Fintech Vietnam PDF

solidiance
UNLOCKING
VIETNAM’S
FINTECH
GROWTH
POTENTIAL
May 2018
Solidiance has produced this white paper for information purposes only. While every effort has been made to ensure the accuracy of the information and data
contained herein, Solidiance bears no responsibility for any possible errors and omissions. All information, views, and advice are given in good faith but without any
legal responsibility; the information contained should not be regarded as a substitute for legal and/or commercial advice. Copyright restrictions (including those of
third parties) are to be observed.
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EXECUTIVE SUMMARY
Financial Technology companies, or fintech, have been disrupting the financial industry around the world by
changing the way consumers use financial products and services. This change is also visible in Vietnam’s
financial industry, where fintech is leveraging rising bank penetration to promote value-add financial services
while also offering the unbanked population access to alternative payment solutions. In 2017, Vietnam’s fintech
market reached USD 4.4 billion in transaction value and is expected to grow to USD 7.8 billion by 2020.
Several factors emerge as growth drivers of fintech in the transformation of Vietnam’s

financial industry, such as:
• The move towards an increasingly cashless society, with ambitious government targets aimed at reducing
cash transactions to 10% of all payments by 2020
• Improve user experience in the financial services sector through cost and time saving, addressing a key
pain-point of traditional financial services
• The proliferation of FinTech services that is able to cater the Small-to-Medium Enterprises (SMEs) in
Vietnam – those who are currently underserved by traditional financial institutions with limited capital,
complexity, and gaps in services – by facilitating capital sourcing and supporting investment decisions
• Aligning global financial trends in digital payment as well as in personal and corporate financial management
applications
The purpose of this white paper is to provide a deeper market understanding of the
fintech revolution in Vietnam. Opportunities are present in the fintech space for:
• Private equity and venture capital funds, as well as other investors seeking to participate in this growth
through acquisitions
• Traditional financial institutions looking to fill current gaps, expand service offerings, and avoid becoming
legacy institutions
www.solidiance.com 3
TABLE OF CONTENT
Executive Summary 02
Digital Payment 09
Personal Finance 14
Corporate Finance 18
Potential Barriers 21
Future of Fintech 23
Conclusion 24
Although Vietnam still trails

other neighboring countries,
banking sector penetration will
grow to 70% by 2020
Vietnam currently lags behind other Southeast

Asian countries when it comes to financial
inclusion. With a significantly higher proportion of
unbanked citizens, fintech in Vietnam can help fill
in the market gap.
Underbanked populations are key drivers for

non-bank institutions to take advantage of users’
unmet needs from traditional financial services.
Banking sector penetration, Vietnam vs. select ASEAN neighbors
0% 59% 100%
Vietnam
0% 86% 100%
Thailand
0% 92% 100%
Malaysia
Source: Solidiance Research & Analysis

In order to minimize the gap with other countries in the region, Vietnam’s
government has approved a financial scheme for the development of non-cash
payments in Vietnam effective from 2016-2020. The ambitious plan aims to
reduce the ratio of cash transactions to 10%, reaching 70% banked accounts
by 2020. Fintech can also leverage rising bank penetration to accelerate value-
added services.
Vietnam’s banking sector penetration (banked vs. unbanked)
2014 2017 2020
31% 41% 30%

69% 59%
70%
Government targets for 2020
Unbanked population Banked population
Sources: The World Bank, Solidiance Research & Analysis

Technological breakthroughs,
combined with rising internet
and smartphone penetration,
have quickly spurred growth in
digital finance
Vietnam’s internet penetration reached 52% of the population in 2016 while smartphone ownership accounted for ~72% in
urban areas and ~53% in rural areas. This makes Vietnam one of the fastest growing adopters of smartphones in Southeast
Asia. The introduction of 4G in the country – along with lower-priced smartphones and service costs – will also act as
enablers and provide the necessary means for digital payment and other fintech services.
Internet penetration in Vietnam Smartphone penetration in Vietnam’s urban

(% of population, in 2013-2016) areas (% of population, in 2013-2016)
R 72%
7% CAGR C AG
58%
52% 51%
51%
48%
44%
36%
20%
2013 2014 2015 2016 2013 2014 2015 2016
Vietnam's population: 92.7 million (2016)

