[FinTech Magazine] July Edition 2021

FINTECH MAGAZINE ISSUE NO. 1 FEATURES

JULY EDITITON

RMIT FINTECH CLUB

HOT NEWS

INTERVIEW

FinTech Landscape & InsurTech

FinTech Club - Best Academic Club S1/ 2021

Discover the FinTech landscape & InsurTech trend

Find out how FinTech members contribute to this title

CONTENTS 03 ABOUT FINTECH LANDSCAPE FinTech is growing around the globe and taking the storm in the AsiaPacific region, including Vietnam.

08 HOW MUCH DO YOU KNOW ABOUT INSURTECH? The emergence of Financial Technology is reshaping the insurance industry in Vietnam.

14 FINTECH CLUB - BEST ACADEMIC CLUB OF S1/2021 Let's discover what FinTech club has done and is doing

FinTech is growing around the globe and taking the storm in the Asia-Pacific region, including Vietnam. Between 2016 and 2017 alone, the Asia-Pacific region experienced US$15 billion investments in FinTech industries.

Currently, Vietnam has 67 FinTech companies with the market size of US$4.4 billion in 2017 and is estimated to hit US$7.8 billion by 2020

A surge in foreign investments and strong government

support

have

fueled

the

fintech ecosystem in Vietnam in recent years. As a result, the nation’s digital economy is on the rise – making it one of the fastest-growing economies in ASEAN regions. In 2017, the country’s economy achieved a 6.8% GDP increase, surpassing the government’s target of 6.7%.

The FinTech opportunity in Vietnam is obvious and many companies in the country are getting in on it. Numerous

67 FINTECH COMPANIES

companies

in

partnering

up

companies.

Vietnam with

also

bustling

start digital

FINTECH VIETNAM Over 66% of Vietnamese FinTech

The rise of digital payment FinTech

companies are involved in digital

companies can be seen when the

payment

online

State Bank of Vietnam (SBV) issued

payment apps, and they have

licenses to 27 intermediary payment

taken over 87% of the FinTech

service providers, of which most of

market share.

them are e-wallet service providers.

services

via

E-WALLET IN VIETNAM Momo, Moca and ZaloPay are rated as the 3 most commonly used e-wallets in 2 main cities of Vietnam, these 3 wallets account for 90% of the market share of ewallet users. Users of e-wallets often top up phones, transfer money, pay recurring bills, pay food

delivery

services

and

technology car reservations.

Dr. Pham Nguyen Anh Huy - RMIT University Vietnam "Momo is one of the oldest players with a huge customer base (which recently topped 20 million) while Moca and ZaloPay are taking advantage of their ecosystems. The stiff competition leaves only a small space for newcomers, who may have to resort to competing via discounts and burn lots of money in the process."

Dr. Nguyen Thanh Binh - RMIT University Vietnam

"At the moment, each e-wallet is trying to offer some exclusive products and services. Momo is active in payment services for grocery and convenience stores. ZaloPay, which is built on top of Vietnam’s most popular messenger app Zalo, offers lucrative cashback deals for mobile top-ups. Meanwhile, Moca’s reach has grown upon the two basic services on Grab’s platform – ride-hailing and food delivery."

WHICH MAKES E-WALLET POPULAR?

Do you know?

"The

Payment

Card

Industry

Data

Security Standard (PCI DSS) is a set of

.

International security certificate

security standards formed in 2004 by

PCI DSS (Payment Card Industry

Visa, MasterCard, Discover Financial

Data Security Standard) by PCI

Services,

Security Standards Council

American Express. Governed by the

Modern and professional: You just

Payment

Card

need to use your smartphone to

Standards

Council

pay

compliance scheme aims to secure

Amazing security features: Two

credit and debit card transactions

factor authentication, fingerprint

against data theft and fraud."

or facial recognition, tokenization

PCI compliance is divided into four

Fast & Convenience: Many services

levels, based on the annual number of

are linked to the e-wallets such as

credit or debit card transactions a

paying bills, tickets, insurances...

business processes. The classification

for users to easily pay in one touch

level determines what an enterprise

JCB

International Industry (PCI

and

Security SSC),

needs to do to remain compliant.

the

INSURTECH IN VIETNAM

The

Financial

“InsurTech”

(Insurance

Technology) made its introduction to the public around 2010 and was recognized as an offshoot similar to FinTech. InsurTech is a sub-segment of FinTech that is promised to put

The emergence of

term

an

end

to

the

iteration

of

the

conventional insurance model and have the legacy systems replaced. To elaborate more, cost savings and efficiencies are goals to

be

attained

under

the

application

of

Technology is

InsurTech. Thus, whether incumbents can

reshaping the

inexorable march of technology-oriented

insurance industry in Vietnam.

follow suit or not amidst this seemingly start-ups will determine their market share in the next generation of the insurance industry.

CUSTOMER PAIN POINT Embodying

customer-centricity,

Low market InsurTech

addresses urgent customer pain points such as lack of transparency that leads to distrust or decelerating

efficiency

caused

by

time-

consuming information validation processes or pen-and-paper documentation. As humans are susceptible to making errors while the conventional

insurance

model

requires

consistent communication with the insurance agents, changes ought to be made.

