A regional U.K. investment bank strengthened its presence in Asia with the launch of two new offices. Vietnam
After launching an office in Nagoya earlier this year, Manchester-based investment bank GCA Altium expanded its footprint in Asia. The bank rolled out two new offices in Taipei and Ho Chi Minh City, according to a media statement.
New teams, now operational in both locations, aim to give the firm’s U.K. clients improved access to the rapidly growing mergers and acquisitions and investment markets in Asia.
«Having an established global network gives us a real competitive edge, and we are delighted to have expanded our presence in Asia,» said Phil Adams, CEO GCA Altium.
Foreign Banks and Fintech
With a population of almost 97 million and a surging middle class, more foreign banks and financial services firms are expected to enter Vietnam's market as it transitions from a frontier market to an emerging market.
Asia-Pacific focused consulting firm Solidiance, in its recently published report, «Unlocking Vietnam's Fintech Growth Potential», credits the growth of financial services in the country to several factors.
Technology Leap
Among the main drivers are high rates of internet and smartphone penetration, the increasing adoption of e-wallets and a fast-growing liking for e-commerce. All of which are underpinned by swiftly rising salaries and a burgeoning consumer sector.
More traditional banking services are growing in the country too with banks from mature North Asian markets deepening their penetration. Korean institutions have been particularly aggressive in developing onshore business in Vietnam.
Rapid Growth
Shinhan Bank, which acquired ANZ Bank Vietnam's retail division in April 2017 as finews.asia reported, opened four more branches recently, bulking up its network to 30 branches. Fellow Korean lender Woori Bank will also open six more branches in the country this year.
With a limited population and an over-banked domestic market, Singaporean banks see Vietnam as a fresh banking hinterland. Singapore's United Overseas Bank received its in-principle foreign-owned subsidiary bank licence in Vietnam in 2017.
The foreign banks entering Vietnam bring with them advanced systems and growing expertise in financial technology. They are also exporting their softer skills in training and advising on the development of regulatory infrastructure.
