORLD FROM 2014 TO 2018 Dinh Thi Thanh Van, PhD. - University of Economics and Business – Vietnam National University, Dao Le Van - Fulbright University, Pham Hien Dung - University of Economics and Business – Vietnam National University 1 2. FINANCIAL CONSUMER PROTECTION IN FINANCIAL INSTITUTIONS: THE CASE OF BANKING SECTOR IN VIETNAM Phung Thi Thu Huong, Msc., Trinh Thi Phan Lan, PhD. - University of Economics and Business – Vietnam National University 26 3. FINANCIAL CONSUMER PROTECTION LEGISLATION – APPROACHES AND RECOMMENDATIONS FOR VIETNAM Lan Phuong To, PhD. - Unviersity of Economics and Business – Vietnam National University 42 4. REGULATORY FRAMEWORK ON CONSUMER PROTECTION FOR FINANCIAL INCLUSION IN VIETNAM Thi Phuong Thao Le, MPP. - University of Economics and Business – Vietnam National University 53 5. CLIENT PROTECTION IN MICROFINANCE: INTERNATIONAL EXPERIENCES AND IMPLICATIONS FOR VIETNAM Hoang Thi Minh Chau, Ph.D. Hoang Bao Ngoc, Msc. - Trade Union University, Hanoi, Vietnam 66 6. FINANCIAL LITERACY AND FINANCIAL CONSUMER PROTECTION- A LITERATURE REVIEW AND SOME RECOMMENDATIONS FOR VIETNAM Nguyen Dang Tue, PhD. - School of Economics and Management, Hanoi University of Science and Technology 77 7. PERSONAL FINANCE TRAINING FOR STUDENTS TO AVOID LOAN SHARK TRAPS Khuc The Anh, PhD. - National Economics University, Le Dong Duy Trung, PhD. - Vietcombank 89 8. RETIAL INVESTORS’ TRADING BEHAVIORS AND DETERMINANTS: EVIDENCE FROM THE VIET NAM STOCK MARKET Nguyen Thị Nhung, PhD., Tran Thi Van Anh, PhD. - University of Economics and Business – Vietnam National University 99
16. 9. EFFECT OF MARKET SENTIMENT ON STOCK RETURNS Lan Phuong To, PhD., Cao Thi Thuy Trang - University of Economics and Business – Vietnam National University 119 PART 2: VIETNAMESE PAPERS/ PHẦN II: CÁC BÀI VIẾT TIẾNG VIỆT 10. BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH - TỪ GÓC ĐỘ CỦA TỔ CHỨC BẢO HIỂM TIỀN GỬI ThS Phan Thị Thanh Bình, Đào Thùy Linh - Bảo hiểm tiền gửi Việt Nam 146 11. BẢO VỆ QUYỀN LỢI NGƯỜI GỬI TIỀN TẠI TỔ CHỨC TÍN DỤNG THEO PHÁP LUẬT BẢO HIỂM TIỀN GỬI Ở VIỆT NAM VÀ MỘT SỐ QUỐC GIA TRÊN THẾ GIỚI TS. Phạm Thị Thuý Liễu, TS. Hồ Thị Hải - Trường Đại học Vinh 158 12. BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH – MỘT SỐ THÔNG LỆ QUỐC TẾ VÀ LIÊN HỆ THỰC TIỄN VIỆT NAM PGS.TS. Nguyễn Đắc Hưng - Trường Đại học Sư phạm Kỹ thuật Hưng Yên 168 13. KHUNG PHÁP LÝ BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH: KINH NGHIỆM TỪ NHẬT BẢN VÀ BÀI HỌC CHO VIỆT NAM ThS Đinh Thị Quỳnh Anh, TS. Trịnh Thị Phan Lan - Đại học Kinh tế, Đại học Quốc gia Hà Nội, Phạm Thị Ngọc Trang - University of Marketing and Distribution Sciences 178 14. BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH VIỆT NAM - NHÌN NHẬN TỪ KHUÔN KHỔ PHÁP LÝ ThS Tiêu Thị Thanh Hoa, ThS Nguyễn Thị Tường Tâm - Trường Đại học Ngân hàng TPHCM 190 15. VẬN DỤNG KINH NGHIỆM QUỐC TẾ TRONG XÂY DỰNG KHUNG KHỔ PHÁP LÝ BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH TẠI VIỆT NAM ThS Đặng Chí Thọ - TUU of Vietnam 200 16. BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH VIỆT NAM CẦN ĐƯỢC BẮT ĐẦU TỪ GIÁO DỤC HIỂU BIẾT TÀI CHÍNH ThS Đặng Chí Thọ - TUU of Vietnam, ThS Bùi Khắc Tuấn - NFSC of Vietnam 211 17. PHÂN BIỆT CÁC LOẠI TIỀN TRONG KỶ NGUYÊN KỸ THUẬT SỐ PGS.TS Nguyễn Văn Hiệu - Đại học Kinh tế, Đại học Quốc gia Hà Nội 221 18. THỊ TRƯỜNG TÀI CHÍNH PHI TẬP TRUNG VÀ NHỮNG RỦI RO ĐỐI VỚI NGƯỜI THAM GIA ThS Nguyễn Hồng Minh - Đại học Kinh tế, Đại học Quốc gia Hà Nội, NCS RMIT University, TS. Lê Hồng Hạnh - Đại học Kinh tế, Đại học Quốc gia Hà Nội 227 19. QUẢN LÝ TIỀN ẢO: KINH NGHIỆM QUỐC TẾ VÀ HÀM Ý CHO VIỆT NAM Cao Thị Thuỳ Trang, ThS Nguyễn Khánh Tín, Lưu Khánh Linh - Đại học Kinh tế, Đại học Quốc gia Hà Nội 237
17. 20. BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH TRONG KỶ NGUYÊN KĨ THUẬT SỐ - KINH NGHIỆM QUỐC TẾ VÀ KHUYẾN NGHỊ CHO VIỆT NAM Phạm Xuân Hùng - Trưởng ban, Ban Nghiên cứu và Điều phối chính sách giám sát, Ủy ban Giám sát tài chính Quốc gia 254 21. BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH TRONG KỶ NGUYÊN KỸ THUẬT SỐ - PHƯƠNG PHÁP TIẾP CẬN HIỆU QUẢ ĐỐI VỚI CÁC NHÀ HOẠCH ĐỊNH CHÍNH SÁCH VÀ CƠ QUAN GIÁM SÁT TS. Nguyễn Thị Kim Phụng - Đại học Ngân hàng TP.HCM 262 22. XÂY DỰNG BỘ QUY TẮC HOẠT ĐỘNG VÀ CAM KẾT TỰ NGUYỆN VỀ BẢO NGƯỜI TIÊU DÙNG TÀI CHÍNH TRONG BỐI CẢNH CHUYỂN ĐỔI SỐ TẠI VIỆT NAM ThS Vũ Thị Mai Hương, TS. Đỗ Thị Bích Hồng – Viện chiến lược Ngân hàng 270 23. FINTECH, CÁC ẢNH HƯỞNG TỚI NGƯỜI TIÊU DÙNG VÀ ĐỀ XUẤT CÁC GIẢI PHÁP PHÙ HỢP NHẰM TĂNG CƯỜNG BẢO VỆ NGUỜI TIÊU DÙNG TÀI CHÍNH VIỆT NAM Nguyễn Thị Trang - Đại Học Kinh Tế - Đại học Quốc Gia Hà Nội 279 24. CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN HÀNH VI VAY TÍN DỤNG TIÊU DÙNG:NGHIÊN CỨU THỰC NGHIỆM TẠI THÀNH PHỐ HỒ CHÍ MINH Huỳnh Nguyễn Anh Huy - Ngân hàng Kiên Long, ThS Trần Thùy Nhung - Đại học Luật Thành phố Hồ Chí Minh 290 25. BẢO VỆ NGƯỜI TIÊU DÙNG TRONG LĨNH VỰC TÍN DỤNG TIÊU DÙNG – THỰC TRẠNG VÀ GIẢI PHÁP ThS Đặng Thị Bích Liên - Trường Đại học Hải Phòng 305 26. “TÍN DỤNG ĐEN”- THỰC TRẠNG TỒN TẠI & NHỮNG GIẢI PHÁP CẤP BÁCH ĐƯỢC VIỆT NAM ÁP DỤNG HIỆN NAY ThS Lê Thị Thu Hà - Đại học Hải Phòng 314 27. TĂNG CƯỜNG GIÁM SÁT NHẰM BẢO VỆ NHÀ ĐẦU TƯ TRÊN THỊ TRƯỜNG CHỨNG KHOÁN TS. Thái Quỳnh Mai Dung - Trưởng ban Đối ngoại, Tổng Liên đoàn Lao động Việt Nam 323 28. HOẠT ĐỘNG BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH TRONG LĨNH VỰC CHỨNG KHOÁN Ở VIỆT NAM – THỰC TIỄN VÀ ĐỀ XUẤT CHÍNH SÁCH ThS Nguyễn Phương Thảo - Học viện ngân hàng 333 29. BẢO VỆ NGƯỜI TIÊU DÙNG TÀI CHÍNH CAO TUỔI THÔNG QUA GIÁO DỤC TÀI CHÍNH CÁ NHÂN, KINH NGHIỆM CỦA HOA KỲ VÀ BÀI HỌC CHO VIỆT NAM ThS Hứa Phương Linh - Trường đại học Ngoại ngữ, Đại học Quốc gia Hà Nội, TS.Nguyễn Đăng Tuệ - Viện Kinh tế và Quản lý, Trường đại học Bách khoa Hà Nội 348
18. DETERMINANTS AFFECTING DIGITAL FINANCIAL CONSUMER PROTECTION: EVIDENCE FROM 135 COUNTRIES IN THE WORLD FROM 2014 TO 2018 Dinh Thi Thanh Van, PhD.1 - University of Economics and Business – Vietnam National University, Dao Le Van2 - Fulbright University, Pham Hien Dung3 - University of Economics and Business – Vietnam National University Abstract Asymmetric information in financial digital markets is increasingly becoming a serious problem in the digital era. Consumers of digital finance suffer from asymmetric information compared to financial agents due to the complexity of services and their passive position in collecting, analyzing and processing information. The study offers measures to improve the practice of digital financial consumer protection (DFCP) through quantitative analysis using a sample of 135 countries for the period 2014-2018. DFCP is measured through 8 dimensions, including Access, Product safety and liability, Economic interests, Privacy and data security, Information and transparency, Education and awareness, Dispute resolution and redress, Governance and Participation provided the picture, overview of DFCP during the period 2014-2018. Four groups of factors have positive effects on increasing the protection of financial consumers, including education, institutional innovation, market size (openness), technology infrastructure. Interestingly, the result shows that innovation and economic openness factor over the world in the digital age is a huge opportunity, not a challenge, for increasing well-being of financial consumers. Thereby, governments need to adjust policies that focus on absorbing new technology, encourage innovation and the opening of the economy instead of controlling actions in order to protect their citizen. The study also shows evidence of gender discrimination in digital financial services. Keywords: Digital Financial, Consumer Protection, Technology, Openness, Asymetric imformation JEL code: C81, D82, D18, D53, G14, Q55 1 Corresponding author, gmail: dinhthanhvan@gmail.com 2 Gmail: levandao96kt@gmail.com 3 Gmail: hiendungpham96@gmail.com 1
