M-CURRENT SITI NT TRENDS, AND POLICY RECOMMENDATIONS Ph.D. Can Van Lue - Chief Economist of GIDV & Member ofthe National Financial and Monetary Polley Advisory Counell ‘eslopment ecosystem in Vlemam ~TEFD 2023" “organised by Dai Nam Universiy FINTECH TA An Van Lye — Chuyén gla Kin th trang BIDV & Thanh vide Wl aing Yar vin Chioh auch Tat ena 9 Qube gla Trin yt hia thow hc gue t Hi hin sinh th ph rn Fintck i Vgt Nam ~ TEED 2023" do Dgi hye Di Nam cheTable of Contents 1. Fintech Overview ices, fintech models in the world jon of fintech in Vietnam |. International experience in Fintech management 5. Current situation of Fintech management in Vietnam NQI DUNG 41. Téng quan vé Fintech 2. Sin phim - djch vy, mé hinh fintech trén thé giéi 3. Thye trang fintech tai Vigt Nam }. Kinh nghigm quéc té vé quan ly Fintech 5. Thye trang quiin ly Fintech tg Vigt Nam1. Fintech Overview intech (Financial technologies): combining financial services with modem management science and computer techniques" (Bettinger, 1972), ‘= Recently often associated with financial technology companies (onarrow sense"); ‘= Broad meaning: Fintech includes “financial innovations" on technology platforms, covering the entire financial services sector and involving credit institutions, insurance companies, securities companies fund managers and other new models, 1. Tong quan vé Fintech fe*Fintech® (Financial technologies - cdng ngh¢ ti chink: Kd hop gta dich vy ti chinh vi cdc KY thust Khoa hoe quin I hig dai va may tinh” (Betingr, 1972); iin diy thuimg duge pn vi eke cing ty Ong neh i chink (Cnghia hep"); ‘= Nehia rng: Fitcch bao gm ci “sing tgo ti chink rén nn ting céng nah, bao trim toin bp lin vue djch vy ti chinh ‘ied sy thm gi cia ede TCTD, cng ty bio idm, cng ty chimg khodn, quin ly qu¥ va mé hinh méi khéc.Figure 1; FSI's Fintech tree model Hinh 1: M6 hinh cy Fintech cita FSI x oval laznat ste aeBenefits, risks and challenges of fintech tis > anny in iS ei i > tag oie ogc SE owinenepe h ae ak > edges pl eh agg ig tah gh PSR aie timo wt ib P Misys Sosa a me hk > Dry potas esBDAINAM 2. Produets- services, fintech models in the world 2. San phim - dich vy, m0 hink fintech phé bién Comprghensive Banks become The bank acts as 8 digtal banking ‘exchanges: ‘service provider hang sb winaije —NOSAENGUEIRSNN MeL Non hing How tog he "Naan nang ob an angio den Imari cung ci ces ws cert rare tn serane sind e Errmceerey = chro Bo poe aren Pe bias paoeed peri ae per Eh ped pe pees a errs ce no meshFigure 2: Digital banking revenue scale (USD billion) Hinh 2: Quy mé doanh thu ngin hing sb tj USD) nous mussigure 3. Number of digital banks Figure 4, Number af digital banks 3. Sb tuyag ngtn hing sb inh 4. $6 teymg gin hing ob ‘tablished ‘by region (32023) ‘Quye think 3p theo khu yye 72023), 2 Huo "Woh team BD i ae LYHLS: Huy dong von cong ddng [ cy / ay dng choy | fF chown ci / feel (cay rome ‘ining ‘anne! “Gomeletieg® | | CPCIinh 6: Cy chu gi tr gin dich ci hot dng huy dng ‘von emg dng, 2017 -2025f (ty USD) Figure 6: crowdfunding, 2017 - 2025f (USD billion)BDAINAM no meshFigure 7: Global Robo-advisors managed asset value (USD billion) Hinh 7: Gia tr] tai sin dye quan i sir dung Robo-advisors toan cu (ty USD)Payment Thanh todn Two groups of activites: Hai nhém host a6ng: The largest operating segment in the field of Fintech, Mang host ang lon nhit trong finh vye Fintech,Financial technology in the banking sector ‘= Finch companis