PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Small Businesses to Get a Boost in Vietnam

Steve Murphy by Steve Murphy
March 31, 2023
in Analysts Coverage, Small Business
0
How Are Small Businesses Using Embedded Finance?

How Are Small Businesses Using Embedded Finance?

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

We’ve covered the ongoing global need for increased SME support—especially at the lower end of the spectrum in terms of systems and liquidity—throughout various postings and member research. This dynamic is generally true across multiple geographies, but particularly with respect to developing markets such as in Asia. 

A press release, posted in asiaone, recently announced that Finastra will help build an SME-focused neobank for the Vietnam market with Vemanti Group, the Nevada-based firm that works primarily around building fintech capabilities in Vietnam and Southeast Asia. The core banking platform will be Finastra’s Fusion Essence. The release states that this is the first of its kind in the region. In addition, another Finastra partner named Lendscape, a London-based provider of business finance solutions, will be incorporating its capabilities into the mix.

The definition of SME varies by region. In Vietnam that sector is more or less the equivalent of micro and small businesses in the U.S., that is, annual revenues up to VND 300 billion (roughly USD 10 million). The Asian Development Bank (ADB) has estimated that the global liquidity shortfall for SMEs is in the range of $1.5 trillion.

The Finastra core banking platform Fusion Essence is a SaaS platform running on Azure. It solves for both retail and commercial banking business models, which is fine for many small businesses since micro-versions typically behave as retail accounts anyway. The core banking solution has the capabilities one would expect for next generation (and future-proofed) banking, including use of advanced analytics, artificial intelligence, APIs and open banking. To our knowledge, this is not a regulatory requirement, but is increasingly being adopted in Vietnam, as well as across southeast Asia.

The Lendscape capabilities include invoice finance and factoring, which is on the receivables side, as well as other forms of supply chain finance, which covers both buyer and supplier financing options, as we recently covered in member research. Small businesses are typically strapped for cash, so traditional financing options are often inaccessible and expensive even when available. Alternative, short-term financing (usually 90 days or less) is just what the doctor ordered. 

Overview by Steve Murphy, Director, Commercial Advisory Service at Javelin Strategy & Research.

Tags: BankinginvoiceliquidityNeobanksSmall BusinessSMEVietnam
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    check fraud

    Check Fraud: The Threat is Real

    June 6, 2023
    smart banking

    Smart(er) Banking Requires More Than Just Tech

    June 5, 2023
    Google Wallet Expands Features

    Google Wallet Continues to Bet on Digital with Expanded Features

    June 2, 2023
    digital value

    How Embracing Digital Value Can Help Solve the B2C Payments Conundrum

    June 1, 2023
    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from Volante Technologies: