Impacting Innovation Culture on Fintech Development and Financial Stability at Commercial Banks in Vietnam

Abstract

This study examines how Fintech development influences the financial stability of commercial banks in Vietnam, with particular attention to the mediating role of operational efficiency and the moderating effects of digitalization, risk management capability, and bank size. A mixed-methods design was employed: qualitative insights from interviews with 30 financial experts were used to refine measurement constructs, followed by a quantitative survey of 500 bank managers in Ho Chi Minh City and Dong Nai Province, yielding 474 valid responses. Data were analyzed using SmartPLS 4.0. The empirical results demonstrate that Fintech development significantly enhances both operational efficiency and financial stability. Among the antecedents of Fintech development, technological infrastructure exhibits the most decisive influence, followed by the legal framework, innovation culture, and customer behavior. Operational efficiency partially mediates the relationship between Fintech development and financial stability, while digitalization, risk management, and bank size significantly moderate key structural paths. The model explains substantial variance in Fintech development (R² = 0.483), operational efficiency (R² = 0.221), and financial stability (R² = 0.563). These findings provide novel evidence on how Fintech expansion strengthens banking resilience in emerging markets. Policy recommendations are proposed for regulators and bank executives to enhance technological readiness, risk governance, and digital transformation strategies in Vietnam’s banking sector.