How Financial Technology, ItsPayd, Disrupts Traditional Bank and Finance

Environment

TewYu: Digital Payment Between Vietnam and the United States

MBA Capstone Project

California State University San Marcos

Thu Huynh

1 Table of Contents 1. EXECUTIVE SUMMARY ...... 3 2. THE OBJECTIVES & METHODS ...... 4 3. ABOUT ITSPAYD ...... 5 4. FINANCIAL TECHNOLOGY LANDSCAPE...... 7 5. TRADITIONAL BANK VS FINANCIAL TECHNOLOGY ...... 11 5.1 Unbundling Traditional Services ...... 11 6. ITSPAYD DISRUPTS TRADITIONAL BANKING ENVIRONMENT ...... 14 7. HOW TRADITIONAL BANKS RESPOND TO THE THREAT OF DISRUPTION ...... 15 8. ABOUT TEWYU? ...... 18 8.1 SWOT Analysis of TewYu ...... 20 9. WHY VIETNAM IS A POTENTIAL MARKET FOR TEWYU? ...... 21 9.1 Productive Land ...... 21 9.2 Vietnam Fintech Startups ...... 23 9.3 Remittance to Vietnam ...... 24 9.4 The increasing of Vietnamese students in the United States ...... 25 10. FOREIGN PAYMENTS IN VIETNAM ...... 26 11. DEVELOPING THE STRATEGY FOR TEWYU TO EXPAND THEIR GLOBAL TRANSFER MONEY SERVICE BETWEEN THE UNITED STATE AND VIETNAM ...... 30 11.1 SWIFT Wire Transfer ...... 30 11.2 Digital currency and blockchain technology ...... 32 11.3 Peer to Peer Currency Matching and Payment ...... 35 12. CONCLUSION AND RECOMMENDATION ...... 36 13. REFERENCES ...... 38

2 1. Executive Summary Technology is perpetually disrupting and changing the view of many industries from conventional communication into the age of financial services, typically in the banking and finance environment in the United State. In tradition, most banks and financial companies had hold the most important role in operating the end to end procedure of loaning, investing, and banking. However, the explosion of financial technology has altered the traditional methods that people used to make payment. The new financial technology products have transformed how personal and business transactions are processed. According to the report by Citigroup, citing in

The New York Times, in the article “Fintech Start-Up Boom Said to Threaten Bank Jobs,” investment in financial technology has skyrocketed in the past decade, from $1.8 billion in 2010 to $19 billion in 2015. Also, financial technology caused up to 30 percent available employees may lose their jobs in the banking industry. It reflects that the number of customers walking to a branch for their bank service demands is less and less, Americans now rely on technology services which is easier and more convenient, now online and mobile banking has become a part of Americans’ daily life. Additionally, financial technology companies can help personal or company with a cheaper way to transfer money, invest and achieve a loan without any interaction with a traditional finance environment, such as Paypal, Moven, Credit Karma,

LendingHome, and Wealthfront, etc. Another field of banking that is increasing dramatically is peer-to-peer payment (P2P), which let financial technology companies actively release more creative peer-to-peer payment to compete with the traditional finance and banking operation.

Also, financial technology company provides cheaper investment loan; for example, financial technology companies only do business in billions of dollar while banks do in trillions. The bloom of financial technology puts traditional banking in competitive environment where their

3 conventional rules are disrupting and challenging, as well as push traditional banks joining more

technology.

Catching the rising attraction of financial technology, CEO Ken Green opened his business with

ItsPayd, financial technology company, known as a web application with the power to automate

payments and eliminate the need for collections. With the effort of the company team, ItsPayd

does not stop at a base automated invoice payment platform, but expanding a new platform, such

as ItsPayd2u, affectionately called TewYu, a friendly social peer-to-peer lending application,

which bring people easier to borrow and pay back money just by one click from the application.

Understanding the dramatically growing of financial technology in Asia, for example Vietnam,

CEO Ken Green with a future vision, plans to expand TewYu, which is used not only for

American but also for foreigners living in America, and further bringing TewYu oversea to

Asian countries in the future, and Vietnam is a potential candidate that Tewyu is targeting.

However, with the bloom of financial technology from everywhere not only in the United States

but also in Vietnam, how TewYu competes in financial technology market, and how Tewyu will

suitable for Vietnamese environment. This paper will highlight how financial technology,

typically ItsPayd, works and affects traditional banking and finance environment. Also,

developing strategies to improve and bring TewYu oversea to Vietnam, concentrating on

transferring money internationally between Vietnam and the United States, as well as exchange

rate issue, to compete in the competitive financial technology market.

2. The Objectives & Methods The primary goal of this capstone project is to describe a financial technology industry, which

ItsPayd participates. The project will attempt to determine how financial technology, typically

ItsPayd platform, disrupts the traditional banking and financing environment. Also, the project will develop the strategy to expand TewYu service to Vietnam, which is considered a potential

4 market in Asia environment. To achieve a goal, this project will analyze financial technology

industry in the U.S, as well as in Asian to highlight the explosion of advanced technology in

banking and financing service. There also will be a comparison between traditional banks and

fintech startups. Furthermore, ItsPayd platform and TewYu functions will be illustrated clearly to

determine how ItsPayd is effecting and changing traditional banks. The highlight point of the

project will be the strategy to develop TewYu oversea between Vietnam and the United States.

To obtain this, the project will bring out the Vietnamese financial technology environment,

including the number of people using smartphone, Vietnamese people payment behavior, and the

development of Vietnam fintech startups, as well as the remittance regulations and policies.

Additionally, there will include the picture of Vietnamese immigrants or students who live and

study in the United States. Follow that, the paper will offer different methods and technologies working for TewYu to expand into Vietnam market.

The report is used in white papers, surveys, interviews, CSUSM lectures, articles, case studies, and other online sources. The project is processing follow specific objectives that have been discussed and agreed upon by CEO and founder of ItsPayd Ken Green, California State

University of San Marcos project advisor David Grooms and myself, Thu Huynh.