Sources: Appota, The World Bank, Solidiance Research & Analysis
Among different fintech product

segments, digital payment solution
is leading the Vietnam market
At current growth rates, digital payment leads the fintech services market share at
89%. However, personal & corporate finance is expected to grow at a faster rate
through 2025.
Fintech product segmentation in 2017 & projected trend in 2025
2% 6%
Growth rate of fintech

9% (CAGR 2017-2025)
24%
Digital Payment 12.8%
89% Personal Finance 31.2% 70%

Corporate Finance 35.9%
2017 2025F
To give a better understanding of the fintech market, we broke down the

broad concept into three main segments:
Digital Payment relates to payment transactions between payer & payee

that are conducted online, including:
• Mobile payments (including mobile wallet) that are transactions taking place from a
mobile device
• Payment platform that facilitates a payment transaction between a payment portal and
the front-end processor
Personal Finance relates to individuals or households’ financial decisions

and activities – the practice of earning, saving, investing and spending that
are performed online. Among these activities, the untapped markets would
be:
• Non-bank distribution of credit or savings between private borrowers and private or

institutional investors via online marketplaces such as online Peer-to-Peer lending
platforms, group saving, etc
• Artificial Intelligent (Robo-Advisors) technology that advises personal investments
Corporate Finance refers to digital financial services for business

customers /small- and medium-sized enterprises (SMEs). The new trends
that are expected to boom in the upcoming years would concentrate on:
• Peer-to-Peer lending (P2P) & Crowd Funding/Investing/Lending for SMEs to seek for
capital sources via online marketplaces
• Digitally assess personal credit situations by social media
Sources: Statista, Solidiance Research & Analysis

DIGITAL
PAYMENT
Fintech Market Leader
Digital payment is currently the

leading fintech segment in terms of
players and investment
Gap fulfillment
Fintech Fintech
Key players
Vietnam Solutions Time Saving &
Low Cost
Convenience
• Digital • Mobile • Remove pain • Eliminate fixed

Payment Payment points while transaction cost
conducting offline which is currently
• Payment transactions (queing, a concern of bank
Platform payment form users with small
filling, verification transactions
document checking,
• Combination cash checking &
of both • No cost or minor cost
counting) for transfer/payment
for users
• Safety/Low risk of
use • Vendors pay a
superficial fee
• Quick processing and benefit from
& easy-to- use acquiring customers
interface by adding payment
channels
• Transactions are
conducted within
several seconds
with advanced
technology
• Patnership
programs with
multiple vendors to
facilitate payment
transactions as
well as mutual
brand building via
promotion programs

The leading E-wallet &

Payments App in Vietnam
MoMo-Vietnam is the market leader in online payment services, targeting both banked & unbanked
Success Story
customers. The company has earned themselves the biggest number of users which exceed 5 million
accounts.
Unlike other digital payment services, MoMo has developed a network of 4,000 stores nationwide
to attract unbanked users. The growing number of partners and its strong technical platform have
promoted seamless customer experience to support MoMo’s growing customer acquisition.
Thanks to the wide-range of value-added services such as bill payment, mobile account recharge,
services purchase as well as personal loans settlement, MoMo has attracted attention from investors
and raised USD 32.75 million of funds from Goldman Sachs & Standard Chartered.
Services:
An e-wallet & payments app that allow users to pay online and transfer money, such as peer-to-peer
lending
Money Transfer Bill Payment Mobile Account Services Personal Loan

Recharge Purchase Settlement
Key milestones:
2007 2013 2016

Established Raised USD 5,750,000/ Series Raised USD 28,000,000/ Series B from
A from Goldman Sach Goldman Sach & Standard Chartered
MoMo’s element of success:

• Diverse partners (including 11 domestic banks) offering more than 200 digital financial services
• Concrete network of stores (Over 4,000 service stores across 45 provinces) to target both unbanked
Sources: Momo, Solidiance Research & Analysis
users & users in remote areas
• Quality focused - fast service to improve customer experience
Achievements:
• USD 32.75 million in investments
• >5 million online users

