Vietnam fintech market to reach US$ 18 billion in 2024

Vietnam is making waves in the Southeast Asian fintech industry, boasting the second-fastest growth rate in the region, just after Singapore

As the world grapples with the COVID-19 pandemic, the fintech industry in Southeast Asia is flourishing like never before. Demand for fintech services has surged, and the region's adoption of the technology has surpassed 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 pack in financing volume, but other countries in the region are fast catching up. To remain relevant in the industry, banks have also started incorporating more fintech solutions in their products and services. The emergence of digital banking is yet 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 poised for even greater growth in the coming years.

Vietnam is making waves in the Southeast Asian fintech industry, boasting the second-fastest growth rate in the region, just after Singapore. Robocash Group analysts have predicted that the country's fintech market will surge to a whopping $18 billion by 2024, despite facing stiff competition and high barriers to entry.

The e-wallets, online loans service and e-money segment is 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 surged by 84.5% since 2016, the number of newly-launched start-ups per year has dwindled from 11 to just 2.

The number of fintech users in Vietnam has soared 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. Demand for digital services such as transactions, payments, and wallets is particularly strong among the population.

Vietnam's young and promising fintech market has seen its valuation soar from $0.7 billion in 2016 to $4.5 billion at present. The government is expected to ramp up its involvement in the industry, with favourable legislation being introduced to promote financial technologies.

The fintech regulatory sandbox and the legal framework for digital assets and cryptocurrencies are also set to undergo further development, which bodes well for the country's fintech industry. According to FLCQuangbinh, a finance research institution in Vietnam, if the current trend continues, Vietnam's fintech market is poised to hit the $18 billion mark.

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