19. 1. Introduction: Asymmetric information is one of the market failures that requires certain interventions (regulations, laws, education programs, etc). Under the circumstances, several asymmetric- information-based debates occurring in (digital) financial markets were noticeably concerned (The Lifeblood of The Economy). Beginning in the 1970s, Rothschild & Stiglitz (1976) had indicated many drawbacks of supply chain organizations compared to their customers in risk appraisal. In financial markets, financial agents possessed less information about their customers’ ability to repay, loan purpose and ability to manage loans in contrast to their customers. As a result, legal and policy instruments were essential in order to protect financial institutions from steered consumers such as credit score (or bond rating) caps, and maximum loan-to-value (LTV) and debt-to-income (DTI) ratios (Meza & Webb, 1987; Stiglitz & Weiss, 1981; Waller & Lewarne, 1994) as the underwriting criteria. On the contrary, recent researches have exposed some concerns related to asymmetric information, which are closer to financial consumer rights, especially digital financial consumer rights. While the consumers are facing increasingly terminology documents (Burke & Fry, 2019) and difficulties in filtering appropriate information sources, firms welcome data as inputs in their business practices and have strong incentives to collect, use, store, or trade consumer data (Jin & Wagman, 2020). Corresponding with the development of the Big Data system, the banking process of reviewing customer records and monitoring customer behaviour is increasingly tight and simplified (Pérez-Martín, Pérez-Torregrosa, & Vaca, 2018). The weakness in communication between customers and financial agents is also demonstrated by (Gathergood, 2012; Lusardi & Mitchell, 2007; Lusardi & Tufano, 2015). For example, a financial consumer with poor pension planning (70% of responders do not understand how to create a personal financial goal) (NFEC, 2019), opting for unreasonable loans with high-interest rates and borrowing the amount of money above their ability to repay (Bunnell, Osei-Bryson, & Y.Yoon, 2021). The study by Gummi, Finke, Pizatella-Haswell, & Takagi (2019) identifies 6 key weaknesses of digital financial consumers, including: (1) Credit traps and over-indebtedness; (2) Unnecessary burden of credit that fails to meet consumer needs, due to misuse or poor usage of credit products; (3) Misinformed consumers due to lack of transparency; (4) Lack of timely access to required funds; (5) Consumer security and privacy breaches; (6) Fraud liability. Moreover, the asymmetry is aggravated by the rapid development of science and technology which is leading to sophisticated and complexed financial services (Lumpkin, 2010) and the dominance of informal financial sources make information more unpredictable about its authenticity (Seibel, 2001). Economic openness also leads to risks of information transparency and nation/personal security (dynamic hacking) due to the hybrid link between different types of financial services as well as among countries. The complexity of digital financial services is an important reason to reduce consumer trust, according to a survey by James & Jenny (2016), only 5% of respondents choose online loan because financial consumers feel more secure with traditional lending. Black, Lockett, Ennew, Winklhofer, & Mckechnie (2002) and Davison, Watkins, & Wright (1989) also theoretically agree that the complexity of financial products shows inverse proportions 2
20. to consumer choices due to opportunity cost of time to learn products. According to World Bank (2014), only 11% of adults worldwide have legal financial loans (this statistic data drops to 9% for low-income countries, 8% for middle-income countries and 10% for upper-middle-income countries), and 27% for companies worldwide have limited access to finance. The lack of digital financial consumer protection has serious consequences. First of all, there occurs a competitive threat of some new businesses, where consumers obtain a service free of charge and pay by their personal data in return, following with network effects and economies of scale leading to phenomenon “winner-takes-all” that impedes competition (OECD, 2016a; World Bank Group, 2015). Secondly, the term "fragile digital consumers" described in (Colangelo & Maggiolino, 2019) is becoming more and more common with the increasing severity of intra-urban 'financial ecology' (Cuesta-González, Paredes-Gazquez, Ruza, & Fernández-Olit, 2021). OECD (2017a) believes that vulnerable groups (the elderly, the poor-low-income, low-wealth, less creditworthy households) are at risk of being excluded from digital financial services. Thirdly, the lack of consumer protection leads to a decline in social trust, meanwhile, trust is an important factor influencing transaction costs and social costs Williamson (1979); OECD (2011a). Moreover, a market with a rise in expanding and competing contributes to restricting asymmetric information (Yaseen et al. 2020; Rothbard, 1977; Paul & Cox, 2009). Recent research by Jin & Wagman (2020) also emphasizes the relationship between the increasing information asymmetry and market power then turn the competitive market into an oligopoly. As a result, the relation between asymmetric information, DFCP and market competitiveness deserve careful consideration. Although the documents promoting the protection of financial consumers (regulations, laws, practice) and qualitative research are increasing, quantitative ones are relatively limited. Many efforts have been conducted from developing universal regulations for the FCP (OECD, 2011b) to implementation guidelines (OECD, 2017a, 2018a, 2018b, 2018c) and (World Bank, 2017, 2018), exposing a trend in digital financial consumer protection in the digital era. Efforts to evaluate the situation of financial consumer protection in the digital age can be mentioned (Chen, 2018). Currently, with the best of our knowledge, there has been qualitative research that has successfully measured the digital financial consumer protection index in an international context. The most recent attempt to quantify digital financial consumer protection mentions (Federation of German Consumer Organization, 2017). Therefore, in order to close this research gap, the study has the following major contributions: (1) Determining DFCP index at the level of 135 countries around the world in the period 2014-2018 based on secondary data. Subsequently, we provide an overview of DFCP index in the world. “Digital financial consumers” are individuals using financial service delivered through mobile phones, personal computers, the internet or cards linked to a reliable digital payment system (Durai & G, 2019); (2) Evaluating factors affecting DFCP and provide empirical evidence in the period 2014-2018 in 135 countries, especially, institutional innovation and economic openness. In other words, we focus on answering the question: "Would financial consumers get benefit when the economy is more open and the digital innovation technology becomes more sophisticated?"; (3) 3
21. Contributing a number of policy implications with an aim of DFCP Index improvement all over the world, especially in developing countries. The study is presented as follows. Section 2 provides efforts to measure the current DFCP indicators and identify aspects influencing on DFCP. Section 3 describes the data used in the research model. Part 4 presents the results of the study. Section 5 presents the conclusion and suggestions for further policies. 2. Literature review: Efforts to measure DFCP inclusion are commonly known as researches regarding interviewing experts in a certain extent (e.g. Chen, 2018) examine the overall structure of FCP policies; the financial literacy score developed by OECD (2016b); World Bank (2012) mention consumer complaint and resolution mechanism factors, etc. Federation of German Consumer Organizations (2017) has made efforts to measure DFCF inclusion based on 8 dimensions including 25 criteria with appropriate data proposals to represent those criteria and aspects. Based on the studies of the research group combined with the analytical framework of the Federation of German Consumer Organization (2017), the research measures DFCP based on 8 dimensions with the following representative data (Table 2): Figure 1. 8 Dimensions of DFCP Index and Its criteria Source: (Federation of German Consumer Organisations, 2017) & Author’s collection Based on “Full Model of Financial Capability” (Bunnell et al., 2021), (1) financial skill lead to (2) financial behavior lead to (3) financial situation leads to (4) financial well-being, financial consumers' behaviors are influenced by their knowledge and social concerns (Education & society) 4
