consumer finance report 2018 - virac · company profile 102 1.4 major legal policies 27 5.1...

CONSUMER FINANCE REPORT 2018

1

CAR Capital Adequacy Ratio JSCB Joint Stock Commercial Bank

GSO General Statistics Office of Vietnam CO., LTD. Company Limited

MGW Mobile World Investment Joint Stock Company GA Guaranteed Assets

NFSC National Financial Supervisory Commission VAMA Vietnam Automobile Manufacturers Association

CB Commercial Bank VAMC Vietnam Asset Management Company

SBV State Bank of Vietnam VAMM Vietnam Association of Motorcycle Manufacturers

CF Consumer Finance VIRACVietnam Industry Research and Consultancy Joint Stock

Company

Abbreviation

2

Content

3

Executive summary 4 3.3 Lending method 90

1. Business environment 6 4. Business methods 92

1.1 Macroeconomic situation 6 4.1 Sales channels and marketing campaigns 93

1.2 Banking sector situation 12 4.2 Payment method 100

1.3 Non-banking sector situation 22 5. Company profile 102

1.4 Major legal policies 27 5.1 Domestic Joint Stock Commercial Banks 103

1.5 Foreign interest in Vietnam market 38 5.2 Foreign Joint Stock Commercial Banks 108

2. Consumer finance market overview 41 5.3 Finance companies 113

2.1 Market Structure 42 5.4 Others 121

2.2 Market size and growth 43 6. Market potentials and challenges 125

2.3 Competitor 61 6.1 Key growth drivers 126

2.4 Informal financial activities 67 6.2 Development trends 131

3. Evaluation of consumer finance products 70 6.3 Challenges 144

3.1 Product overview 71 Appendix 148

3.2 Detailed product survey 75

Executive summary

4

Total loan outstanding balance grew at a

CAGR of 14.3% in the period 2010-2017e.

The consumer finance market continues to

grow rapidly.

About xx.x% of consumer credit focuses on

building loans, home repairs, home purchases

that debt repayments come from customers'

salary, followed by home appliances and

furniture.

The group of finance companies is the group

with the highest bad debt ratio among credit

institutions.

Group of finance companies is the group with

the highest growth rate of consumer loan

outstanding balance in 3 recent years,

Content is intentionally removed for demo purpose

Executive summary

5

At present, the lending rates of banks and

finance companies are clearly different.

There are four types of consumer finance

service providers:

Domestic banks still focus on the traditional

retail banking model.

Point of sale (POS) is characteristic of the

group of consumer finance companies,

Consumer finance in Vietnam is considered to

be in the development stage and will grow

stronger in 2018 and in the next years.


1. Business environment

1.1 Macroeconomic situation

1.2 Banking sector situation

1.3 Non-banking sector situation

1.4 Major legal policies

1.5 Foreign interest in Vietnam market

Content

6



7

GDP growth rate by quarter, 2015-2017

Source: VIRAC, GSO

%

Source: VIRAC, FIA

FDI capital, 2015-2017

USD billion

GDP growth rate has remained stable over the years.

Investment has also grown thanks to abundant FDI capital and credit growth.




8

• In 2017, VND/USD exchange rate remained quite stable at around 22,400.

FX reserves has surged sharply since 2012

VND/USD exchange rate, 2013-2017

Source: VIRAC, SBV

Source: VIRAC, ADB, GSO

FX reserves, 2010 - 2017

USD million


Savings Holiday/Vacations New Clothes

New Technology Products Home Improvements Out of home EntertainmentPay Medical Insurance

Premiums



9

How do Vietnamese consumers spend their spare cash, 2017

Source: VIRAC, Nielsen

Source: VIRAC, The Conference Board® , Nielsen

Consumer Confidence Index, 2014 - Q4/2017


The average consumer price index in 2017 increased by 3.53% over the average in

2016.



