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Workshop stresses need for more fintech services for SMEs

A workshop held in Hanoi on June 16 underlined the need for financial technology (fintech) services for the development of small- and medium-sized enterprises (SMEs).

The event took place within the framework of Finnovation, the first national and biggest contest on fintech startup and innovation for students.

Bui Huy Nhuong, Vice Rector of the National Economics University, said over the last five years, fintech has become an inevitable trend in Vietnam’s financial sector. It began with the establishment of fintech startups, traditional financial institutions’ provision of digital financial services, and technology companies’ entry into the area of financial services.

The fintech ecosystem in Vietnam is developing fast and expected to record 200 companies in 2022. Fintech businesses, traditional credit institutions, and tech firms have created a market of innovative financial services serving the development of a digital economy, he went on.

However, he noted, fintech companies in the country are focusing on payment services. Their financial products and services for SMEs haven’t taken shape in a systematic manner while SMEs always need more accessible, low-cost, and diverse financial services.

Therefore, fintech startups, traditional financial institutions, and tech firms should work out orientations for filling the “vacuum” of innovative financial services for SMEs, Nhuong added.

Participants discussed innovative digital financial services for promising enterprises in Vietnam; the evolution of financial services for SMEs; opportunities and challenges in the creation of an environment for fintech businesses and relevant parties to provide innovative financial services in particular, and digital financial services in general, for SMEs; and other fintech-related issues.

Finnovation is a regular contest organised by the Ministry of Science and Technology, the Vietnamese Students Development Support Centre, and the youth union chapters at the Vietnam National Universities in Hanoi and Ho Chi Minh City./.