22. combined with environmental factors: technology infrastructure, institutional innovation, market size (flexibility, diversity in exchange), etc. Hypothesis 1: Education & social concerns effect to DFCP In the context of increasingly sophisticated commodities, education is an important factor influencing financial consumer protection (Lumpkin, 2010; Robert, 2013). OECD (2017b) emphasize the need for financial consumer protection and digital financial education framework towards the goal of effectively expanding and exploiting financial services in the future. Education, accordingly, restricts potential digital risks concurrently with upgrading the benefits of utilizing financial services. Polat & Abdulsalam (2014) also conclude that consumer enhancement of protection can be increased by three factors which are training, media and electronic means of communications. Research has been conducted within Saudi Arabia banks with data collected from 265 consumers, therefore, the result can reflect consumer perspectives. Advanced DFCP can be relatively simple and convenient such as providing a basic guideline of usage and potential risk information for customers (Example: Google owns YouTube, Microsoft owns Skype, WhatsApp and Instagram belong to Facebook) or providing financial options for retirement planning. With sophisticated and complex financial issues, education helps form and reinforce skills of synthesis and analysis data, improving protective attitudes as well (eg: consumers' willingness to disclose data). In the previous research papers, the evidence of educational improvement to DFCP is relatively ample, such as to digital asset management (Litterscheidt & Streich, 2020); retirement planning; savings accounts; participation in financial markets; less prone to over-indebtedness; internet banking behavior (Andreou & Anyfantaki, 2020). Moreover, education also helps to prevent various potential risks because of enhancing corporate social responsibility (CRS) of firms or reducing costs to detect phishing, hacking attacks and unauthorised use of data. Rösner, Haucap, & Heimeshoff (2020) utilize data from an overall sample of 179,724 respondents representing the 28 member states of the European Union between 2006 and 2014, concluded an increase of consumer trust by 11% after the implementation of the Unfair Commercial Practice Directive (UCPD). It regulates unfair business practices in the European Union, as part of European consumer law, based on the principle of minimum harmonization. The Directive provides fundamental knowledge so that consumers can defend themselves. Meanwhile, Xu (2019) indicates a positive correlation between social trust and financial inclusion: When trust increases by one standard deviation, financial inclusion index increases by almost 0.5. Hypothesis 2: Technology infrastructure effect to DFCP Digital financial consumer protection (DFCP) index is also influenced by technology infrastructure, for instance, Internet speed, spectrum Internet, Firm-level technology absorption, etc. World Bank (2018) show that Big Data can measure consumer needs, adjust and meet the diverse needs of financial customers in the digital era. Data conversion is also an important factor to protect consumer information. Other supporting researches confirmed the role of Information & 5
23. Communication Technologies (ICT) in dimensions of DFCP Index. Mishra & Bisht (2013) survey 50 poor citizens living in big cities in India point out that the development of technology equipment affects the majority of the population assessing in banking services. Mushtaq & Bruneau (2019) prove that the application of ICT in financial institutions would lead to the development of digital banks. Utilizing the secondary data collected from 54 countries, Sarma & Pais (2011) conclude that digital connection between consumers and banks had a positive effect on financial inclusion. In the regression result by Shamim (2007), the number of internet users significantly enhances financial depth. Hypothesis 3: Institutional innovation improves DFCP The impact of institutional innovation on DFCP has received two popular perspectives, while, some studies suggest that the increasing market power of financial agents through inventing new tools has been creating extremely monopolistic power (eg information processing technology with bigdata has easily discriminated consumers) (Jin & Wagman, 2020), others believe that institutional innovation is a significant factor for financial consumer protection in the digital age. Our argument leans towards the second line of view. First of all, innovation promotes the process of improving the quality and characterization of the products, thus it restricts misappropriation, dynamics hacking and theft (Liu, 2015) as well as reducing transaction costs, synchronizing data, making work-based better for operators and consumers, maximizing the purchase decision, enhancing the customer experience, and saving their time. Marcia & Greta (2014) argue that the development of technology on online platforms enables consumers to increase transactional traffic. According to CGAP (2010), the new platform also enables to systematize financial consumer protection Index. This allows further research into contributing factors and solutions for financial consumer protection practices. World Bank (2012) exemplify effective enforcement of consumer protection, particularly in redress and resolution mechanisms. Pasiouras (2018) quantize the impact of financial consumer protection policies on financial intermediation costs and the influence gap in developing and developed nations is relatively significant. Mariani & Wamba (2020) convince that new big data-based technologies have contributed to creating convenience in digital financial transactions. Another interesting finding by Krafft et al. (2020) shows that with the rapid growth in customer demand (rasing environment and social concern), new business models will be established with a stronger link to their society such as firm-customer data exchange mechanism. An indirect consequence of enhancing innovation through economic growth, service diversification, quality enhancement, reducing transaction costs, available accessibility, etc. is to improve the quality of life of the underprivileged (Aghion & Howitt, 1992; Romer, 1990; Pakes & Griliches, 1980; Oya, Joyce, & Nataliya, 2011; Deaton, 2013) Hypothesis 4: Market size (economic openness) improves DFCP Market size is a noticeable sign reflecting the level of competitiveness. Meanwhile, financial innovation is greater in more competitive financial systems (Thakor, 2012). According to OECD (2009), competitiveness stimulates quality in financial services by reducing the anti-trust of banks know as “too big to fail” and asymmetric information issue (Jin & Wagman, 2020). Further 6
24. development from this perspective, OECD (2011) recommend that financial market should restrict the influence or support of the government, which reduces competitiveness and weakens the market. Yaseen et al. (2020) shows that the market liberalization reforms (in China) had a notable impact on the dynamics of the information environment facing investors in those capital markets. The market power theory address its own failure (including asymmetric information) and the mechanism to promote a sustainable growth have been discussed (see also Paul & Cox, 2009; Rothbard, 1977). Accordingly, the competitive pressure of the market requires firms (digital financial services) to build mutual trust with their customers through giving full and accurate information – consumer- firm data exchange (Krafft et al., 2020). This process can be sluggish but effective (Alkire & Ritchie, 2007). Consequently, market expansion not only has a direct impact on eight dimensions of DFCP index through competition but also is the main factor reducing asymmetric information. In that way, digital financial consumers can also enhance their self-protection capability. Hypothesis 5: Gender discrimination in DFCP Financial consumer protection should concern gender discrimination matter. Utilizing statistical data from the Consumer Federation of America (CFA) and Principal Component Analysis (PCA) model, Fishbein & Woodall (2006) indicate that women are much more likely to receive higher interest rates on subprime loans than men. A conflicting viewpoint by GAO (2018) review found limited evidence of gender price differences, except certain subprime loans. However, these comparisons do not take into account the effect on the differences in product brand, packaging, and other characteristics, which limits the generalizability of the results. Bucher-Koenen, Lusardi, Alessie, & van Rooij (2016) analyze survey responses from German, American, Dutch, indicating that the lack of financial knowledge is more common among women, particularly among young people when the rate of correctly answering all questions between men and women is 38% - 22%. Similar to this theoretical framework, Hsu (2015) runs a regression model from the results of the American survey, showing that financial decision-makers in the family are mainly men. 3. Research method 3.1. Data Step 1: DFCP Index To measure the DFCP Index, we base it on 8 dimensions [table 1]. The indicators below have been used experimentally by different sets of indicators, for example: Global Findex, Network Readiness Index (NRI), ITU Global Cybersecurity, GSMA Mobile Connectivity Index, etc. Data are used as panel data across 135 countries in the period 2014-2018. Details of the data and its source, variables used are described in the table below. Table 2. 