10

Source: VIRAC, GSO

Source: VIRAC, GSO

Monthly CPI fluctuation, 2014 - 2017

Market share of shopping channels in rural and urban areas by

value, 2016-2017

Urban Rural

Source: VIRAC, Kantar Worldpanel

Retail sales of goods, 2010-2017


Source: VIRAC, GSO

Increasing income and purchasing power:

Young population with high growth rate



11

Source: VIRAC, Economist Intelligence Unit

USD billion

Total disposable income and household expenditures, 2010 – 2017e

Urbanization rate in Vietnam, 2004 - 2017








Content

12

Source: VIRAC, SBV


1.2 Banking sector situation – Restructuring banking system and bad debt situation

Lending rates, 2011 - 2017e

13

Credit growth, 2013 – 2017e

%

Source: VIRAC, GSO


Source: VIRAC, NFSC



Bad debt ratio of each bank group, 2010 - 2017

14

%

Source: VIRAC, SBV

Bad debt and bad debt ratio of financial institutions, 2013 – 2017e

VND billion


Source: VIRAC, Financial statements of banks



Source: VIRAC, NFSC

15

Bad debt ratio of some domestic banks, 2017VND billion

Contribution of bad debt settlements, 2017


16




17

In the coming time, in order to ensure the CAR standard of Basel II, capital

demand of credit institutions is very high, especially for state-owned

commercial banks.



Minimum capital adequacy ratio, 2012 – 2017e

Source: VIRAC, NFSC

Source: VIRAC, NFSC

Forecast of equity capital of 3 SOCBs according to Basel II,

2018 - 2020


Restructuring Banking System

Source: VIRAC



Period Buyer/Merger partySeller/Target

company

Restructuring

PlanResult

18


Restructuring Banking System (continued)

Source: VIRAC



PeriodBuyer/Merger

party

Seller/Target

companyRestructuring Plan Result

19


20

Source: VIRAC, NFSC


1.2 Banking sector situation – Scale and business results

Some indicators of Vietnam financial system, 2017 Source: VIRAC, NFSC

Proportion of capital supply for the economy from the capital market

and the system of credit institutions, 2012-2017

• The average capital adequacy of the financial system in 2017 is higher than

the required minimum.


Capital adequacy of the financial system (%), 2017

Capital adequacy criteria

CAR (Credit institutions)

Available fund ratio

(Securities companies)

Payment solvency margin

(Insurance companies)

Profitability of the financial system (%), 2017

Financial system

Credit institutions

Securities companies and

Fund Management Company

Insurance companies

21

Source: VIRAC, NFSC


1.2 Banking sector situation – Scale and business results

Source: VIRAC, NFSC

Profitability of credit institutions system, 2012-2017

Results of business activities of credit institutions are positive, profit grew

sharply in 2017.

Source: VIRAC, NFSC

Net interest margin (NIM), 2012-2017Credit share by credit institutions, 2017








Content

22



23

The divestment of state-owned finance companies is part of the restructuring of state-owned enterprises.

Foreign finance firms are increasingly expanding and asserting their status


Source: VIRAC, Financial statements of banks



VND billion

Total assets of banks are not eligible to establish finance companies, 2016-2017

24


Date Acquired Buyer/Acquirer Method Status

Some finance company M&As of domestic banks

Source: VIRAC



25


Date Acquired Buyer/Acquirer Method Status

Some finance company M&As of domestic banks

Source: VIRAC



26








Content

27

The Law on Credit Institutions was amended and supplemented by the National Assembly and took effect from January 1, 2011.


1.4 Major legal policies – Legal framework

28


Decree No. 39/2014/ND-CP on the operation of finance companies and finance leasing companies

Source: VIRAC



29


Domestic Abroad

Procedures for granting licenses

Regulations on the financial ability of credit institutions when applying for establishment of finance companies

Source: VIRAC



Circular No. 30/2015/TT-NHNN on licensing, organization and operation of non-bank credit institutions.

30




Circular No. 39/2016/TT-NHNN

31





32




33


Short-term capital ratio for medium and long-term loans

2017 2018

Commercial Banks

Branch of foreign banks

Non-bank credit institutions

Cooperative Banks

Commercial Banks

Branch of foreign banks

Non-bank credit institutions

1/1/2018 1/1/2019

The roadmap to reduce the short-term capital ratio for medium and long-term loans under

Circular 06 and Circular 19

Circular 19Circular 06




34

Circular 21/2017




35

Document No. 563/NHNN-TTGSNH of the SBV


Source: VIRAC


1.4 Major legal policies – Trade agreements

36

The Trans-Pacific Partnership (TPP) and TPP-11 after the US withdrawal, were

renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

(CPTPP).



