Shinhan Bank partners with Fincorp to facilitate investment, payment

Shinhan Bank Vietnam signed Friday an agreement with Fincorp JSC to bring investment solutions to the bank's customers and provide a convenient payment method for those investing in fund certificates on the latter's Fmarket Platform.

Fincorp is a Vietnamese fintech company with two primary services: Fmarket platform, which was licensed by the State Securities Commission in 2018, and F-Platform, which provides a product distribution and management system for fund management companies.

Under the agreement terms, the duo agreed to develop a connecting system between Shinhan Bank and Fincorp. Shinhan Bank can connect customer payment accounts opened at the bank and fund certificate trading accounts on the Fmarket Platform via its Mobile Banking SOL Application.

Simultaneously, based on customer approval, the bank will perform cash accounting on customer payment accounts opened at Shinhan Bank in accordance with the instructions received from Fincorp.

Fincorp will connect the customer’s payment account at Shinhan Bank with the client's fund certificate account on the Fmarket Platform. The fintech firm will also provide Shinhan Bank payment information on customer current accounts based on their requests to purchase fund certificates.

Shinhan Bank and Fincorp will corporate on communication and advertising activities to encourage customers to register and use the parties' products/services; as well as build and integrate the system to provide products to customers in a "smooth, confidential, and secure manner".

"Shinhan Bank Vietnam is actively transitioning to a digital bank model. Furthermore, in order to implement the digital banking model, interaction with fintech companies in the development of banking products and services is required," Kang GewWon, CEO of Shinhan Bank Vietnam said in a release.

"As a result, the collaboration between Shinhan Bank and Fincorp aims to maximize both parties' potentials and strengths in order to provide customers with convenient, fast, and secure digital experiences, as well as ownership that is dynamic and flexible in terms of investment and accumulation needs," he added.

Do Van Chuan, CEO of Fincorp said: "We are very pleased to collaborate with Shinhan Bank in developing a flexible connection system, bringing convenience to customers when investing in fund certificates distributed by Fmarket Flatform on Shinhan Bank's Mobile Banking SOL Application."

According to the global Fintech Center Rankings 2021, Vietnam's fintech score ranked 70th in the world. In the Asia-Pacific region, Ho Chi Minh City and Hanoi ranked 28th and 33rd, respectively.

The State Bank of Vietnam predicted that the value of mobile payments in Vietnam would rise from $16 billion in 2016 to $70.9 billion by 2025.