8 Dimensions of DFCP and its Proxy Variable Describe Source 7
25. Percentage of respondents, ages 15-60+, have Global Findex database an account at a bank/others financial type ( Access ank.org/financialinclusio n/) 1. The Network Readiness Index (NRI) ndex.org/#highlight Economic 2. Getting credit: Which represents the World Bank, Doing interests highest performance observed on the getting Business credit indicator across all economies ( included in (0-100). ss.org/). It is a trusted reference that measures the ITU Global Product safety commitment of countries to cybersecurity at a Cybersecurity Index and liability global level Dummy variable – Personal Data Protection Policy takes place es/DTL/STI_and_ICTs/I Privacy and note: PCA cannot aggregate Index using CT4D- data security dummy variable, so we do not apply in our Legislation/eCom-Data- actual calculation. However, this is an Protection-Laws.aspx important aspect to consider in further studies. Disclosure index (0-5). The sum of a variety of World Bank, Global Information existing disclosure requirements. We follow Survey on Consumer and Global Survey on Consumer Protection and Protection and Financial transparency Financial Literacy (WB). Literacy. Adult literacy (25%); School life expectancy GSMA Mobile Education and (25%); Mean years of schooling (25%); Connectivity Index awareness Tertiary enrollment (25%) Dispute resolution index (0-0.5-1). We follow World Bank, Global Global Survey on Consumer Protection and Survey on Consumer Dispute Financial Literacy (WB). Protection and Financial resolution and (= 1) if both resolution mechanisms are Literacy. redress available, (= 0.5) if one of the mechanisms is available, (=0) if neither of the mechanisms is available. 8
26. Generic Top-Level Domains (gTLDs) and GSMA Mobile Country Code Top-Level Domains (ccTLD) Connectivity Index per person (20%); Online Service Index score Participation for E-Government (20%); Mobile social media penetration (30%); Mobile apps developed per person (30%) Step 2: Evaluate the impact of factors on the DFCP index. We consider four important factors that influence the DFCP index, including: (1) Education and Social Concern for the development of society (Education & Society); (2) Infrastructure - the availability of technology in the digital era (Technology Infrastructure); (3) Expansion of the market - competitive pressure of the economy (Market size); (4) Institution towards innovation (Institutional Innovation). These data are collected from the Global Competitive Index. In terms of (1) Education & Society, the indicators include the following aspects: Level of primary education, Number of education enrollment (primary level), Government efficiency, Business impact of malaria/Tuberculosis/HIV-AIDS. (2) Technology Infrastructure includes the following aspects: Level of latest technologies, Firm-level technology absorption, FDI and technology transfer, Internet using, Fixed broadband Internet subscriptions. (3) Market size includes the following aspects: GDP, Exports as a percentage of GDP, Domestic market size index, Foreign market size index. (4) Institutional Innovation Index includes the following aspects: capacity for innovation, Quality of scientific research institutions, Company spending on R&D, University- industry collaboration in R&D, Gov’t procurement of advanced tech products, Availability of scientists and engineers. Besides, the research model also controls the variable Gender gap in social media collected from the Mobile Connectivity index. Table 3. Describe Data DFCP Education Infrastructure- Institution- Market Gender index & society technology Innovation size Gap Min -3.4545 2.5826 2.0274 2.1216 1.5495 0.0000 Max 2.6112 6.8212 6.2182 5.7865 6.9359 100.0000 2014 Mean -0.2300 5.4002 3.8782 3.3967 3.8360 70.4491 SD 1.5300 0.9504 1.1413 0.8472 1.1456 30.6450 Min -3.3840 2.7163 2.0670 2.1056 1.7444 0.0000 2015 Max 2.6696 6.8865 6.3649 5.7828 6.9351 100.0000 9
27. Mean -0.1363 5.4690 3.9440 3.4450 3.8998 70.4491 SD 1.5197 0.9554 1.2029 0.8580 1.1049 30.6450 Min -3.2898 2.8611 2.0543 2.2261 1.6688 0.0000 Max 2.7881 6.8683 6.4192 5.7643 6.9778 100.0000 2016 Mean -0.0234 5.4954 4.0500 3.5051 3.9804 70.4491 SD 1.5072 0.8962 1.2219 0.8512 1.1251 30.6450 Min -3.1948 2.8451 1.9348 2.1567 1.6904 0.0000 Max 2.8900 6.8915 6.4133 5.8024 7.0000 100.0000 2017 Mean 0.0917 5.5489 4.1518 3.5474 3.9296 73.0514 SD 1.4834 0.8689 1.2274 0.8476 1.1408 28.2985 Min -2.9698 2.9672 1.9636 2.0782 1.5477 0.0000 Max 2.9395 6.8962 6.4567 5.8212 7.0000 100.0000 2018 Mean 0.2981 5.5967 4.2761 3.5669 3.9964 73.4567 SD 1.4963 0.8605 1.2500 0.8559 1.1227 28.0717 Source: Author’s calculation 3.2. Research model Determining the factors affecting DFCP index is used based on the model: 4 DFCPInt = α + ∑ℎ=1 훽ℎ. 푛ℎ푡 + 훾. 푍푛푡 + 푒푛푡 + 휃푡 Here, DFCPI is deemed as DFCP index measured through Principal Components Analysis (PCA) method. According to OECD (2018d), PCA can summarise a set of individual indicators while preserving the maximum possible proportion of the total variation in the original data set. Largest factor loadings are assigned to the individual indicators that have the largest variation across countries, a desirable property for cross-country comparisons, as individual indicators that are similar across countries are of little interest and cannot possibly explain differences in performance. Sasan et al. (2013) added that PCA’s key advantages are: (i) The alleviation of capacity requirements; (ii) Increased efficiency in a smaller aspects; (iii) Low noise sensitivity. The DFCP index is synthesized through 8 dimensions according to [Table 1]. N is 135 countries with t = 5 (2014-2018) in the sample. Other variables and their coefficients are shown in the Table [2]. 10
28. Table 4. The variables in the model and its expectation Symbol Proxy variable Expectation Education & Educational attainment and social interest. 훽1> 0 Society (X1) Infrastructure – Represents infrastructure related to technology 훽2> 0 Technology readiness. (X2) Market Size (X3) Market expansion and market size reflect the 훽3> 0 competitiveness of the economy. Institution – Institutions towards motivating innovations 훽4> 0 Innovation (X4) Gender gap – Digital financial consumer protection with gender γ Control variable (Z) discrimination taking place [see (Fishbein & Woodall, 2006; GAO, 2018; Hsu, 2015)] e Error term θ Latent variable To solve latent variables, we use the fixed - and random effect model. In particular, the study prioritizes the use of the fixed-effect model due to its advantages. Some robust and sensitive check are proceeded such as Hausman test (see Greene, 2008) described in the appendix. We implement robust standard error via the method of Arellano (1987) for fixed-effect model and the estimator HC3 were suggested by MacKinnon & White (1985) to improve the performance in our samples (135 counties from 2014-2018 as a small sample). The suitability of this model is concluded by Long & Ervin (2000) that HC3 provides the best performance in small samples, as it gives less weight to influential observations. 4. Study results: 4.1. Digital Financial Consumer Protection Index synthesis We use PCA model (principal component analysis) based on 8 dimensions illustrated in table [1]. The detailed results are presented in the following table. 11