eter he markt with ecologic advantages, promoting a '» ustes mals such as Sinancalecsytem, banking services Banking a seseice) Become more poplar, ‘The bank's process changes owargitzation, more stomaton; ' Digialdistibuion chanel are gradually replacing physial camels: 1» Commercial banks re lo sctely cooperating a well acguing itech ‘companies to improve ther techooogy capabilites. h vye ngan hang |= Che cng y Fee gn nh th ing vi nh oe vt mit cing me, ‘hoc dy cc nan hing ch eve cuyen di ab * Cie hn ki dua nr sink dhl chink, deh vy men hg {Banking-as--sevice)... nea ps bid bo; Quy trnh ea agi ing ty i theo rng a, ng hn aia hom: "= Cie kd pin phi ang din thay thé cho cic KE ve (> Cae ITM cing dang th ee pte eng nh mun ning egy Finch cli thign ning ip ong ght ca minhFigure &: Number of investment and M&A deals of banks in inh 8:86 thoong vy dhu tw, M&A cia ee nin hing Eg “Asia Pacific in Fintech 2017-2021, ‘chiu A ~"Thil Binh Ducng vio Fintech 2017-2021,Insurance Technology (InsurTech) Two main trends: The global insurtech market size reached USD 10.6 billion in 2021 and is expected to grow to $158.9 billion by 2030. Céng nghé bao hiém (InsurTech) Hal xu huréng chinh: ‘Quy mo th trong Insurtech toan cu dat 10,6 ty USD vio nam 2021 va du kin $6 tang len 158,9 ty USD vo nam 2030,inancial technology in the insurance sector * Insurers have focused on innovating insurance distribution channels towards digitalization > AXA tase Company (Geman prtenip wit Miso, > Inara compan eri USA) ovis ing erie Ra), wich lows ‘Collaborate with other partners to bring thelr products into the partner's ecosystem and technology platform through Application Programming Transactions (APIs: Céng nghé tai chinh trong linh vye bao hiém '= ic cng ty bio hiém a3 tp rung 41 mét kéah phn ph6t bio ido theo hing 6 ba: > Cog idm AXA (Dt hp Mie > Gee iim erik can dh yp han Ring 84 eis, Ra) [Jo ioe gy ts ep ps og hp v6t ede dit tic khde dé dura sin phim cia minh vito hf sinh thd nén ting cing nghé cia d6ité thdng qua Giao dich 1ip tinh dng dung (API) > ay mt eng on hg etd i) Oe 8g 55 ‘0S ane ron USD vm atBDAINAM Major stock exchanges such as New York (NYSE), Japan Cyne enone) Ecce 9 ic-trequency trading. The sizeof the algorithmic trading WA market is forecast to reach $43 billion by 2030. \i Oot a re SSR ee ene ty atest k estar} er eee cern} Peet ere) Peart eo OR Ps no meshtech situation in Vietnam "There are rapid developments in both quantity and diversity in products and services and investment attraction; ‘The number of Fintech startups in Vietnam increased quite ‘apidly, from about 40 companies at the end of 2016 to about 176 companies at the end of 2022. "Sharcholders in Vietnam actively invest in digital ‘transformation, especially commercial banks. re trang Fintech tai Vi¢t Nam "= Cé nhing buée phat trién nhanh ca vé s6 long, sy da dang ‘trong sin phim, dich vy va thu hist uu tu, *©S6 long céc Fintech startups tai Viet Nam ting kha nhanh, iodng 40 céng ty vio cubi nim 2016 lén dén khong 176 c6ng ty 6 thdi diém cudi nam 2022. ‘© Céic DCTC tai Viet Nam tich oye du tr cho chuyén di s6, ic bigt la cdc NHTM.Digital Ban! | ln Vieinam, the term digital banking is often used to describe digital Alstbution channels of vactonal commercial banks, while models such ‘3 comprefensive digital barking. banks becoming an exchange of banks acting asa service provider Rave no yet appeared Ngan hang sé tai Viét Nam_ '= Tal