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15Aug2020
Industry Reviews
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Technology-based Personal Finance Solution is a rising trend in the dynamic fintech market in Vietnam. From nearly 400.mil USD market value in 2017, it expects to have a CAGR of 31,2% during the period 2017 – 2025 to reach 24% of total fintech market share in 2025, according to a report by consulting firm Solidiance.
A survey conducted in May 2020 by B&Company on its online survey platform BEAN Survey with 484 respondents above 18 y.o shows that demand for Personal Finance activities are significant with 56% of respondents wanting to track and manage their expenses. Respondents also shared desire to get advice on personal finance investment (32%) and obtain loans for consumption purposes (31%).
Responding to the potentials, Personal Finance Applications including Peer-to-Peer (P2P) lending platforms for individuals, personal investment apps using artificial intelligence (Robo-advisor), and Personal Expense Management Applications have appeared in Vietnam in the past few years. B&Company survey results also indicate that a considerable proportion of respondents are being aware of Personal Finance Applications, the leading position belongs to personal expense management apps. Social media is the most common channel where people get to know Personal Finance Applications.
The list of most awarded applications to Vietnamese users for Personal Expense Management is comprised of both domestic and foreign players.
According to the survey result, Money Keeper – So thu chi Misa, a product by Misa JSC, a well-known accounting and management software company in Vietnam, is the most popular. Another domestic player, Money Lover of Finsify, is expected to be a promising opponent in this market, with its rank as the number one Android mobile app in Personal Finance solution, by Google’s announcement in May 2017.
The survey also points out one big challenge for these apps is how to drive consumers’ habits and become more attractive to prospective customers. Many respondents who track expenses prefer using other alternatives, such as tracking expenses on e-wallet (75%) or on banks’ applications (67%). 43% of respondents who know but do not use expense management applications have said that they are curious but not yet see any clear benefits to start using. Current app users consider many app-selecting factors such as information security (76%), fees (59%), app’s processing speed (61%), features (60%) and interface (49%), and language used in the app which makes foreign apps less advantaged than Vietnamese ones (41%).
P2P Lending apps emerged with strong potential in Vietnam consumer lending landscape but is under closure consideration due to Government regulation
The second most popular type of Personal Finance Application, according to B&Company survey, is P2P lending. The ease to access small-size consumer loans through P2P lending applications without complicated requirements and procedure is expected to be a big help for people, especially for the unbanked, which is about 37% of Vietnamese adults as of 2018, according to the State Bank data.
Emerged since 3 years ago, there are now around 40 companies claiming to provide P2P lending service in Vietnam, including individual-to-individual lending and individual-to-business lending. B&Company survey shows that some most popular individual-to-individual P2P applications are Vietnamese-made including MoneyBank, Vaymuon, Tima, Interloan, and Finn.
