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.

Continue Reading
Advertisement
Comments

Banking

Bank cuts Thai 2020 GDP growth outlook to 2.7%

SCB’s Economic Intelligence Center (EIC) has released its latest growth forecast, at 2.7 percent, showing a slow recovery from just 2.5 percent economic growth in 2019

Boris Sullivan

Published

on

SCB cuts GDP growth forecast to 3.1%

SCB’s Economic Intelligence Center (EIC) has released its latest forecast, indicating that the Thai economy at the end of 2020 will have grown by 2.7 percent, showing a s recovery from just 2.5 percent economic growth in 2019, thanks to a better performing export sector and improved global economy.

(more…)

Continue Reading

Banking

Moody’s outlook for APAC corporates remains negative in 2020

Moody’s Investors Service says in a new report that overall credit conditions for APAC non-financial companies will weaken in 2020

Avatar

Published

on

• While positive, the US-China trade agreement will not resolve core differences, dampening business sentiment globally 

(more…)

Continue Reading

Banking

Bank of Thailand (BOT) orders banks to revise interest rates and fees

Bank of Thailand (BOT) has ordered commercial banks to revise their interest rates, and the fees they charge for their financial products and services including ATM and debit card fees

National News Bureau of Thailand

Published

on

Good news for the general public and SMEs as the Bank of Thailand (BOT) has ordered commercial banks to revise their interest rates, and the fees they charge for their financial products and services, including ATM and debit card fees, to help reduce the burden borne by customers.

(more…)

Continue Reading

Most Read

Upcoming Events

Feb 12

Future Energy Asia

February 12 - February 14
BITEC
Bangkok
Feb 19

13th World Congress on Nursing and Health Care

February 19 @ 9:00 am - February 20 @ 5:00 pm BMT
Phuket
Phuket city
Mar 11

Food science conferences

March 11 @ 8:00 am - March 12 @ 5:00 pm BMT
Mar 11

Food science conferences

March 11 @ 9:00 am - March 12 @ 5:00 pm BMT
Mar 22

41st World Dental Science and Oral Health Congress

March 22 @ 9:30 am - March 23 @ 5:00 pm BMT

Press Release

Subscribe via Email

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

Join 12,066 other subscribers

Trending