Vib Nom, that ng nan hing sb tsbna duge st dung ab mb th ‘cc kh phn phdl sb cla NHTM tuyén théng, cn cde md hinh nha gin hang sb ton dién, ngan hang tr han mot sin giao dich ay adn hang hog dong nur mt ana cung cp dich wu vin cha ust ignin late 2012. Up to now, some active crowdfinding websites are Funding v, Comicola.com and Betado.com. '= The peer-to-peer lending (P2P lending) model his also developed in Vietnam recently. According to SBV, Viemam currently has about 100 2P Lending companies such as Tima, Trust Circle, Loan, Lenéio, ‘Wocash,InerLoan ‘= P2P Lending companies have launched loan products on gute diverse ‘online platforms for both individual and business customers ‘= MO hinh equity crowd-funding (HDV cing dng) chinh hte xt i in du tien vio cu6i nim 2012. Bén nay, mot s6 website goi vn cng ng cbr hoatdbng a Funding vo, Comicolacom vi Betad.com. = M6 hinh cho vay ngang hing (crowd lending/P2P lending) cing 4 pit uién 6 Vigt Nam tong thoi gian gin dy. Theo NHNN, Vige Nam 1c Khong 100 cng ty P2P Lending nhw Tims, Trust Citele, Vay ‘muon, Lendmo, Wecash, Intel oan, "= Cie cing ty P2P Lending di dau cic sin phim vay vin win cde nin tng tgetuyén kM da dang cho cl Khich hing of adn va doanh nghip,Fintech asset management in Vietnam * Asset management applications: Money Lover, Spendee, MISA. Money Keeper «Stock investment applications: Inna, Finhay. Ae moa Eevee ker aed us * Robinhood, Betlerment, Charles Schwab... Fintech quan If ti sin tai Vigt Nam + Ung dung quan i ai san: Money Lover, Spendee, MISA Money Kooper. + ng dung ddu ty ching khosn: Inna, Finhay. DWM Ca ung Rue ae) Crem Uno Reese Manca * Robinhood, Betlerment, Charles Schwab...vvayme! SBV has granted licenses 1 48 enterprises providing intermediary payment services in Vietnam: Momo, Zalopay, Viestelpay, Moca, Vapay, Airpay, Napas. ‘= There are about 120 million e-wallets, and 3,300 billion VND tare maintained by people in e-walles for payment (by the end of september 2023), 100% of payment intermediary companies licensed by the SBV cooperate with banks. ‘= The government allowed a two-year tral for Mobile Money from March 2021 ‘> NHINW i clip aidy php cho 48 doanh nghigp host Ang cane ng dich w rung gan than toni Vig Nam: Momo, Zalopy, WMisiley, Mocs, Vopay, Aipay, Neon Céicoing 120 tiguv ign tr, va 3300 4 dng Gaye gud chy tr trong vii i 46 dan odin bt hing 9/2023), 100% cic cBng ty trang gian than toéa do NHN clip gy php du hap te wi cécngin hing "= Chinh phi cho phép thir nghifm 2 nim d6i véi Mobile MoneyBDAINAM no meshtal hnology applicatio cial banks san OY wae von sant 3 KIS) SESW 5 [aInsurance technology m. '> Te sae is smal compared to courses such as Singapore o Thailand, with gowh rates of 3040% per ea at the ame ata Indonesia nd ‘he Philippines ‘= losurtech Startups in Viemam soch as INSO, SaveMoney, MIIN, 7 Toa ons eee ar of anne companies vig "= Quy ms in mh so vi cde made nh Singapore hay Thi Lan, "= Cic Inurtech Startups ti Viet Nam nh INSO, SoveMoney, MII, uy mn, ca tay mdi in ogy bo hig; cong / eipcing ngsActivities related to digital assets, digital currencies ‘Digital currency exchanges (such as onus, bitcoinvn, timebit,fiahub...) = Blockchain platforms such as tomochain whose main _/ product is the digital currency tomocoin, ‘= Businesses that provide solutions based on blockchain technology, such as akaChain... te. Hoat dng lidn quan ti sim Kj thu§t 6, edn kf thug sb "Cac san giao dich