Vietnam's Fintech Market Set to Hit US$18 Billion by 2024, Predicts Industry Experts

Fintech Industry in Southeast Asia Flourishes Amid COVID-19 Pandemic, with Strong Regulatory Support and Increased Bank Adoption

The fintech industry in Southeast Asia has seen unprecedented growth as the COVID-19 pandemic continues to impact the world. Fintech services have become increasingly popular, and the region’s adoption of the technology has surpassed expectations. Regulatory bodies in most countries in the region have played a crucial role in promoting fintech adoption, with digital payments, digital wallets, and digital financial services leading the way. While Singapore currently leads in financing volume, other countries are quickly catching up. To stay relevant in the industry, banks have also started integrating more fintech solutions in their offerings. Fintech is expected to play a significant role in reducing the unbanked population in Southeast Asia, which currently stands at around 50%. Indonesia, the Philippines, and Vietnam have the highest number of unbanked individuals in the region, but fintech services are expanding their reach to cater to this market. The region’s fintech industry is poised for even greater growth in the coming years, particularly with the emergence of digital banking as a catalyst for innovation.

The Vietnamese fintech industry is on a rapid upward trajectory, with the sector experiencing robust growth in recent years. Despite facing stiff competition from neighboring countries and high barriers to entry, Vietnam’s fintech market is predicted to reach a staggering $18 billion by 2024, making it one of the most promising fintech markets in Southeast Asia.

The e-wallets, online loans, and e-money segment are currently the top performers in the country’s fintech industry, accounting for a significant portion of venture investments. In fact, 93% of all such investments in Vietnam are made in this segment. Although the number of fintech companies in the country has grown by an impressive 84.5% since 2016, the number of newly-launched start-ups per year has dwindled from 11 to just 2, indicating a consolidation trend.

Furthermore, the number of fintech users in Vietnam has soared by 152.8% since 2016, with 29.5 million new users added to the fold. This means that almost every Vietnamese citizen uses at least one fintech service every second, showcasing the strong demand for digital services such as transactions, payments, and wallets among the population.

The Vietnamese government has recognized the potential of the fintech industry and is expected to ramp up its involvement in the sector. Favorable legislation is being introduced to promote financial technologies, and the regulatory sandbox and legal framework for digital assets and cryptocurrencies are also set to undergo further development. These initiatives bode well for the future of Vietnam’s fintech industry and its continued growth.

Overall, Vietnam’s young and promising fintech market has seen its valuation soar from $0.7 billion in 2016 to $4.5 billion at present. With the current trend continuing, the country’s fintech market is poised to hit the $18 billion mark, which is an impressive feat and a testament to the region’s growing adoption of financial technology.