1.4 Major legal policies – Trade agreements

37

Opportunities:

Challenges:








Content

38



39

Foreign finance institutions are rushing to seek investment opportunities in banks, finance companies or obtaining licenses.


Method Characteristics

1

2

3

4

Source: VIRAC



40


2. Consumer finance market overview

2.1 Market Structure

2.2 Market size and growth

2.3 Rivals in the industry

2.4 Informal financial activities

Content

41

Definition of consumer loans is quite diverse



42







Content

43



VND billion

Source: VIRAC, SBV, NFSC

Total loan outstanding balance nationwide and consumer loan

outstanding balance, 2010 – 2017e

44

%Loans and investments to deposits, 2/2018

Source: VIRAC, NHNN


Source: VIRAC, NFSC

VND billion



Consumer loan outstanding balance, 2012 – 2017e

45

Lending rates at banks, 2017

The growth rate of consumer loans increased rapidly thanks to the

support of a number of factors:


The size of the financial system compared to the group of some ASEAN

countries, 2017e

Consumer lending has been growing hot in Vietnam, but only in the early stage compared to the world and the region.



USD billion

Source: VIRAC, IMF, NFSC

Credit/GDP spreads in some countries, 2017e

46

Source: VIRAC, NFSC


Loans for construction, home repairs, home purchase and household appliances/furniture loans still accounts for a large proportion of consumer lending

in 2017, with total outstanding loans accounting for nearly 70% of total consumer loans.

Structure of outstanding balance for consumer lending

according to the use purpose, 2013 - 2017

Source: VIRAC, NFSC



47


Source: VIRAC, NFSC



Bad debt ratio in consumer lending, 2016 - 2017

48

Source: VIRAC, NFSC

Structure of consumer lending by credit institutions, 2016 - 2017


Source: VIRAC, NFSC

VND billion



Source: VIRAC, NFSC

Outstanding balance of consumer lending of some finance companies, 2014 - 2017

49

Market share of consumer finance loans by groups of

finance companies, 2016 - 2017




50

VND billion

Outstanding loans for home building, repairs and purchases,

2013 – 2017e

Source: VIRAC, NFSC

Source: VIRAC, MOC

Real estate inventory, 2017




51

Source: VIRAC

Bank Rates (*) Max loans(**)Max payment

period (year)

The best home mortgage loan package of commercial banks, 2017

* First year interest rate

** The ratio of borrowing on assets

*** Per percentage of loan demand

Source: VIRAC, NFSC

Real estate credit structure according to capital demand, 2017




52

Market share of consumer lending companies in motorbike and

durable consumer goods, 2017

Source: VIRAC

Basic products Others

Source: VIRAC, websites of finance companies

Product catalogue of finance companies




Motorbike sales in Vietnam, 2013 - 2017

Source: VIRAC, VAMM

Pcs

53

Source: VIRAC, VAMM

Number of product lines of the top 5 motorcycle manufacturers in

Vietnam, 2017

The motorcycle market and consumer lending for vehicles, with 2-wheel vehicles in particular in Vietnam are very rich-potential:




Car sales in Vietnam, 2006 - 2017

Thousand pcs

Car sales structure by business, 2017

Source: VIRAC, VAMASource: VIRAC, VAMA

54


55

Top 10 best-selling cars in 2017

Source: VIRAC, VAMA



Thousand pcs VND million


56



BankLending limit

(%/car value)

Period

(month) The first 6 months

The first 12

monthsRemaining period

Profile

approval time

VIB

Shinhanbank

TPBank

Techcombank

Vietcombank

Eximbank

BIDV

Vietinbank

VPBank

HSBC

OceanBank

Maritimebank

SHB

MBBank

ACB

Source: VIRAC

Car purchase interest through installments at some banks, 2018


57



Source: VIRAC, GfK

VND billion

Revenue of domestic electronics technology groups, 2017

Source: VIRAC, GfK

VND Trillion

Revenue and growth of electronics market in Vietnam, Q3/2014 –

Q4/2017




Smartphone market share, 2017 Consumer electronics market share, 2017

• Collaboration programs between finance firms and consumer goods retailers have been on an upward trend in recent years.

