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Vietnam is fertile ground to nurture fintech innovation. — Photo baotintuc.vn |
Swiss fintech startups should tap into opportunities in Vietnam to take advantage of rising demand for digital financial solutions, supportive policies, and government initiatives to nurture fintech innovation, according to a new Vietnam Fintech report by Switzerland Global Enterprise (S-GE).
The report, titled Business Opportunities in Fintech in Vietnam, provides an overview of the country’s fintech sector, outlining key verticals and emerging trends in the market for Swiss fintech companies.
The report pointed out five major opportunities in the market.
First, banks in the country are teaming up with fintech companies and tech providers to ramp up their digital banking propositions, embracing Application Programming Interface (APIs), cloud technology, and embedded fintech solutions to deliver convenience, choice, and speed to Vietnam’s young , digital consumers.
The second opportunity relates to payments. The sector is currently the leading vertical in the domestic fintech sector, with the most players attracting the lion's share of investment. According to Switzerland’s export and investment promotion agency, almost two-thirds of Vietnam’s population, or around 57.62 million people, were making digital payments by January 2023, representing an 11.3 percent year-on-year increase.
Peer-to-peer (P2P) lending is another segment that’s growing steadily and is now the second largest fintech vertical in Vietnam at the moment. The sector is offering several opportunities for Swiss fintech startups to not only address the lending gap but also provide innovative solutions for local P2P lenders.
Then comes personal finance and investment, a vertical that’s benefited from the influx of new investors. Rising stock trading activity is introducing opportunities for fintech firms to develop solutions that educate customers and assist them in managing their portfolios.
Finally, blockchain and cryptocurrency is another fintech sector that’s recorded strong traction and is expected to grow further. According to the S-GE report, growth will be supported by the country’s information and communications technology (ICT) workforce which is eager to embrace blockchain technology and explore its applications.
According to a global Statista consumer survey, about 27 percent of Vietnamese respondents reported using or owning cryptocurrency in 2022.
