Mcredit finds opportunities in challenges.

The consumer finance market is facing its most challenging period in years. However, this also presents an opportunity for finance companies, including Mcredit, to focus on digital transformation and improving customer experience.

Outstanding consumer loan balances fell short of expectations.

Consumer credit lending is currently considered a "hot" sector. According to the Vietnam Banking Association, by the end of 2023, outstanding loans for living expenses reached approximately VND 2.8-2.9 trillion, accounting for about 21% of the total outstanding credit in the economy . At the beginning of 2024, the growth rate of outstanding credit in the economy did not meet expectations, with outstanding loans for living expenses decreasing by over 28%. Of these, 15 licensed finance companies in Vietnam are operating, and their outstanding consumer loans as of February 2024 amounted to approximately VND 138.8 trillion, accounting for about 5% of the total outstanding loans for living expenses.

The main reason is the decrease in consumer credit demand amidst challenging economic growth conditions that have impacted individual and household incomes, leading to increased savings for future security and reduced demand for bank loans to expand spending.

On the other hand, delinquent customers who intentionally refuse to repay debts, form "debt default" groups on social media, resist, and falsely accuse debt collection officers... negatively impact the image and reputation of banks and financial companies. In addition, financial companies also face difficulties from policies and negative media coverage.

Efforts to achieve strategic goals

Established in 2016, MB Shinsei Finance Company Limited (Mcredit) is a joint venture finance company between Military Commercial Bank (MB) and SBI Shinsei Bank (Japan). Mcredit has made a strong impression, rising to the 4th position in consumer finance market share in Vietnam in 2020, then to the Top 3 in 2021, and maintaining that position to this day.

From the beginning of 2023 until now, despite the challenging market conditions, Mcredit has remained one of the few financial companies operating effectively thanks to its unwavering commitment to a "customer-centric" strategy, supporting customers during difficult times and digital transformation, especially with the valuable lessons learned and the backing from MB Bank and SBI Shinsei Bank.

Mcredit remains committed to its "customer-centric" strategy.

To achieve its goals for the 2022-2026 period, ranking Top 1 in efficiency, Top 2 in scale, and serving 8-10 million customers, Mcredit has shifted from traditional service channels to digital service delivery. This is based on data analysis and customer personalization, enabling faster and more accurate credit risk assessment. Through the consumption habits the company collects, combined with partnerships and customer consent, customer needs are addressed more quickly, creating benefits for both customers and Mcredit. This results in better outcomes while significantly improving the customer experience.

Aiming to promote digital transformation while mitigating risks in the financial sector, six credit institutions, including Mcredit, have pioneered the implementation of a solution that applies population data to assess the creditworthiness of borrowers, helping people access capital more quickly and efficiently. Accordingly, Mcredit no longer spends a lot of time preparing loan applications as all necessary information can be provided through the population data system.

To address the situation of customers experiencing reduced repayment capacity due to job loss, work stoppages, or reduced working hours, Mcredit proactively contacts customers believed to be facing difficulties to share their burdens and offer solutions regarding repayment terms and amounts. This aligns with the government and State Bank's policy of restructuring repayment terms and amounts for customers facing difficulties.

Mr. Le Quoc Ninh, General Director of Mcredit

Mr. Le Quoc Ninh, General Director of Mcredit, stated: “Mcredit has always been committed to a humane lending and debt recovery strategy, putting customers at the center and considering their difficulties as our own. Mcredit has been implementing interest waivers and debt restructuring for customers since the Covid-19 pandemic, not just in the last one or two years. This period is also a good opportunity for Mcredit to reflect on and improve internal processes, increasing operational quality and efficiency. Some previous processes have been digitally transformed, reducing time and decision-making steps.”

2024 is predicted to be another challenging year, but Mcredit remains confident in its strategy, focusing on designing products that meet customer needs to ensure people have access to reliable capital. In particular, it will always be flexible, adaptable, prioritize investment in technology, focus on core products, and enhance risk management to provide the best possible customer experience.

Source: https://baodautu.vn/mcredit-tim-co-hoi-trong-thach-thuc-d215683.html