3. About ItsPayd ItsPayd started in June 2015, opening headquarters in Temecula, CA. Ken Green, a CEO and

founder, with ItsPayd members are excited and ready to release their platform. CEO, Ken Green

reveals that, “ItsPayd was born to help people manage their finances, take control back of their

lives, and give them a peace of mind knowing that payments will remain affordable. The

recession hurt a lot of Americans, leaving them very few options to manage their finances,

ItsPayd provides them with the flexibility to manage and satisfy their obligations.” ItsPayd is

introduced as a startup technology company that allows control back to vendors and end-users by

5 providing an automated invoice payment platform. The product is a cloud based and mobile

payments platform that allow its users to offer customers payment plans to handle past due

account. The platform is easy to use due to its quick step process and is accessible on any device that has internet connection which makes it significantly convenient to the end-user. ItsPayd

provides customers with an easy and fast payment options. ItsPayd platform helps businesses

notice their customers’ payment by sending notifications of a statement via email and/or text,

including customers’ own statement page listing the reference number, date of statement, and

amount owing. ItsPayd works with its users to gather and upload customers’ information through

ItsPayd secure web portal, users can select which payment options that they want to suggest to

their customers, and decide the date the notice notification will send. With easy step process, the

customers will be able to receive, review and pay the statement via credit or debit card, E-check or ACH (Automated Clearing House), everything will be processed in 90 seconds. Interestingly, with ItsPayd platform, besides one-time payment, the customers can receive payment terms so

they can split their payments over multiple months which is suitable for their current cash flow.

In result, unable to afford to pay all at once now is not a problem anymore thanks to ItsPayd

acceptable payment plan. Consequently, ItsPayd platform provides customers a friendly, secure,

and private choice for billing duty. The developed technology of ItsPayd lets businesses

effectively follow up and communicate with their customers not only at the moment time but

also for the future commerce. Also, ItsPayd’s automated system is saving businesses time and

money by helping businesses to process and notice customers’ payment, as well as follow up

past dues and reminder customer the payment. Therefore, ItsPayd can eliminate businesses’

pressure of collecting, chasing and mistaking customers’ payment. With ItsPayd, businesses

enjoy and experience a different level of payment control that is easier and more favorable,

6 which has never been probable before, because every account is handled by ItsPayd in the same care system, resulting in fair service even how large or small business is. “It’s Simple, It’s Quick,

It’s Easy, It’s Payd”, this is a slogan that ItsPayd want to bring to customers. With the high ecstatic employees, to satisfy customers with a high financial technology environment, a new peer-to-peer lending application will release soon, named ItsPayd2u, also called TewYu, allowing people to send, receive or loan small amounts between friends and family. Furthermore, this application gives a friendly social environment to friends and family link together. Non- stopping at these platforms, CEO Ken Green understands deeply how mobile has dominated people’s life, with his future vision, he wants to leverage mobile billing technology for decreasing customer account write-offs, while enhancing customer experience. Even though

ItsPayd is still new with customers, there has been a respectable first-year startup, and the company is striving hard to grow the company with the advancement of technology. Typically, new peer-to-peer lending application is going to introduce soon. Therefore, ItsPayd is a good choice for modern business which is chasing high future technology way because ItsPayd allows businesses tracking actionable data to actively understand the financial situation that affects their operation. It is believable that ItsPayd is new financial technology company which is challenging traditional finance and banking industry in the near future.

4. Financial Technology Landscape The development of economy is increasing dramatically, followed by the relationship between business and customer is changing to suitable for the advanced economy. Thus, it is important to put their business on the to of current trends, which is now financial technology age. Financial technology, also known as FinTech, is a complete part of the worldwide economy. Financial technology is highlighted as a business using advancement of software to provide financial services. Specifically, start-up companies which grow innovative technology solutions in

7 financial fields, consisting of online or mobile payment, alternative finance, or finance

management. With the high technology finance tools, business transaction and payment is

becoming faster, and easier, helping company supervise the markets, and make the banking and

financing issue ticking. In recent years, financial technology has risen significantly, popular with

the advancement of mobile banking, cryptocurrencies like Bitcoin, a digital asset and a payment

system, peer to peer lending, and many different increasing of financial platform. For example, social media and communication companies such as Facebook, or Wechat, the famous Chinese’s social media, realize the power of Fintech and apply the financial transaction features into their

social network. On the rising dramatically of financial technology, it is difficult to predict the final destination that fintech will bring people to in the future, but with the current statistics, it is

believable that financial technology has became more and more dominant. According to The

Statistics Portal or “statista”, basing on worldwide scale, the value of investment in financial

technology ventures hold up to three billion U.S. dollars in 2013, and was predicted to rise to

approximately eight billion U.S. dollars in 2018. There is also a report from Accenture and CB

insights shows the Global Fintech Financing Activity.

Take a close look from the chart above, it reveals the global value of investment in financial technology grew 100 million U.S. dollars in 2008, reaching to approximately three billion U.S. dollars in 2013, leading of the global value of investment in Fintech is the United State. It shows a significant changes happening in financial services which is controlled by new technology, regulations, resulting in the changes of customer and business behavior in business transactions and payments. This global trend is expected to keep continue as the Statistic Portal predicted above in 2018.

8 Additionally, following The Statistic Portal, in 2013, banking and corporate finance area hold 29

percent of Fintech investments, which increased between 2008 and 2013. The share of financial

technology investments in payments fell down significantly from 70 percent in 2008 to 28

percent in 2003. The chart under shows the distribution of financial technology investment areas

from 2008 to 2013.

Another report from The Statistics Portal cites that Fintech companies appealed about 783.39

million U.S dollars of investment in 2014. The total value of investment in Fintech globally

achieved approximately 6.8 billion U.S dollars. Also from this research, highlighting in “Value

of investment in Financial Technology companies worldwide in 2014, by type (in million U.S.

dollars”, the number is shown via the graph below.

The value of global investment in financial technology companies concentrating on P2P lending,

online lending and scoring occupied up to 1.82 billion U.S. dollars in 2014, following by online

acquiring and m-wallets, and personal finance management. Peer to peer lending is experience of

lending money to individual or businesses through online service that link lenders directly and

easily with borrowers; for example, lending clubs, or ItsPayd2u, a new P2P lending application

introduced above. Online acquiring services simplify card payment procedures by reducing time

to process a transaction, decreasing fraud. An m-wallet, e-wallet or digital wallet is known as mobile payment system allowing customers to make a payment with their smart phone, such as google wallet, apple’s passbook, Lemon wallet. With the feature of storing customers’ payment information and password so digital wallets can be used for different website and payment methods. To satisfy people’s high digital life, peer to peer lending is predicted to grow dramatically by 2025 and mobile wallet service has already held an important role around the globe.

9 The United States was the largest investor in financial technology, followed by Europe and Asia.

Big American multinational investment banking and finance services like Citigroup, JP Morgan,

and Goldman Sachs are expanding millions in to the financial technology. Understanding the

explosion of finance technology, general public are focusing on investing in stocks in Paypal and

P2P lending platform, such as Lending Club. Most Fintech startups appears from tech central

like Silicon Valley, New York, and Boston, occupying approximately 4.7 million companies.

