Open finance as a driver of service innovation in Vietnam’s digital banking ecosystem

Open finance is based on customer-authorized data sharing through open application programming interfaces, enabling banks, financial technology companies, and other financial service providers to develop value-added products and services. This study analyzes the development of open finance within Vietnam’s digital banking ecosystem, evaluates its achievements and remaining limitations, and proposes solutions to promote financial service innovation. The findings indicate that rapid growth in digital banking, cashless payments, artificial intelligence applications, data analytics, and bank - FinTech cooperation has created favorable conditions for open finance. However, implementation remains constrained by an incomplete legal framework, inconsistent technical standards, limited interoperability, cybersecurity risks, and concerns regarding personal data protection. The study recommends standardizing Open APIs, strengthening data governance and customer consent mechanisms, improving cybersecurity, and promoting cooperation among banks, FinTech firms, and regulators.