Many opportunities for development in the financial technology industry

Fintech (financial technology) plays an important role in promoting financial inclusion by providing low-cost financial services, bringing many convenient experiences to users.

New consumer trends

The country currently has about 200 Fintech companies operating in various fields such as payment intermediaries (e-wallets, payment gateways, switching), peer-to-peer lending (P2P lending), blockchain/crypto technology, mobile payment, investment (wealth management), crowdfunding, credit scoring, electronic identification (eKYC), insurance (insurtech)... Especially recently, mobile money, digital banking and virtual money have appeared.

People are gradually getting into the habit of using cashless payment services when eating out. Photo: Hoang Hung

VNPay representative shared that many consumers have started to switch to using products and services from the Fintech sector, creating a new and potential consumption trend in Vietnam. In the Fintech market, digital payment is still the activity with the highest proportion. Of which, e-commerce payment alone reached 17.894 million USD in 2023 and is forecast to reach 22.056 million USD in 2025; mobile POS payment also grew strongly, reaching 3.216 million USD in 2023 and is forecast to increase to 4.323 million USD in 2025.

In the ranking of leading Fintech companies published by Fintech News, two payment Fintech companies, VNLIFE (parent company of VNPay) and M_Service (operator of MoMo), respectively lead the ecosystem in Vietnam. Along with VNPay and MoMo, a series of other e-wallets such as ZaloPay, Shopee Pay and Viettel Pay are also dominating the domestic Fintech market.

“Fintech contributes to increasing the ability to enter the market for businesses, including those operating in the fields of technology, media and telecommunications. Fintech does not compete but cooperates very closely with banks and credit institutions to promote customer access and improve the experience through the application of technology... so the Fintech industry has made great strides in recent times,” said Mr. Nguyen Ba Diep, co-founder and Vice President of MoMo e-Wallet.

A key pillar of the modern financial ecosystem

According to experts, Vietnam has more than 70% of its population living in rural areas, with very limited access to financial services. This is a huge market for banks, credit institutions and Fintech to exploit together. One of them is providing loans to small and medium enterprises (SMEs).

Mr. Nguyen Ba Diep said: “One of the very important factors affecting the development of the Fintech sector in Vietnam is the impact from the Government 's policies to promote cashless payments, e-Government (payment for public services) and especially implementing the comprehensive financial strategy with the goal of 80% of adults having a bank account by 2025”.

Along with the whole country, Ho Chi Minh City has been implementing many strong support mechanisms for the startup community, especially startups operating in the Fintech field. Resolution No. 20 of the Ho Chi Minh City People's Council has opened a clear legal and financial corridor for incubating and developing innovative projects, including the Fintech field. Accordingly, the Ho Chi Minh City Department of Science and Technology has just announced the Program to select innovative projects and creative startups in the Fintech field, thereby providing a support package of up to 400 million VND for each potential project, along with support in consulting, investment connection and product development space.

The Fintech 2025 Program in Ho Chi Minh City not only provides financial resources but also creates a comprehensive support ecosystem for Fintech startups. The support includes: pre-incubation support, incubation and acceleration, connecting Fintech startups with investors, financial institutions and other potential partners at home and abroad... The Department of Science and Technology is also committed to accompanying Fintech startups on every stage of development, from the time they are still ideas to becoming successful businesses.

Mr. Le Thanh Minh, Deputy Director of the Department of Science and Technology of Ho Chi Minh City, shared: “Towards the goal of becoming a financial center of the country and the region, Ho Chi Minh City identifies Fintech as one of the important pillars of the modern financial ecosystem. In addition, Ho Chi Minh City is actively implementing Resolution 57-NQ/TW of the Politburo on breakthroughs in science and technology development, innovation and digital transformation, including policies to support Fintech development; implementing the project of the International Financial Center in Ho Chi Minh City... Promoting the development of the Fintech industry also contributes to building a strong financial center in Ho Chi Minh City".

BA TAN

Source: https://www.sggp.org.vn/nhieu-co-hoi-phat-trien-nganh-cong-nghe-tai-chinh-post797231.html