29. Table 5. The proportion of variance and cumulative proportion of 8 dimensions PC1 PC2 PC3 PC4 PC5 PC6 PC7 PC8 Standard 2.2939 2.2939 0.8224 0.8224 0.6022 0.6022 0.3798 0.3067 deviation Proportion 0.6577 0.1069 0.0845 0.0518 0.0453 0.0239 0.0180 0.0118 of Variance Cumulative 0.6577 0.7647 0.8492 0.9010 0.9464 0.9702 0.9883 1.0000 Proportion Source: Author’s calculation Note: The result is done after controlling the scale of each dimension. The analysis results show that 2 determinants PC1 and PC2 contribute to 75% of the total variation and all determinants (except PC2) contribute in the same direction as PC1. We perform the computation of the aggregated DFCP through the multiplication of each component and proportion of variance. The formula is shown below 8 DFCPI = ∑𝑖=1 푃 𝑖 × 푃 표 표 푡푖표푛 표 푖 푛 푒𝑖 To determine the validity of the DFCP index, we proceed: (1) Examining the DFCP index through several tests (for example, a t-test that assesses the DFCP index of the G20 country group comparing to the developing country group) and comparison with DFCP-related research around the world (eg Chen (2018)); (2) Examining DFCP index in each country on the world map (see figure [2]). The DFCP Index in the G20 group members is expected to be higher than that of the developing countries due to detailed guidelines on practices and policies (see (OECD, 2018a, 2018c)); (3) Examining DFCP index through relevant data sets such as financial Inclusion from World Bank or Global Findex. We expect that recent efforts to develop and improve FCP practices World Bank (2017), DFCP index also witness an increase in the world average. The explanation of total variance according to the two most important determinants is classified into G20 group members (left) and developing nations (right) as below: 12
30. Figure 1. Total variation within G20 group members and developing nations regarding the 2 most important determinants (PC) Source: Author’s calculation The illustration specifies that the DFCP Index of the G20 group members (left) is higher than that of the non-G20 group members and the DFCP Index of the developing country group is worse than the other (right). Moreover, the dispersion of the variation in the G20 group members is also smaller, which is reasonable because the difference in the G20 countries is smaller than that of the rest countries. On the contrary, in the right figure, developing country groups have lower DFCP Index and wider variability than the other region. This also confirms our expectation as developing countries are in the process of improving institution, therefore, the gap among efficiency in DFCP and the development among countries is relatively significant. The T-test is described in detail in Appendix 1. Table 6. DFCP Index of the World, G20 countries, developing countries in the period 2014- 2018 World G20 Developing countries Min Max Mean Sd Min Max Mean Sd Min Max Mean Sd 2014 -3.45 2.61 -0.23 1.53 0.42 2.18 1.37 0.53 -3.11 1.35 -0.88 1.18 2015 -3.38 2.67 -0.14 1.52 0.54 2.2 1.44 0.53 -3.38 1.45 -0.8 1.2 2016 -3.29 2.79 -0.02 1.51 0.62 2.23 1.52 0.5 -3.29 1.61 -0.67 1.19 2017 -3.19 2.89 0.09 1.51 0.73 2.26 1.6 0.48 -3.05 1.77 -0.55 1.16 2018 -2.97 2.94 0.3 1.5 0.81 2.46 1.83 0.46 -2.9 1.88 -0.34 1.16 Source: Author’s calculation Note: The study shows the difference between G20 and developing countries by t-test after controlling the sample size and normal distribution assumptions [Appendix 1]. 13
31. Table [6] shows that: (1) DFCP index in the period 2014-2018 have increased, especially in developing countries, on average, in the period 2014-2018 show an upward movement in growth as 58.82%; (2) While the disparity between the G20 countries tends to decrease, in developing countries and the world in general, it remains unchanged and has a tendency of increasing. The state and movement of DFCP Index in the world in the period 2014-2018 are illustrated on the world map as shown below figure [2]. Figure 2. Digital Financial Consumer Protection Index in the world from 2014 to 2018 Source: Author’s calculation Figure [2] indicates the DFCP index and its changes in the period 2014-2018. Accordingly, dark blue to yellow shows a higher level of DFCP, and a shift in colour blocks represents an increase/decrease in DFCP. Some regions with high DFCP Index are North America, Western Europe, Asia Pacific and Japan. This result is also consistent with research by (Chen, 2018) (Potluri, Sridhar, & Rao, 2020). Meanwhile, many countries in Africa and some ASEAN countries such as Vietnam, Lao PDR, 14
32. Cambodia and Myanmar possess low indicators (12 regions are shown in Appendix 3). This partly reflects the consequence of digital fraud in ASEAN and the immaturity of digital finance (OECD, 2018b). Moreover, according to the report “Financial Capability and Consumer Protection - A way Forward to Financial Inclusion in Africa” shows evidence that a lack of financial literacy on an individual level makes people more vulnerable (Giz, 2010). The colour shift from 2014 to 2018 also demonstrates an improvement in the DFCP index. The most noticeable colour shift as Canada (from orange to yellow); some countries in Sub-Saharan Africa (from dark blue to purple). This confirms many recent reports on an improvement in the DFCP index (European Investment Bank, 2017). 4.2. Model results: The study results are represented in table [7] Table 7. Regression results Dependent variable: Digital Financial Consumer Protection Index (panel 135 countries in the 2014-2018 period) (1) Fixed (2) Fixed (3) Fixed (4) Fixed (5) Random (6) Fixed Education & 0.3143 0.2365 0.1799 Social (0.0613) (0.0399) (0.0458) concern Technology 0.6433 0.5601 0.4677 Infrastructure (0.0394) (0.0348) (0.0379) Institutional 0.6037 0.1291 0.1929 Innovation (0.0667) (0.0495) (0.0560) Market size 1.0755 0.4120 0.7601 (0.0869) (0.0410) (0.0728) Gender Gap 0.0070 0.0055 (0.0012) (0.0015) Intercept -6.0887 (0.2205) Observations 651 651 651 651 651 651 Note: *, , - statistically significant at the 10, 5, and 1%. Table [7] column 1-4 shows that DFCP index is influenced by the following aspects, including Education & Society, Infrastructure-Technology, Institution-Innovation and Market size in the period 2014-2018. In overall, column 5-6 examine these aspects contributing to the DFCP with the additional control gender gap in social media use. According to Fishbein & Woodall (2006) and Mohanty (2014), there is discrimination in the use of digital financial services between men and women, especially in relation to service prices and consumer rights. First of all, education & social interest factors have a positive impact on the DFCP index (column 1,5,6). This positive relationship has abundant evidence. Recently, research by Rösner et 15
33. al. (2020) evaluated the impact of consumer protection regulations in the digital age on consumer self-protection in financial services has positive results. This study samples on 179,724 people from 28 European countries between 2006 and 2014. Another study of Xu (2019) using a sample of 21,878 observations from 47 countries demonstrates the relationship between social trust, education and financial inclusion [see more (Polat & Abdulsalam, 2014)]. Secondly, Infrastructure - technological readiness has a positive impact on the DFCP index (at column 2,5,6). Much relevant evidence demonstrating the relationship between technology and financial inclusion, accordingly, the study of Mishra & Bisht (2013) observe that mobile technology is an excellent tool to accelerate financial inclusion, particularly in far remote areas. Sarma & Pais (2011) shows a positive relationship between Information and Communication Technologies (ICT) and infrastructure to boost financial inclusion. Shamim (2007) finds a positive relationship between ICT and financial development. More recently, research by Mushtaq & Bruneau (2019) also indicates a positive relationship between financial development and ICT, as a result of that, encourage to reduce poverty and inequality. The study used panel data in the period 2001-2012 within 30 developing countries. Moreover, many significant standpoints related to financial consumer protection in the digital