Digital Banking Innovations in Vietnam

Most Southeast Asian economies are leapfrogging to digital banking, thanks to the rising internet and smartphone penetration. The digital banking space in Vietnam is thriving on the back of rapid FinTech adoption, a booming e-commerce industry, and COVID-19 impact. In Q2 2020, visits to e-commerce apps reached 12.7 billion. The e-commerce Gross Merchandise Value is expected to rise to $23 billion in 2025. Online payments increased by 76% in Q1 2020, with the total value rising to 129% compared to 2019.

Vietnam’s Digital Readiness Reflects High Growth Potential

Revenue from digital financial services in Vietnam is expected to reach $3.8 billion by 2025. Mobile transactions in the country are likely to increase by 300% between 2021 and 2025, as per a report by IDC.

With a 30% banked population and just 2% of the adult population with a credit card, Vietnam has some of the fewest bank branches and ATMs in ASEAN. However, about 72% of the adult population owns a smartphone, and internet penetration is at 66%. The country has over 4.2 million digital wallet users spread across roughly 20 digital wallet brands. Vietnam is one o …