Source: VIRAC, MGW's financial statements Source: VIRAC, MGW's financial statements

58




59

Quantity and sales of using personal credit cards in

Vietnam, 2012-2017eVND Trillion Million cards

Source: VIRAC

Source: VIRAC, VNBA

Structure of issuing credit cards by groups of credit institutions, 2017e




60

Source: VIRAC

Structure of issuing credit cards by banks, 2017







Content

61

Financial institution group Target market Business model Characteristics Disadvantages

Domestic banks

Foreign banks

Finance companies

Others



Rivals in the industry

62


Domestic banks Foreign banks Finance companies Others

Product

Interest rate

Average loan value

Sales channel

Evaluation process

Debt collection and

repayment



Rivals in the industry

63



2.3 Rivals in the industry – Domestic Commercial Banks

64



2.3 Rivals in the industry – Foreign banks

65



2.3 Rivals in the industry – Finance companies

66







Content

67

Vietnamese people are used to asking for financial support from their friends or relatives. In addition, pawn shops are a popular choice for low income

people, for those especially in rural areas.



68




69


3. Evaluation of consumer finance products

3.1 Product overview

3.2 Detailed product survey

3.3 Lending method

Content

70

Characteristics of loan products differ among groups of credit institutions



71


Mobile phones/electron

icsMotorcycle

Automobile loans

Appliances/Furniture purchases

Home purchases & home repairs

loansCash loans Credit card Overdraft Online loans

Concentrated Products available Not available/Ceased

Joint Stock Commercial Banks

Source: VIRAC



72



icsMotorcycle

Automobile loans





icsMotorcycle

Automobile loans





State-owned Commercial Banks

Foreign Commercial Banks

Source: VIRAC



73



icsMotorcycle

Automobile loans





Finance companies

Source: VIRAC



74





3.3 Lending method

Content

75

Source: VIRAC

Joint Stock Commercial Banks State-owned Commercial Banks Foreign Commercial Banks

Interest rates on consumer loans of banking groups, Q1/2018

The lending rates of domestic banks are lower than that of foreign banks.



76


Source: VIRAC

Big difference in interest rates



77

Interest rates for consumer loans of finance companies, Q1/2018Content is intentionally removed for demo purpose



78




Source: VIRAC

79

The number of minimum loan applications required at credit institutions, 2018


Source: VIRAC



Unit: hours

80

Period of approving the dossiers of credit institutions, Q1/2018




Source: VIRAC

81

Network, 2018Provinces


Home purchase loans are mostly concentrated in banks.

Joint Stock Commercial Bank State-owned Commercial Bank Foreign banks

Parameters

Age

Required documents

(almost the same among

banks)

Loan value

Interest rate

Loan maturity date

Payment method

Other terms

Appraisal time

Source: VIRAC



82


Automobile loans products are mostly concentrated at banks.


Parameters

Age

Required documents

Loan value

Interest rate

Loan maturity date

Payment method

Other terms

Appraisal time

Source: VIRAC



83


Credit card products

Joint Stock Commercial Bank State-owned Commercial Bank Foreign banks Finance companies

Parameters

Required

documents

Limit/Loan

value

Interest rate

Lending

method

Minimum

wage

Other terms

Appraisal time

Source: VIRAC



84


Consumer loans in money (in cash or via bank account) at the Banks.


Parameters

Age

Required documents

Loan value

Interest rate

Loan maturity date

Minimum wage

Payment method

Other terms

Appraisal time

Source: VIRAC



85


Electronics purchase loan products: phones, laptops, etc. Finance companies or some banks are often in association with electronics retail stores to

provide installment loans.