The digital payment landscape is

increasingly competitive, drawn by a
range of macro and industry factors
Growth drivers of digital payment solutions
Besides practical solutions that address users’ unmet needs to leverage digital payment & their customer acquisition
strategy, the digital payment segment has primarily attracted market players as a result of market potential, including:
• Low banked ratio which leaves room for e-walllet

Vietnam’s e-commerce users, in million services to acquire new users who are not yet targetted
by banks. E-wallet penetration in Vietnam reached
almost 10 million customers as of mid-2017
5% CAGR • Fixed transaction fees have created a burden and
42.0
40.7
39.1 disincentive to conduct bank transactions which is also
37.3
33.3 35.4 a key determinant for bank users to switch to e-wallet
30.9
services
• Rising banking penetration, which is projected to reach

70% in 2020, has accelerated bank partnerships to
2015 2016 2017 2018f 2019f 2020f 2021f
facilitate mobile payment transactions, according to the
State Bank of Vietnam.
• Surging smart phone & internet penetration also

play a critical role in providing neccessary technical
applications to leverage digital payments - not only
mobile payment & e-wallet, but also payment platforms
which support individuals & SMEs in conducting online
payments nationwide
• Burgeoning e-commerce sector with growing order

value has promoted intermediary payment platforms &
digital payment services
Currently, there are ~35.4 million online shopping users

and it is expected to accelerate to ~42 million, accounting
for 42.5% of the projected population by 2021. The average
spend of USD 62 online will grow to USD 96 by 2021 and
Cash on Delivery - the major means of payment - is expected
to be replaced by digital payments & other modern payment
methods.
Regulatory initiatives also

support the growth of digital
payment in Vietnam
The government plans to promote a cashless society in Vietnam
• Vietnam’s government recently published an article (circular 39) on facilitating mobile payment
which officially recognizes e-wallet services as a payment service as well as collection services &
granted licenses to numerous companies in payment services to ensure compliance and security
• A non-cash payment development scheme in the 2016-2020 period has been announced by the
State Bank of Vietnam (SBV). The ultimate target is to reduce the ratio of cash transactions to below
10% and boost e-payment & develop new and modern means and methods of payment in rural and
more remote areas
However, companies in the digital payment space face an increasingly competitive

landscape
• Threat of new market players confronts incumbents – even the largest players with investment
from global banks and funds are struggling to build a firm customer base and to be well-prepared
to confront with potentially upcoming bigger players
• Competitive rivalry – there are many players competing for a relatively small - but growing - amount
of customers. Bankruptcy or market consolidation through M&A activity are inevitable and must be
accounted for. Commercial banks are also transforming themselves with digital payment initiatives,
such as VPBank, Maritime Bank, ACB, etc, and other private labels such as ApplePay, SamsungPay,
ZingPay, have also initiated their customer acquisition strategy
For new capable players, market opportunity exists. Alipay, the biggest online payment platform in
China, signed an agreement with the National Payment Corporation in Vietnam (NASPAS) in November
2017 promising an early entrance into Vietnam, especially as their e-commerce business had already
entered the country in 2016.
PERSONAL
FINANCE
Emerging Fintech Segment
With a more affluent population

seeking convenience & cost-saving
lifestyle...
Gap fulfillment
Fintech Fintech
Key players Missing/
Low Cost Insufficient
Convenience
Services
• Comparison • Financial service • No cost for

Sites comparison to consumers
match users with
optimal solutions • Cost will be
charged to banks
• Saves time
for reseaching
manually
• Group • Connecting un- • No commission • Unmet

Saving & banked individuals professional peer-
Lending (for & investors or • Interest rate is to-peer lending &
individuals) group financing decided by lenders consumer finance
with an online (lending service) services in rural
platform or fix at a low rate areas
relative to other
• Disbursement imformal lending
within a day services
• Digital • Flexible mortgage

Payment
• Money • Transfering money • No/lower currency

Transfer across borders exchange fee
without capital relative to other
requirements traditional financial
services
• Only take 3-5
seconds for each
transaction
• Investment • Use integrated • Eliminate • Untapped market

& Financial intelligent manpower cost
to consult
customers on • Low innitial
financial services/ investment
investment requirement
decisions
• Reduces risk of
human bias

