return icon

Use of Fintech services rises 3.5 times in 4 years in Vietnam

In only four years, the rate of Vietnamese using services of Fintech companies has increased from 16% to 56%. 

Finance and banking is one of the fields experiencing the strongest digital transformation process, said Bruce Deltiel, Managing Director of McKinsey & Company Vietnam during a recent talk held by the Central Economic Commission and IEC.

Bruce said that digital transformation in the financial and banking industry is changing very quickly.

A recent personal finance survey conducted by McKinsey shows that the rate of people using digital banking services at least once a month in Vietnam is 82%, double the previous survey (41%).

Số người Việt dùng dịch vụ Fintech tăng 3,5 lần trong 4 năm

The rate of users of digital banking services in Vietnam compared with developing and developed countries in Asia (Unit: %). Data: McKinsey & Company

The proportion of users of services of Fintech (financial technology) companies in Vietnam has increased from 16% in 2017 to 56% in 2021.

McKinsey & Company said the scale of Vietnam's digital ecosystem is estimated at $50 billion and could increase to $100 billion by 2025.

Digital users can start their journey from e-commerce platforms, then progress to payment and use of digital banking services. To foster the ecosystem, a seamless experience for users is needed.

Số người Việt dùng dịch vụ Fintech tăng 3,5 lần trong 4 năm

The rate of users of Fintech services and e-wallets in Vietnam compared with developing and developed countries in Asia (Unit: %). Data: McKinsey & Company

According to Bruce, unlike many other emerging markets in Asia, cash is still "king" in all payment segments in Vietnam.

However, the level of openness of Vietnamese users to e-commerce is very high. Consumers are willing to spend digitally, even with complex financial products involving mortgages, investments, and insurance contracts.

In Vietnam, 70% of respondents said they were willing to make a purchase on digital channels, but less than 30% actually did so. The large gap indicates the lack of necessary technical services, the lack of information or an acceptable reason for users to accept the digital transaction channel.

Số người Việt dùng dịch vụ Fintech tăng 3,5 lần trong 4 năm

Photo: Bruce Deltiel, Managing Director of McKinsey & Company Vietnam.

Half of respondents to a survey conducted by McKinsey & Company cited poor digital experiences as the top reason for their decision to change banks. Banks therefore must strengthen the provision of new digital services to compete to make a difference.

“In the coming years, the personalization of digital financial services will be very important. When users use the service, the banking app must know who that person is and make recommendations that suit their individual taste instead of a common product for everyone,” said the representative of McKinsey & Company.

Cashless payments to thrive

Số người Việt dùng dịch vụ Fintech tăng 3,5 lần trong 4 năm


Discussing the trend of cashless payment in Vietnam before and after the Covid-19 pandemic, Tran Manh Nam, Head of VNPAY card payment service department, said that people and businesses understand the value of cashless payments.

The technology of electronic payments before and after the pandemic is not different, but its application is. It is still the same payment method, such as scanning QR codes, or paying by cards, but the applicability is now very high. In addition, the coordination between payment solution providers and businesses is getting better, Nam said.

It is not possible to require the buyer to pay by one method or another. The choice of payment method is entirely up to the consumer. However, if there is an "all in one" payment solution, it will be better for everyone.

Nam said that the non-cash payment habit will continue to be promoted in Vietnam after the pandemic.

Previously, because of habit, users were afraid to change. The Covid-19 pandemic forced people to switch to cashless payments more, helping them understand the value of cashless payments. Even after the pandemic, when it is convenient, people will still use this payment method, Nam said.

Trong Dat

Cashless payments in e-commerce to account for 50% by 2025 in Vietnam

Cashless payments in e-commerce to account for 50% by 2025 in Vietnam

According to a new scheme approved by the Prime Minister, the value of non-cash payments would be 25 times higher than GDP and the proportion of the payment method in e-commerce would account for 50% by 2025.

Decree for Fintech sandbox to be submitted in Q4

Decree for Fintech sandbox to be submitted in Q4

The Government has issued a resolution to create a sandbox for financial technology (Fintech) in the country’s banking sector.



27 senior Party members disciplined in H1/2022

The Party Central Executive Committee, the Politburo, the Secretariat, and the Central Commission for Inspection disciplined 27 officials managed by the Politburo and the Secretariat in the first six months of 2022, 20 cases up year on year.

Hanoi to inspect fire prevention at all karaoke parlors

Half a month after the karaoke parlor fire in Cau Giay District, the Hanoi People's Committee has asked districts to inspect all karaoke parlors and bars and handle violations.

Vietnam needs extra US$368 billion to achieve net zero emissions

As the energy industry has a crucial role in achieving net zero emissions by 2050, it requires a structural transition toward green growth. Therefore, Vietnam needs assistance from developed countries regarding both financial and technical issues.

Labor Minister proposes harsh punishment for child offenders

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung signed an official letter requesting to have harsh punishment for child offenders and strengthening measures to prevent violence against children.

Pu Sam Cap Cave: the hidden charm of Lai Chau

Pu Sam Cap Cave in Pu Sam Cap Commune, Sin Ho District, in the northwestern province of Lai Chau, is known for its wild, beautiful and mysterious beauty.

Hanoi’s three largest parks are seriously degraded

Many public works in the parks of Thu Le, Bach Thao, and Thong Nhat in Hanoi are in disrepair, affecting urban beauty and public experiences.

Why are thousands of public employees taking private-sector jobs?

Many public employees have recently quit their jobs and taken a job in the private sector. This indicates that the public sector is not attractive and that many problems need to be addressed.

Kon Tum Province records 300 earthquakes over a year

The Central Highland province of Kon Tum has recorded more than 300 earthquakes since April 2021, according to the provincial administration.

Highly-infectious BA.2.74 Omicron sub-variant detected in Vietnam

Vietnam has detected a number of new, highly-contagious Omicron sub-variants, including BA.2.74, said the General Department of Preventive Medicine on August 17.

Relaxing visa policy to attract more foreign tourists to Vietnam: insiders

Vietnam’s visa policy should be more open to lure international tourists, insiders have said.

Vietnam Airlines resumes, increases frequency of several flights in September

The national flag carrier Vietnam Airlines will resume flights connecting the central city of Da Nang with Malaysia’s Kuala Lumpur and Thailand’s Bangkok from September 1 and September 15, respectively, the carrier has announced.

Da Lat listed among world’s best places for binge-worthy dating has named Vietnam's Da Lat city among the world's six places for the summer’s binge-worthy dating shows.

Quang Ninh refutes allegations of sea encroachment in Ha Long Bay

The authorities of Quang Ninh province has refuted information that it has allowed a project to conduct sea encroachment and subdivide land plots for sale, which seriously undermined the conservation of the UNESCO-recognised Ha Long Bay.

VN extends time of anti-dumping investigation on tables, chairs from Malaysia, China

The Ministry of Industry and Trade (MoIT) has decided to extend time limit of investigation on applying anti-dumping measures on table and chair products originating from Malaysia and China by six months.

EVFTA and UKVFTA: the same sweet spot

With many similarities, the UK- Vietnam Free Trade Agreement (UKVFTA) could be called a direct copy of the EU- Vietnam Free Trade Agreement (EVFTA).