With the acceleration of digital transformation, the banking industry has created a new step forward for lending. Now, customers can borrow money online through the use of smartphones, and can borrow money without assets.
Save time for customers
According to Mr. Pham Anh Tuan, Director of Payment Department State Bank of Vietnam , currently credit institutions (CIs), payment intermediary organizations have promoted Digital transformation, application of many advanced technologies to optimize, simplify business processes, improve operational efficiency and serve customers better. Current digital applications also help evaluate, classify customers and integrate many different partner ecosystems in different fields so that banks have enough information to make disbursement decisions. Many basic operations have been completely digitized (savings deposits, term deposits, opening and using payment accounts, opening bank cards, e-wallets, money transfers...), many Vietnamese banks have a rate of more than 90% of transactions conducted via digital channels.
Pioneering in digital transformation, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has launched the Open API system. This is an open banking solution that helps the digital banking ecosystem spread strongly, anticipate market trends and is a foundation for developing new financial services in the future. Ms. Do Thi Thanh Huyen, Director of BIDV Wholesale Product Policy Department shared: "In the coming time, BIDV will continue to expand new API packages for credit services, trade finance, guarantees, supply chain finance... In addition, customers can access unsecured loan products with online disbursement functions thanks to customer cash flow information on banking services integrated on the software that customers use every day (via smartphone, computer)".
At Vietnam Maritime Commercial Joint Stock Bank (MSB), risk management activities on the digital journey have achieved many positive results when successfully deploying a lending platform on digital channels for corporate and individual customers. The system will automatically look up business information, credit scoring criteria and scoring without human intervention. Thereby increasing processing speed up to 9 times compared to the traditional process, customers can receive loan approval within 4 hours. For individual customers, MSB allows automation of the income module, looking up 224 credit scoring criteria in just 3 minutes to quickly make approval decisions, while detecting risks early, predicting overdue and giving early warnings. On that basis, MSB has successfully digitized the entire credit granting process (mortgages and unsecured loans) for corporate customers, increasing the percentage of customers experiencing this product on digital channels to 122%, with a customer satisfaction score of 80.2/100. As a result, nearly 5,000 customers have been granted online credit with nearly VND 52,000 billion in credit limits granted and nearly VND 1,000 billion in limits granted to customers on partner platforms.
In order to promote access to credit, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has cooperated with partner MISA , the leading company in Vietnam in management software solutions (accounting, sales, human resources, etc.). Thereby, Techcombank has deployed a completely online lending solution, successfully granting a limit of more than VND 5,000 billion to more than 2,800 corporate customers.
Unsecured lending can be expanded
Promoting digitalization in the lending sector has brought great progress to both banks and borrowers, helping to optimize transaction time. In the past, to access loans from banks, customers had to provide all relevant documents to credit officers, including documents proving: Personal information; place of residence; job; income. Then they had to wait for credit approval at the branch or centralized credit approval at the headquarters. When the disbursement decision was made, customers had to wait at least a week, sometimes months. Currently, thanks to the support of digital technology, the lending process has become much simpler, faster and more convenient.
According to financial experts, in addition to lending with collateral, unsecured lending based on controlling the cash flow of the business is also very feasible. In reality, very few businesses borrow 500-700 million VND and violate the law by not repaying the debt. Through the digitalization process, banks can easily grasp the financial resources of businesses by controlling the balance of accounts opened at the bank, salary payments, international payments, import and export... This is the basis for promoting credit growth, combined with effective appraisal of the business's business plan rather than focusing only on lending with collateral. In addition, digitalizing the lending process also contributes to limiting negative aspects in traditional credit activities such as: Intentionally falsifying documents, paying commissions to get loans from banks... by limiting human intervention and impact when appraising loan applications.
In addition to digitizing bank loans, businesses operating in the field of information technology and digital transformation have also come up with many useful solutions. Specifically, in order to increase access to capital for individual and corporate customers, FPT IS Information System Company Limited has developed the Lendvero comprehensive loan management solution. The Lendvero solution was born in the context of lending activities being affected in the difficult economic context. For individual customers and small and medium-sized enterprises, the loan procedures are complicated and take a long time to review, leading to many cases of being forced to borrow black credit.
On the side of banks or credit institutions, credit standards cannot be lowered due to the need to ensure system safety. The implementation of some specific credit programs also has some difficulties. Therefore, the Lendvero solution aims to completely solve the problem of consumer loans from the loan origination process to debt collection between credit institutions and customers on a single platform. In the loan origination process, Lendvero will fully integrate the appraisal process with satellite software on the platform, thereby updating the implementation process visually, the estimated origination time is reduced from 40 minutes to 5 minutes. In the debt collection process, based on previously collected data, the system will analyze and report to help organizations monitor data such as: Recovery rate, age of outstanding debts using the latest technology combined with AI (artificial intelligence), Big Data (big data) and understanding of this business in credit institutions. Thanks to that, the organization will plan a list and specific recall program, suitable for each customer.
Although online lending brings many advantages to customers, currently unsecured loans are only at about 200 million VND. By controlling the cash flow of individuals and businesses, banks can completely increase the loan limit to a higher number. Thereby better serving the needs of large-value loans of businesses, business households and individual customers such as: Loans for investment in expanding production and business, loans to buy houses, loans to buy cars, home repairs...
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