Next is India with 1.92 million Fintech startups, and the United Kingdom holds 820,000, most of

which are built in London.

According to Accenture and CB insights, there are expected the significant growth rate of

Fintech activities in different region from 2008 to 2013, especially the remarkable increasing in

UK and Ireland. Silicon Valley was also predicted rising since 2008.

It is a common belief that the western world is the origin of growth of financial technology business, and is dominating the world of financial technology. However, it is expected that Asia is a major motivation in the world of Fintech innovation. Specifically, following CNBC

International, investor poured 4.5 billion U.S. dollars into financial technology in Asia in 2015, which is three times the number attracted by their peers in Europe. Also, Ernst & Young shows

the percentage of digitally active people who used at leas two Fintech services in the last 6

month, and leading is Hong Kong with 29%, followed by the United State, and Singapore with

17% and 15% respectively.

Thus, it can not deny that Asian markets hold a major position in the world’s financial hubs.

According to the Global Financial Centers Index of 2014, Hong Kong and Singapore are two

Asian markets to be in in the big centers along with New York, and London. Following to data

showed by the World Bank, Singapore, New Zealand, Denmark, Korea and Hong Long are top

10 five economic position with the most business-friendly operations. The US and the UK are

believable to be the world’s Fintech development centers, but stepping backward with the UK

take the 6th place, and the US at 7th.

5. Traditional Bank vs Financial Technology

The financial crisis in 2008 is the worst economic disaster since the Great Depression of 1929,

which threatened the U.S. banking system collapsing. Due to the crisis, putting a trust in traditional banks was damaged, and everyone was in hurry to save and manage their money.

Thus, financial technology was first created to resolve people problems, instead of waiting for the recovering of banking. At this time, this was a big chance for the explosion of financial technology, which was practically proved from the number of increasing significantly in Fintech highlighted above in the financial technology landscape part. Understanding the real struggle

customers faced during the crisis, Fintech innovation has brought people to brilliant finance

management tools, including online or mobile banking, crowdfunding, fast loan, peer to peer

lending, while traditional banks struggled during this time. Most individuals or small business

are hesitant to banking service with the huge range of activities, most of which are

overcomplicated and confusing, and big number of legacy systems. As a consequence, Fintech

startups figure out that splitting banking activities into small separated services and expert at

each of activities will bring more benefits for financial technology companies, as well as

maximize customers’ satisfaction, resulting in alternating traditional banking.

5.1 Unbundling Traditional Services

Banks has a huge organization with a large number of staffs and organized in silos, so that

internal communication restrict an ability to respond to customers in fast way and limit the

adaption to market changes. That is a reason why online or mobile banking was created and

11 becoming dominant. According to Big Data & Analytics Hub, 35 percent are banking more

online than they were last year, in comparison with only 16 percent who are visiting branch

location regularly. In addition, traditional banks rely on strong regulation because of their size

and products. Activities of banking, investment, insurance, or mortgage in traditional banks have

to follow to many different financial laws and regulations, it will rise especially when it is an internationally managing bank. It leads to an increasing in costs, compliance, risk and statements management. For instance, to process a mortgage proposal, all the stakeholders in a mortgage department, legal paper, risk issue, and compliance have to agree to certain conditions. It results in the fact that the mortgage proposal has to take few weeks to be carried out and returned to customers. However, with the Fintech application, for example, Rocket Mortgage are expected to send a response to customers in less than 30 seconds. This tools also help avoiding the regulations issue, reducing the risk of a crisis, and not rising it by factually helping lenders get the exact spelling and verify the accurate income. Understanding deeply the demand of customers, financial technology companies choose to create and prepare the products with the right online strategy for the customers’ desire. LendingHome is also the best way for borrowers to get a mortgage with flexible, simple, fast, transparent, and reliable service. On the other hand, banks concentrate on better loans, fees or rates, branch locations, but users care for comfort, simplicity, as well as accessibility, resulting in the development of crowdfunding or fast loan. It is easier to starts “Indiegogo”, “Kickstarter”, and crowdfunding, such as Bringing Art to Life,

Swimming in New York, Rolling Out Health, and receive essential product funding instead of go to bank and ask for loan with the complicated conditions. Today, many projects open across areas of science, music, art, as well as education, providing and support for crowdfunding.

Additionally, financial technology is modifying the loan market, including students loan, peer to

12 peer, and small business lending. It is undeniable that traditional loans released from banks or

government have typically high rates. Typically, according to Student Loan Hero, in the article

“A Look at the Shocking Student Loan Debt Statistics for 2016,” highlights that students around the U.S. has faced the high student loan delinquency rate of 11.6%, as well as Americans own approximately 1.3 trillion U.S. dollars in student loan debt in 2015. Thus, financial technology companies have started to develop more affordable tools to manage student loan; for instance,

SoFi, CommonBond and Earnest link investors with borrowers looking for refinance or reinforce their student loan. Besides student loan, alternatives lending tools are created to provide efficiently capital for small businesses in less time, with less money. With the loan is issued by banks, the process is dated, complicated, and time consuming. Small businesses have to go to branch, deal with a lot of regulation paper, and the most important thing is high standard rates. In result, an online lender, such as Bond Street, was released and has experienced a dramatically

rising. Bond Street is an online lender that offer loan for the small businesses in simple, fair, and

transparent way. Bond Street leverages data to approve loans faster and for the loans that banks

do not accept. Recently, the company has reached a 110 million U.S. dollars investment.

Furthermore, peer to peer lending platforms has brought an affordable market environment for personal and business loans, including Lending Club (LC) or Lending Tree, Venmo, Paypal,

Apple Pay, Google Wallet and prominently a new peer to peer lending application ItsPayd2u.

Lending Club or Lending Tree is peer to peer lending platform connecting borrowers and

investors. They are transforming the banking system to make credit more affordable and

investing more rewarding. They run at a lower cost than conventional bank lending programs, as

well as give the savings to borrowers with a lower rates and to investors with solid returns.

According to lendacademy, Lending Club has issued over $9 billion dollars the the loan since

13 they began in 2007. With Itpays2u, the automatic repayment system and repayment terms make people easier to send, receive money or loan small amount. It is clear that big banks with many different kind of money, how can they care and provide a payment plan for the small loan between friends and family, but Itspayd2u does and satisfy people’s demand for daily activities.

