Hanoi (VNA) – The financial technology (Fintech)industry is thriving in Vietnam with the market value expected to increase from4.4 billion USD in 2017 to 7.8 billion USD by 2020, according to a report bySolidiance, a management consulting firm in the Asia-Pacific.
Amongst three segments of fintech services, the digitalpayment leads the way, accounting for 89 percent of the local market share. Thepersonal finance and the corporate finance, meanwhile, are forecast toexperience respective Compound Annual Growth Rates (CAGRs) of 31.2 percent and35.9 percent between 2017 and 2025.
The main factors driving the fintech development inVietnam include the Government’s plan to expand the local access to bankingservices to 70 percent by 2020; the respective increases of 52 percent and 72percent in the numbers of Internet and smartphone users in urban areas in 2016;and the growth of e-wallet services driven by the small number of bank accountholders.
The number of e-wallet users in Vietnam was estimated at10 million people last year.
In addition, increasing income is leading to theexpansion of the middle class and as a result, consumption is on the rise.
The growth of fintech has been also fueled by the robustdevelopment of e-commerce which will see the number of users hitting 42 millionby 2021 alongside the improvement of the country’s regulatory framework.-VNA
Amongst three segments of fintech services, the digitalpayment leads the way, accounting for 89 percent of the local market share. Thepersonal finance and the corporate finance, meanwhile, are forecast toexperience respective Compound Annual Growth Rates (CAGRs) of 31.2 percent and35.9 percent between 2017 and 2025.
The main factors driving the fintech development inVietnam include the Government’s plan to expand the local access to bankingservices to 70 percent by 2020; the respective increases of 52 percent and 72percent in the numbers of Internet and smartphone users in urban areas in 2016;and the growth of e-wallet services driven by the small number of bank accountholders.
The number of e-wallet users in Vietnam was estimated at10 million people last year.
In addition, increasing income is leading to theexpansion of the middle class and as a result, consumption is on the rise.
The growth of fintech has been also fueled by the robustdevelopment of e-commerce which will see the number of users hitting 42 millionby 2021 alongside the improvement of the country’s regulatory framework.-VNA
VNA
