Vietnam: Can it become the Fintech Mecca of the east?

Hanoi: Vietnam’s fintech has reached new heights and the newly introduced regulatory sandbox is further fueling its growth. It’s forecasted that the country’s fintech market will reach a staggering $18 billion mark by 2024.

Also, the approval for the National Digital Transformation Programme by 2025 given by the country’s prime minister couldn’t have happened at a better time, as it has accelerated the inclination towards fintech.

Housing close to 200 fintech organizations, now 66% of adults have payment accounts as listed by the Ministry of Planning and Investment. Not to forget, the perfect medley of 91.3 million smartphone subscribers and an internet penetration rate of 73.2 percent have made the situation more conducive for the industry’s growth.

The success of these promising fintech organizations has been linked with their close ties with the banking sector that has created invaluable synergies.

Vietnam Banks Association (VNBA) has always been upfront in bringing favourable changes to the country’s financial services industry, be it for lowering SMS charges for banking services or urging Visa and Mastercard to reduce several types of fees on Vietnamese banks during Covid. Its most recent move got a lot of attention when it stepped forward as the official supporting partner for World Financial Innovation Series (WFIS) that’s shaping to be the country’s premier fintech event.

In a statement issued, post confirming VNBA’s support for WFIS, the Secretary General from Vietnam Banks Association, Dr. Nguyen Quoc Hung expressed his views on the event, he said, “This event, WFIS 2023, will be an opportunity for leaders, experts, technology and business executives from leading Banking, Insurance & Microfinance institutions in the region to share and update information related to digital transformation and also an opportunity for member organizations of HHNH to attend.”

The World Bank Group has also been actively supporting Vietnam in becoming a high-income economy by 2045 and its Senior Financial Sector Specialist, Ketut Ariadi Kusuma who earlier spoke to VGP about the development prospects of corporate bond market in the country, is now keen to encourage technology innovations in Vietnam’s FSI. He will also be seen as a key speaker for the same fintech event that’s WFIS.

For big players, investors and even newcomers, the current nascent stage and relatively small size of the country’s fintech market is making it particularly attractive for investment, considering there are a plethora of opportunities to get involved and scaling big.

Call it a coincidence but even the Executive Vice President from Techcombank (TCB), Kanishk Upadhyay has confirmed his spot as key speaker at WFIS and his views on the same has been very similar to Dr. Hung’s where he expressed, “WFIS 2023 is bringing together leaders, experts, technology and business executives from leading Banking and Fintechs. The fully packed roster, is a great opportunity to not only update yourself on information related to the latest digital happenings, but also a chance to meet and pick the brains of the expert speakers in attendance. Can’t wait!”