It is also clear how Fintech makes transferring money oversea become easier, without doing many paperwork in traditional banks, such as Western Union, Transferwise. For example, even a developed bank like Wells Fargo does not allow customer to send international wire-transfer online today, customers have to go to bank to do a service. There is another influence, the most important upside of traditional banks is that they lost their image from the financial crisis. They are known as the cause of the financial collapse of the last decade. Their customer service under tension, they provide complicated financial product to customers who can not understand deeply.

Therefore, more and more personal and businesses choose Fintech platforms so banks lose their potential customers because at the right time they did not want to chase for customers’ favor.

Now, customers find for themselves better loan, transfer money program, instead of following the traditional banking loan.

6. ItsPayd Disrupts Traditional Banking Environment

Traditional banks, because of their legacy systems and busy IT, they can not follow up customer experience project well. Many legacy systems have banked up during many years. These legacy systems are superfluous, and are built using outdated technology, but still managing because some of them are business critical systems, can not eliminating. Consequently, conventional banks focus more on maintenance work than chasing for customers’ experience and satisfaction.

ItsPayd was introduced to help business follow up their customers expect and help managing customers’ payment, which banks cannot do well by traditional structure. As it highlights above,

14 with the ItsPayd automated program, businesses save time in following up their customers’ payment, and their customers are pleased with ItsPayd payment remind notification via email or text. Both sides are satisfied. As discussing, traditional banks have to deal with many different activities and various customers, not only in payment, it is true that conventional banking can not chasing well each customers without an automated payment platform. Without the automated notice, traditional banks are surely making mistake in reminding customers with the payment, resulting in late fees, which makes customers are not happy. Also, customers have a lot of different payments from different activities with different due day, so they are not much pleased to remember all payments and make the payment following conventional way with many tasks, which is time consuming. With ItsPayd, just need 90 seconds, the payment will be process, as well as the payment will be automatically split based on customers’ cash flow by using ItsPayd, so that customers do not worry to do the payment many times, eliminate some pressures. ItsPayd centralized on the platform with the advanced technology, so the transactions, reports are updated, followed up immediately, as well as easily view and download at any time necessary.

On the order side, traditional banks focus on many activities so transactions, activities processes always take long time to available and be updated on the systems. It leads to the delay in business activities and can not follow market changes in time. Consequently, ItsPayd is a potential platform threatening banks’ conventional model. If banks do not innovate their traditional model for chasing customers’ expectation, they are going to lose their potential customers, who are now living in digital life.

7. How Traditional Banks Respond to the Threat of Disruption

Due to the bloom of financial technology, traditional banks are put under pressure to enhance their products and services to compete with the advanced Fintech area. Today, in every part of

15 service, in both front and back office, Fintech are challenging, and ready replacing businesses away from traditional, incumbent banks, including payments or transactions, investing and trading, lending, small business banking service, as well as funding and capital gathering. Now, financial technology enterprises are attracting the most profitable proportion of the banking pattern, putting banks meet difficulties with high overhead and less profitable products.

According to a survey by Viacom Media in 2014, it revealed that 73 percent of more than 10,000 millennial respondents showed that they were more interested in new financial technology service provided though Google, Amazon, Apple, PayPal, or Square than via their own banks.

Banking executives are acknowledging the current threats of the exploding Fintech landscape, which are disrupting and changing the traditional structures of banking. Thus, to respond to the competitive threats and compensate for the market losses, traditional banks have moved on to the new trend by practicing and embracing innovative technologies. The most important thing that banks need to concern is raising the customer experience. It means that the products have to be simple, easy to use, convenient, and times-saving, which is following customer’s expectations.

Specifically, traditional banks are providing and enhancing online and mobile banking for customers. For example, Bank of America launched its first online banking in 1994, following by the appearance of mobile banking in 2007. Today, Bank of America has become a leader in developing and offering innovative products to its customer among banking section, with more than 15 million active mobile users and more than 30 million online Banking customers.

Furthermore, understanding the growing market of small business; typically, according to the

U.S. Small Business Administration, it highlights over 28 million small business in America, occupying 54 percent of all U.S. sales, Fintech companies have created alternative lending platforms in less time, for less money to provide efficiently capital to small business. In order to

16 not lose out on this potential market, banks are innovating their current models of lending

platform. For example, Goldman Sachs (GS) is entering peer to peer lending. GS will offer

unsecured personal loans and will also venture into lending to small business by releasing its own platform later this year. Jamie Dimon, the CEO of JPMorgan Chase also stated that they plan to enter the online lending market by partnering with a P2P lender. However, with the complex and long term system like big banks, switching core banking model or renovating banking system will require the integration between sort of products, services and processes. As a result, it will bring sophistication, a huge cost and many commutations because banks will cut down some branches and suspend workers in order to make products and processes be more automated. In this situation, banks should take advantage by coexisting with Fintech startups.

The Statistic Portal reveals the reactions of global banks to the development of Fintech companies as of February 2015.

The chart above shows 43 percent of banks startup programs to incubate Fintech companies in

2015, which means banks are bringing Fintech in house. Banks also set up venture funds ton fund Fintech companies and build up partnerships with them. It is clear that only ten percent of banks required their competition, and seven percent of banks launched their own Fintech subsidiaries.

It is clear that Fintech companies have vision that traditional banks have lacked. For instance,

Fintech startups understand more clearly consumers’ expectation than banks do. However, regulation and compliance are a key upside that banks can take full advantage to compete with startups and technology firm to capture a control of customers and market share because Fintech startups less foundation in facing levels of regulatory oversight. Banks with a long history already have the assets, tools, knowledge, processes, and solid relationships with regulators, and

17 these can be leverage to get products to consume faster. For example, Square’s co-founder cites

that the company took only 3 months to build their products, but it required 18 months to get the

products release due to regulatory challenges. Therefore, collaborating with Fintech startups in

some way is better than changing the whole conventional model which is a hard task that will

take long time to implement.

