Financial Inclusion Through Digital Service Innovation: Mobile Banking Solutions for Rural Communities in Vietnam

Abstract

Despite significant economic growth over the past three decades, Vietnam faces persistent challenges in extending financial services to rural communities. This qualitative study investigates how mobile banking innovations can advance financial inclusion in Vietnamese rural areas, addressing barriers that have historically excluded these populations from formal financial systems. Through in-depth interviews with 52 stakeholders including rural mobile banking users, non users, banking executives, fintech developers, local government officials, and village leaders across five provinces, we explore the multifaceted dynamics of digital financial service adoption in resource-constrained environments. Using thematic analysis guided by the Sustainable Livelihoods Framework and Technology Acceptance Model, we identify five critical factors shaping mobile banking success in rural Vietnam: infrastructure readiness and digital literacy, trust-building through local intermediaries, service design adapted to agricultural cycles, regulatory flexibility enabling innovation, and sustainable business models balancing profitability with social impact. Our findings reveal that successful mobile banking initiatives go beyond technological deployment to encompass ecosystem development, cultural adaptation, and community engagement strategies. The study contributes to the literature on financial inclusion by providing empirical evidence from an emerging market context and offers practical insights for designing sustainable digital financial services that can meaningfully improve rural livelihoods while supporting broader sustainable development goals.