Many experts believe that, although the demand for digital payment during the Covid-19 pandemic season in Vietnam increases sharply, it will be difficult to maintain after the pandemic.
According to a new study published by deVere Group, the Swiss Financial Services Group, when most sectors of the global economy are affected by the global recession, in Europe, the number of people using Fintech applications has increased by 72%. This is a positive signal for the Fintech industry in general and, broadly, we can see that the pandemic has created a digital and online-dependent society.
“The increase in the number of people using the Fintech application is part of the basic adaptation when people’s lives are socially isolated, people lock themselves in their homes,” deVere Group said.
James Green, deVere Group’s European Division manager explained: “The world has changed in the past few weeks, COVID-19 prevention measures have affected the way we interact, live, work and the personal finance sector”.
However, the 72 percent growth that the group announced is based only on Fintech application statistics of this business. But with the worldwide outbreak of COVID-19, this growth may also occur in other areas. For example, the Glint Pay gold purchase application saw a 718 percent increase in traffic last week.
Meanwhile, banking applications in Asia and the Middle East have also reported a sharp increase in the number of users, of which a bank in the Philippines has the online banking registrations doubled than normal.
“A new era has started when digitalisation and new technologies have driven a shift in user habits, as evidenced by the soaring demand for video calling platforms like Google Hangouts, Skype, FaceTime and Zoom as more and more people have to work remotely” said James Green.
Assessing opportunities for Fintech Vietnam enterprises in this period, Tran Viet Vinh, CEO of Fiin, said that this was an opportunity to create highlights for businesses operating in the field of payment and digital finance in Vietnam. “For shopping needs, people are trying to limit contact with the seller, the shipper, and restrict cash use. Therefore, electronic payment application will be a useful option, users will have the habit of using it more often”, Tran Viet Vinh said.
And to take advantage of this opportunity, according to Fiin CEO, businesses need to take this opportunity to stimulate people to pay electronically. “Enterprises need to apply appropriate communication promotion programmes to widely propagate to customers about their service identity,” added Fiin CEO.
The question is whether this digital transformation will be sustainable after the COVID-19 pandemic is over? The use of Fintech applications in many countries around the world still grew steadily in the years before the outbreak. In a 2019 UK Finance report, 72 percent of UK adults used online banking and 48 percent used mobile banking in 2018. In the US, people mostly use digital payment services, and spend more time indoors than outdoors, especially the Y-generation is increasingly dependent on digital technology.
It can be seen that the blockade, restricting travel of many countries around the world to prevent COVID-19, if it lasts in the next few months, it will probably create a habit of using digital payment in countries that have not developed this service before.
However, according to Tran Viet Vinh, it is difficult for the COVID-19 pandemic to become a leverage for people to shift strongly to electronic payments, especially in Vietnam market.
“For the time being, people may be in high demand for electronic payment tools, but to completely transform people’s behaviour from cash to electronic payments is a long way for e-payment and Fintech businesses. Although people have been aware of the benefits of e-payment, the habit of cash payment has become ingrained in people’s minds, so it is quite difficult to convert immediately to cashless payment, but it needs a gradual transition,” said Tran Viet Vinh.
