A solid foundation to support the development of people's credit funds

The story of recovery and breakthrough of Co-opBank Hung Yen branch is not only a process of restructuring operations but also a vivid manifestation of innovative thinking, proactive policy adaptation, contributing to enhancing the role of banks in the process of sustainable development of the cooperative economic sector.

Customer transactions at Tan Phuc People's Credit Fund ( Hung Yen province)

Two years ago, the Co-opBank Hung Yen branch was ranked among the weakest units in the system, facing many difficulties in both personnel and its role as a focal point to support the people's credit fund system in the area. However, overcoming that period of stagnation, the branch is becoming a bright spot.

Enhance system connectivity

In less than two years, Co-opBank Hung Yen branch has transformed from a weak branch to one of the leading units in the entire system. This result was not achieved by chance, but started from a comprehensive restructuring.

From the very beginning, the Co-opBank Board of Directors determined that the key factor was people. Experienced staff from the Head Office and strong branches were transferred to Hung Yen not only to handle backlogs but more importantly to inspire work, discipline, responsibility and service to the system. The restructuring of the apparatus was accompanied by process training, operational restoration and rebuilding of organizational culture associated with medium and long-term goals.

However, an equally important thing is that the Headquarters' Board of Directors recognized that the biggest "bottleneck" of the Hung Yen branch at that time was not within the branch, but in the distance from the local people's credit funds.

As funds gradually become autonomous in terms of capital, the traditional capital regulation role of branches is overshadowed. Meanwhile, modern banking products and services have not really spread to the system, causing many funds to almost "disconnect" from Co-opBank.

Director of Co-opBank Hung Yen branch Luu Hoang Nam shared the operation situation of the branch and the people's credit fund system in the area.

Faced with this reality, Co-opBank Hung Yen branch has chosen a “soft” but persistent approach, which is to restore trust and build close connections within the people’s credit fund system. Based on a clear understanding of the characteristics of “village culture”, the branch proactively exchanges, organizes conferences and seminars in clusters (each cluster has about 7 to 8 people’s credit funds), enhances dialogue, listens and accompanies the activities of unions, competitions and sports of people’s credit funds.

According to the Director of Co-opBank Hung Yen branch, Luu Hoang Nam, when the branch's leaders and staff visit each fund more often, talk more and be more sincere, the funds will also "open up" more. "People here live according to village culture, preferring closeness rather than formality. So when the funds see that the Cooperative Bank comes not to give orders, but to support, they naturally open up again," Mr. Luu Hoang Nam expressed.

Co-opBank Hung Yen branch staff guide Tan Phuc People's Credit Fund staff to apply the bank's digital services.

The latest data from the branch shows that, as of June 30, the branch's capital had increased to VND 3,941 billion (an increase of VND 490 billion compared to the end of 2024); capital mobilization reached VND 3,719 billion (an increase of VND 593 billion), reaching 112.8% of the plan; of which the People's Credit Fund's regulating deposits increased sharply to VND 3,484 billion (an increase of VND 549 billion, reaching 113% of the plan).

Outstanding loans increased to VND 1,136 billion (an increase of VND 143.6 billion compared to the end of 2024), of which short-term loans still accounted for a large proportion (99.4%). Bad debt decreased from 0.5% (end of 2024) to 0.32%.

Breakthrough from specialized financial services

The highlight of the restructuring process is the repositioning of the branch's role not only as a "capital provider", but also as a strategic partner accompanying people's credit funds on the journey of digital transformation, service upgrading and customer development.

Accordingly, Co-opBank Hung Yen branch has deployed a series of specific financial products for the system: from member loan syndication, overdraft products, EBIZ electronic payment, CF-eBank, PCF, salary payment, opening personal accounts to unsecured loan solutions for teachers in rural areas.

These services not only help people's credit funds compete better with commercial banks but also retain and attract more members and expand community services.

Customer transactions at Co-opBank Hung Yen branch.

Statistics up to June 30 show a clear change: 55/63 people's credit funds in the area have participated in e-banking; 23 people's credit funds use EBIZ; 7 funds deploy PCF software; 4 people's credit funds pay salaries through accounts; 36 people's credit funds are granted credit limits with a total value of nearly 49 billion VND; more than 4,760 payment accounts from people's credit fund customers have been opened; 4,050 accounts from the people's credit fund system have activated Co-opBank Mobile Banking.

Pioneering people's credit funds such as Yen Phu and Tan Phuc have become models of effective digital banking applications, not only increasing productivity but also improving transparency, modernizing image and enhancing governance efficiency.

It can be said that thanks to that, up to now, Co-opBank Hung Yen branch has not only restored trust in the people's credit fund system in the area but also gradually created real value, clearly demonstrating the role of the "backbone" bank of the system in the journey of innovation, adaptation and sustainable development.

Chairwoman of the Board of Directors of Tan Phuc People's Credit Fund Nguyen Thi Hoi shared about the Fund's operations after the administrative boundary merger.

However, some difficulties still exist, significantly affecting the operations of banks as well as people's credit funds in the area. According to the Chairman of the Board of Directors of Tan Phuc People's Credit Fund, Nguyen Thi Hoi, the merger of administrative boundaries is causing the registration of secured transactions to be delayed, and the inability to complete mortgage documents for loans makes it difficult for the Funds in general and Co-opBank in particular to expand credit.

In addition, because the Fund operates in rural areas, many households have not been granted land use right certificates, so the rate of loans with collateral and secured transactions is very low. Complicated internal procedures when implementing new products need to be approved by the General Meeting of Members, requiring consensus at many levels leading to slow progress... are difficulties that people's credit funds are gradually having to overcome.

On the other hand, since the funds mainly lend on credit, or mortgage land use rights with confirmation from the People's Committee of the commune and have kept the assets but not registered for secured transactions, Co-opBank also faces many difficulties in increasing regulated lending as well as syndicated lending for people's credit funds in the area.

Faced with this situation, Hung Yen Branch proactively proposed that Co-opBank adjust its procedures, and at the same time, mobilized local authorities to coordinate in removing obstacles caused by administrative boundary mergers. This initiative not only solved the immediate problem, but also created a foundation for future breakthroughs.

ARTICLE: HONG ANH; PHOTOS: HOANG GIAP

Source: https://nhandan.vn/diem-tua-vung-chac-ho-tro-quy-tin-dung-nhan-dan-phat-trien-post897194.html