age can come through many different ways, for example, New Forms of Data Processing (World Bank, 2018). Accordingly, new forms of data processing is an essential advantage in the digital era, requiring appropriate technologies to protect financial consumers. Research also points out to many barriers, and technology readiness is one of the major ones. Thirdly, market expansion (openness) contributes to improving the DFCP index shown in column 3,5,6. This research result is not only consistent with the neo-classical theories of competition, but also the results of modern research. Accordingly, enhancing domestic and international competitiveness will contribute to expanding consumer choices in financial services. Competitive pressure in the market will encourage product improvements, product innovations and maintain high service quality (OECD, 2011a; OECD, 2009). For example, in terms of Access (out of 8 dimension), firms (digital financial services) always have a tendency to expand and renovate their financial services for profit purposes couple with enhancing corporate social responsibility (Krafft et al., 2020). Moreover, asymmetric information between customers & financial agents, which is an important cause for the need of DFCP, is also diminished in a more competitive market. The experimental evidence of asymmetric information flow dynamics is indicated by Yaseen et al. (2020). Accordingly, market expansion - enhancing competitive pressure not only improves these dimensions of the DFCP but also prevents asymmetric information, which is considered as an important cause for the need of DFCP. Fourthly, in table [7], column 4-6 shows that a positive relationship between institutional innovation development has a positive effect on the DFCP index. Our research is contrary to speculations that innovations (in terms of technology) handicap well-being of digital financial customers because of increasing the market power to become monopolies firm through the advantaged ability to hold, access and analysis customer’s personal information (Jin & Wagman, 2020). The positive relationship between institutional innovation and DFCP is not only demonstrated 16
34. by direct mechanism (restrict misappropriation, dynamics hacking and theft, reduce transaction costs, synchronize data, make work-based better for operators and consumers, improve the buyer experience, maximize purchasing decisions and save customers' time) but also indirect channel (economic growth, service diversification, quality improvement, and available access for “fragile digital consumers”. Table 8. Research results after controlling the variance. Dependent variable: Digital Financial Consumer Protection Index (panel data with 135 countries in the 2014-2018 period) (7) Fixed - Arellano (8) Fixed – HC3 0.1799 0.1799 Education & society (0.0554) (0.0566) Infrastructure – 0.4677 0.4677 Technology (0.0425) (0.0435) 0.0425 0.1929 Institution - Innovation (0.0735) (0.0746) 0.7601 0.7601 Market size (0.0836) (0.0882) Gender Gap 0.0055 0.0055 (control variable) (0.0038) (0.0049) Observations 651 651 Note: *, , - statistically significant at the 10, 5, and 1%. 5. Conclusion: In the digital age, consumers are facing more and more disadvantages in participating in financial services due to the consequence of asymmetric information, so it is necessary to take measures to improve digital financial consumer protection. Our research has partially addressed this research gap through: Firstly, the DFCP index is measured at an international level with samples from 135 countries for the period 2014-2018. DFCP index is measured on 8 fundamental aspects (table [1]). Besides, the study also proposes an overview of DFCP index in the world map and changes throughout the period (see figure [1]). 17
35. Secondly, the study provides theoretical and empirical evidence on the factors affecting the DFCP index. In particular, the research team especially emphasizes the group of factors on technology readiness and market openness with a significant impact. Financial consumer protection in the digital era is essential not only for social stability, market failure (asymmetric information) but also for long-term sustainable growth. To improve digital financial consumer protection, the government can intervene through several ways such as: Raising consumer awareness through fundamental guidance and encourage self-study; Improving infrastructure related to technology readiness (internet spectrum, ) to build new platforms in digital financial consumer protection [e.g. data transformation (World Bank, 2018)]; Strengthening competitive pressure on the economy to reinforce product quality (expanding economic trade, signing bilateral - multilateral agreements, e.tc); Supporting innovate programs to enhance creativity in the market (for example: Investing in R&D research in universities). Our research contributes to shedding light on financial agents' market power asymmetry compared to their customers. Instead of straining the firm-customer conflict, innovation propitiates it through a various mechanism, for example, firm-customer data exchange channel, accordingly, firms provide information to customers efficiently, in return their customer informs sufficiently and accurately personal data by mutual trust and profitable relationship. Furthermore, innovation contributes to improving product quality, diversifying types of services, reducing transaction costs, propitiating customer decision-making and saving their time, etc. Interestingly, expanding market by enhancing economic competition is an important factor supporting asymmetric information restrictions, and concurrently a major reason leading to the urgency in DFCP. Moreover, there are many evidences that market expansion strongly affects 8 dimensions of DFCP. The lack of DFCP mechanisms has also led to many consequences that reduce market competitiveness, such as "winner take all" or data business (OECD, 2016a; World Bank Group, 2015). Therefore, this study is an important evidence that complements the importance of market expansion and government competitiveness enhancement for a sustainable growth. The research once again has supplemented the evidence for policies promoting open-economic policies. In the field of data sharing, research by Potluri et al. (2020) has shown the disadvantages of data localization regimes (such as China and Russia) on the economy. Besides, enhancing digital finance education combined with technology infrastructure is an important foundation to absorb the advantages of innovation (Artificial intelligence, learning machine) and the inevitable wave of globalization in the digital age, which is the border is just a territorial concept. Finally, we have not yet considered the impact of regional factors, whereby developing countries may be at a disadvantage due to poor education levels and limited technology infrastructure. The paper opens up further research directions: (1) Determining factors affecting DFCP in a specific regional context. For example: "Are developing country financial consumers get benefiting from globalization in the digital age?" and (2) if so, “Which levels will the economic reach expand in order to reach the optimal DFCP?” If no, (3) any conditions (education or technology readiness) 18
36. for integration are the factor that enhances DFCP; Thereby, (4) Studies can evaluate specific policies of countries in improving DFCP. Some data limitations: Due to the limited data related to DFCP, the study confirms the following limitations of data: (1) Representativeness. Of eight dimensions of the DFCP index, there are some indicators that may be more representative (than the data used in the study), however, are not used due to the incomplete statistical data (135 countries from 2014 to 2018). For example, the A4AI data is more representative in terms of the access aspect but it is only available in developing countries. Therefore, we use an equivalent data as % have an account at the bank or another type of financial institution or personally using a mobile money service (in the past 12 months) of the Global Fintex dataset; (2) Missing data problem: Some data are collected every 2 years or 3 years, as a result with some missing data we estimate through growth rate in period or using the most recent data in case of discrete data. These estimates are reasonable because of the absence of major shocks in the database for the 2014-2018 period. Appendix Appendix 1. The distribution of DFCP Index between G20 countries and Developing countries is not extreme far from normal distribution with skew.2SE(G20) = -0.347 kurt.2SE(G20) = -1.382 skew.2SE(Developing countries) = -0.877 kurt.2SE(Developing countries) = -1.377 T-test of DFCP Index between G20 countries and Developing countries (variance are not equal with var test - p-value DFCPDeveloping countries) Appendix 2. Test results of model 6 (fixed) Test Null Hypothesis P-value Testing for fixed effects H0: OLS better than fixed p-value < 2.2e-16 Hausman Test H0: RANDOM better than fixed p-value = 2.951e-12 Time-fixed effects testing H0: No time-fixed effects are p-value = 0.1388 needed Heteroskedasticity testing H0: Homoskedasticity p-value = 2.714e-12 (Breusch-Pagan) Note: Due to heteroskedasticity phenomenon, we perform robust standard error in model (7) and (8) in table [ ]. 19