Parameters ASC Trading FE Credit HD Saison Home Credit Mirae Asset

Age

Required documents

Loan value

Interest rate

Loan maturity date

Payment method

Other terms

Appraisal time

Source: VIRAC



86


Motorcycle purchase loans at points of sale of finance companies

Source: VIRAC



87

Parameters

Age

Required documents

Loan value

Interest rate

Loan maturity date

Payment method

Other terms

Appraisal time


Cash loan product

Source: VIRAC



88

Parameters

Region

Age

Required documents

Lending limit

Interest rate

Loan maturity date

Payment method

Other terms

Appraisal time


Parameters

Age

Required documents

Limit

Utilities

Loan maturity date

Payment method

Other terms

Appraisal time

Credit card product

Source: VIRAC



89





3.3 Lending method

Content

90

Lending methods of banks


3.3 Lending method

Lending method of finance companies

91


4. Business methods

4.1 Sales channels and marketing campaigns

4.2 Payment method

Content

92

CompanyBranch/Co

unterCall Center POS

Post

OfficeStaff

Network system, 2017

Source: VIRAC

Banks and finance companies mainly use sales channels such as system of

branches/ counters/ post office, Call Center, POS, Staff and Online.

4. Business methods


93


4. Business methods


94


4. Business methods


95

Top 10 most prestigious commercial banks in Vietnam in 2018

Source: VIRAC, Vietnamreport.net

Source: VIRAC, Vietnamreport.net

The focus of the banks on the communication channels,

06/2017 - 05/2018


4. Business methods

4.1 Sales channels and marketing campaigns – Marketing campaign

Domestic Joint

Stock

Commercial

Banks

Website Marketing Strategy Characteristics

Source: VIRAC

96


4. Business methods


Domestic Joint

Stock

Commercial

Banks

Website Marketing Strategy Characteristics

Source: VIRAC

97


4. Business methods


Foreign Joint Stock

Commercial BanksWebsite Marketing Strategy Characteristics

Source: VIRAC

98


4. Business methods


Source: VIRAC

99

Finance

companiesWebsite Marketing Strategy Characteristics


4. Business methods


4.2 Payment method

Content

100

4. Business methods

4.2 Payment method

Banking channel

Post

Office

POS/Bran

ch/ Agent

E-wallet

Store

Bank Transfer Smartlink ATM

Automatic

debt

collection

Paypoo Momo

Payment method, 2018

Source: VIRAC

101


5. Company profile

5.1 Domestic Joint Stock Commercial Banks

5.2 Foreign Joint Stock Commercial Banks

5.3 Finance companies

5.4 Others

Content

102

Source: VIRAC, Financial statements of TCB

Source: VIRAC, Financial statements of TCB

5. Company profile

5.1 Domestic Joint Stock Commercial Banks - Techcombank

Total assets and total loans of Techcombank, 2008-2017

Structure of Techcombank's loan portfolio, 2017

103

VND billion


Source: VIRAC, Financial statements of ACB

Source: VIRAC, Financial statements of ACB

5. Company profile

5.1 Domestic Joint Stock Commercial Banks - ACB

VND billion

Total assets and total loans of ACB, 2008 - 2017

Loan portfolio structure of ACB, 2017

104


Source: VIRAC, Financial statements of VPB

Source: VIRAC, Financial statements of VPB

5. Company profile

5.1 Domestic Joint Stock Commercial Banks - VPBank

VND billion

Total assets và tổng cho vay của VPBank, 2010-2017

Loan portfolio structure of VPBank, 2017

105


Source: VIRAC, Financial statements of EIB

Source: VIRAC, Financial statements of EIB

5. Company profile

5.1 Domestic Joint Stock Commercial Banks - Eximbank

VND billion

Total assets and total loans of Eximbank, 2008 - 2017

Loan portfolio structure of Eximbank, 2017

106


Source: VIRAC , Financial statements of VIB

Source: VIRAC, Financial statements of VIB

5. Company profile

5.1 Domestic Joint Stock Commercial Banks - VIB

VND billion

Total assets and total loans of VIB, 2011 - 2017

Loan portfolio structure of VIB, 2017

107


5. Company profile




5.4 Others

Content

108

Sector Quantity Outstanding partner

Retail partners of Shinhan Bank as of the end of 2017

(Partners with 0% interest installment plan)

