|MFast is aiming to meet the needs of the unbanked Vietnamese population for financial services |
While financial services are widely offered in urban areas, 70 per cent of Vietnam's population has limited or no access to banking and related credit services. The narrow coverage of service delivery points in remote areas is one of the main barriers.
MFast is tackling this pain point by leveraging technology and a nationwide financial advisors network. The mobile app connects the underserved populations with financial and insurance institutions to ensure that everyone has access to basic financial services, thereby helping people improve their livelihood opportunities, manage risks, and sustainably increase life quality.
After three years of operations in Vietnam, MFast – developed by the fintech company DigiPay – has helped nearly 600,000 Vietnamese access financial and insurance services from reputable institutions. The amount disbursed to its financial partners has climbed to more than VND5 trillion ($217.4 million).
Although it was just launched in the middle of 2019, MFast’s insurance arm has helped insurance companies distribute more than VND50 billion ($2.17 million) worth of products to customers. As 75-80 per cent of its end-users come from remote provinces and rural areas, MFast improves the accessibility, affordability, and convenience of financial services for all members of society.
The fresh funds will be deployed to expand MFast's coverage to more cities and provinces across Vietnam to help people easily access financial services. At the same time, MFast will continue to invest in technology to enhance customer experience, focus on widening its partner network, and scale to regional emerging markets in the near term.
Le Hoang Uyen Vy, general partner of Do Ventures, said that, “MFast unlocks essential financial and insurance products for every individual in Vietnam thanks to an extensive network of financial advisors. Based on data analysis and constantly expanding its network of advisors, MFast provides customers with tailored and safe financial services, creating stability for the whole market while limiting risks of fraud and bad debts to achieve sustainable benefits for industry partners.”
According to Amy Do, investment manager of JAFCO Asia, the fund decided to co-invest in MFast due to the great potential of the consumer credit and insurance market in Vietnam, as shown in the solid traction of the company despite the ongoing pandemic. The fund manager was also convinced by the founding team's capability and commitment to digitalising the distribution of financial products to more customers in Vietnam.
Sharing about the company's vision, Phan Thanh Long, CEO and co-founder of MFast said: “MFast aims to become the leading platform that improves financial inclusion for Vietnamese people from all walks of life. In the very near future, our product ecosystem will expand to many other practical areas. We hope to create benefits for both the consumer and financial system, contributing to the sustainable development of the whole economy.”