The keys to sustainable growth for Vietnamese fintech companies

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VTV1 interviews Bruce Delteil, Hanoi-based partner of McKinsey&Company

The Financial and Business Report of Vietnam National Television Channel 1 (VTV1) interviewed Bruce Delteil - A partner based in Hanoi of McKinsey & Company - about the sustainable development of fintech companies in Vietnam. In his opinion, payment companies and e-wallets spend around 60-80% of their operating expense on marketing at the beginning of their existence, especially discounts to get people on their platforms. This is a very costing game and cannot go for too long. To grow steadily, once the customer database is in place, payment companies must go into different strategies. That is why the second phase is all about retention, and the key to do that is to allow partners to get access to additional customer bases. The first thing to do is to be a part of loyalty programs. Secondly, we usually talk about consumers, but merchants are getting more and more critical. The merchants need to have a better workflow and have good reasons to leverage the products or services to offer the payment. Thirdly, payment companies also need to increase the touchpoints. Customers want to have access to them not only for payment but through other things. Through the platforms, customers pay bills, buy food, do a lot of things, and then they can get into a business model that is healthier and more viable.