FinFan’s co-founders share key trends sharping the future of financial services in emerging markets

Financial technology or fintech - a term that is no longer unfamiliar in our lives - represents a unique combination of financial services and information technology.

The proliferation of smartphones has ushered in a wave of innovative financial services on a global scale. For emerging markets, particularly in the East-Asia Pacific region, including the dynamic landscape of Southeast Asia, this represents a unique opportunity to position themselves at the forefront of evolving trends and showcase their immense potential to the world.

As major industry players begin to take notice and set their sights on these markets, the stage is set for emerging economies to seize this momentous opportunity.

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Today, let's hear from FinFan's co-founders sharings on the key trends sharping the future of financial services in emerging markets.

Mobile-first super apps

In a world where smartphone usage continues to surge annually, the realm of financial services is no exception, even in markets where cash remains a prevalent form of payment. As emerging economies, such as Vietnam, increasingly integrate with the global economic landscape, consumers in need of mobile financial services are seeking not only swifter money transfer solutions but also ones that offer convenience, security, and reliability.

Addressing these demands comprehensively, the solution lies in a single super-app. Thanks to it, consumers can effortlessly initiate payment orders in just a few steps, obviating the need to input recipient details and relying instead on QR codes, streamlining the process to under a minute. Ensuring safety and security, KYC/AML procedures are seamlessly integrated through AI-powered tools for fingerprint and facial recognition, as well as document verification.

Personalization of the customer experience

In emerging markets, a substantial portion of the population remains unbanked or underbanked, which necessitates a deeper understanding of their financial behaviors, often driven by either an inability or reluctance to engage with traditional banking services. This is where personalization becomes a crucial facet of fintech initiatives. In the current landscape, as AI technology continues its rapid advancement, it not only strengthens security and safety measures for fintech enterprises but also elevates the overall customer experience.

The synergy of AI and machine learning algorithms scrutinizes both a customer's financial data and behavioral patterns, enabling financial institutions to offer tailor-made services and recommendations that empower customers to make more informed financial choices. Thanks to AI, individuals no longer need to keep track of monthly expenses' due dates, as automated systems ensure seamless allocation of savings and expenditures into appropriate wallets, fostering a more personalized and effective financial strategy.

Modularity

Given the growing complexity of customer requirements, segmenting services into modular components proves advantageous for enterprises, streamlining cost efficiency by addressing potential issues that might arise with additional customer demands.

BNPL prospects and Lending responsibilities

As the demand for installment purchases surges in emerging markets, the Buy Now Pay Later phenomenon becomes an unsurprised trend.

This trend not only enables financial institutions to boost their revenues but also bolsters sales for retailers, fostering the potential for enduring partnerships between merchants and financial services.

Furthermore, the appetite for peer-to-peer lending is on the rise within these developing markets. However, a prerequisite for acceptance within these countries is adherence to state oversight, encompassing stringent verification of both lenders' and borrowers' information to safeguard the loans.

Regulation on Crypto

In emerging markets, cryptocurrency has surged in popularity, driven by the quick wealth appeal resulting from the substantial price disparities within this market.

This trend is shown unnebulously by the Vietnamese market, where an escalating number of individuals are embracing and engaging with cryptocurrencies, positioning the country as a global leader in cryptocurrency adoption, ranking fifth on Binance in terms of active traders.

However, these opportunities have also brought out numerous scams, confusion, and trust loss in cryptocurrencies.

Amidst these challenges, the escalating incidence of illicit transactions within the market presents a potential turning point. Legal cryptocurrency firms in Vietnam have an opportunity to thrive by collaborating with authorities to minimize cryptocurrency-related crimes and by participating in the regulation of circulating cryptocurrencies, possibly through processes like conversion to fiat currency, akin to the strategic partnership between FinFan and TrippleA