OVERVIEW OF FINANCIAL INCLUSION AND

SUSTAINABLE FINANCE

01

Financial inclusion means that individuals and businesses

have access to useful and affordable financial products

and services that meet their needs – transactions,

payments, savings, credit and insurance – delivered in a

responsible and sustainable way. (WorldBank)

Sustainable finance refers to any form of

financial service integrating environmental,

social and governance (ESG) criteria into

the business or investment decisions for the

lasting benefit of both clients and society

at large. (WorldBank)

Financial inclusion & Sustainable finance Definition

Manage personal finance

Increase in savings

Payment, money transfer safe

and convenient

Credit access

Be proactive in spending and

investment plans

Corporate finance management

Payment, money transfer safe

and convenient

Access to credit, serving

production and investment

Expanding markets,

universalizing services

Diversify the structure,

customer segment

Diversify services

Risk reduction

Individual Economic organizations Financial Institutions

Increase wealth & stabilize lifeIncrease profits & grow

businesses

Increase profits, reduce risks,

develop sustainably

Role of Financial inclusion & Sustainable finance

(Source: World Bank)

Role of Fintech in Promoting Financial inclusion

Access to financial services through

electronic channels

Supplement financial services on the

digital platform

Reduce costs - both supply and

demand side

Overcoming risks, losses and

theft (in cash transactions)

FINANCIAL

INCLUSION FINTECH

(Source: World Bank)

FINANCIAL INCLUSION STATUS IN VIETNAM02

The level access to financial services by adult

79%83%

86%83%

49%

39%

30%

78%81%

52%

79%

47%

27%25%

CHINA THAILAN MALAYSIA INDIA INDONESIA PHILIPPINES VIETNAM

Adult with account in rural/urban in 2017

All country Rural

(Source: Global Findex Database – World Bank, 2017)

The level of access basic financial services – saving & credit

CountriesSaved at a financial

institution (% age 15+)

Borrowed from a

financial institution (%

age 15+)

China35% 9%

Thailand39% 15%

Myanmar8% 19%

Indonesia22% 17%

India20% 7%

Philippines12% 10%

Vietnam8% 16%

World27% 11%

Adults with savings accounts in Vietnam is 8%, low compared to 27% in the world

16% of adults have access to credit in Vietnam, higher than the world average

Vietnamese have higher credit needs than savings.

(Source: Global Findex Database – World Bank, 2017)

Non-cash Payment

36%

38%

66%

68%

72%

77%

84%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

CHINA

SINGAPORE

THAILAND

MYANMAR

INDONESIA

PHILIPINES

VIETNAM

China Singapore Thailand Myanmar Indonesia Philipines Vietnam

36% 38% 66% 68% 72% 77% 84%

Cash usage in consumer payment remain quite high at 84% in Vietnam. compared to 73% in the ASEAN-6

(Source: Worldpay, Credit Suisse research)

Payment Infrastructure

46

40

30

1716

11

4 3 2,5 2

Singapore Australia UK China Myanmar Thailand India Vietnam Philippines Indonesia

POS terminals per thousand people

(Source: BIS Data, State Bank of Vietnam, Credit Suisse estimates)

Payment

infrastructure (POS /

1000 people) is quite

modest compared to

other countries in the

region

Reason: high

transaction costs,

people still lack

confidence in

electronic payment

are the reasons

Vietnam in Fintech in Financial inclusion & Sustainable finance

Access to financial services unequally; between

population groups and economic organizations

The level access to basic services

lower than countries in Asia

Cash usage in consumer payment remain quite high at

84% in Vietnam. compared to 73% in the ASEAN-6

Payment infrastructure is being grown

High unbank, especially in rural

Role of Fintech in Financial inclusion & Sustainable finance in Vietnam

No. Group Quantity Rate Example

1 Payments 35 29% ViettelPay, MOMO, ZaloPay

2 P2P lending 23 19% Tima, DoctorDong

3 Wealth Management 9 8% MoneyLover

4 Comparision 6 5% Gobear, Thebank

5 Data/Credit Scoring 6 5% Trusting Social

6 SMEs Finance 3 3% Lendbiz

7 Insurtech 4 3% Inso

8 POS 10 8% bePOS

9 Blockchain 17 14% Cash2vn

10 Crowfunding 6 5% Betado

Fintech Vietnam Map 2019

Source: fintechnews.sg

Fintech Vietnam Map 2019

Source: fintechnews.sg

2Fintech is one of the leading signals of success for the 4.0

revolution, bringing comprehensive technology development

especially in the field of information technology.

3Fintech will be an extended arm of banks to reach who have

not traditional bank account or not accessed traditional

services (unbanked).

Role of Fintech in Financial inclusion & Sustainable finance in Vietnam

1Fintech creates new business models that change distribution

channels and traditional financial services: digital banking,

Internet banking, Mobile banking, QR code, Mobile wallets, ...

VIETTELPAY ECOSYSTEM PROMOTING FINANCIAL

INCLUSION & SUSTAINABLE FINANCE03

Overview of VDS

Viettel Digital Services Corporation (VDS) is the 8th member corporation of Viettel Group; has launched in June, 2019

Mission: VDS aims to create a foundation for the digital transformation process, implementing Viettel's development strategy in a new period -the stage of digital society creation.

Vision: VDS will provide finance services to all Vietnamese only with a phone, especially in rural – who have not access to finance services.

Overview of VDS Services:

DIGITAL SERVICES

FINANCE PLATFORM

DIGITAL COMMERCE

KYC

TECHNOLOGY

DIGITAL

BANKING

BIG DATA

CREDIT

SCORING

PAYMENT &

TRANSFER

TECHNOLOGY

SECURITY

TECHNOLOGY

Cover up to 95% Country

User friendly charge policy 200.000 AGENTS

Both Smartphone

and feature phone

Advantage of VDS in promoting Fintech Inclusion

VIETTEL DIGITAL VIETTEL POST VIETTEL SOLUTION

VIETTEL TELECOM VIETTEL GLOBAL VIETTEL NET

Advantage of VDS in promoting Fintech Inclusion

With more than 70 millions Viettel

Subscribers, VDS is building community

about payment, transfer money

Mobile Money will help everyone

access to finance services

Biggest Customer Care Program

Viettel ++

Vietnamese will access to Finance

services everywhere that Viettel

touch VDS in Viettel Ecosystem

Easy and Simple to use

Viettel Cyber Security provide Safety protection

Need EASY SAVE TIME

Advantage of VDS in promoting Fintech Inclusion

Transfer Money

Telco services

Payment

Shopping, travel

Collection services

Others

Diversity ViettelPay Ecosystem

VDS promoting Fintech Inclusion

INFOG

RAPHI

C

VDS contributes to enhancing people's access

to financial services; symbiosis with banks,

financial institutions, startups promoting and

developing together.

VDS provides friendly solutions, platforms and

services to all people.

VDS's solutions provide solution to integrate and

access to traditional banking products and

services; as well as innovative start-up products

in the financial ecosystem

Thank You