8. About TewYu?

We often meet the problem how to get paid back on a small loan from friends or family. Cash or

check are not convenient, while with the advancement of technologies, people tend to use card,

e-wallet, online or mobile transferring money instead of cash. However, people are

uncomfortable to transfer a small amount of money via traditional banking system with many

working tasks, or finding an ATM to withdraw cash. Particularly, when accounts from different

banks, a transaction will take long time, and obviously there will be a transfer fee, which make

people feel unpleased. There comes the Itspayd2u, affectionately called TewYu, is an authentic

peer to peer (P2P) lending application that lets people to send, receive or loan small amounts

between friends and family. TewYu is a simple digital payment service via a mobile application,

which takes a place of the conventional mean of cash, checks, or cards. TewYu can help solving

the problem of sending or receiving money, even it is small amounts, in a faster and cheaper way

with no any charge for transaction. TewYu is so convenient that people sent the money in seconds with some simple clicks, as well as their friends will also receive money immediately in some seconds later. Customers just need download TewYu app, sign up and verify, add card or

account details, next add and invite friends, finally send and receive money. Interestingly,

TewYu can automate the repayment back to the sender, thereby discarding the worry about making or receiving payment. The sender and borrower decide each other about the amount and

18 repayment option in either weekly or monthly. This is a thing that traditional banks cannot offer

to customers with a small loan. In addition, with the automatic repayment, customers can save

time by eliminating repayment tasks in many times. Another attractive function, the TewYu

Score, shows a person’s ability to repay relied on meeting the original terms established as well

as user input on the satisfaction received by both sender and borrower. A real credit score using

real data in real time. It is believable that TewYu will spread out possibilities because peer to

peer payment apps experience the advantage of a powerful network influences. As more people

use the app, the service itself grows more valuable by sending money to more friends, resulting

in the increase of users. TewYu provides not only an automatic payment system but also a

comfortable social environment between friends and payment. TewYu provides a social feed,

which shows payments that people are available in network are making to one another. TewYu eliminates the hard situation when asking people for money face to face or a phone call. People feel comfortable and easier with a new peer to peer payment application. Until now, the concept of Tewyu has been created and will be released a beta, which is expected to bring a new friendly application for customers. It is undeniable the convenience and friendly environment TewYu brings to customers due to its automatic system. However, with the bloom of advanced technology, the payment environment is going to become more and more competitive, providing better function and much more convenience for users. Now, there are many peer to peer payment technologies, including Venmo, Popmoney, SnapCash, a payment service from SnapChat, or

Square Cash was built by Twitter. Also, Facebook recently released a money transfer service via

Facebook Messenger. Thus, it will be a strong competitive space for TewYu when it is joining.

Understanding the strength of TewYu automatic repayment system, and a potential opportunities of mobile payment platform not only in the United State but also in Asia market, ItsPayd

19 company is thinking to spread TewYu service oversea to Asian, which can make TewYu different in this environment. Also, one limitation that most other peer to peer payment applications is that they are currently available only in the United State, transactions cannot be made outside the United States. As a result, making TewYu transaction outside the United States will be a big chance to affirm TewYu position in payment market. It is obvious that there are other popular international money transfer tools, but TewYu also combine with a friendly social environment between friends and family, as well as automatic managing payment transactions, which make them unique. However, TewYu is still young to challenge into a whole Asian market. Thus, Vietnam, in Southeast Asia, is considered as a potential candidate for TewYu to get experience first, which will help TewYu getting more information when entering into Asian environment.

8.1 SWOT Analysis of TewYu

Strengths - Innovative technology: An unique repayment automatic system.

- Attractive rates: Avoiding the oligopolistic environment of banks.

- Exponential increasing: Peer to peer platform market is expected growing dramatically in

recent years and continue in future.

Weaknesses

- Lack of advertising

- Lack of recognition

- Bad reputation: Some people fell unsafe and do not believe strongly in new Fintech

startups.

Opportunities

- Emerging markets and expanding internationally, such as remittance market.

20 - Concentrating on teenage and adult market, who mobile, tablet or computer are a part of

daily life.

- Spreading products and services.

- The growth of online using

Threats

- Price competition: The emergence of huge number of new platforms leads Fintech

company provide more attractive rate to appeal customers.

- Online hacking

- Product substitution

9. Why Vietnam is a potential market for TewYu? 9.1 Productive Land

Taking a quick look at the Vietnam’s demographics, it is expected that Vietnam will be a potential market for successful mobile money expansion. According to Linkedin, Vietnam has

128 percent mobile market entry with a remarkable number of 36 percent smartphones.

Vietnam’s population is approximately 93 million. Among them, 33 percent of population is urban, and 67 percent is rural. There are two major cities, Hanoi with 2.67 million and Ho Chi

Minh with 6.2 million. Vietnam has a young demographic structure because 74 percent of population is under 35 years old.

Population 93 million (67% Rural)

Mobile Penetration 128% (120 Million)

Smartphone penetration 36%

Banked Population 20-22% (15% in 2013)

Bank card issued 50 millions

21 Internet Penetration 42.97% (internet on mobile)

GDP per Capita ($) $1910 ( Total GDP $186 billion)

Remittance value($) $12.5 Billion (7-8% of GDP)

Population density (per square km) 300

Vietnam is still a developing country. However, the explosion of information technology and

high-tech industries has brought Vietnamese people into digital life. The fact is proved by the

expansion of mobile market, internet environment, and financial technology. A market research

report from Yeahmobi, an intelligent mobile advertising platform, highlights a specific view

about the Mobile Internet Environment in Vietnam in 2015. The survey shows that Vietnam has

75 percent mobile Internet users, which is the highest in Southeast Asia. The use of mobile

devices to access the Internet has been slow in Vietnam; for instance, Vietnam has not developed

4G network, but comparing with other developing countries, Vietnam provide better developed

3G system. Also, going online is never a difficulty in Vietnam. Wi-Fi is widening everywhere

and nearly free in big cities. Rajan Anandan, Vice President and Managing Director of Google in

Southeast Asia and India, said at a talk on FPT Technology Day 2016 that "One thing that

surprised me in Vietnam is that you can get Wi-Fi almost everywhere. Every shop I visited had free Wi-Fi for customers. That's wonderful." He also asserts that in the next 10 years, 100

percent of the 2 billion new Internet users will access the Internet via mobile phone or similar devices. The Statistics Portal forecast reveals the number of smartphone users in Vietnam

between 2013 and 2019. There is 24.6 million of smartphone users in Vietnam in 2016,

comparing 2 billion of smartphone users worldwide by that time. These graphs below predict the

trend of increasing in smartphone users in Vietnam, comparing to worldwide.

22 The increasing of smartphone or other smart devices in Vietnam changing the way people do business in various industries. For instance, there is a development of Fintech startups in banking and finance environment in Vietnam.

9.2 Vietnam Fintech Startups

Fintech provides Vietnam with advanced alternatives that keep far away from traditional custom of business service and economic increasing. In the previous year, financial technology

investment achieved approximately 3 billion U.S. dollars, which is expected rising up to $8

billion in next few years. It is an evidence that Fintech has become one of the most popular

division in Vietnam. The country’s Fintech startups have received millions of investment rounds

and evaluations.

