According to statistics from the Vietnam Securities Depository Center (VSD), nearly 330,000 new securities accounts were opened by domestic investors in July 2024 alone, triple the number from the previous month and the highest in the past two years. This has been a significant boost to the market’s strong recovery after two months of sharp declines.
Trading as little as one stock through e-wallets
Notably, opening an account and investing in securities is no longer solely done through traditional means, but with significant support from new technology, including artificial intelligence (AI). The explosion of e-wallet and banking applications has particularly made it easier for investors to access the stock market.
Reporting from Nguoi Lao Dong newspaper on several stock investment groups and communities reveals that the trend of buying stocks through e-wallets is becoming increasingly popular. The difference lies in the amount of investment; instead of investing large sums of money, ranging from tens of millions to billions of VND like traditional investors, those who participate in stock investing through e-wallets usually buy and sell stocks with amounts ranging from just 10,000 VND to over tens of millions of VND. However, this community of investors boasts a large number, reaching hundreds of thousands of people.
Investors checking stock information on an e-wallet application. Photo: HOANG TRIEU
Ms. Mai Thy, a resident of Ho Chi Minh City, shared that she entered the stock market a few months ago after experiencing the feature of buying and selling stocks on an e-wallet. “The attractive factor for new investors is that you don’t need a large sum of money; even with just a few dozen thousand or a few hundred thousand VND, you can invest in stocks, which is quite convenient. However, deciding which stocks to choose still requires careful consideration,” said Thy.
Currently, there are two e-wallets that offer securities services to their users: MoMo and Zalopay. Zion Joint Stock Company, the parent company of Zalopay, collaborates with DNSE Securities Company to provide DNSE’s securities services on the Zalopay platform to attract its 14 million users.
Zalopay launched this service in August 2023 as the first e-wallet to support stock investing for beginners, allowing them to start with just one stock. After a year, Zalopay recorded more than 400,000 customers opening securities accounts and regularly investing, with nearly 50% of them aged 25 to 35.
Meanwhile, the MoMo payment platform partnered with CV Securities Company (CVS) to allow users to open securities accounts at CVS to buy and sell listed stocks. With as little as 10,000 VND, investors can start investing. CVS also provides various information on the MoMo app to assist investors in making decisions, such as recommending highly-rated stocks according to CVS’s Radar stock method, stocks with the biggest gains of the day, and stocks with the highest trading volume of the day…
Additionally, the MoMo application offers investment services in fund certificates from fund management companies such as SSI, VCBF, and Dragon Capital.
Competition with traditional securities companies?
In an interview with Nguoi Lao Dong newspaper, Mr. Nguyen Thanh Lam, Director of Individual Customer Analysis at Maybank Securities Company, analyzed that financial technology (fintech) companies could develop the convenience of buying stocks through their applications. Essentially, this is a positive development as it helps popularize stock investing and make it a mainstream investment channel.
But do these methods compete with traditional securities companies? According to Maybank, competition is inevitable in any business field. Instead of worrying about these new waves, securities companies themselves should improve their services to optimize the investor experience and attract new customers. “For investors, it is crucial to thoroughly understand the legal aspects of the service provider to avoid unfortunate incidents. Aspects such as security and accompanying support services should also be noted,” said Mr. Lam.
Ms. Nguyen Thi Thao Nhu, Senior Director of Individual Customers at Rồng Việt Securities Company (VDSC), opined that the trend of buying and selling stocks through e-wallets offers high convenience, especially for small investors who want to trade with small amounts of money quickly (in fact, investors can also buy from securities companies in the form of buying fractional shares). “However, these platforms usually do not provide in-depth analytical tools like traditional securities companies. While e-wallets and digital banks can attract a large number of new users, securities companies maintain their advantage in providing investment advisory services, portfolio management, and in-depth analytical tools. Competition exists, but only in different market segments,” said Ms. Thao Nhu.
When buying stocks through fintech platforms and e-wallets, investors should note that the fees may be higher than those of traditional securities companies, so it is necessary to make careful comparisons to ensure reasonable costs. Security is a key issue, protecting personal information and investment accounts. Additionally, according to Rồng Việt Securities’ expert, customer support services such as personalized investment advice or technical analysis may be limited on fintech and e-wallet platforms compared to traditional securities companies.
Using AI for “surfing”
Along with the trend of investing in stocks through e-wallets, many securities companies are also competing to attract investors by integrating AI. For example, MB Securities Company (MBS) has a smart assistant product called “Cá heo bạc tỉ” on the MBS application. Thanks to AI integration, this assistant can provide investors with in-depth information and investment opportunities. Stocks are automatically evaluated based on multiple criteria, especially the technical strength of each stock, helping investors make informed transactions. The Real-time alert feature notifies investors when the stocks in their investment portfolio reach profit/loss thresholds or when there are signs of sharp declines along with sudden liquidity changes, helping investors quickly grasp information and manage the risks of their investment portfolios.
Techcom Securities Company (TCBS) also applies AI in investment trend prediction, capital flow prediction, and financial product recommendations for specific customer segments. They have also deployed robots to assist customers automatically.
Mr. Minh Thien, an investor from Ho Chi Minh City, shared that the AI technology of securities companies works well in indicating stock increases and decreases within an investment portfolio. However, the analytical information provided by AI is not always accurate and may contain errors, so it is necessary to carefully consider it through the transaction history.
Similarly, investor Nguyen Thanh Linh, from District 1, Ho Chi Minh City, appreciated the ability of AI to filter stocks, provide consulting services, and even replace experts in analyzing bottoms, tops, buying power, and selling power. Nevertheless, relying solely on AI data from providers is not advisable, as this technology is still in the development phase and has not yet achieved high efficiency in the market. Investors should not base their investments solely on this data to avoid potential risks.
From the perspective of an insider, Ms. Nguyen Thi Thao Nhu stated that investing through AI brings convenience and efficiency by automating the transaction process and data analysis to optimize investment decisions. However, relying entirely on AI carries risks if investors do not fully understand the algorithms’ workings, especially when the market experiences unexpected fluctuations. Investors may lose their autonomy and fail to develop their market analysis skills. AI may also not align with the goals and risk appetite of individual investors. “AI should only be considered one of the supporting tools, combined with personal knowledge and experience, to make optimal investment decisions and minimize risks,” said Ms. Thao Nhu.
Margin lending through e-wallets
A representative of Zalopay shared that new investors tend to favor the “Investment Recommendations” feature. These recommendations are based on market information and insights from experts at DNSE, the product issuer. Not only new investors but also seasoned investors with transaction values up to billions of VND have joined Zalopay’s securities accounts. “Soon, we will introduce a margin lending feature to better serve the needs of professional investors,” the fund revealed.
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