Fintech in Vietnam has been growing strongly in recent years. Through this development, many companies become unicorns such as MoMo, VNPay, etc.
In the article 4 Trends of Fintech in Vietnam 2023, we discussed 4 industry groups that have great growth potential and will achieve success in 2023.
So, will crowdfunding become a trend in not only 2023 but also in the next 5 years? Let’s find out the answer with FinFan.
Ewallet is still the most potential development field because of its convenience and fast. Most of the user attraction of ewallet is that you can do all operations through just 1 smartphone (rightly hitting the increasing trend of using mobile phones for everything of Vietnamese people).
However, the most difficult of this field to continue growing is how to penetrate the lives of people in remote areas to change the consumption habits that are ingrained in their subconscious, the thing that the cashless movement is trying to do every day, but it's still very difficult most of the time.
For example, MoMo, the number 1 ewallet in Vietnam, after many years of development, has only attracted a number of users equal to 30% of the country's population. The habit of using cash still accounts for the majority of Vietnam's population.
Peer to peer lending is also growing so fast and becomes popular in Vietnam. Due to COVID-19 many Vietnamese people have financial difficulties and need to borrow, that’s also the chance for this type of business to develop and become a lucrative investment opportunity for some people with good finances.
However, this type also faces some difficulties in terms of legal procedures and strict regulations of the Socialist Republic of Vietnam on the issue of interest rates and some acts related to black finance.
Another form of lending online is Buy Now Pay Later is in contrast. According to FinFan's assessment, the development potential of this industry in the Vietnamese market is huge due to the consumption habits of Generation Z later.
Despite such favorable conditions for development, the habit of overspending is also a double-edged sword for this industry when large companies in the industry must deal with bad debts.
Although entering the Vietnamese market later than other industries, wealth tech is still one of the areas worth mentioning when the development of this segment is also very large. Both FinHay and Infina (2 giants of this segment) strive to offer the best products and services to their customers.
However, this segment still has some legal conditions that have not been passed and investors will not have the same protection as when they invest in other licensed traditional stock exchanges or some real estate exchanges.
This segment is also the hot trend in Vietnam when IOT (Internet of Things) becoming more and more popular. NEOBank can solve problems that a traditional bank cannot help quickly and efficiently. It helps us to skip unnecessary steps in the process of transactions and services at the bank.
Many traditional banks have had to update their services and built many digital banks such as Cake of VPBank, VCB Digibank Vietcombank, Live – Techcombank, etc. That has led to the level of competition in digitalized banking in the domestic payment more vibrant and stronger.
However, the cross border payment market is still a huge cake that many banks or NEO Bank in Vietnam haven’t well developed. Understanding this problem, FinFan has been focusing all resources on this market and cooperating with many big fintech around the world, for instance, Thunes, Remitly, Money Gram, etc. On the other hand, FinFan also has connections with lots of big fintech in the e-wallet segment in Vietnam such as MoMo, Zalo Pay, VNPay, etc. for giving customers the best experience in also the domestic market.
. Top digital banks in Vietnam
Crowdfunding is also a hot keyword in recent years in Vietnam when the number of startups has increased so fast and many of them can have a good chance of becoming a unicorn.
In the article Top 5 fintech investment platforms for VCs in Vietnam, we know that many VCs use these 5 crowdfunding platforms to find out and analyze the startups that they assessed as having the potential to invest in and likely to develop in the not-too-distant future.
Some of them can find out and invest in the right startups, these give both sides the chance to continue developing in their own segments such as the story of MoMo and 2 big VC giants Standard Chartered and Goldman Sachs.
This shows that crowdfunding is also a form of fintech with great potential for further development in the next 5 years. However, to be able to achieve that, this model needs to improve some points as follows: