Timo, Vietnam’s first digital bank, has partnered with Germany’s Software as a Service (SaaS) banking specialist Mambu to take advantage of its cloud-native core banking platform to expand its business.
Timo offers its customers a unique “on-the-go banking” experience and was named the Fastest Growing Digital Bank and Most Innovative Digital Bank at the 2020 Global Economics Awards. The digital bank selected Mambu’s cloud banking platform as it appreciated the value in leveraging a cloud-native, true SaaS core banking platform as it looked to scale its business in Vietnam.
Vietnam’s banking and financial services industry has a low formal financial inclusion rate, but very high smartphone ownership and internet penetration, a young digitally savvy population, and a ripe opportunity for innovation. The Vietnamese government is also actively promoting innovation with the aim of having 80% of the adult population to be banked by 2025.
There is currently a significant opportunity for Vietnam to attract foreign investment in the field of digital banking, and the Vietnamese market has proven to be very attractive to foreign banks and private equity funds for digitally savvy Vietnamese consumers. The rise of the country’s digital banking will not only allow financial institutions to reach the unbanked but will also provide new customized solutions to the rising middle class.