E pig budgeting app business plan

This app is marketed to young Korean people, so the pricing and promotion plan will be implemented to tailor to our target market.. Company Description Legal structure Our enterprise Q2M

UNIVERSITY OF ECONOMICS THE UNIVERSITY OF DA NANG

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BUSINESS COMMUNICA TION

GROUP 1 Topic:

E-PIG BUDGETING APP BUSINESS PLAN

Lecturer : Mr Lâm Minh Quân

Members : Trần Thị Phương Thảo

Lê Nguyễn Phương Uyên Trương Thái Vy Nguyễn Khánh Trang Dương Kim Ánh

Da Nang, 2023

Table of contents

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E-PIG BUDGETING APP — BUSINESS PLAN

1 Executive Summary

Many young people still struggle with efficient money management There are several factors that contribute to this issue, including the fact that young people lack self-control over how much they spend and how many things they buy, the knowledge of effective budgeting techniques Therefore, creating an app that can help young people manage their expenditures is crucial, especially for those who need to save but are unsure of how to go about it and how to be successful

The Korean market is our target demographic, particularly the nation's youth Despite being one of the world's economic powerhouses, it is a fact that many people in Korea are still heavily indebted Koreans borrow money to pay for their personal expenditures, education, and especially credit card purchases Because we identified a need for an app to assist young people in managing their finances, we made the decision to develop our company idea in this nation To successfully penetrate into this market, we have studied its culture, economy and regulatory requirements

Korean culture

The traditional and long-standing culture of the Korean peninsula served as the foundation for present Korean culture Hanbok is the national dress of this nation, and because of the Hallyu wave and Kpop, Korean culture is now more widely known outside of Asia The Korean people still exhibit a strong sense of hierarchy, respect, and dignity In modern spiritual life, Korea is a country that actively seeks out and actively joins in the religions that they feel are suitable, typically Christianity

Korean Economy

Korea's economy is a highly developed mixed economy According to nominal GDP, the nation has the 10th largest economy in the world and the 4th largest economy in Asia South Korea has modified its export-focused economic policy The world refers

to its remarkable economic growth as the "Miracle of the Han River"

Regulatory environment

South Korea has a semi-presidential republic, whereby the president, directly elected for a five-year term, is considered the head of state Korea's legal system belongs to the continental European system so it can be considered as a "mixed" legal system with indigenous legal elements combined with imported elements These principles of the

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E-PIG BUDGETING APP — BUSINESS PLAN tule of law play a role in promoting political, economic and social stability, through which investors and businesses can plan their business and investments in a convenient way

Q2M has set some goals to achieve First, we can gain market share in the sector and reaching 1.5 million downloads in three years Since client loyalty is the true indicator

of success, our goal is to increase it In addition, we set a goal that after 5 years of market penetration, the application can appear at the top of the search results when users look for phrases associated with the app Additionally, we use the application as a tool to gather client data, and use that to keep up with the needs of customers or gain market insights , which can develop our product or look for opportunities to create new products

in the future

To that end, we decided to set ourselves apart from the competition by adding innovative features This app is marketed to young Korean people, so the pricing and promotion plan will be implemented to tailor to our target market

2 Company Description

Legal structure

Our enterprise Q2M is a software development company, specializing in the financial and business management sector We operate as a joint-stock company We focus on producing technology software, distribution, and development of software

Location

The location of the enterprise is located at 325 Hung Vuong Street, Thanh Khe District,

Da Nang City In mid-2019, the enterprise established two branches in Ho Chi Minh City and Can Tho In March 2022, the company expanded its office in Busan City, Korea

Mission

As a technology software enterprise, we focus on creating technology software in the financial sector to give users a reasonable spending life, increase personal savings; ensure personal finance is always kept at a stable level; develop user's spending memory skills, thereby partially solving economic problems as well as contributing to economic growth At the same time, the application of high-tech software to the financial sector also contributes to promoting the development of technology in people's lives

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E-PIG BUDGETING APP — BUSINESS PLAN Organizational Culture

The company aims to build an Adhocracy corporate culture, which focuses on and encourages innovation in working styles and agile product innovation Therefore, employees in our business are allowed to freely share and contribute ideas to improve productivity and work efficiency Besides, they also learn and innovate to develop their capacity in a highly competitive environment Finally, there is no pressure on the hierarchy, which is quite suitable for technology software development enterprises Cultural requirements

