Firm selection for Embedded Finance Project in Vietnam Tender, USA - 84936718

Procurement Summary

Country : USA

Summary : Firm selection for Embedded Finance Project in Vietnam

Deadline : 17 Jul 2023

Other Information

Notice Type : Tender

TOT Ref.No.: 84936718

Document Ref. No. : 0002002488

Competition : ICB

Financier : International Finance Corporation (IFC)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Tenders are invited for Firm selection for Embedded Finance Project in Vietnam

IFC finances private sector investments in the developing world; mobilizes capital in the international financial markets; helps clients improve social and environmental sustainability; and provides technical assistance and risk mitigation services to businesses and governments. For more information; visit www.ifc.org . IFC-s Financial Institutions Group (FIG) works through financial institutions to provide much-needed access to finance for millions of individuals and micro; small; and medium enterprises that we would never be able to reach directly. This is an important part of the WBG strategy to end extreme poverty and build shared prosperity. FIG engages in a wide range of themes including Climate Finance; Digital Financial Inclusion; Banking to Micro/ Small/ Women businesses; Insurance; Capital Markets; etc.; with both investment and advisory services delivered through IFC-s global network.Embedded finance (EmFi) models face market; regulatory and firm level hurdles to their development in Vietnam. Digital companies in sectors; including logistics; retail and trade; have significant client networks and data assets that could support new business models in financial services. But they need to enhance their operations and work around regulatory frameworks that have not yet adapted to foster digital innovation. Digital companies need to work with existing banking partners; most of which lack the skills; operating models and commercial incentives to support these innovations. Digital platforms need to access and analyze data from sources beyond their direct control; including banks; to develop scoring & risks models for financial services. While embedded finance advances globally; its potential in Vietnam is curtailed; undermining digital firms- growth and perpetuating gaps in access to financial services; especially for MSMEs; many of which are women owned or led.IFC aims to foster digital financial sector development; innovation and investment in Vietnam working with selected partners to develop embedded finance business models and operations. IFC want to support existing clients to design; test and embed financial services offerings in their respective digital platforms. IFC will help them develop business models for embedded finance; design partnerships with FIs; and improve selected operations; in particular data management and scoring models. The aim is to ensure that their embedded finance models are sustainable; scalable and enhance access to finance; especially for women owned/led SMEs. It will serve to mobilize private investment into the sector while supporting regulators' efforts to protect consumer and financial sector stability.In this context; IFC is interested in conducting a market assessment of a B2B healthcare and personal care distribution platform in Vietnam. At the moment; the Company does not offer any credit term to its customers but plans to develop financial products for MSMEs to support its clients and create more value for the company. Most of its clients are underbanked; especially in rural areas; and the Company does not have the capabilities to support them on financial services. The Company sees EmFi as a potential enabler and is open to collaborate with financial institutions to provide EmFi Services.Through this ToR; IFC wants to:* Estimate current and (expected) opportunity for potential customers for the company; forecasting its growth over the next 2-to-3-year period. * Estimate and validate the size of the EmFi segment and potential penetration for different segments of clients (small; medium and large).* Conduct qualitative research (interviews; focus groups) with a sample of potential customers to help the company validate its hypotheses of how the EmFi loan product attributes will address specific customers- needs or bottlenecks for obtaining loans. IFC-s FIG Advisory Services Team is looking for a seasoned Market Research Firm with knowledge and first-hand experience with MSME Segments; financial products; particularly loan in Vietnam. The Firm will work alongside experienced IFC industry specialists and operations staff over the course of the research

Documents

 Tender Notice