According to the findings on the regional demand for online financing mapped [1] by the analysts of the international fintech holding Robocash Group, residents of South Eastern Vietnam use relevant services more than twice as often as on average in the country. Second place belongs to Red River Delta: the interest in online financing facilities there is 1.4 times higher than the country’s average rate.
To distinguish the demand by regions and cities, the company has studied the data of 466 thousand customers who have used its services in Vietnam in 2019. The analysis has revealed that advanced economic development and urbanization are the main drivers of the penetration of online financing solutions. Thus, South Eastern Vietnam has received an index of 2.21. It means that its highly urbanized local population, which is actively consuming goods and feels at ease with digital technologies, fall back upon online financing more than twice as often as on average in the country. The fact that one-third of the company’s customers come from Ho Chi Minh City confirms the figure.
The second place on the same scale belongs to Red River Delta. However, considering the predominance of the agricultural sector in the region, it becomes clear that its index of 1.4 has been largely affected by Hanoi. Moreover, its residents comprise 21% of the customers of the company in Vietnam. Their interest in online financing services is more than 2.5 times higher than the average rate in the country. Although it is higher than in other provinces of Red River Delta, it is still lower than in the areas of the mentioned South Eastern Vietnam.
At the same time, the analysts have defined 15 major cities whose population comprises more than 71% of potential customers of relevant services. Within the total number of the population in the country, their cumulative share amounts to 27.8%. As a result, it confirms that there is a direct correlation between urbanization and increased usage of online financing throughout Vietnam.
[1[ Methodology: the demand for online loans for each region is based on the correlation between the share of the region in the country’s total number of applications and its share of the population in the country. The indexes that are higher or lower than “1”, which means an average rate, directly indicate the demand for financing on the country scale. In accordance with the results, the regional demand for online loans has been divided by the following levels: >2,00 — very high, 1,51-2,00 — high, 1,21-1,50 — above average, 0,81-1,20 — average, 0,51-0,80 — below average, 0,11-0,50 — low, 0,00-0,10 — very low.