... Personal
finance solutions
are increasingly
growing in
Vietnam
Gap fulfillment
Fintech Fintech
Convenience
Services
• Connecting • No interest rate for • Limited products &

banks, suppliers & consumer finance partnership
workers to support products
living standards
• Extremely low
interest rates for
loans
• Pawn chain • Perceived to offer • Limited regional

to facilitate lower interest rate coverage
personal finance
• Digital with supporting
• Personal
Payment professional
Financial
services
• Powerful tools to • No transaction/

manage personal usage cost
financial situations
• Supportive
add-in services
(insurance, wealth
management)
• Fast & friendly

interface

Technological innovation is
boosting consumer finance
solutions, especially for the
unbanked
Growth potential in personal finance
solutions
• Along with peer-to-peer lending, consumer

finance is in high demand. However, access
to formal financial services is still relatively
low in Vietnam which leaves an opportunity
for more informal personal lending services,
especially in remote areas or among low
income groups
Example: Moneybank by consumer finance group

Drivers of Personal Finance
Silkway Venture - a recent peer-to-peer lending
• Expanding banking sector penetration to product launched in January 2018 to promote
both urban & rural areas, where up to 41% lending without collateral requirements nationwide
of the population are unbanked, may open
up additional opportunities for consumer • Artificial intelligence (robotic, chatbots) is
finance & wealth management services now utilized to advise clients in investment
• Growing smartphone & internet engagement decisions to save time and manpower.
also leverage users’ exposure to online However, this market segment remains
fintech platforms that allow customers to at the early stages with room to grow with
access their optimal solutions that can’t be significant upside potential
found in traditional financial services
Example: Finhay launched in December 2017
• As one of the fastest growth in GDP per capita
to advise clients on portfolio investment options
with 6.4% on average in the 2000s, growing
via AI applications, with an initial investment
income levels from Vietnam’s middle-class
requirement as low as 50.000VND or ~USD 2
have accelerated consumption
• Increasing outward migration & rising

remittance inflows, with 16% CAGR from
2010-2015 and at USD 5.5 billion, has
generated a strong impact on mordern
money transfer services due the high cost
for using traditional services
Source: Solidiance Research & Analysis, World Bank, SBV
CORPORATE
FINANCE
The fastest and most promising
Traditional corporate finance

services leave multiple market gaps
and industry segments untapped
Gap fulfillment
Fintech Fintech
Convenience
Services
• Crowd • Funding platform • Startup ideas that

Funding for startups to are overlooked –
seek investments especially in rural
areas – can find
investors via crowd
funding
• POS • Facilitate order • Save labor cost

& payment
transaction at
POS by saving
time and human
resources while
easier tracking
for inventory &
business insights
• Data • Additional means • Mitigate fraud &

of providing a credit risk
• Corporate credit rating score
Finance
• Save time of
searching for
traditional financial
information which
is challenging and
disorganized
• Peer-to-Peer • Connecting
Lending (for business seeking • Market is still
business) loans & investors untapped
with an online
platform
• Faster & flexible
requirement
• Crowd • Alternative
Lending & financing for SMEs
Equity-Based
Crowd • Online loan
Funding request, scoring
(Crowd and approval
Investing)

SMEs & Startups - a critical

part of Vietnam’s economy
and growth trajectory have
driven Corporate Finance to
be the fastest growth rate
among fintech segments
Drivers of Corporate Finance Corporate Finance provides missing solutions
• Rising bank penetration and the government’s • The rising proflieration of startups play a critical part in Vietnam’s
ambitions to move towards a cashless society have maturing economy. Crowd funding/investing & Peer-to-Peer
supported Point-Of-Sale (POS) payment and POS Lending activities raise funds for the startups and this can fill
management applications in particular a market need which is neccessary to encourage more creative
ideas in order to drive innovation and develop Vietnam as regional
• Smartphone and internet penetration contribute an
tech hub
indispensable role in leveraging individual access to
social networks & social credit rating system • As Vietnam’s administrative system is not well-managed to
record personal financial status, credit rating based on social
• Fintech lending and funding activities would not be
activities is projected to become a new trend in the future
possible without innovative technology and digital
platform
*The survey was conducted by the Central Institute for Economic Management (CIEM) in
• While Vietnam’s economy is dominated by SMEs co-operation with Copenhagen University and the Institute of Labour and Social Affairs
with 90% of market share & acting enterprise
growth at 10% year-on-year as of 2015, SMEs still
face difficulties in accessing lending. Among 2,600
surveyed* SMEs in Hanoi, ~70% of them struggled
in accessing bank loans and had to seek loans from
non-traditional, informal sources
• The rising establishment of startups, with 39,580

