Financial transactions are done up to recently mostly through the intermediary of financial institutions (banks, insurance companies, stock brokers).
Even in countries where there are stringent regulations on antitrust and customer protection, with the key instruments at their control (ie. rules of the game’s setting, funding with central bank, risk management…) , the financial institutions keep the upper hand in the relationship with customers.
Such a situation may not last longer now with the larger use of internet and smartphones and the development of financial technology (“FinTech”) using software. Effectively, an increasing number of financial services are now open to new players either:
- as part of the financial service process (eg. advisory on best offers, use of big data analytics and predictive modeling)
- as new financial service provider (Peer-to-peer lending & investments, crowdfunding, private insurance…)
Such new services which can be quite similar across national borders and so can be sold internationally. The most successful and popular are the ones that are the more disrupting, the most simple to process, the lower cost thanks to to the suppression of traditional intermediaries. FinTech services are however still today in the early stage in most countries. There is thus a window of opportunities that is open for any country willing to take part and build its own position in the global financial services market. This will also contribute to make the financial services industry more competitive and so with easier credit access and lower costs particularly for the SMEs.
Like Singapore, Malaysia , Thailand in the region, Vietnam should push and accelerate its development of FinTech industry and the corresponding ecosystems (regulations, customer protection, intellectual property, startup funding, incubators), leveraging particularly on the country’s strong position on information technology and the population’s high entrepreneurial motivation and the now Asean important market.
ATTP Capital is ready to accompany your business in this FinTech development either through our involvement during the startup process or direct investment in your capital funding.