As a Southeast Asian nation that is expected to rule both Asia and the world in the future, Singapore has produced a number of unicorn businesses that are highly valued and transcend global leaders to grab the top spot in the region, such as Grab, which dethroned Uber, and Grab Pay, which dethroned PayPal.
Vietnam is regarded as a nation with a developed fintech history that has the potential to perform numerous miracles in the future.
Some Vietnamese fintech businesses, like MoMo, VNPay, Timo, etc., have become unicorns. The peculiar thing is that all of these businesses are involved in electronic wallets and digital banking.
What are the standout qualities of these two industries, then, that most businesses and investors desire to enter to gain market share? Let's examine with FinFan in the piece that follows.
Nowadays, when you go out, you can easily see ewallet everywhere. Its unique feature is that it can carry out transactions on behalf of people who previously were unable to do so or who lacked a bank account.
These people are assigned to the underbanked object file. But now that they have access to technology, they can easily pay for all of their daily expenses with a few phone taps.
A good example of that is when I unexpectedly realized that I had left my wallet at home when I stopped at the 23/9 Park in Ho Chi Minh City to buy some snake by the wayside snack shop where I used to sit. The business owner questioned me right away, "Do you have a MoMo account?" "Yes," and all transactions followed without leaving either my face or hers looking embarrassed.
In the past, I frequently had to contact my family to come to grab it and return it, or I would have to take a motorbike taxi home to obtain money.
Not just addressing the issue with minor expenditures like food, drink, or some of the user's basic needs. Additionally, eWallet makes it simpler for individuals to pay their regular living costs, such as rent, utilities, insurance, and occasionally even school or apartment fees.
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Up to now, the banking game is still being judged a lot on the construction of many branch systems nationwide and the number of staff at the counters.
All of the aforementioned viewpoints have been partly challenged by the existence of digital banks, particularly Timo's entry into the market.
Since Timo was born, this digital bank has drawn a lot of young people, notably members of Generation Z, who are exposed to technology at an early age and always seek out convenience and speed, instead of using some other traditional banks, join and become a customer of it.
To be able to draw in more of these clients, the banking oligopolies have started the process of switching to digital banking out of concern for losing market share.
Thus, the banking industry's digital revolution has started to take shape and progressively alter consumers' perceptions of banks.
In addition to digital banking, a significant market for businesses to expand their services in this market is the expansion of NEOBank, particularly international NEOBank in the Vietnamese market.
The common point of these services is to support expatriates to transfer remittances to Vietnam in many different forms and methods from all over the world. At the same time, like many other banking services, NEOBank provides a virtual Visa card and a virtual account for corporate and individual customers.