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43. FINANCIAL CONSUMER PROTECTION IN FINANCIAL INSTITUTIONS: THE CASE OF BANKING SECTOR IN VIETNAM Phung Thi Thu Huong, Msc., Trinh Thi Phan Lan, PhD. - University of Economics and Business – Vietnam National University Abstract: Consumer protection and financial literacy can contribute to better efficiency, transparency, competition, and access in retail financial markets by eliminating information asymmetries and power imbalances between financial service providers and customers. The main purpose of the study is to examine commercial banks' financial consumer protection by analyzing the principles and regulation of customer protection in Vietnam. The paper is using the findings of a 103 surveys on consumer protection regulations with different measurements like Fair and equitable dealing, disclosure and transparency, financial education and awareness, behavior and work ethic, protection against fraud, protection of privacy of information and complaints handling, existence of adequate competence. As a result, the research concludes by recommending that the financial institutions' supervisory adopt a code of conduct for consumer protection, while banks should be required to include the concept of customer protection into their operational procedures. Keywords: financial customer protection, banks, financial literacy, regulation, Vietnam. 1. Introduction Consumer protection and financial literacy can contribute to better efficiency, transparency, competition, and access in retail financial markets by eliminating information asymmetries and power imbalances between financial service providers and customers. Particularly since the start of the financial crisis in 2008, the issue of financial consumer protection has gained importance in policy debates (Mayer et al., 2014). There is a pressing need to protect consumers' interests in the current age prior to the growth of the network of financial companies, especially in the complicated emerging markets, international operations. Among developing countries, Vietnam is an example with sustainable economic growth that led Vietnam from a poor country to a middle-income country with an average annual growth rate of 6% (Worldbank, 2021). However, the concept of customer protection is not widely adopted in many nations, particularly in Vietnam, where various governmental and non-governmental organizations perform functions such as supervisory organ and voluntary institutions. Due to numerous unique features, the Law No. 59/2010/QH12 in Protection of Consumer Right Law (2010) with amended and supplemented in Law No. 35/2018/QH14 in Protection of Consumer Right (2018) makes essentially no particular reference to issues relating to consumer protection in the banking and financial sectors. The major source of consumer protection in Vietnam is found in the Law on Protection of Consumer Rights, which includes consumer protection based on legal precedence, 26
44. however there is no specific financial consumer protection regulation, especially in the banking system. While credit institutions, securities firms, and insurance business Laws have rules to protect the rights of clients, they are still missing many detailed information and fail to supply instructions with problems. As a result, a substantial segment of the population, especially those who are financially vulnerable and rural people, are unable to obtain financial services. Moreover, until now, Vietnam still does not have institutions in place to administer consumer financial protection. The country lacks a sufficient regulatory framework for financial consumer protection, and consumer financial literacy is rather inadequate. When there is no comprehensive structure in place, customers' access to proper financial services is impeded, making it difficult to resolve concerns and making them unlikely to become victims of any fraudulent financial services. In this study, we organize the findings in the following manner: The following section features literature reviews from many sources, including marketing, law, and economics, to review consumer protection in the financial services industry, especially in banking sectors. Section 3 presents the research method of the study. Section 4 introduces the data and discusses the result of surveys. The conclusion is presented in Section 5 as follows. 2. Literature review The 2007 subprime loan crisis was a good example of how the market failed to serve the financial interests of its customers, with predatory lenders engaging in unfair, self-serving behavior in order to achieve commercial benefit for themselves rather than in the best interests of their customers (Mayer et al., 2014). As well as the necessity to safeguard customers, regulators are concerned because it is regarded as moral and ethical to do so (Consumer Protection on Fair Trading Law, 1992). As the markets for financial products and services get more sophisticated, the importance of protecting consumers of financial services in the banking system increases (Micklitz et al. 2010). Many countries all over the world recognized the general guideline (principles) of customer protection, which was produced by G20 nations, in order to judge the well-functioning of financial institutions (OECD, 2011). These principles are: fair and equitable dealing, transparency, financial awareness, work ethics, protection against fraud, protection privacy of information, complaints handling, competition, and third party. There are numerous studies researched on FCP in recent times (Ahmed & Ibrahim, 2018; Bekele, 2015; Gaganis et al., 2020; Johan & Ariawan, 2021; Mikheeva & Dolkova, 2020; Mohamad & Hassan, 2019; Pasiourasa, 2018; V & M, 2019). Ahmed & Ibrahim (2018) explored the regulatory framework for consumer protection in Malaysia with legal infrastructure and typology of laws. The result showed that the different laws, rules, and supporting organizations are all needed in order to comprehensively protect consumers' financial interests in the country. Besides, Johan & Ariawan (2021) have focused on consumer protection of non-bank finance companies with the conditions from the inception of the loan to the repayment of the loan based on the existing law and regulations. In this research, Johan & Ariawan also amended to improve and update the role of regulation in protecting the consumer in the financial industry. The studies of Bekele (2015); Gaganis et al., (2020); Mikheeva & Dolkova, (2020); Mohamad & Hassan, (2019); Pasiourasa, (2018); V & M, 27