Moreover, demand for seamless, anytimeanywhere service has grown by time, requiring a reconciliation with enormous datasets and managing tools.

penetration, low levels of customer satisfaction, poor adaptation to social, economic or regulatory changes of conventional insurance are also reasons why InsurTech was built.

Geektime Insurance Tech Report (2017)

INSURTECH AROUND THE GLOBE In

2016

alone,

over

30%

of

global

insurance customers have either utilized InsurTech exclusively

I33.9% of total investment for InsurTech

During

occupying in the year of 2019

period, InsurTech not only

Between 2014 and 2016, the global insurance industry

countries such as Canada,

had witnessed investments for InsurTech surpassing 5

United States, Germany, UK,

billion USD. In 2016 alone, over 30% of global insurance

France, for instance, but also

customers have either utilized InsurTech exclusively or

in emerging countries like

combined

their

China or India. This trend

insurance needs fulfilled. Not to mention, 33.9% of total

has certainly set a high bar

investment for InsurTech occupying in the year of 2019

for Vietnam to be in tune

signifies high hopes investors hold for this innovation

with the global market.

with

incumbent

firms

thrived

to

have

and 2025 is expected to witness up to 10.14 billion USD in revenue acquired from InsurTech.

this in

auspicious developed

INSURTECH IN VIETNAM PTI is one of the leading insurance companies

in

Vietnam

that

has

cooperated with start-ups and established multiple products on digital platforms (i.e.,PTI

mobile

insurance)

in

app

order

to

for

motorbike

adapt

to

this

accelerating global trend. Mrs. Yen Hoang, CEO of PTI, identified InsurTech in Vietnam as yet to have many breakthroughs since businesses were still setting the foundation for long-term growth and currently in the product

testing

phase

to

constitute

competitive edges.

So far, noteworthy InsurTech startups in Vietnam are Papaya, Inso, Miin, Opes,

SaveMoney;

partnership

with

all

are

in

well-established

enterprises, many of which are giant insurance companies or banks on this changing terrain

HOW INNOVATIVE IS INSURTECH ?

Geektime InsurTech Report 2017, p.11

In short, InsurTech encapsulates an ecosystem supporting many aspects in the insurance field, from marketing to logistics, risk management, product creation, price determination, and customer service. “Cutting the middleman” (Geektime InsurTech Report 2017, p.23), meaning requiring less involvement of the insurance agents, stacks up as immediacy is enhanced thanks to InsurTech. To illustrate, chatbots and AI can facilitate insurance-purchasing stages from inquiries to sales

instead of having an insurer conducting all the work. In addition, InsurTech helps to improve complaints-responding or claims-solving speed such as Manulife with Easy Claims, Generali with Gen Claims, etc.

With digital evolutions, InsurTech will offer

not

only

transactions whether

it

administration,

B2C

but

various be

also

possibilities,

improved fewer

B2B

internal insurance

conditions, lower costs, and many more.

OBSTACLES As

Vietnam

is

on

the

threshold of fully emerging into

this

each

booming

individual

trend, should

prepare themselves with a decent this

knowledge

field

to

insurtech-infused possible.

about

make

an

future

However, every innovation comes with challenges.

Cybersecurity is inevitably one of the most concerning risks of this digitalization turning point. Additionally, high investment costs will put the

pressure

manpower

on

capital

shortage

is

recovery

also

a

whereas

considerable

impediment. In Vietnam, consumers are not accustomed to purchasing insurance; hence, creating a habit of conducting online insurance transactions for consumers will be challenging.

InsurTech

is

embarking

upon

a

quest

for

efficiency and cost minimization benefiting both consumers and businesses. This is definitely an interesting playground for start-up aspirants, tech nerds, business minds, or whoever is passionate about bettering the insurance system with the application of FinTech.

FINTECH CLUB HAD VARIOUS IMPRESSIVE CLUB EVENTS IN SEMESTER 1 OF 2021 AND ACHIEVED

“BEST ACADEMIC CLUB S1/2021” AWARD.

LET’S FIND OUT MORE ABOUT THEM THROUGH THE ORGANIZING TEAMS AND PARTICIPANTS.

CLUB EVENT CafeFin: CafeFin is the weekly news series by FinTech Club with the purpose of delivering the hottest and most exciting news on finance and technology, every Sunday morning at 10AM. Do you have any difficulties in finding the source of financial information?

Tran Ngoc Hoai Truc (MKT Department):

I think it depends on which subjects of financial information, but mostly the information's too broad.

Le Vy (MKT Department):

Actually, it's not difficult to find the source of financial information because this topic is wellknown and can easily be found on the Internet. The difficulty is that sometimes I have to check the credibility of the source and find easy ways to express it to the readers.

PAGE 3 | COLLABORATIVE PROJECT

THE COLLABORATIVE PROJECT is an internal projectbased activity for teams consisting of Technology and Business students to create FinTech products with a solid research background and prototype.

