FINTECH – THE TREND OF DEVELOPMENT FINANCIAL AND BANKING IN THE ERA 4.0

14/01/2020, 15:32 PM

Previously, Fintech was predicted that "the future of Fintech will be the future of finance", with many benefits that Fintech delivers, it's not difficult to realize that this prediction is getting true in recent times.

Fintech Overview

What is Fintech?

Financial technology (Fintech) is a term that is applied in combining finance and technology to form innovative solutions in financial services. Initially, the term refers to the technology applied to support the operation of commercial and Consumer financial regulations. Today, the explanation of Fintech has expanded to include any technological innovations in the financial sector, including innovation in financial education and training, retail banking, investment, or operational innovation, and Fintech's expression has also Synonyms of the emerging financial services sector in the 21st century.

Fintech products are divided into two groups:

  • Group 1: Consumer Services products, other digital and industrial tools to improve the way individuals borrow, money management, funding for startups.
  • Group 2: technology products "back-office" to support the operation of Fintech and financial Regulations.

Detailed concepts for the Fintech sector in Vietnam

  1. Mobile payment

Mobile payment – M-Payment is a modern payment service based on the Wireless telecommunication technology platform of the mobile phone network.

This service allows customers to use the payment transactions, transfer money through mobile devices such as mobile phones, tablets or other personal mobile devices wherever they do , whenever quickly without having to pass traditional payment channels through the bank such as cash, cheque or card.

This is also one of the modern service channels with the abilityto interact and react fast, there are many gadgets that are actively developed by the banks in the context oftoday's competitive scene.

  1. Crowdfunding

Crowdfunding is a form of call for community support to help a project owner or an idea to complete their projects or products when they have an idea but don't have the money to carry out their projects.

  1. Blockchain

Blockchain is a technology that enables the transmission of data securely based on the incredibly complex encoding system, similar to the accounting ledger of a company, where cash is strictly monitored. In this case the Blockchain is an active accounting ledger in the digital sphere.

  1. Personal finances Management

Personal finance is the financial management that each individual performs to budgeting, saving and spending cash sources over time, taking into account financial risks and future events.

When planning personal finances, individuals will consider the suitability of their needs for a wide range of banking products (savings accounts, credit cards and consumer loans) or personal investments (stock market, bonds, mutual funds) and insurance (life insurance, health insurance, accident insurance) or participating in and supervising retirement plans, social security grants and other , and income tax management.

  1. Money transfer field

Often combined with the service intermediate bar toAsiaN. Money transfer often has the element of water, transfer money from  overseas  to Vietnam and vice versa.

  1. Lending

 Peer lending (pEER To  Peer Leading) is the form of personal and business loans through online services that connect borrowers and  lenders.

Since companies that offer peer-to-side lending services often trade online, they can operate at a low cost, thereby providing services at a lower cost than credit institutions.

  1. POS Management

POS is the abbreviated term of Point of Sale, which means the point of sale, or counter-counters, sales counters.

POS management systems include:

  • Selling software;
  • Updates on the number of goods exported, imported, existed at all times, as well as tracking the situation of revenues and debts for each customer;
  • Sales devices; and
  • Barcode readers serve Sales code scanning; The bill printer connects software,tablets.
  1. Data management

Manage data sources related to a field that analyzes a specific audience's assessment.

For example, Trusting Social Co., LTD uses Credit technology Scoring 3.0-an assessment of the personal credit risk through the use of big data data, telecommunication data, and other new data sources.

  1. Compare data

Use data sources in a field to provide customers with different options to pick out the most suitable product.

For example, Bankgo-Compare and search for the best and most suitable banking solution; GoBear-A service to compare insurance products, credit cards and mortgage loans from many different vendors.

The activities of foreign investors in fintech field in Vietnam

  1. Payment Intermediate Service

As of the present time, there have been no specialized legal documents specifically specified on the conditions of foreign investors investing in the payment of intermediate services. However, according to the draft proposal to build the government decree on payment of non-cash, the Department of Planning and Investment of Hanoi and Ho Chi Minh City has approved the proposal of several organizations providing services for intermediate payment transfer Concessions to foreign investors with different proportions, mainly based on the proposal of these units. The foreign investor's investment in the field of payment service intermediate is only recognized in the form of stock transfer from the domestic company without information on the new establishment.

  1. Other services in the Fintech field

Fintech companies are operating in other fields except for intermediate payment services including fundraisingfunding, blockchain, personal finance management, money transfer, lending, POS management, data management, comparative information can be invested by foreign investors because the trades are usually registered for these services including: computer programming (6201); Computer Counseling and computer systems Administration (6202); Service and other service-related information technology activities (6209); Management consulting Activities (7020); Portal (6312); Data processing, lease and related activities (6311); The financial services support activity is not yet allocated (6619). These are the trades that have been specifically regulated by law on the requirements of foreign investors in accordance with the commitment to Vietnam's services in the WTO.

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