Fundiin "joins hands" with CIC to pave the way for entering the credit card sector

Fundiin is expected to enter the credit card market in the first quarter of 2025, and is still considering whether to issue domestic or international credit cards.

Fundiin - a company operating in the field of buy now, pay later (BNPL) has just signed a cooperation agreement with the National Credit Information Center of Vietnam (CIC). This is an important milestone, marking Fundiin becoming a voluntary organization of CIC, after passing the rigorous assessment and evaluation rounds from CIC.

CIC will provide Fundiin with credit information product exploitation services, including credit scores of individual borrowers. With reputable data sources from CIC combined with the existing identification technology platform and credit assessment algorithm, Fundiin can more quickly and accurately assess the creditworthiness of customers, thereby making better decisions on approving customer profiles.

In addition, Fundiin will also periodically provide CIC with credit information as well as the on-time payment level of Fundiin users, helping CIC update and improve the national credit data system.

This cooperation is part of Fundiin's long-term consumer credit development strategy in Vietnam.

Because the credit card market is very small, not only e-wallets but also some banks are promoting the credit card segment and Fundiin is no exception.

Credit institutions need to promote communication to reach out and facilitate people and businesses, especially in rural, remote and isolated areas, to easily access and use formal payment services to popularize comprehensive finance and limit black credit.

Fundiin representative shared that it is expected that in the first quarter of 2025, Fundiin will participate in the credit card market, and is still considering whether to issue domestic or international credit cards.

Currently, the number of domestic credit cards is still too low, only 8% of international credit cards and 0.6% of the total market. Current payment turnover only reaches 0.5-0.9% of the total market card payment turnover. This turnover is still very low compared to the potential of domestic credit cards.

According to data from the State Bank of Vietnam, the number of domestic credit cards in circulation as of March 2024 reached more than 904,700 cards (an increase of 18.37% over the same period in 2023). Domestic credit card transactions in the first 3 months of 2024 reached 1.3 million transactions with a value of VND 10 trillion (an increase of 75.43% in quantity and 89.85% in value).

The main reason why domestic credit cards are not attractive is due to factors related to consumer psychology, opportunity costs and financial costs of issuing organizations...

According to the Payment Department (State Bank of Vietnam), Vietnam has a young population structure, increasing income, e-commerce trends, and popular digital economic activities... are reasons why the domestic credit card market has a lot of potential for development.

According to a representative of the Payment Department, with more than 900,000 domestic credit cards while the population is 100 million people, this is a great potential for credit institutions to exploit and promote the issuance of domestic credit cards in the coming time.

After just over 5 years of operation, Fundiin has set new standards in the consumer credit market in Vietnam.

Fundiin does not have a debt collection department. Fundiin controls risk by focusing on investing in technology solutions and data science.

Currently, Fundiin has cooperated with more than 600 retailers and major brands such as Lotte Cinema, Pharmacity, Guardian, Kidsplaza, bringing post-payment feature to users in 63 provinces and cities nationwide.

Source: https://baodautu.vn/fundiin-bat-tay-cic-mo-duong-lan-vao-mang-the-tin-dung-d217414.html