Fintech market value to reach US$7.8 billion by 2020
The financial technology (Fintech) industry is thriving in Vietnam with the market value expected to increase from US$4.4 billion in 2017 to US$7.8 billion by 2020, according to a report by Solidiance, a management consulting firm in the Asia-Pacific.
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Amongst three segments of fintech services, the digital payment leads the way, accounting for 89% of the local market share. The personal finance and the corporate finance, meanwhile, are forecast to experience respective Compound Annual Growth Rates (CAGRs) of 31.2% and 35.9% between 2017 and 2025.
The main factors driving the fintech development in Vietnam include the Government’s plan to expand the local access to banking services to 70% by 2020; the respective increases of 52% and 72% in the numbers of Internet and smartphone users in urban areas in 2016; and the growth of e-wallet services driven by the small number of bank account holders.
The number of e-wallet users in Vietnam was estimated at 10 million people last year.
In addition, increasing income is leading to the expansion of the middle class and as a result, consumption is on the rise.
The growth of fintech has been also fueled by the robust development of e-commerce which will see the number of users hitting 42 million by 2021 alongside the improvement of the country’s regulatory framework.
