The consumer finance market is facing its most difficult period in many years. However, this is also an opportunity for financial companies, including Mcredit, to focus on digital transformation and improving customer experience.
Outstanding consumer loans do not meet expectations
Consumer credit lending is currently considered a "hot" field. According to the Vietnam Banking Association, by the end of 2023, outstanding loans for living needs reached about 2.8 - 2.9 million billion VND, accounting for about 21% of outstanding credit in the whole economy. In early 2024, the growth rate of outstanding credit in the whole economy did not meet expectations, outstanding credit loans for living needs decreased by over 28%. Of which, 15 finance companies licensed in Vietnam are operating and outstanding consumer loans as of February 2024 were about 138.8 trillion VND, accounting for about 5% of the total outstanding loans for living needs.
The main reason is the decrease in demand for consumer credit in the context of difficult economic growth affecting the income of individuals and households, increasing the need for savings to prepare for the future and reducing the need for bank loans to expand spending.
On the other hand, customers who are slow to pay their debts, intentionally do not pay their debts, form “debt default” groups on social networks, oppose and slander debt collection officers, etc., negatively affecting the image and reputation of banks and financial companies. In addition, financial companies also face difficulties due to policies and negative media influences.
Efforts to achieve strategic goals
Established in 2016, MB Shinsei Finance Company Limited (Mcredit) is a joint venture finance company between the Military Commercial Joint Stock Bank (MB) and SBI Shinsei Bank (Japan). Mcredit has made a strong impression by rising to the 4th position in consumer finance market share in Vietnam in 2020, then rising to the Top 3 in 2021 and maintaining that position until now.
From the beginning of 2023 until now, although the market is in a difficult period, Mcredit is still one of the few financial companies operating effectively thanks to its steadfastness in the strategy of "taking customers as the center", accompanying customers in difficult times and digital transformation, especially when there are great lessons and support from MB Bank and SBI Shinsei Bank.
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Mcredit always adheres to the strategy of "taking customers as the center" |
To complete the 2022 - 2026 period goal, reaching Top 1 in terms of efficiency, Top 2 in terms of scale and serving 8 - 10 million customers, along with traditional service channels, Mcredit has shifted to providing services on digital channels, based on data analysis and customer personalization to help assess credit risks faster and more accurately. Through the consumption habits that the company can collect in combination with partners based on customer consent, their needs are resolved faster, creating benefits for both customers and Mcredit, the results are better while the customer experience is significantly improved.
Aiming to promote digital transformation while minimizing risks in the financial sector, 6 credit institutions, including Mcredit, have pioneered the implementation of a solution to apply population data in assessing the creditworthiness of borrowers, helping people to easily access capital sources more quickly and effectively. Accordingly, Mcredit no longer spends much time in preparing loan applications when all necessary information can be provided through the population data system.
In response to the situation where customers have reduced ability to repay debts due to job loss, work postponement, or work rescheduling, Mcredit proactively contacted customers who were said to be facing difficulties to share and propose solutions regarding repayment terms and repayment amounts. This is also in line with the policy of the Government and the State Bank of Vietnam to restructure repayment terms and repayment amounts for customers in difficult periods.
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Mr. Le Quoc Ninh, General Director of Mcredit |
Mr. Le Quoc Ninh, General Director of Mcredit said: “Mcredit has always been loyal to the humane lending and humane debt collection strategy, taking customers as the center, considering customers' difficulties as our own. Mcredit has implemented interest exemption and reduction, debt repayment restructuring for customers since the Covid-19 pandemic, not just in the past 1-2 years. This period is also a good opportunity for Mcredit to have time to review and improve internal processes, increase operational quality, and become more efficient. Some previous processes have been digitally transformed, reducing time and decision steps.”
2024 is forecast to be a difficult year, but Mcredit is still confident in its strategy, focusing on designing products that suit customers' needs to ensure people have access to reliable capital. In particular, it will always be flexible, adaptive, focus on investing in technology, focus on core products, improve risk management to bring the best experiences to customers.
Source: https://baodautu.vn/mcredit-tim-co-hoi-trong-thach-thuc-d215683.html
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