Language proficiency

Q2M requires CTO and CTO’s lower-level employees to have Full Professional English

in the Technology sector At this level, they can have advanced discussions on technology topics In the remaining departments, our business requires Professional Working English - that is, language proficiency that can participate in office meetings, collaborate with other employees, and perform most of their job functions

Knowledge of local customs

When the company's office operates in Korea, cultural differences are inevitable Therefore, Vietnamese employees at the Korean office need to have a certain understanding of the culture and customs of this country Here are some cultural and customary considerations when working with Koreans:

Korea is a culture where social harmony is very important, which is expressed by Koreans through facial expressions, state of mind, body language, or voice quality For Koreans, addressing by their first name be referred to by their professional titles

such as Mr, Ms, or Mrs is considered polite

It is important to maintain good posture and positive body language to show listening patience, and courtesy throughout the meeting There will often be periods of silence in meetings, try not to break these times as these are moments that Koreans use to reflect and show concern for others

In Korea, good relationships are crucial to success both in the personal and business spheres, and these are assimilated into the business world To maximize our business savvy, we must also carry honor, respect, and dependability in a business environment

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E-PIG BUDGETING APP — BUSINESS PLAN

3 Market Analysis

3.1 Current trends

According to the Korean Fintech Report in 2020, there are three leading trends in the Korean fintech market

Digital payment

The main segment of the Korean fintech market at the moment is digital payments Using e-payment services, the daily total transaction value in the second quarter of 2018 was KRW 117.42 billion (GBP 77.8 million), increasing 208% from the same period in

2017 and 568% from the same period in 2016 This information was gathered from the Bank of Korea

Blockchain

Since the authorities determined that blockchain only ranks third behind digital payment and P2P lending, Korea has been regarded as the world leader in blockchain technology

It has committed to investing up to KRW 10 trillion (GBP 6.67 billion) over the next five years with the help of related programs

AI

In Korean financial services, artificial intelligence is becoming more and more popular One of the few nations in Asia to make significant investments in AI is Korea The Korean government has published a well-funded AI policy There are numerous reasons why AI is spreading like wildfire in the financial industry Banks provide text-based chatbot services that employ AI to communicate with consumers and automate

mundane, monotonous activities

3.2 Opportunities

E-commerce is seen as the most important driving force of the fintech market Korea is also one of the world's largest e-commerce markets, valued at KRW 123.2tn (GBP 78.3bn) in 2020, up from KRW 111tn (GBP 70bn) in 2018 Due to the period of COVID, the frequency of online shopping has naturally increased The e-commerce industry has also spurred the popularity of digital payment, which is much more time- saving than waiting in a long line during offline shopping As our budgeting app can

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E-PIG BUDGETING APP — BUSINESS PLAN automatically record the spending when users shop online, Koreans might feel more encouraged to download the application

Additionally, South Korea’s fintech adoption rate stood at 67% in 2019, which was slightly above the world average of 64% Hence, it is more likely that Koreans can embrace new solutions for managing their personal spendings

Another crucial factor is that the credit card debt rate among Korean youth is quite high these days According to a report conducted by VTV in 2022, about 134,000 people in Korea declared bankruptcy, falling in their 20s At the same time, it is now easier for low-income people to get a credit card, and the government in South Korea also cuts taxes on credit card payments to boost spending Consequently, this creates the habit of buying first, paying later for Korean people Due to this fact, Korean people, especially youth, might realize the need to reasonably manage their finances

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slightly (1.8% to 0.7%) In 2025, Figure 1 Number of people using personal finance the number increased (7.6%), and app in Korea from 2022 to the Ist quarter of 2023

this was also when the economic recession started It can be seen that the demand for using an application to manage people's spending increases during the economic downturn

Besides, currently there are quite plenty of programs to support newcomers and startups

in the Korean market The OASIS program helps foreign startups obtain visas Selected Fintech firms can receive a free workspace in Yeouido for up to two years from Seoul Fintech Lab in addition to ongoing support for networking and commercial prospects 3.3 Challenges