tién ky thugt s6 (nhur onus, bitcoinvn, timebit, fiahub. ..) = Céc nén ting blockchain nhu tomochain vi sin _ phim chin ia tn ky thu sb tomocoin ‘© Ciic doanh nghigp cung cp céc giai php da trén ccéng ngh blockchain, vi dy nhu akaChain...v.v‘Fintech in the securities sector in Vietnam = Securities companies in Vietnam all provide software to support investors in trading, managing investment assets, inching ‘connecting with investment consulting reports; = Major securities compantes have applied digital technologles like: |» oplcaion Popanning nertice(AP) |= Clol Comping: $1 Boxed, HSC Goel Ptr) |» Arti ligne and mci ein: TCHS TCWeth; Sat Rabo VPS, IBrterby BSC; MBS Rabe Adio ee. ‘Fintech trong inh vye ching khoan tai Vigt Nam, = Clic cOng ty ching khodn tg Vigt Nam du cung edp pin mbm hd rg ni db gino 1 quan Iy tai sin dau tu, trong d6 6 ket mdi ‘Y6i cite bio edo tur vin dau tu; (Che CTCK tn 4 ng dng ce cng nah sb oe Shades me = im ih ng de "ion dn my (ld Comping 8 Ban), HSC (Goel Clo Pato) 1 Ting iy: TWh in TCS, Sat Rob in VPS Berstew ‘ip so Ronny ” |= Mamie Vina inplenens his; (21ND mininizes pperand ashes, oes Pf scons aly: (© IDV Metis ansix Meta Pol. Fintech trong inh vge bio hiém tai Vigt Nam [Ning DN bit hiém lin a dra ra mht si phim, deh vy mdi tr nda ting sé af ning cao ehit lugng phye vy khdch hing: ' Bi Viti ng hin ti ppg dungeon nt on dat ne ‘= Pens! Vig Non dn Pls by Prades - en dng chi se IS 1 tt ha nich A hen tn in PRL ‘= WD pi i i deh ney 9 nm cay 10% eo i ae en quncing en.‘management Figure 11: Approaches to Fintech management‘Vid din in: Trung Qube. ‘nnn king “Que ORD + Chinas ng Guocidmsod “Guleeialedin * Sule | isceiramm grein Sima sdaylunas Sema” “Rea Sa Bi aehmer"Test and Learn” approach: ‘The Philippines applies this approach with its mobile money service, ch tibp cfn “Thit nghifm va hge hai": Philipie do ura phvona sh nly vl dh w mob mony. oo PretFostering innovation ‘SESS neid bead sine Sst cca et tanga ccs oo, es The Senco acy ry O44 de ne ty (ad en, og ole ii > ce mn bn Vgc Ah ph gern Siig ies ret ee op arintech Management in > Watanase apo eloped eter nd nor fly, Wi he omni nth ecto, gl elton = /Nezréng he apeaton of ev wxoolepes in CCCs ea gl epson ae sow 1 rule, Weng 1 tft hu Vets CCP tlt t apply advanced choles ball expla ad share dat 1 Reeey Vena aul siting to 4 tetandarn approach ch a towing ANC, aking chores mews, oie mone). 5. Quan ly Clon p in hdtv quan sit. 1 Soy ye Sch te, ak ye anh tbs Mah ag php age phd law vy 8 Res ce nh ve ne i egy a pp i i wong a bi, hg hag cs = /Vbing tne sng btm ce DCT quy aah pp én guano ho ban nn, la dla vie ce BCT Vit Nam nh es og vie edn ekg ng gh id iy Sng, he chin a = Gla, Vie Nam dag Al chy eng yg ehh lp at agli vb Ig hi hho hip eK, oa hing hong in ia ile moe.lanl tpt ial bicr uns so le a Sead rae nieLTbie Seuimse Gla meeieeeaaeFor CCCs and Fintechs: 1 swwnsnthe mene oho frmion nd a ss: Trt nih fn sett ame be dt of El = mcinctycrm wih r pen n ne o o n "With universities, research institutes: > Patent n party pet > Trained denne an ree = Pate Fsnci on conmne ‘Véi cic BCTC va Fintech: f= CoAE oy chan vpn ingly a ng Se ce eh f= Tngcutng hp he gO che DCTE - Fateh - dna php cag ap -Dal = Tngeving nee gin og we an a thin in 6 yore ning om cit agen ey CNTY, ey 1 inp keke cd ng tego iy mah pcg ag eins lo dee no ih ng in oH he am ho =V6i truimg dai hoe, vign nghién ciru? > Thamla pb > Bio pit he Ftc > Tham i ei yin ne