Assignment: Fintech Introduction Group 21: Trần Minh Phương _ Tô Thành

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VIETNAM NATIONAL UNIVERSITY Hanoi, December 2021
INTERNATIONAL SCHOOL Subject: Informatics

FINAL EXAM
Contribution: 50% - 50%
Group 21: Trần Minh Phương _ 21070168 & Tô Thành Công _ 21070880
Class: INT1004 - INT100409

INTRODUCTION
FINTECH
1. What is fintech?
 Definition: Fintech, the word, is a combination of "financial technology".
Financial technology (Fintech) is used to illustrate new tech that seeks to enhance and
automate the delivery and use of economic services. At its core, fintech is operated to
support companies, business owners and consumers better manage their financial
operations, processes, and lives by utilizing specialized software and algorithms that are
used on computers and, increasingly, smartphones.

FINANCIAL TECHNOLOGY FINTECH

 The origin of fintech: Early 21st century, when all development is associated
with information technology and the internet. All difficulties in terms of distance and
technology have been solved, and information technology has crept into each industry
and field around the world.
 Following the general development trend of society, finance - banking also chose
the direction of industrialization and modernization from the application of information
technology to the original business model before. A smarter operating system, more
diversified and optimized products are the results of this breakthrough. The 2008
economic crisis hit a difficult bottom when a series of startups were born, they sparked a
technological revolution in the financial sector, changing the entire previous "bulky
apparatus" of the bank, particularly and the financial market in general. And that
achievement has created a new term in the fintech industry.

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Assignment: Fintech Introduction Group 21: Trần Minh Phương _ Tô Thành
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2. Fintech's target groups

A traditional financial market will include two objects: financial institutions (banks,
investments, insurance, securities, financial companies, ...) and customers. For fintech,
the objects will include 3 parties, keeping the relationship of mutual influence:
à Fintech companies:
o These are independent companies, specializing in the field of information
technology, providing new products and services in the financial sector.
o Customers of Fintech companies can be end-users and also financial institutions.
à Financial institutions:
o This is an important entity in the financial industry.
o Institutions increasingly cooperate with fintech companies, realizing the
importance of technology.
o On the other hand, these institutions themselves also directly invest in fintech
companies or research activities, thereby actively holding new technologies and
dominating the market.
à Customers:
o The target audience here is the general user of financial products and services.
o With new technology applications, customers benefit the most from the
competition between financial institutions, companies, or the benefits that new
technology can bring.

3. Main product groups

Based on the target audience, products in fintech are divided into 2 different groups,
including:
à The first group: are consumer products, digital tools, and other technologies. The
aim is to improve the way individuals borrow, manage money and fund startups.
à The second group: are "back-office" technology products. This product group
supports the operation of financial institutions as well as the fintech themselves.
In fact, in addition to the usual services such as lending, money transfer, payment, etc.
Fintech also provides a wider range of services, such as:
 Peer to peer lending (P2P)  Data management
 Crowdfunding  Insurance technology (insurtech)
 Financial consulting (personal  Digital currency (crypto
finance) blockchain), etc

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Assignment: Fintech Introduction Group 21: Trần Minh Phương _ Tô Thành
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FINTECH VIETNAM STARTUP LIST

STT TYPES COMPANIES
1 Payments Momo, Moca, Viettel Pay, Zalo Pay, VNPay, …
2 Wealth Management Finhay, Money Lover, FE Credit, Mobivi, M-Pay,…
3 Digital Banking Yolo, Vired, TPBank, …
4 P2P Lending Finizi, TrustCircle, Mofin, Tima, Mosa, Interloan,…
5 Crowdfunding Betado, Fundstart, Comicola, Firststep,…
6 Data/Credit/Management Trusting Social, Fiin Group, My credit, PCB,…
7 SMEs Financing Dragon Lend, Eloan, Lendbiz,
8 Blockchain/Crypto Bitcoin Vietnam, Cash2vn, Vinex,…
9 Comparison Gobear, thebank, Fiahub, Utop, Bigbom,…
10 POS Ibox, sapo, ocha, KiotViet,…
11 Insurtech Paypaya, Opes, Wicare,…

Distribution of Fintech companies in

Vietnam in 2018
2% 8%
4%
7% 6%
1%

31%
38%

3%

Personal finance Insurtech Payment POS Lending

Accouting Comparison Crowdfunding Cryptocurrency

4. Fintech Users
For fintech, there are four broad categories of users:
 B2B for banks,
 Their business clients,

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Assignment: Fintech Introduction Group 21: Trần Minh Phương _ Tô Thành
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 B2C for small businesses,

 Consumers.
 Trends in the direction of cellular banking, extended information, data, and extra
accurate analytics, and decentralization of getting admission to will create possibilities
for all four businesses to engage in heretofore extraordinary ways.
 As for clients, as with most technology, the younger you're the more likely it is
going to be which you are privy to and might appropriately describe what fintech is.
 When it turns businesses, earlier than the appearance and adoption of fintech, a
commercial enterprise proprietor or startup could have long gone to a financial
institution to steady financing or startup capital.

5. Fintech's impact on the financial industry

 Changing distribution channels and traditional financial products and
services:
The biggest impact is on the banking services industry. We can clearly see through the
growing trend in recent years of social networks, digital banking, mobile banking, tablet
banking, sales channels via the internet, etc.
 “Paperless” financial institutions and banks:
The fact that this trend becomes widespread will also become a big challenge for
traditional financial services industries in gradually reducing the role of branches. At the
same time, modern financial technology competition will also become more intense in
financial institutions.
 Support high-tech applications:
Big Data will help analyze customer behavior, help financial institutions collect external
and internal data. This is to reduce costs, support decision-making, and improve service
quality and customer satisfaction.
 The market share of banks tends to decrease, giving way to fintech
companies:
The most obvious is the fact that banks are complete outsiders in the Bitcoin virtual
currency service - a new currency system that is growing in scale on a global scale.
 The labor market in the financial-banking sector has changed:
Technology is expected to replace a large number of employees from financial
institutions, insurance, securities companies and banks, etc. Instead, there is a need for

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Assignment: Fintech Introduction Group 21: Trần Minh Phương _ Tô Thành
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high-quality human resources (good in both information technology and financial
expertise) are focused.

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