Connect with us

Banking

Vietnam’s fintech market to reach USD 7.8 billion by 2020

Although bank penetration in Vietnam is consistently growing, it still trails other Southeast Asian nations with only 59 % banked citizens only in 2017

Avatar

Published

on

As the country aims to move towards a cashless society, Vietnam’s government targets to reduce cash transactions to 10% and increase bank accounts in the population by 70% in 2020.

The fintech market reached USD 4.4 billion in 2017 and is estimated to accelerate by USD 7.8 billion in 2020, driven by rising bank penetration.

Solidiance’s latest white paper, ​“​Disruption by fintech: Transforming Vietnam’s Financial Services Ecosystem​”​, explores key drivers and current trends of fintech adoption in Vietnam, the key barriers as well as the future outlook in the market.

Trends in Vietnam’s fintech space

Although bank penetration in Vietnam is consistently growing, it still trails other Southeast Asian nations in the region. Vietnam’s ratio of banked citizens only reached 59% in 2017 while Thailand and Malaysia accounted for 86% and 92% respectively in the same year.

As Vietnam catches up with other neighboring countries, increasing internet and smartphone penetration, improvements in telecommunication infrastructure (3G & 4G), and growing income levels from the middle-class have significantly given rise to opportunities in Vietnam’s fintech space.

Among the three different fintech product segments – digital payment, personal finance, and corporate finance – digital payment solution leads the fintech service market share at 89%.

However, personal & corporate finance is expected to grow at a faster rate through 2025.

Vietnam’s burgeoning e-commerce sector

Vietnam’s burgeoning e-commerce sector with growing order value has further promoted intermediary payment platforms & digital payment services. Currently, there are ~35.4 million online shopping users and it is expected to accelerate to ~42 million, accounting for 42.5% of the projected population by 2021.

The average spend of USD 62 online will grow to USD 96 by 2021 and Cash on Delivery – the major means of payment – is expected to be replaced by digital payments & other modern payment methods, signifying ample opportunity for fintech firms to tap into.

Advertisement
Comments

Banking

Thailand’s Banking Outlook changed to negative (Moody’s)

Moody’s has changed the outlook for Thailand’s banking system to negative from positive as coronavirus outbreak hurts asset quality and profitability

Avatar

Published

on

Moody’s has changed the outlook for Thailand’s banking system to negative from positive. The operating environment for the country’s banks will deteriorate in the next 12-18 months due to disruptions from the coronavirus outbreak, and this will lead to a weakening of banks’ asset quality and profitability.

(more…)

Continue Reading

Banking

Thai Banks launch packages for clients affected by COVID-19

Commercial banks in Thailand have offered refinancing services to some 30,000 clients, worth 234 billion baht in total.

National News Bureau of Thailand

Published

on

All commercial banks in Thailand have pledged to offer special financial aid to customers and businesses affected directly or indirectly by the economic implications of COVID-19, ensuring sufficient cash for customers to make withdrawals at any time.

(more…)

Continue Reading

Banking

Thailand raises threshold to 1 million US dollars for repatriation

In a bid to lessen pressure on the Thai baht, the Bank of Thailand has increased to $1M the limit for foreign funds that do not need to be repatriated

Boris Sullivan

Published

on

The Bank of Thailand has relaxed foreign exchange regulations by increasing the threshold for proceeds that do not need to be repatriated from current $200,000 to USD 1,000,000 .

(more…)

Continue Reading

Must Read

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 12,316 other subscribers

Upcoming Events

Wed 08

Global Public Health 2020

April 8 @ 8:00 am - April 9 @ 5:00 pm BMT
Mon 13
Fri 17

2nd International Conference on Nanomedicine and Nanotechnology

April 17 @ 9:00 am - April 18 @ 5:00 pm BMT
Jun 22

6th International Conference on Neuro-Oncology and Brain Tumor

June 22 @ 9:00 am - June 23 @ 6:00 pm BMT
Jul 20

40th Asia pacific nursing and medicare summit 2020

July 20 @ 9:00 am - July 21 @ 6:00 pm BMT

Trending