45. (2019) also mentioned the necessary of FCP in banking systems on different aspects like cost of financial intermediation, bank profit efficiency, regime, etc. These studies suggested an emergence insight on the initiatives taken particularly in the banking industry to protect the financial consumers. Despite a considerable body of literature about legal and regulatory challenges with FCP existing in established economies, there is a lack of research focused on how FCP is comparable to emerging and developing countries, particularly in Vietnam. Mainly much research about the banking system in Vietnam is related to risk management on behalf of bank point of views (Bình & Chi, 2021; T. V. Dũng & Chí, 2021; Sơn, 2019; Thọ, 2018; Thọ & Thủy, 2020) These papers mainly absorbed on analyze the risks in Vietnam banking system and suggested solution to improve the effectiveness and efficiency of banks rather than investigating in aspects of customers. For further examination, H. T. T. Hiền et al., (2020) and N. T. Hiền (2017) have investigated in FCP with the experience from Canada, USA, Germany as well as the situation of financial inclusion development. These researches mainly focused on basic economy that proposed to create a Department to incharge FCP and increased financial literacy for further request. Furthermore, Cao & Hà, (2020); Dũng (2017); Hà (2020) and Tính (2016) indicated that the regulations in Vietnam did not protect the interest of customers in banking sectors, such as protecting the borrower's rights in the credit contract or when using bank cards or other services. They also found that it would be more effective and efficient if the Government had amended and improved FCP Law in detail, particularly law for customers when participating in transactions and services of the banking system in Vietnam. Consequently, it it essential to explore more about the role of FCP in Vietnam, especially in banking sector. 3. Research method Source of Data The study are utilized both in primary and secondary data. The sources of primary data are collected from customers of different banks in Vietnam. In order to collect the desired information the opened question has been used as the primary source of information. Question Development The survey questionnaire includes two sections: In section one, we collected demographic data from respondents, such as gender, age, and major information. The other section is to measure constructs’ items related to customer protection. To ensure validity of the measurement, all questions were obtained from previous studies. The time to conduct the survey lasted 2 weeks, from July 14th to July 30th , 2021. The questionnaire utilized the five point Likert scales because it was easy and simple to understand for the respondents to rate each question. The respondents who reply agree and strongly agree implying that the practice of customer protection is acceptable in the bank, whereas the respondents who replied disagree and strongly disagree means the bank is not practicing customer protection. 28
46. For the purpose of analysis and interpretations, the questions have been categorized into eight sub-topics as below: Figure 1: Variable on Financial Customer Protection Financial Fair and equitable Disclosure and Education and dealing Transparency Awareness Protection of Behavior and Protection against Privacy of work Ethic fraud information Existence of Complaints adequate Handling competent Sources: By Authors Ethical Consideration The informants had been informed that any confidential information acquired from respondents would be kept in secret unless they allow it, and not to be used for purposes other than the objective of the study. The respondents identity would not be disclosed, and proper acknowledgement have been made to their contribution to the study. 4. Result and Discussion 4.1. Demographic characteristics of the respondents According to 103 surveys, the majority of the respondents is female (69, 6%) and the rest is male (30,1 %). The most of the respondents’ age group falls in the range of 31-40 years (46.6%), followed by the age group of 18-30 years (27,2%), and the lowest frequency age group registered were the age above 50 years (3.9%). Table 1: Demographic Information of the respondents Demographic Frequency Percentage Gender Male 31 30.1% Female 71 69.6% Age 18-30 28 27.2% 31-40 48 46,6% 29
47. 41-50 23 22.3% Above 50 4 3.9% Education background Undergraduate 3 2.9% Bachelor 63 61.8% Postgraduate 37 36.3% Days visiting the bank for once a week 5 4.9% services Some times in a week 13 12.6% once a month 14 13.6% Some times in a year 71 68.9% Sources: Survey result (2021) As shown in Table 2, the educational backgrounds of the respondents were categorized into 3 groups. Out of total participants, 61.8 % had bachelor degree, 36.3% had master degree or above. The survey results show that the respondents do not frequently visit the bank. The number of people who visit the bank every week accounted for only 4.9%; mostly they go to the bank a few times a year (68.9%). This is also quite understandable, because the development of technology makes e- banking services develop very quickly and customers can also transact with the bank at home. Figure 2: Bank services used by respondents Other 34.10% Transfer 90.10% Loan 27.50% Deposit 68.10% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Sources: Survey result (2021) According to statistics from the figure 2, money transfer service accounts for the largest proportion (90.1%), followed by deposit (68.1%), loan (27.5%) and other (34.1%) 30
48. 4.2. Results Fair and equitable dealing Table 2: Fair and equitable dealing Strongly Dis- Strongly Statement Agree Neutral Total agree agree Disagree Customers of the bank receive impartial and Frequency 22 53 19 5 4 103 honest treatment from the bank. Percentage 21.4% 51.5% 18.4% 4.9% 3.9% 100% The amount of prices that the Frequency 10 40 34 13 6 103 bank fixes for different services are fair. Percentage 9.7% 38.8% 33% 12.6% 5.8% 100% Sources: Survey result (2021) As described in Table 2, two questions related to fair and equitable dealing were presented to respondents. To be more specific, the percentage of respondents who replied agreed and strongly agreed that Customers of the bank receive impartial, honest treatment at all stages of relationship they do have with the bank are respectively 21.5% and 51.5%. About 8.8% of respondents disagree and strongly disagree respectively by the type of service they get from the bank. In the second statement of fairness of the prices that the bank fixes for its different services, the percentage of strongly agree and agree dropped to 9.7% and 38.8% respectively if compared to the first statement. About 33% of respondents reacted neutral. The remaining of the respondents disagreed and strongly disagreed with the fairness of price that the bank charges for the services were 12.6% and 5.8%. This implies that in both statements, the majority of the answers (which means 51.5% and 38.8%) confirmed by strongly agree and agree respectively that there is fairness and equitable service dealing practice in the bank. Moreover, 3.95 and 5.8% of the total answers showed the disagreement with the statement. Disclosure and Transparency Information transparency is important to the banking system. From a management perspective, international banking practices (Basel II) and national central banks always set requirements on 31
49. information transparency for banks to protect consumers and avoid the risk of failure. system. From a micro perspective, increasing information transparency is very important because it helps banks easily access financial resources in the market, reduce capital mobilization costs, thereby expanding market share, increasing competitiveness (Tùng, 2020). The result of Transparency and disclosure of banks in Vietnam are as below: Table 3: Disclosure and Transparency Strongly Strongly Statement Agree Neutral Disagree Total agree Disagree The bank provides advice and copy for Frequency 19 39 33 9 3 103 the benefits, risks, terms and conditions to Percentage 8.4% 37.9% 32% 6.7% 2.9% 100% customers. Charges of different services of the Frequency 20 54 18 8 3 103 bank are kept in a transparent way. Percentage 19.4% 52.4% 17.5% 7.8% 2.9% 100% The bank has practice of notifying in Frequency 15 37 36 8 7 103 advance for change made on interest rate and service charge Percentage 14.6% 35% 7.8% 6.8% 100% to the customers. 35.9% The advertising and promotional Frequency 12 42 34 11 4 103 materials that the bank is applying does not mislead to Percentage 11.7% 40.8% 33% 10.7% 3.9% 100% the customers. Sources: Survey result (2021) Table 3 consists of 4 statements which show the level of disclosure and transparency found in the bank. In all 4 statements, the respondents who chose the “neutral” option were always more than 30%, except the information about the fees. Thus, overall, the transparency of information of Vietnamese banks has been improved, but still about half of customers do not trust the transparency of information provided by banks. This result is also similar to some previous studies of Bushman & Williams (2012) and Hương & Tùng 32