Growth of the Vietnamese Fintech Industry and Its Implications
|저자||Sunin Jung||발행일||제 호 (2019.12.31)|
With the rise of the digital economy around the world, fintech, which can reduce costs by utilizing technology and provide customized services based on data, has emerged as the center of innovation in financial services.
Fintech is also fast growing in Vietnam as it is receiving attention as a new industry. The size of the Vietnamese fintech market reached 4.4 billion USD in 2017 and is expected to reach 7.8 billion USD by 2020.1) This growth trend is expected to continue on the back of a variety of factors.
First, Vietnam’s unbanked population who do not have access to traditional financial services are a big opportunity for fintech firms.
According to the World Bank’s Global Findex, only 31 percent of Vietnamese had bank as of 2017, whereas the global average was 69 percent. The average in the East Asian and Pacific region is 71 percent. In 2017, twenty percent of the Vietnamese population that did have bank accounts did reported any deposits or withdrawals over the course of 2016, indicating that bank accounts are underutilized in Vietnam. Due to the low use of account services, 62 percent of the people received wages in cash and 94 percent paid utility bills in cash.
Only five percent of utility bills were paid using accounts.