VIEW FROM INSIDERS " How do you balance the amount of time spent on club projects and assignments when both of them are very near a deadline? " HUYNH NGUYEN BAO TRAN (ORGANIZING TEAM) To be honest, I don't have any issues with work-life balance or time management.

I generally concentrate on planning and creating a timetable to ensure that everything is in order.

NGUYEN THANH THIEN (PARTICIPATING TEAM 3):

NGUYEN TIEN THANH (PARTICIPATING TEAM 1)

Hmmm, you might want to prioritize your class assignment rather than the club's tasks. However, there is an essential note which is trying to focus on doing only 1 task then to another.

1. List out tasks 2. Rank their priority 3. Estimate the amount of time spent for each task 4. Organize the tasks on scheduling application 5. Back to step 1 or 2 if necessary

"TELL ME ONE OF THE MOST MEMORABLE MOMENTS WHEN YOU WORK WITH YOUR TEAM?" NGUYEN THANH TUAN (TEAM 2):

For me, the most memorable moment of the Collaborative Project was our group's 1st meeting with our lovely mentor, Mr. Wong. The environment of the coffee shop, the synergy between our mentor and the group, the meaningful talk, and many other great feelings brought us together as a whole. And, that was what made it special.

TRAN LUONG KHANH GIAO (TEAM 4) It would be the moment when the 2 tech members of our team dropped out since we wanted to create a real product which requires lots of technological knowledge.

One person outside RMIT had accepted to join our team, but later on he couldn’t continue. We had lots of fun and new ideas for this app though, but most of the time our feelings could be wrapped up in one word, confused.

INTERNAL TRAINING Internal Training Series that include three events: Communication Etiquette, Data Analysis with Python and MySQL, and Personal Finance improve knowledge and soft skills for club members.

"HOW DOES YOUR ORGANIZING TEAM EFFICIENTLY ATTRACT THE CLUB MEMBERS TO PARTICIPATE IN YOUR EVENT?"

CAO THI PHUONG HUYEN (COMMUNICATION ETIQUETTE):

By practical training content and proper channels to approach FTC members.

CHUNG QUAN TIN (DATA ANALYSIS):

We attract club members to join our workshop by offering them the knowledge and foreshadowing rewards.

NGUYEN LE BAO NGUYEN (PERSONAL FINANCE):

We find out the most useful knowledge based on the update information and members’ ideas.

HONORING THE QUIET CONTRIBUTION In order to organize and achieve those events and awards, all of the FinTech members worked hard and collaborated with each other well, and there are also outstanding individuals who have worked and contributed silently for the club.

To be more specific, The Marketing department and the Executive Board worked together to build up plans to accurately and truthfully convey the club’s goals, mission and image to RMIT’s students and other universities via club’s fanpage, Club Day, webinar sessions, collaborative projects with the school, and etc.

A considerable amount of work has been a millstone around the neck of a handful of Marketing department members, and luckily they did receive the support of the remaining dept in the club including HR, Business and Tech.

BIRTHDAYS Do Phuong Anh (Marketing Department)

12/7/1999 Happy birthday and thank Phuong Anh so much for guiding our young Marketing Department and creating such an energetic environment. We’re out of sight but definitely not out of mind.

Nguyen Dang Lam Phuong (Technology Department)

25/7/2001 Thank you so much for your significant contributions to Technology Department as well as FinTech Club. I hope you happily enjoy your birthday with your family and friends. Happy birthday to our talented member, Lam Phuong.

Vuong Anh Chien (Business Department) 5/7/2001 Happy birthday to our enthusiastic Head of Business. Anh Chien has successfully lead Business Department with valuable assistance in many events. All the best on your special day!

BEST WISHES FROM FINTECH MAGAZINE TEAM

BONDING TIME When hearing about FinTech Club, the majority of students might think about a pure academic club and that’s true, but the club also has a lot of interesting bonding activities and end-semester parties. In S1-2021 or previous semesters, the HR Department organized various bonding activities for the club. Unfortunately, we study online in S2-2021, but we still have bonding by joining our club’s Discord. Many club members hope that we can have a long-day trip to visit beautiful landscapes and enjoy happy hours together.

Bonding

Creating

connections

departments

member

in

every

HR

has

is

hard

their

meeting

department

exciting

a

and

is

between

question

members

to

own

timetable,

an

unavoidable

will

try

to

fascinating

be

the

bonding

solved.

lack

thing.

gather

from

of

activities

members.

Because

some

But

everyone

different

stay

and

for

members

tuned,

host

all

each

the

some

FinTech

JULY

MAGAZINE

TEAM

Thank YOU

Vuong Anh Chien Project Leader

Tran Luong Khanh Giao Topic Researcher

Nguyen Thanh Thien Club Researcher

Tran Dang Bao Nhi Editor

Huynh Phuong Vy Project Leader

Nguyen Dang Nhat Topic Researcher

Nguyen Le Bao Nguyen Club Researcher

Pham Phuong Ha Editor