The Statistics Portal shows that more than haft of fintech startups in Vietnam are mobile

payments companies. For example, MoMo is a mobile payment and money transfer application

developed by M-Service, which has experienced from 30 percent to 50 percent growth per month

of transaction volume and user base. In addition, a huge number of fintech startups have boosted

substantial funds; such as Payoo is an e-wallet services company with more than $2 million in funding, OnOnPay which receives funding from Captii Ventures, MoneyLover is a finance management application which has 30 languages and 100 currencies having more than 2.3 million downloads globally and 40 percent from Southeast Asia as well as 250,00 active users in every month, and especially Loanvi, an online peer to peer lending platform for personal loans in

Vietnam. There are many other fintech products, like mobile payments which is popular with

1Pay, 123Pay, VNPay, WebPay, CyberPay, etc, or crowdfunding, such as Fundstart, Comicola,

Betado, Firststep. Blockchain or Bitcoin is also introduced in Vietnam, consisting of cash2vn,

Bitcoin Vietnam, VBTC Bitcoin.

23 9.3 Remittance to Vietnam

Remittance holds an important role in the increasing of economic in Vietnam. Remittance in

Vietnam includes remittances to support family in Vietnam, and remittances to pay debts, invest

in build house or buy property in Vietnam. Remittance market in Vietnam is rising steadily.

Oversea remittance to Vietnam have kept the increasing from $1 billion since 2011 and reached

to $12 billion in 2014. Many experts predict remittance would keep rising in next few years

because oversea Vietnamese have tended to make an investment back in their homeland and the

number of labor exports have more and more risen. Ho Chi Minh city remittance occupied

approximately 50 percent of oversea remittance to Vietnam for last recent years with $5.2 billion

was remitted to Ho Chi Minh city in 2014. World Bank statistics highlights that Vietnam gets the

11th highest amount of remittances, comparing to top two positions which are India and China, with remittance level of $70 billion and $60 billion respectively in 2014. Vietnam’s remittance

inflows have been gone up steadily over the years, achieving $12 billion of remittance inflows in

2014.

The United States is the greatest destination for international migrants, including Vietnam, and

recently the greatest source of worldwide remittance. The Vietnamese receive their remittances

from family the most in the United States, followed by Australia and Canada. Remittance from

the United States is around at $6.8 billion in 2014.

It is a fact that there is a significant Vietnamese population staying in the United States. The

report of Census highlights that the Vietnamese population was the 4th largest among Asia

populations groups in the United State in 2010. In last recent years, Vietnamese population has

increased steadily, reaching 1,724,508 in 2013.

Vietnamese population, 2000: 1,122,528

24 Vietnamese population, 2010: 1,548,449

Vietnamese population, 2013: 1,724,508

The graph below shows the population of different Asian countries staying in the United States.

In addition, in 2014, median household income of Vietnamese immigrants was $59,933, comparing to $49,487 for all immigrant household and $54,565 for U.S. born household. In result, Vietnamese immigration incomes is quite high, which gives Vietnamese immigrant more opportunities to send money back their homeland to invest, including building house or buy property, as well as to help their relatives in Vietnam better life.

9.4 The increasing of Vietnamese students in the United States

Since the stabilization of Vietnam’s economy, there has been a growth in the number of students studying abroad in the United States. According to a new report from WES’ Research and

Advisory Service team, Vietnam is one of four emerging markets that the United State expects to recruit more students in the upcoming years, together with Brazil, Indonesia and Nigeria. During last 13 years, the number of Vietnamese students took part in the United States’ colleges or universities has increase regularly. Following the data of the Institute of International Education, there was 16,579 Vietnamese students which are sent to the United State in between 2013 and

2014, which was a 26 percent rise from 2009-2010.

As a result, Vietnam became the eighth placed country of international students in the United

States. The number of Vietnamese students coming to the United State is expected to grow in the

upcoming years due to the strong economic growth with 6.5% increasing in 2015, which

provides more opportunities to pay for one to study in the expensive higher education systems

like the United States. In addition, the United State is expanding scholarship funds for Vietnam

25 to reach the target of doubling the number of Vietnamese students in the United State, that is

what Michael Michalak, the United State Ambassador to Vietnam, claimed.

Consequently, with the increasing of using smartphone and Fintech products, especially the growth of mobile payment in Vietnam, it is obvious that this is a potential market to spread

TewYu to this country. Additionally, with a significant number of Vietnamese living in the

United States, as well as the number of Vietnamese students come to the United States, if TewYu expand their service to Vietnam area, it is believable that along with American customers,

Vietnamese market will bring a lot of benefits for TewYu owner.

10. Foreign Payments in Vietnam

Remitting money to and from Vietnam can be difficult to deal with. Vietnam has been improved

during many years, and has acknowledged many new technologies such as online money

transferring for foreign transaction in Vietnam, but due to their strict regulation of foreign

exchange and capital account controls make foreign payment in Vietnam meets many challenges

or limitations. Vietnam is a communist country, so that the local government regulations in

foreign payments sometimes make non-Vietnamese people hard to understand. Many experts

describe rules and regulations way for Vietnamese banks as a grey region. In recent years, the

Vietnamese government understands that remittances are a significant source of external

investment for the economic development; typically, the number of Vietnamese living in foreign

country and labors working oversea has contributed the strong remittance increasing to Vietnam,

so that the policy of remittance inflow to Vietnam has been improved, becoming easier. For

example, the State Bank of Vietnam eased the regulation for commercial bank to establish and

operate the remittance service. Also, receiver can select receiving the remittance in Vietnamese currency or foreign currency in cash or via bank account. With receiving foreign currency,

26 receiver can sell to credit institutions and deposit in allowed banks. Interestingly, remittance

beneficiaries do not have to pay tax on the money they receive. Remitting money to Vietnam and

transferring services via official channels have developed, which now are available in commercial banks and up to 23 companies. It is true that the remittance via banks is expensive with high fee, and exchange rate. Thus, the United States increase remittance market. For example, the Federal banking agencies and the National Credit Union Administration (NCUA) are expanding guidelines to provide lower-cost remittance transfer service in the U.S. The guideline’s three-pronged goals come directly from the Dodd-Frank Wall Street Reform and

