Like other emerging markets in Asia, digital banking is gaining traction in Vietnam. The market has been experiencing a digital wave in its banking scene as retail banks continue to invest heavily in digital technology. VP Bank for example, recently launched a digital bank (YOLO) which integrates banking into consumers’ daily lives. Besides offering financial services, users can get access to other services such as taxis, entertainment and restaurant reservations all in one platform.
Other key trends shaping Vietnam’s digital landscape includes its surging mobile payments market. According to RFi Group data, there has been an upward trend in mobile wallet/digital payment usage since 2017, with about 3 in 5 banked consumers having used one to make payments over the past year.
The continual focus on digital gives rise to a wave of digital wallet providers placing their focus on diversifying into other areas beyond payments. MoMo for example, recently collaborated with South Korean Bank, Shinhan Bank to allow users to apply for loans through the digital wallet. With such service in place, the loan application process will be simplified and banks can reach out to more customers.