Mobile transactions in Vietnam to soar 400% by 2025: Backcase

Monday, 2020-05-11 17:49:14
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25% of banks in Vietnam will actively pursue modern digital core platforms. (Illustrative image)
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NDO – Mobile transactions in Vietnam are expected to surge by up to 400% by 2025, according to a Fintech and Digital Banking 2025 in Asia Pacific (APAC) report by Backbase released on May 11.

According to the report, 25% of banks in Vietnam will actively pursue modern digital core platforms while the top eight banks will use intelligent automation in account origination to gain a 50% growth in new accounts.

Core banking and payments system modernisation are also the top two priorities among the top eight banks in Vietnam, the report stated.

Vietnamese banks are investing heavily in digital platforms to promote growth but the smaller banks are looking to succeed first, according to Riddhi Dutta, Regional Head of Asia at Backbase.

The State Bank of Vietnam has recently played a very important role in the development of fintech companies and the entire digital banking industry, he said, noting that the number of fintech companies in Vietnam has increased from 40 to 150 over the past four years.

Regarding the region’s development trend, Backbase’s report predicts that 63% of banking customers in the Asia Pacific region are willing to switch to neo banks or new digital challengers.