Consumer Protection Act, which highlights that each of the Federal banking agencies deliver guidelines to financial institutions under its jurisdiction on offering: low-cost remittance transfer,

no-cost or low-cost basic consumer accounts; and agency services to remittance transfer

providers. The Consumer Financial Protection Bureau Remittance rule provides direct regulation for international remittance, which make online remittance service is more reliable with a clear fee and exchange rate, creating better worldwide remittance environment for Vietnamese living in the U.S. sends money back to their homeland. Recently, many digital global money transferring platform sending money from the U.S. to Vietnam, popular Western Union, or

Money Gram, as well as many online or mobile global transfer money, providing cheaper rate and faster. For instance, Xoom Corporation, a money transfer provider, has partner with

Sacombank one of the largest banks in Vietnam, to provide home delivery, including cash pickup, and faster account deposit. Xoom opened its service to Vietnam, and help approximately

1.3 million Vietnamese immigrants staying in the United States transfer money back their relatives with cheaper, faster, and easier tools. Sharemoney is another example, expand its

27 service in Vietnam, partner with DongA Bank, one of popular local bank in Vietnam,

Worldremit is also an example of sending money online from the U.S. to Vietnam.

However, transferring money out of Vietnam is a big problem with strict capital control

regulation.

Even though when a Vietnamese resident has a sufficiently legitimate reason to send money out of country, it is still a big trouble dealing with documents procedure. Many people who are new

visiting to Vietnam and staying here for an extended time, they need to send money out of

Vietnam to their family in their home country, which is seem easy and legal but becoming harder due to Vietnamese regulations. With a strict regulation of procedures, the remitters are required

to provide many documents to prove their purpose of the transfer, as well as the source of the money before they make a global transaction. According to the State Bank of Vietnam, the fund is transferred via traditional banks or other official transfer service in purposes as below:

For Vietnamese citizens:

- Transfer for tuition fees or sundry expenses.

- Transfer for medical treatment or examination.

- Transfer for overseas business partner’s fee or charge.

- Transfer for oversea business trips.

- Transfer for travelling or visiting abroad.

- Transfer for covering allowance to oversea relatives.

- Transfer to heirs living abroad.

- Transfer for immigration settlement in another country.

For Foreign individual:

28 - Foreign currency denominated funds transfer into their own accounts opened at Vietnam

bank.

- Foreign currency imported to Vietnam with a customs declaration.

- Eligible salary, bonuses and allowances transferred to their salary designated Vietnam

banks’ accounts while working at organizations in Vietnam.

Both Vietnamese or foreign clients who want to make a global transaction, they have to come to

bank branch, or transfer service location, fill out original payment order or application for bank

draft, as well as provide their identification and their documents to prove their legal purpose to

send money out of Vietnam. Until now, Vietnamese regulation does not allow any online transfer

money out of Vietnam, even using Western Union, or MoneyGram, customers also have to prove

their legal purpose and source of money. Although the regulations are believable to be practiced similarly through all banks, the remitters are easy to figure out that different banks, different branches of same bank, or even different staff in one branch provide a remitter with a different procedure and document requirement. Unfortunately, most local bank in Vietnam or foreign bank does not have any system to save any customer document to save time and reduce the complex process of transferring oversea. Therefore, one global transaction which is sent from one account with the same legal purpose, but a client has to come to branch and provide their

paper again and again in their next payment, which is time-consuming. Specifically, transfer

money out of Vietnam via banks offer high rate, up to $40 for one transaction. Thus, the sender transfer money worldwide will pay maximum $70 for one payment, including fee from Vietnam bank with $40 and fee from the U.S. bank with $25. For other service such as Western Union, or

MoneyGram is little bit cheaper. Generally, Vietnamese regulations make official transfer money

service out of the country strongly difficult, complicated, and inconvenience. Without online

29 transfer money oversea, Vietnamese clients meet many trouble with sending money internationally, and obviously sending small amount money between friends and friend is impossible, and no one wants to use banks to transfer small payment with really high fee, it is fully ridiculous. As a consequence, there is a rise of unofficial channels to make transfer money abroad from Vietnam more easily. These unofficial channels offer the remitters a service with lower fee and more favorable exchange rate than conventional banks. Basically, the informal channels do not work in public. Only a small group of frequent clients know the unofficial service providers, and just new customers who are introduced by current customers can approach these service. Unofficial service providers are careful in accepting new clients because they do not want to get involved in any money laundering operations. These unofficial services aim to support people and companies with legitimate needs transfer money oversea with simple procedure, lower rate and faster, comparing to traditional banks, not to help criminals launder money. Unofficial funds transfer systems run popularly in main market in Vietnam, consisting of

Ben Thanh market, the oldest market in Ho Chi Minh with long history of informal transfer channel, or Hang Bac Street in Ha Noi. Unofficial channels have currently played an important to Vietnam residents and companies running in Vietnam. Up to now, beside traditional banks do official transfer worldwide, alternative digital currencies like Bitcoin, or Webmoney is considered unrestricted way to send and receive money global. Bitcoin already expand service in

Vietnam, and now many people use Bitcoin to send and receive money, also Webmoney.

11. Developing the strategy for TewYu to expand their global transfer money service between the United State and Vietnam 11.1 SWIFT Wire Transfer

The SWIFT international payment network is one of the greatest encrypted messaging system worldwide. Using SWIFT, customers can transfer money to any country they want. The bank in

30 Vietnam will assign payment into the receiver account due to the information transmitted from

TewYu system via SWIFT message. TewYu can partners with local banks or financial institution in Vietnam to arrange the small transactions with a pre-negotiated exchange rate.

The chart below creates how TewYu apply SWIFT wire transfer from the US to Vietnam

With the Tewyu innovation plan, the remittance service online will be more convenient, and cheaper with the lower cost. However, this system just works for transferring money from the

US to Vietnam, not include the opposite direction. As a paper illustrates above, Vietnamese regulation just allow send money out of Vietnam when clients can prove their source of money at the time they want to transfer money oversea. Currently, there is no any exception to send money out of Vietnam online without any document and proof. SWIFT wire transfer combine with

31 TewYu system is still a good choice to make remittance to Vietnam. Also, with the automatic payment, Vietnamese living in the United State can split their payment with TewYu plan to send back money to their family and friends due to their cash flow.

11.2 Digital currency and blockchain technology

Different from SWIFT wire transfer, digital currency, or blockchain provides better choice that will work for Tewyu to both send and receive money between Vietnam and the United State, which eliminate the complex procedure and high fee from traditional banks in Vietnam.

