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Vietnam’s growing consumer class drives FinTech boom
Vietnam’s young population use digital payments as the norm, paying via contactless credit cards, e-wallets and QR code-based transfer services from their smartphones. Photo: Shutterstock
Vietnam is wide open for FinTechs offering digital-only banking services. The country’s large unbanked population and high internet penetration are just a few of the factors contributing to the growth of digital-only banks. Our survey findings show that 68 per cent of respondents said they would consider banking with a digital bank – the highest percentage within ASEAN-6. A quarter of respondents were not sure, and only seven per cent ruled it out altogether15.
Out of those who said they would consider digital banks, over half (52 per cent) of these respondents would open a savings account, 18 per cent chose investments and wealth management services, while 15 per cent were interested in money management tools16. In terms of incentives for opening a digital banking account, the respondents also sought novelty and greater digital banking choices (54 per cent), along with better rates and promotions (53 per cent)17.
Respondents who did not consider banking with a digital bank voiced concerns over IT security (68 per cent) and a lack of trust in digital-only banks (51 per cent)18.
Given the potential of Vietnam’s large unbanked population, Vietnamese FinTech firms can expect a receptive market for their services.
Vietnamese consumers already embrace digital-only banking services and e-wallets. Cryptocurrency may be a tougher sell due to an incomplete regulatory environment, while BNPL adoption is currently low but anticipated to grow rapidly in the next few years.
With so much of the global FinTech environment in flux, Vietnam’s FinTech companies have their work cut out for them: to answer Vietnam consumers’ concerns about their services, and rise above resistance to deliver the full potential of their digitalised services.
For more insights on Vietnam and ASEAN’s dynamic FinTech industry
Reference:
1An electronic survey was conducted from 25 August to 7 September 2021 with a total of 3,086 respondents across Indonesia (519), Malaysia (513), the Philippines (512), Singapore (508), Thailand (515) and Vietnam (519) to find out more about their digital financial behaviours.
2Question A1_2: Thinking about your shopping habits, which of the following payment methods have you used most often? Base: Total respondents.
3FinTech in ASEAN 2021 report by UOB, PwC Singapore and the Singapore FinTech Association, based on data from Tracxn (as at 30 September 2021, accessed on 5 October 2021).
4Question A3: Which e-wallet(s) do you use most regularly, if any? Base: Total respondents.
5Question A2: What are the factors that influence your choice of paying via a digital payment method? Base: Total respondents.
6Question D1: Have you invested using digital trading and wealth management platforms? If yes, which are the type of platforms that you have invested your funds in? Base: Total respondents.
7Question D5: Sustainability is becoming increasingly important, including in finance. A ‘Green Portfolio’ refers to investments with a focus on investing in companies that promote socially and environmentally conscious policies and business practices. Are you aware of such green investment related products? Base: Total respondents.
8Question D5A. Have you started investing in green investment related products? Base: Those who are aware of green investment related products.
9Question A7_1: A growing number of merchants worldwide are starting to accept digital currencies [like cryptocurrencies and central bank-issued digital currencies] as a mode of payment. Given a choice, would you use a digital currency? Base: Total respondents.
10Question A7_2: Which type of digital currencies would you trust MORE to use? Base: Those who would use digital currency.
11Question A7_3: Why would you want to use a digital currency? Base: Those who would use digital currency.
12Question A7_4: Why would you not want to use a digital currency? Base: Those who would not use digital currency.
13Question B6: Some retailers offer the option of pay later plans for purchases (electronics, fashion items, etc). Which pay later methods have you used or intend to use? Base: Total respondents.
14Question B6A: What are some of the reasons why you have not used or considered using 'Buy Now Pay Later' schemes? Base: Those who prefer not to pay later methods.
15Question E2: With the increase in digital-only banks across Asia, would you consider banking with a digital bank? Base: Total respondents.
16Question E3B: Which of the digital bank's offerings are you most likely to use? Base: Those who considered banking with a digital bank.
17Question E3A: What are the factors that would make you want to open a bank account with them? Base: Those who considered banking with a digital bank.
18Question E4A: Why would you not be interested to open a digital-only bank account with a new digital bank? Base: Those who didn't consider banking with a digital bank.
