Financial technology (fintech) companies could be a great source of capital for small and micro enterprises, but a complete legal framework is needed to sustainably develop the capital channel, experts said.

Both foreign and domestic fintech firms are promoting connections with commercial banks to lend unsecured loans to individuals, and small and micro enterprises as demand for consumer and business loans at the end of the year is rising.

“In Vietnam, 72 percent of financial technology (Fintech) firms chose to cooperate with banks in their business and service delivery, instead of entering a direct competition,” according to an official from the State Bank of Vietnam (SBV).