market entrants in the first four months of 2017
(an increase of 14% from Q1-2016), has driven the
demand for resources & capital. Therefore, Fintech
solutions can help ensure adequate capital sourcing
for startup bussinesses, together with SMEs to
facilitate and accelerate growth
POTENTIAL
BARRIERS
To make digital financial inclusion become

a reality, fintech players must overcome key
barriers in the market
1
Lack of regulatory clarity:
•
•
Government restriction with newly issued regulations - Article 24, Circular 19 (effective as of Jan 1, 2018) - has caused concerns
from fintech as NAPAS would be the only gate for all transactions to pass through which would limit the progress of fintech and
e-commerce innovation in Vietnam.
Peer-to-Peer lending platforms are growing but only banks and credit institutions in Vietnam are legally permitted to operate in the
lending business.
• New products also face the similar dilemma and when the regulatory framework is unclear, fintech startups hesitate to scale or
raise funds from investors.
2
Capital limitation:
• Along with other startups, Vietnam fintech companies
are largely lacking capital resources to implement their
business plans. Therefore, calling for fundraising is
indispensable. Most fintech startups in Vietnam are
still at the early stage of funding such as Seed, Series A,
which dominate 70% of the deal count.
3
Management knowledge constraints:
• Operational & management capabilities are often limited
at startups. In fact, ~70% fail in the first year of operation.
Thus, guidance from senior investors with relevant
experience is vital.
4
Awareness & trust issue:
•
•
In some cases where a new business segment is introduced, trust can be slow to build. It is an undeniable fact that in order to use
a service, customers need to know and learn about it. Hence, it is imperitive to educate customers who are not very familiar with
high-tech products such as Grabpay, Timo or MoMo.
Many Vietnamese fintech startups are struggling in building their brands which are not as strong as established financial institutions
in order to gain more trust from end-users. However, it is quite costly and require a certain amount of time and effort for fintech
startups to build its brand and reputation.

FUTURE OF
FINTECH
Where does fintech in
Vietnam go from here?
The government plays a crucial

role in facilitating a conducive
environment for fintech to flourish
1. Regulatory facilitation to partially offset current regulatory barriers

In order to support Fintech startups and facilitate the ecosystem, the Fintech Steering Commitee was established in
March 2017 by Central Bank and the National Payment Corporation to advise the government on ecosystem development,
including a legal framework to ensure market growth.
2. An enabling environment to build a conducive fintech ecosystem

As Vietnam’s fintech space is at an early stage with a still underdeveloped legal framework, the establishment of the steering
commitee should provide some comfort to fintech startups seeking reassurance as they grow.
3. Support market players to overcome resources & knowledge constraints

The government has put more effort to address current difficulties to support and promote Vietnam as a tech hub in the
region.
Association Mission
The National Technology Promote speed and efficiency of technological innovation in businesses, industries,
Innovation Fund (NATIF) economic sectors and regions of the country by providing financial support to carry out
research, technology transfer and innovation
National Agency for Technology, Provide training, mentorship & financial aid to new startups & enterprises in order to
Entrepreneurship, and promote Vietnam startup economy
Commercialization Development
(NATECD)
Silicon Valley Project Attract the necessary entrepreneurs, expertise and investment to enable the
development of a competitive technology sectors
The Finland-Vietnam Promote innovation, develop entrepreneurs and facilitate new startups and initiatives to
Innovation Partnership create sustainable ecosystem domestically and globally
Program (IPP)
Fostering Innovation Improve scientific research, develop technology application & promote innovation in
through Science, enterprises to support higher productivity, competitiveness, and quality of Vietnam’s
Research and economic growth
Technology Project
(FIRST)

