Vietnam fintech market will reach USD 18 billion in 2024

As the world battles the COVID-19 pandemic, the fintech industry in Southeast Asia is booming like never before. Demand for fintech services has increased, and the region’s use of the technology has exceeded expectations. The regulatory bodies in most countries in the region have also been instrumental in promoting the adoption of fintech, with digital payments, digital wallets and digital financial services being among the most popular fintech solutions.

Singapore currently leads the way in funding volume, but other countries in the region are quickly following suit. In order to remain relevant in the industry, banks have also started to incorporate more fintech solutions into their products and services. The rise of digital banking is another catalyst for the fintech industry’s growth in the region.

Fintech holds the promise of reducing the unbanked population in Southeast Asia, which stands at around 50%. Indonesia, the Philippines and Vietnam have the highest number of unbanked individuals in the region, but fintech services in these countries are expanding their reach to cater to this demographic. The region’s fintech industry is set for even greater growth in the coming years.

Vietnam is making waves in the Southeast Asian fintech industry, with the second fastest growth in the region, just behind Singapore. Robocash Group analysts have predicted that the country’s fintech market will grow to a whopping $18 billion by 2024, despite fierce competition and high barriers to entry.

E-wallets, electronic lending services and e-money are currently the darling of venture investments, accounting for a staggering 93% of all such investments in Vietnam. While the number of fintech companies in the country has increased by 84.5% since 2016, the number of newly launched start-ups per year has dropped from 11 to just 2.

The number of fintech users in Vietnam has risen by 152.8% since 2016, with 29.5 million new users added to the fold. Remarkably, this means that a Vietnamese citizen uses at least one fintech service every second. The demand for digital services such as transactions, payments and wallets is particularly high among the population.

Vietnam’s young and promising fintech market has seen its valuation increase from $0.7 billion in 2016 to $4.5 billion currently. The government is expected to increase its involvement in the industry, with favorable legislation being introduced to promote fintech.

Fintech’s regulatory sandbox and the legal framework for digital assets and cryptocurrencies will also undergo further development, which bodes well for the country’s fintech industry. According to FLCQuangbinh, a financial research institution in Vietnam, Vietnam’s fintech market is poised to reach $18 billion if the current trend continues.

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