Sunday, 20 Oct 2019
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ECONOMY

70% of fintech firms in Vietnam are foreign-invested

Updated at Tuesday, 08 Oct 2019, 16:35
The Hanoitimes - Most fintech companies in Vietnam focus on three fields of services, including payment, peer-to-peer (P2P lending) and equity-based crowdfunding.
A total of 154 fintech companies are operating in Vietnam, of which 70% are foreign invested, according to a survey conducted by Institute for Development and Research in Banking Technology under Vietnam National University of Ho Chi Minh City (VNUHCM-IBT). 
 
Illustrative photo.
Illustrative photo.
Among those fintech firms, 37 firms operate in the field of payment services, 25 in lending and 22 in blockchain, crypto and remittance, while 70% of fintech companies in Vietnam are startups that have raised funds from investors in Japan, the US, Canada, Australia, UK, Denmark, France, and neighboring countries such as China, Singapore and Malaysia. 

According to the survey, most fintech companies in Vietnam focus on three fields of services, including payment, peer-to-peer (P2P lending) and equity-based crowdfunding. Meanwhile, other fields such as management of assets, liquidity, investment, insurance and automatic financial consultation are at early stage of development. 

As a result, VNUHCM-IBT expected fintech firms would compete for shares in the retail sector against traditional banks, especially as P2P lending, e-wallet, card payment are becoming more familiar  in people’s daily lives. 

Hoang Cong Gia Khanh, director of VNUHCM-IBT, said as 70% of fintech firms are startups, the formation of large scale fintech is difficult, in spite of having the backing of foreign investors. 

The future outlook of fintech remains bright but equally challenging, said Khanh. 

Global statistics showed there are 10,000 fintech firms in the world competing with banks in fields of payment, equity-based crowdfunding, lending, remittance and investment consultation. 

Over the last few years, these fintech firms received hundreds of billions of US dollars. 

Koh Noi Keng, CEO of Singapore-based Fintech Academy (FTA), said the introduction of fintech initially was considered as disruptor in the banking sector, but now has become the driving force for innovation and digital transformation. 

FTA has recently signed a five-year cooperation agreement with the Ho Chi Minh City Computer Association (HCA) to transfer knowledge and technologies in field of fintech. As part of the agreement, the two parties would hold training course in artificial intelligence, blockchain, cloud and data for Vietnamese fintech community. 

At the end of this month, HCA, along with FTA, VNUHCM-IBT and Vietnam Banking Association (VNBA), is scheduled to hold Vietnam ICT Outlook titled Shaping the future of Vietnam Fintech. 
Ngoc Thuy
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