4. Accelerators & Incubators are also active in supporting fintech’s growth

Along with official government organizations, other accelerators also play a critical role in developing Vietnam’s fintech
startup ecosystem. These associations have brought valuable opportunities for startups who are lacking of resources to
leverage external support to strengthen their capability as well as building brand and gain trust from end-users
Organizations Missions
Accelerators & Accelerators provide finance, facilities &

Incubators expertise advises for fintech startup to
grow successfully
CONCLUSION
With a large potential tech-savyy user base, active
startup and investment community, increasingly
supportive regulatory framework, and robust
enabling environment, fintech applications will
further penetrate Vietnam’s financial ecosystem
and establish themselves as key go-to services
across digital payment, personal finance, and
corporate finance solutions.
In addition, M&A opportunities are abundant with

domestic and foreign investors active in the space
seeking to gain exposure to the industry growth.
solidiance
DISRUPTION BY FINTECH
IN VIETNAM
Vietnam’s financial technology industry has
begun to gain momentum as rising bank
penetration leaves room for fintech firms to
fill the market gap.
CURRENT STATE OF VIETNAM’S FINANCIAL ECOSYSTEM

Vietnam has lower banking sector penetration However, the government is moving towards a cashless
than some of its ASEAN neighbors society and aims to reduce ratio of cash transactions to
10% by 2020
0% 59% 100%
100%
Vietnam’s banking sector penetration
Vietnam (banked vs. unbanked)
0% 86% 100%
2014 2017 2020

Thailand
0% 92% 100%
31% 30%
Malaysia 41%
69% 59%
70%
Banking sector penetration, Vietnam vs. select

ASEAN neighbors
Unbanked population Banked population
Key drivers behind the development of Fintech in Vietnam:

Surging smartphone and internet Growth of e-wallet services spurred Government aims to increase banking
penetration in urban areas: by low banked ratio: penetration to
52% 10 Million
70%
Internet Penetration
(2016)
customers
72% Smartphone Penetration
(2016)
E-wallet penetration
(2017) by 2020
Growing income Increasing outward Burgeoning

levels driving a rising migration & rising e-commerce sector: to reach
middle class remittance inflows
42 Million
from 35.5 million in 2017
by 2021
Trends in VIETNAM'S FINTECH SPACE:
Digital Payment solution is the current leading segment, but there will be
a shift towards Personal Finance and Corporate Finance by 2025.
2% 6%
Growth rate of fintech
(CAGR 2017-2025)
9% Digital Payment 12.8%
24%
Personal Finance 31.2%
89% 70%
Corporate Finance 35.9%
2017 2025F
Fintech product segmentation
Digital Payment : Personal Finance : Corporate Finance :
Mobile Payment P2P lending P2P lending (for business)

Payment Platform Group Saving Crowdfunding/Investing/Lending
Artificial Intelligent Advisory Personal credit rating by social
activities
Fintech in Vietnam is garnering considerable market attraction,

but barriers PERSIST:
1 2
Lack of regulatory clarity Capital limitation
The National Payment Corporation of Along with other startups, fintech

Vietnam (NAPAS) as the sole channel for all companies lack capital resources
payment transactions to implement their business plans
Peer-to-peer (P2P) lending is not fully Series A funding dominates 70%

legalized (only permitted for banks and of the deal count in Vietnam
credit institutions)
3 4
Management knowledge constraints Awareness and trust
Limited operational and Building a strong brand and reputation is

management capabilities quite costly, which requires time and
effort, especially for startups
Guidance from senior investors
with relevant experience is vital
Future of fintech in Vietnam:

Supportive government policies and a supportive ecosystem can provide a conducive environment for the growth of fintech
Fintech Steering Committee Create an enabling environment Incubators and Accelerators