Typically, Bitcoin is a popular type of digital that allows people to send and receive money globally without involving in traditional banks’ activities. Using digital currency will eliminate the flow of real cash out of the country, which involved in strict regulation in Vietnam. As a result, Vietnamese can send money from Vietnam to the US, and vice versa. The Bitcoin network bases on the blockchain technology, which provides a share public ledger open to every user, resulting in removing the necessary to pass through banks to send money from one place to another. Blockchain is a tamper-proof data system where all confirmed transactions between

Bitcoin wallets are attached to bitcoin blockchain. With the use of cryptography, the integrity of blockchain application are ensured, and signature is required when making a transaction to secure that users are from the owner of the wallet.

32

Bitcoin can be quite complex when both sender and receiver have to own a Bitcoin wallet to make an oversea payment. Additionally, users need to convert a currency they have into Bitcoin to send to another one who will also receive in Bitcoin, and then the receivers will convert it into their local currency. Bitcoin transactions costs are much lower because they do not involve into traditional system of banks. Also, Bitcoin system provides greater exchange rate but some exchange risk will be added since users are converting currency twice from both the sender and receiver. In the United States, according to U.S. treasury, Bitcoin is licensed as a convertible virtual currency in most states, including California, Texas, New York, etc. The Bitcoin payment in the U.S. are followed to the same taxes and reporting inquiry as any other currency. There are

33 many Bitcoin exchange in America, such as Kraken, Bitstamp, Bitfinex, and many other markets. In Vietnam, Bitcoin is not really approved and protected by law, following to the State

Bank of Vietnam. However, Bitcoin is working in Vietnam without being restricted. There are two biggest Bitcoin exchange markets, consisting of VBTC and Bitcoin Vietnam. Additionally, users can use “LocalBitcoins” website to quickly find out the users who want to buy or sell bitcoin. Bitcoin in Vietnam is still in young stage, but the community is interested in expanding this market. For example, Bitcoin Saigon is Vietnam’s public Bitcoin meet up, which provides international speaker from China, Silicon Valley, New York City, France, Northern Ireland,

Malaysia, and many other countries to give a deep understanding about Bitcoin or cryptocurrency industry. With Bitcoin blockchain technology, it is believable that TewYu can bring a cheaper and faster payment between Vietnam and the United State. TewYu can leverage bitcoin and blockchain technology to make transfer money between Vietnam and the United

States easier, and cheaper, which will significantly benefit Vietnamese students and Vietnamese people staying in the United States. Bitcoin obviously match to the TewYu concept, which targets friends and family environment, as well as a small payment. Between friends and family members, they can create Bitcoin wallet together and make a payment between each other.

Combing Bitcoin blockchain and automatic repayment system of TewYu, it will be a great combination, not only providing the easier and convenient way to make global payment but also automatic managing users’ repayment. Interestingly, there are a huge number of places that users can spend their Bitcoin for shopping online. According to “shopify”, there are over 75,000

Shopify merchants began accepting Bitcoin as a form of payment on their stores, including buying physical goods or property, paying hotels, bars or restaurants, shopping online, and many other interesting services and goods.

34 11.3 Peer to Peer Currency Matching and Payment

Using peer to peer (P2P) currency matching and payment network is also an idea for TewYu expanding its remittance between Vietnam and the United State. Peer to peer currency exchange allows customers to send money directly between two marketplace participants that using different currency in a decentralization way. This method also removes the cash flow out of the country. Thus, the Vietnamese can reduce their stress of dealing with many regulation paper from the state bank. Typically, peer to peer money transfer services are matching people who send money in one currency to another one who make a transfer in the opposite currency needs.

For example, Tina lives in Vietnam are sending $1,000 to the U.S., Tina will be match with someone who are looking to send an equivalent amount of Vietnamese Dong to Vietnam.

As a result, P2P transfer brings greater benefits for the users, who can experience better exchange rates and lower fees when they make an oversea payment. Currency conversions are available public at the time of matching currency, so there will be no any hidden fee.

35 Furthermore, peer to peer service provides fast and efficient transfer worldwide, many case are

processed in same day.

However, in some aspects, P2P matching and payment service is not fit with TewYu concept.

TewYu are created to make payment between friends and family environment, but peer to peer

matching exchange require a huge network with a large number of users looking for match

currency needs. Therefore, P2P matching network will be work well for TewYu when it expands

their users network.

12. Conclusion and Recommendation

Due to the achievement of financial technology, it is obvious that traditional banking and finance

service will become old-fashioned. The strong competition in banking and financing environment pushes startups and traditional banks together focus more on customers’ experience

to expand their service better. During past few years, digital and automated technology has

brought many benefits for fintech startups, as well as push traditional banks to shift and change

their products. At some aspects, it is clear that fintech startups, which provide more efficient and

lower cost finance services to clients, have disrupted traditional banking patterns which offers

higher fee and complicated procedures, but there are also opportunities for banks to transform

their system and adapt to the changing customer needs. Specifically, with the high reputation and

the huge number of existing customers, traditional banks have their own strength to actively

continue and add more different channels to connect with customer experience in multiple way.

For instance, some larger banks, like Banks of America, Chase, or Citi Banks can buy FIntech

startups or partner with them to get products or services. Thus, it is true that traditional banks are

generally reacting to the threat of fintech environment. Additionally, banks have been depended

strongly on supervision and regulations after the financial crisis, which does not influence on

36 startups. As financial technology services are still fairly young, regulations meet some difficulty to shape restraints and rules on these activities. It is clear that a lot of third party Fintech startups are very quick-minded and not operating under the same regulations as conventional banks. They do services faster and cheaper than traditional banks. However, fintech are expected to keep growing significantly, a better focus on regulating these fintech activities will partly reduce the pressure on traditional banks, as well as protecting customers’ information and their benefit.

Specifically, the Consumer Financial Protection Bureua are having careful eyes in fintech industry to secure clients are protected with the advanced technology they are using. Therefore, it is important for ItsPayd, especially TewYu, to understand deeply regulations and market TewYu wants to enter. It is easier for TewYu to expand to Vietnam when TewYu owner has a deep knowledge about fintech market, as well as regulations in Vietnam. As I point out above,

Vietnam will be a potential market for TewYu due to their growth of mobile payment, and remittance services. With its own automated payment, TewYu can build the global transfer money system between Vietnam and the United State by using SWIFT wire transfer, digital currency or blockchain technology, or peer to peer currency matching system. However, TewYu is too new and young to stand by itself, so that Tewyu can partner with Bitcoin or blockchain providers to build the global transfer money between Vietnam and the United State, which is seem a good choice.

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