In contrast, while having cutting-edge technology, Korean businesses are constrained

by a number of local laws and cultural norms

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E-PIG BUDGETING APP — BUSINESS PLAN Large-scale rules in Korea limit start-up innovation and technological convergence across many important industries This is relevant to the fourth industrial revolution, which includes technologies like automated driving, big data, finance, and artificial intelligence Due to the numerous restrictions protecting the financial sector, Korea has historically been a challenging market for fintech to grow

Data Localization Requirements: As of this year, however, client information may be stored on cloud servers, provided that they are located in Korea, thanks to new legislation created by the FSC (Financial Services Commission) Foreign fintech companies looking to enter the market may encounter challenges due to the requirement

of storing specific data on Korean cloud servers

Plus, FinTech companies must have a large amount of information related to users The security for protecting client’s data is strictly required in Korea As a result, the government intends to clarify responsibility standards to solve possible security vulnerabilities Fraud Detection System (FDS) is essential to enhance after-sales inspection While big Fintech and financial companies are rapidly building the FDS system, it is quite hard for startups due to high installation cost and large data processing

3.4 Competitors

For the personal spending

management app, 1n second

= — application and in the third

= = position is the Money Manager

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Figure 2 The number öƒ people who installed I4 Informatlon of — these — two

financial management apps in Korea competitors below

a Bank Salad

e Founded in 2012, Bank Salad is a Korean-based company which operates

> an online personal financial management and asset management platform

It claims itself as one of the most successful startups in the IT and marketing

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E-PIG BUDGETING APP — BUSINESS PLAN industry in Korea One of its products is the Bank Salad application, a one-stop financial management tool that offers credit card and other financial product recommendations based on a user's financial situation and spending patterns

b Realbyte company

Real Byte is a startup in the Fintech industry Being translated into 17 languages, Money Manager now is considered one of the top economic categories in various countries including North America and _ has accumulated 10 million downloads and is used by more than one million users every month The app Money Manager is an expense tracking system with various features such as providing weekly and monthly budgets, reviewing all the transactions with filters, saving receipts by photos and assessing graphs

3.5 Differentiation strategy

To differentiate our product from our competitors’, we have outlined a centralized marketing strategy based on marketing mix 4P This section will only discuss the differentiated points of our strategy instead of mentioning all parts

Target market

Our target market will be people living in Korea only Due to some mentioned regulations on data management from Korean authorities our product will be marketed tailoring for Korean only

The app is tailored for the young whose ages fall in from 18 to 25 People at these ages are often students who might be financially dependent on parents or those who still do not have stable income These young adults might recognize a need to track and control their spending powers frequently due to the instability of their financial status

Product

The most important factor to consider is certainly the product Our application is also a financial management app However, the most special feature is the one that allows users to chat with a robot operated by AI Users can ask questions about their expenses

or savings, such as what if they spend more on a certain section than the goal set at first and the AI can automatically analyze and offer the best solution

Pricing

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E-PIG BUDGETING APP — BUSINESS PLAN

As our tailored users are students, the pricing policy will not charge users too much Most of the functions will be free of charge and only some of them cost users a certain price such as bills scanning, blocking advertising or chatting with AI

4 Products

The product will include a lot of useful features that aims to tackle the customers’ problems and satisfy their needs in managing their finance

4.1 Tracking expenses features

Account integration

Users can integrate their bank accounts, credit or debit accounts into the app This makes

it easy for users to manage their finances in one app We acknowledge that it would be inconvenient if a person has multiple accounts from different banks and have to use multiple banking apps at the same time to manage their money So, our company’s financial management app allows users to synchronize multiple bank accounts at once

so they can keep track of their budgets more comprehensively on just this one app Bill scanning

It is acknowledged that there still can be some non-trackable transactions which users

make in cash or use unlinked bank accounts For these cases, users will have to enter

missed payments manually, which is time-consuming and may include some incorrect information Therefore, the application offers a bill scan feature Users only need to scan their payment bills and the app will transcribe all the expenses and dates of spending Thus, recording user spending is more simple, accurate and time-saving Creating budgets

From the data on credit loans in the market analysis section, we can see that Koreans,

especially young people in this country, have a habit of over-shopping Therefore, the company's app will allow users to create budgets for each category they want The app then tracks users’ spending in real-time and alerts them when their spending is about to pass their limit As a result, users can be aware that they are overspending and restrain themselves from making impulse buying

Recurring payment tracking

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