to develop fintech ecosystem and to build the fintech ecosystem to to provide R&D, capital, and expertise
support players with ease & comfort support financial players support
in the early stages of development
www.solidiance.com info@solidiance.com
AUTHORS
Michael Sieburg, Associate Partner
Michael Sieburg is an Associate Partner for Solidiance’s Vietnam office. Based in Ho Chi Minh City for
the previous 8 years with regional scope of experience and responsibility, Michael has advised global
investors and leading industry players on Vietnam’s technology landscape - from payment solutions to
consumer finance platforms to e-commerce growth. Michael holds an M.A. from Columbia University
and has studied Vietnamese in Hanoi and Ho Chi Minh City.
Tram Tran, Consultant
Tram is a Consultant based in Solidiance’s Ho Chi Minh City office. At Solidiance, Tram has been
active on M&A engagements, including commercial due diligence in Vietnam’s tech sector. Prior to
Solidiance, she worked at one of Vietnam’s leading e-commerce companies. Tram holds an MBA and
a Master of European and International Private Banking from the Institute of Business Administration,
University of Nice-Sophia Antipolis, France.
ABOUT US
What We Do What We Focus On
Solidiance is a corporate strategy consulting firm with Our industry experience is centered on financial
focus on Asia, from Dubai to Shanghai. We advise CEOs technology with some of our strategy work focused
on make-or-break deals, define new business models and on software development, digital strategies, e-banking
accelerate Asia growth. Through our 13 offices across solutions payments & settlement, IT & support
Asia, we provide our clients with a better understanding management system, risk management system, as well
of intrinsic regional issues. To learn more about how as electronic funds transfer. Solidiance is a partner of
Solidiance has helped many Fortune 500 and Asian NextContinent, an international alliance of consulting
Conglomerates to succeed in Asia, please visit: firms with a presence in 30 countries, and we advise
http://www.solidiance.com/clients financial organizations to rethink the customer journey,
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to expand into new and existing markets in Asia.
Our Footprint Connect With Us

Solidiance has offices in Australia, China, India, Indonesia, Solidiance
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Fintech Vietnam PDF

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Several factors emerge as growth drivers of fintech in the transformation of Vietnam’s

Although Vietnam still trails

Vietnam currently lags behind other Southeast

Underbanked populations are key drivers for

Banking sector penetration, Vietnam vs. select ASEAN neighbors

Source: Solidiance Research & Analysis

Vietnam’s banking sector penetration (banked vs. unbanked)

2014 2017 2020

31% 41% 30%

Unbanked population Banked population

Sources: The World Bank, Solidiance Research & Analysis

Internet penetration in Vietnam Smartphone penetration in Vietnam’s urban

2013 2014 2015 2016 2013 2014 2015 2016

Vietnam's population: 92.7 million (2016)

Among different fintech product

Fintech product segmentation in 2017 & projected trend in 2025

Growth rate of fintech

89% Personal Finance 31.2% 70%

To give a better understanding of the fintech market, we broke down the

Digital Payment relates to payment transactions between payer & payee

Personal Finance relates to individuals or households’ financial decisions

• Non-bank distribution of credit or savings between private borrowers and private or

• Artificial Intelligent (Robo-Advisors) technology that advises personal investments

Corporate Finance refers to digital financial services for business

• Digitally assess personal credit situations by social media

Sources: Statista, Solidiance Research & Analysis

Digital payment is currently the

• Digital • Mobile • Remove pain • Eliminate fixed

Source: Solidiance Research & Analysis

The leading E-wallet &

Money Transfer Bill Payment Mobile Account Services Personal Loan

2007 2013 2016

MoMo’s element of success:

users & users in remote areas

• Quality focused - fast service to improve customer experience

• >5 million online users

The digital payment landscape is

Growth drivers of digital payment solutions

• Low banked ratio which leaves room for e-walllet

• Rising banking penetration, which is projected to reach

• Surging smart phone & internet penetration also

• Burgeoning e-commerce sector with growing order

Currently, there are ~35.4 million online shopping users

Regulatory initiatives also

The government plans to promote a cashless society in Vietnam

However, companies in the digital payment space face an increasingly competitive

With a more affluent population

• Comparison • Financial service • No cost for

• Group • Connecting un- • No commission • Unmet

• Digital • Flexible mortgage

• Money • Transfering money • No/lower currency

• Investment • Use integrated • Eliminate • Untapped market

Source: Solidiance Research & Analysis

• Connecting • No interest rate for • Limited products &

• Pawn chain • Perceived to offer • Limited regional

• Powerful tools to • No transaction/

• Fast & friendly

Source: Solidiance Research & Analysis

• Along with peer-to-peer lending, consumer

Example: Moneybank by consumer finance group

• Increasing outward migration & rising

Traditional corporate finance