{"id":7747,"date":"2020-07-22T07:45:50","date_gmt":"2020-07-22T07:45:50","guid":{"rendered":"https:\/\/newver.innotech-vn.com\/?p=7747"},"modified":"2024-06-04T17:17:15","modified_gmt":"2024-06-04T10:17:15","slug":"vietnam-potential-market-for-fintech-development-services","status":"publish","type":"post","link":"https:\/\/newver.innotech-vn.com\/vie\/vietnam-potential-market-for-fintech-development-services\/","title":{"rendered":"Vietnam Potential Market for Fintech Development Services\u00a0"},"content":{"rendered":"

Vietnam is an increasingly connected country, and so it is a natural fit for the development of Fintech companies. Thanks to its young demographic, strong e-commerce growth, increasing smartphone and internet users lead to it becoming a great potential market for Fintech developers.<\/span><\/p>\n

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Vietnam\u2019s Fintech startup landscape<\/strong><\/h2>\n

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On the one hand, following Ernst & Young (EY) report in 2018, 90 percent of transactions in Vietnam are conducted in cash, and this has led Fintechs to focus primarily on the development of payment services. Therefore, around 47 percent of Vietnamese Fintech startups are only focused on payments,\u00a0 the highest rate in the region. As of September 2019, there were 136 Fintech companies incorporated in Vietnam. Following a report by Casey Hynes on Forbes, the total investment in Vietnam\u2019s Fintech market will reach $7.8 billion by 2020. Besides, the Vietnamese government created an “increasingly supportive regulatory framework” via the creation of SBV Steering Committee on Financial Technology.\u00a0<\/span><\/p>\n

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\"VietnamThere were 136 Fintech companies incorporated in Vietnam.<\/em><\/p>\n

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On the other hand, according to the recent speech of Pham Xuan Hoe, Deputy Director General of the Banking Strategy Institute at the State Bank of Vietnam at “Shaping the future of Vietnam Fintech” conference, there are over 143 million phone subscriptions, 45 percent are for 3G and 4G services. Also, a report published in late 2018 by Allied Market Research estimated that the Vietnamese mobile payment market could reach US$70,937 million by 2025. In particular, payments through mobile banking services have surged to 144% per year over the past five years; transactions over mobile apps and digital wallets rose by an impressive 126% and 161% respectively. It shows that there are more and more opportunities to develop and diverse Fintech services\/products as well as creating a non-cash economy shortly. There is one thing that cashless payments are irrefutable booming in Vietnam, more than doubling in value over the first three quarters of 2018.\u00a0<\/span><\/p>\n

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Benefits of choosing software outsourcing for Fintech startups<\/strong><\/h2>\n

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To succeed, FinTech startups must grow, execute, and innovate quickly. They often lack the staff, capital, flexibility, or risk tolerance to do so. Even if they\u2019re newly funded, it doesn\u2019t make financial or logistical sense to build all technologies needed in-house and from scratch. So what\u2019s a FinTech startup to do?<\/p>\n

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1. SPEED TO INNOVATION (AKA ACCESS TO TOP TALENT)<\/strong><\/h4>\n

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Deloitte\u2019s Global Outsourcing Survey 2018<\/a> sends a clear message: More and more businesses are using outsourcing to drive innovation, and it\u2019s enabling competitive advantage. From 2016 to 2018, Deloitte saw an increase from 20% to 49% in the number of organisations moving services to outside providers as they innovate.<\/p>\n

Innovation is the essence of Fintech. Fintech startups use both existing and emerging technologies (e.g., AI, blockchain, cryptocurrency, IoT, biometrics) to rethink and revolutionise financial services. Their success and competitive advantage depend on having the specialised knowledge needed to harness the power of these technologies. Where do they get it? By finding experienced, top-tier development talent to help them conceptualise and develop their solutions. Only startups who engage the most innovative, intelligent and creative development talent will succeed.<\/p>\n

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With US unemployment at the lowest rate in 50 years, that top talent isn\u2019t exactly hurting for work. Newly funded startups often can\u2019t afford the sky-high salaries required to attract these professionals, ending up with less-experienced professionals who can\u2019t deliver. Over and over, the data backs this up:<\/p>\n