Central bank to hold first FinTech Day in May

The first National Fintech Day will be launched in May

Nghiem Thanh Son, deputy director general of the Payment Systems Department of the State Bank of Vietnam (SBV), said on March 22 that the event would include Fintech management agencies, the startup community, commercial banks, as well as domestic and foreign experts.

Son announced the event to banking experts from Vietnam and Korea at the Vietnam-Korea Financial Co-operation Forum where FinTech was a hot topic.

Jung Yooshin, chairman of Korea Fintech Center, thought Vietnamese Fintech has “huge potential” with the growing speed of smartphone users and the big population, adding that many Korean Fintech firms are seeking opportunities in the country.

Last year, several firms reached Hanoi to find Vietnamese partners to expand their services.

Governor of SBV Le Minh Hung said that the 4.0 Industry is causing a boom in technology where banking and finance is a pioneer sector, but he also talked about risks in the sector.

The last Vietnam-Korea Financial Co-operation forum

"The financial and banking system may face many challenges due to the presence of machines and automation solutions, competition from Fintech companies or new risks from technology environment," the governor said.

Other SBV leaders considered local Fintech at the early stages, with challenges in the legal framework, capital mobilisation, sustainability, as well as capacity. Thus, Hung said the May event would be an official forum to provide the Fintech community with legal consultation, allowing Fintech startups to test their solutions under the supervision of the central bank, thereby creating favourable conditions for the development of the new service.

The latest report on Southeast Asia’s e-commerce status by iPrice in 2017 considered Vietnam the fastest-growing market in Southeast Asia in terms of mobile e-commerce growth.

According to the world-leading provider of market and consumer data, Statistics Portal, Vietnam had nearly 53.9 million internet users in 2017, which would increase to about 55.2 million this year.

Local market analysis firm VIRAC stated that the number of bank cards issued has reached 121.5 million, with 76 institutions providing payment services via internet, including 39 offering mobile payment services.

Currently approximately 40 Fintech enterprises work in Vietnam, including big names like Payoo, VinaPay, OneonePay, MoMo, and NextTech.