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37 views35 pages

Group 11 Slides

Uploaded by

Thu Anh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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THE IMPACT OF

% FINTECH INNOVATIONS
ON THE
BANKING SECTOR
IN VIETNAM
GROUP 11
TABLE OF CONTENTS
01 DEFINITION
Definition of Fintech

02 INNOVATIONS
Fintech trends, innovations and leading companies in Vietnam

03 IMPACT
Banking benefits and challenges

04 RECOMMENDATIONS
Focus areas for banks to overcome competition from fintech firms in Vietnam
Revolution of Banking in Vietnam: a partnership between banks and fintech
01
FINTECH
DEFINITION
FINTECH DEFINITION
• “Fintech” = “financial” + “technology”:
incorporation of new technical developments into
financial products and services.

• E.g. Mobile payment apps, blockchain networks

➔ Speed up, simplify, and increase the security of


financial services and operations.
02
Fintech trends, innovations
and leading companies in
Vietnam
Fintech market trends in Vietnam
a) Significant growth in Vietnam Fintech market
Fintech began to expand significantly in Vietnam in 2017
Fintech market trends in Vietnam
a) Significant growth in Vietnam Fintech market
Fintech began to expand significantly in Vietnam in 2017
The number of companies in the Fintech field in Vietnam has increased by
nearly 330% in the period 2012-2020
This field has received significant attention due to the government's
active support for innovation
Fintech market trends in Vietnam
b) Digital payment is the leading segment

Digital payment has been the largest


segment within the fintech landscape,
accounting for 31% of Vietnamese
fintech companies.
Fintech market trends in Vietnam
b) Digital payment is the leading segment
b) Digital payment is the leading segment

● E-payment developed significantly

● Common services: transfer money,


pay for online transactions, point-
of-sale transactions, etc.

● 85% Vietnamese consumers have at


least one e-wallet or payment app

● E-wallet: the most preferred


payment method for online
purchases
Fintech innovations in Vietnam
a) Blockchain

• Is a digital ledger of transactions that is


duplicated and distributed across the
entire network of computer systems on
the blockchain

• Vietnam provides a favorable Fintech


environment to expand Blockchain
technology
Fintech innovations in Vietnam
b) Artificial Intelligence (AI)

• Increase security driven by


authentication

• Behavior-based investment predictions

• Automated data processing

• Human-like interaction with customers


Fintech innovations in Vietnam
c) Gamification

• Design-based approach that


uses game elements

• MoMo leading the gamification


trend of Vietnamese fintechs:
“Lắc xì Momo”, “Momo city”
Leading Fintech companies in
Vietnam in Digital Payments
The leading company in Vietnam
Fintech industry is MoMo
56% of the Vietnamese population that had an e-wallet used Momo
03
Fintech’s impact on
Vietnam's banking industry
Fintech benefits for banks
in Vietnam
• Fintech technologies (Big data,
Blockchain, Biometric, etc.) helps banks
reduce costs, time and enhance
security

Reduce operating costs by 40-70% compared to


traditional banks.
Fintech benefits for banks
in Vietnam

• Increase accessibility to people living in


rural or remote areas

Over 30% of fintech companies are in digital


payment activities
Fintech benefits for banks in Vietnam
• Using eKYC, achieve a higher number of
users through Mobile or Internet Banking

VietinBank, VPBank, MB Bank, VIB, TPBank, etc.


have implemented eKYC
→ The number of new customers and
transactions increase rapidly
Fintech benefits for banks in Vietnam
Some banks have pioneered in cooperation
with Fintech:
Fintech challenges for
banks in Vietnam
• Banks may gradually lose market share in
certain services in the future

• Banks always have a certain lag in terms of


technology compared to Fintech companies
• Grab links with banks and Moca e-wallets to
encourage users to use the e-wallet as a
payment function

• Use the Bank's currency exchange function to


deposit money into the e-wallet

• Use Fintech’s e-wallets to make payments

→ Cooperation and Competition


04
RECOMMENDATIONS
FOR BANKS IN
VIETNAM
Focus areas for banks to overcome
competition from fintech firms in Vietnam
Enhancing current services
• Customers’ privacy and security
• Customer service

Focus on unexplored areas


• Investment of Banks
• Data Mining
• Microfinance
Ensure customers’ privacy and security

• Vietnam has a poor level of information security

• Credit institutions and banks achieved 57.5%


information security index in 2018

• Recommendations:
+ Strengthen information sharing
+ Establish an exchange mechanism
+ Invest in upgrading security system
Improve customer service
• Customer satisfaction with services offered by
commercial banks in Vietnam is not high

Level of
Amount Percentage (%)
satisfaction
Delighted 29 15
Satisfied 35 18
Indifferent 68 35
Dissatisfied 59 30
Disappointed 4 2
Total 195 100
Improve customer service
Recommendation:

• Improve qualifications, consulting skills, and


service attitudes of staff

• Improve soft skills (sales, assurance, finance, and


credit evaluation)

• Simplify transaction documents


Investment of banks

• Investments in digital transformation

• Banking sector had invested 15.000 billion VND in


digital transformation
Investment of banks

Recommendation

• Speed up the development of a legal framework

• Provide strategic B2B & B2C solutions


Revolution of Banking in
Vietnam
Partnership between banks and fintechs
How can banks and fintech
companies collaborate?
Front-End Fintech Partnership
(sometimes referred to as
banking-as-a-service or BaaS)
EXAMPLES
● In 2017, VIB partnered with Vietnamese fintech
Weezi Digital to launch MyVIB Social Keyboard

MyVIB Social Keyboard


● In 2018, VietinBank partnered with Opportunity
Network

● In 2021, VPBank and Be Group have officially


introduced Cake digital bank

Cake digital bank


THANK YOU
FOR LISTENING!

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