Vietnam’s consumer finance loans, VietNamNet Bridge increased 1.5 times in 2015, according to the Vietnam Consumer Finance Report.

StoxPlus’ announcement of the Vietnam Consumer Finance Report (VCFR) shows that the market of Vietnam is continuing to witness the highest growth in more than five years. Soaring to a total of $15.12 billion at the end of last year, a growth of close to 42 per cent was recorded, with the report showing that the competitive market is being driven by the transition from borrowing behaviour of customers from borrowing from friends and family, to formal borrowing within the finance market.

StoxPlus reports that an increasing number of organisations also face challenges from the companies that apply advanced technology in the fintech sector. While fintech currently only offers payment software and lending activities, the report details it as a fast-growing threat to consumer finance companies across Vietnam.

Even with many companies still relying on point-of-sales, the mobile channel is a strong potential market in Vietman, with 128 million mobile phones accounts registered, nearly half of which are smart phone accounts.

The VCFR states that the dominant benefit of fintech to Vietnam is the ability to leverage technology in order to revolutionise sales channels and customer relations, essentially providing more convenience, accessibility and customisation for users.