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.

Asean

12 Things to Know about the ASEAN Catalytic Green Finance Facility (ACGF)

The ACGF is an ASEAN Infrastructure Fund initiative managed by ADB’s Southeast Asia Department Innovation Hub. It helps Southeast Asian governments prepare and finance infrastructure projects promoting environmental sustainability and contributing to climate change goals.

Asian Development Bank

Published

on

Southeast Asia faces an infrastructure investment shortfall of more than $100 billion a year, which may have worsened amid the COVID-19 pandemic.

Loading...
(more…)

Continue Reading

Banking

Thai cabinet approves 350 billion baht Aid for COVID-hit Businesses

Thailand unveiled new measures to help small and medium COVID-hit businesses in the tourism industry hit by a liquidity crunch.

Olivier Languepin

Published

on

The Thai cabinet has approved assistance worth 350 billion baht($11 Billion) to help businesses affected by COVID-19 with soft loans and asset warehousing.

Loading...
(more…)

Continue Reading

Banking

APAC Banks to Face Portfolio Valuation Losses As Yields Rise

The latest data suggest that Fitch-rated banks in Hong Kong, India, Indonesia, Malaysia and Taiwan have the largest AFS securities portfolios, and display particular sensitivity to changes in yields.

Avatar

Published

on

Fitch Ratings-Hong Kong/Singapore-21 March 2021: A rise in yields for long-dated sovereign bonds will result in near-term losses for Asia-Pacific (APAC) banks as they recognise valuation changes on their available-for-sale (AFS) bond portfolios, but the capital impact should be manageable for most rated banks, says Fitch Ratings.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

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

Join 13,974 other subscribers

Latest

Trending