Vietnamese ride-hailing startup Be Group has joined hands with Vietnam Prosperity Bank (VPBank) to roll out the digital bank Cake, according to a DealstreetAsia report.
Similar to a traditional bank, digital banks provide banking services, including account opening, money transfer and debit card issuance, among others.
Cake claims its online know-your-customer (KYC) system would enable users to utilise digital signatures to verify their transactions.
With services hosted on the Be app through VPBank’s digital banking license, Be claims Cake will have access to over 10 million customers, nearly a third of the Vietnamese ride-hailing market.
“Be Group understands that e-banking will not simply stop at a new payment method but it will also encompass a new technology that can be integrated into our every day lives through essential devices,” said Nguyen Hoang, CEO of Be Group.
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Founded in 2018, Be Group operates a suite of transportation services, from ride-hailing to delivery. The Saigon-headquartered startup claims that as of November 2020, it has over nine million app downloads and grown its fleet to 100,000 drivers.
In the first half of 2019, it was reported that Be had achieved 16 per cent market share, making it the second-largest ride-hailing firm in Vietnam after Grab.
The rise of digital banks within Vietnam should come as no surprise. Despite a smartphone penetration rate of 45 per cent of the total population, only 30 per cent were served by the financial sector, representing an untapped market for digital banks.
A similar trend has been observed in other countries within the region. In December 2020, Singapore awarded four digital bank licenses to a slew of corporations, including a consortium comprising of Grab and local telco Singtel.
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