Are fintech companies inviting banks over for lunch?

The Vietnam E-Payment Forum used to be a playground for local Vietnamese banks to showcase their business. This year’s forum is different, as it was about fintech.

Payment solution is just a part of the comprehensive financial service industry, but it is the strongest fintech segment in Vietnam, taking up nearly two-thirds of all fintech companies in the country.

More fintech news and reports can be found at this page.

In addition to the overviews of fintech in the world, and in Vietnam particularly, by international and local experts in the below video, here are some key takeaways from the Vietnam E-Payment Forum’s fintech session:

How banks see fintech

Banks have flattered fintech startups by saying that technology firms could be their right-hand man and that there could be potential partnership for banks to leverage their services and for startups to tap into the sizable customer base.

At the same time, they also affirm their centered role in providing financial services to any part of the economy. “Banks have an unbeatable advantage of a wide network and huge customer base, considering the cash-driven economy of the country,” they said.

Banks do not think fintech companies are changing financial institutions. They see the reverse. They see how the partnership between banks and fintech firms can transform the smaller players in the financial sector through leveraging their established brands and business.

How fintech companies see fintech

Meanwhile, fintech businesses here are being motivated by the foreseeing of tech moguls from the Silicon Valley:

“Banking is necessary, banks are not” – Bill Gates

“Silicon Valley is coming. They all want to eat our lunch” – Jamie Dimon, JP Morgan

They think banks are like the waning telephones, which are being replaced by smartphones, a simile for fintech.

telephone vs smartphone

Technology has changed the way we live. Public phone booths are no longer available in Vietnam, and on average, each Vietnamese owns almost two handheld devices.

Both sides have their own reasoning for the key role in today’s financial service industry. But they do share the same view with neutral minds that partnership between banks and fintech companies is an unstoppable trend.

See more in this video. Subtitle is available for the addressing of Tran Huu Duc, head of FPT Ventures and a key stakeholder of the Vietnam Fintech Club.

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