Source: VIRAC

5. Company profile

5.2 Foreign Joint Stock Commercial Banks – Shinhan Bank

109

Source: VIRAC


Source: VIRAC

5. Company profile

5.2 Foreign Joint Stock Commercial Banks – Citi Bank

110


Source: VIRAC

5. Company profile

5.2 Foreign Joint Stock Commercial Banks - HSBC

111

Credit card and loan products of HSBC


Source: VIRAC

5. Company profile

5.2 Foreign Joint Stock Commercial Banks - HSBC

112

Installment payment

period/

Installment products

3 months 6 months 9 months 12 months 3 - 12 months

Affiliates pay 0% interest rate with HSBC credit card, 2017-2018


5. Company profile




5.4 Others

Content

113

Company profile Product

Source: VIRAC

Some financial indicators Profit targets

5. Company profile

5.3 Finance companies – FE Credit

ROA, ROE of Fe Credit, 2011 - 2017

114

Source: VIRAC, VPBank

Product structure of Fe Credit, 2017


Indicator (VND

billion)2011 2012 2013 2014 2015 2016 2017

Total assets

Equity capital

Loans to customers

Interest income

Profit before tax

NPL



Source: VIRAC

5. Company profile

5.3 Finance companies – Home Credit

ROA, ROE of Home Credit, 2012 -2017

115

Indicator (VND

billion)2011 2012 2013 2014 2015 2016 2017

Total assets

Charter capital

Equity capital

Loans to

customers

Interest income

Profit before tax

NPL

Product structure of Home Credit, 2017



Source: VIRAC


5. Company profile

5.3 Finance companies – HD Saison

ROA, ROE of HD SAISON, 2011 -2017

116

Product structure of HD Saison, 2017


Indicator (VND

billion)2011 2012 2013 2014 2015 2016 2017

Total assets

Equity capital

Loans to customers

Interest income

Profit before tax

NPL



Source: VIRAC

5. Company profile

5.3 Finance companies – Prudential Finance

ROA, ROE of Prudential Finance, 2011 - 2017

117

Indicator (VND

billion)2012 2013 2014 2015 2016 2017

Total assets

Equity capital

Loans to customers

Interest income

Total costs

Profit before tax

NPL

Product structure of Prudential Finance, 2017


Source: VIRAC


5. Company profile

5.3 Finance companies – Toyota Financial


118

ROA, ROE of Toyota Financial, 2013 -2017


Indicator (VND billion) 2013 2014 2015 2016 2017

Total assets

Loans to customers

Equity capital

Interest income

Interest expenses and

equivalents

Profit after tax

Credit loss provision ratio

Indicator (VND

billion)2011 2012 2013 2014 2015 2016 2017

Total assets

Charter capital

Equity capital

Loans to customers

Interest income

Profit before tax

NPL

Source: VIRAC


5. Company profile

5.3 Finance companies – JACCS Vietnam


ROA, ROE of JACCS Vietnam, 2011 -2017

119



5. Company profile

5.3 Finance companies - Mirae Asset

120


5. Company profile




5.4 Others

Content

121

Company profile Organization of the operation

ACS Vietnam Trading Company mainly focuses on consumer credit for the purpose of purchasing durable goods and buying motorcycles.

ACS Trading Profile

Source: VIRAC

5. Company profile

5.4 Others – ACS Trading Vietnam

122


5. Company profile

5.4 Others – MobiVi

123


Account held Products

Cash advance Installment loans

Outstanding products of Mobivi

Source: VIRAC

5. Company profile

5.4 Others – MobiVi

124


6. Market potentials and challenges

6.1 Key growth drivers

6.2 Development trends

6.3 Challenges

Content

125

As the economy develops steadily, the unemployment rate decreases, the income of workers increases, combined with the high concentration of young

population in urban areas, will stimulate demand for purchase and consumption. This will be a favorable condition for consumer loans.



126

Total population and age structure of labor force,

2010-2017

Source: VIRAC, GSO

Million people

Vietnam's population has grown rapidly over the last few decades.


Opportunity to develop consumer finance



The popularity of mobile products and the internet

127




128

A large part of Vietnamese people are gradually becoming accustomed to using banking services. In addition, the infrastructure of the banking system

has been increasingly meeting the needs of customers. Consumer finance companies may target this group of customers.


Leading retailers in Vietnam, 2016-2017

Rank Brand Company

Number

of stores

2017

Revenue

2016

Revenue

2017

Revenue

growth

1

2

3

4

5

6

7

8

9

10

Source: VIRAC, Retail Asia Publishing, Financial

statements of companies



129

Unit: VND billion

The retailing systems and consumer finance sector are promoting and

supporting each other.




130

Trends in retail market in Vietnam, 2017





6.3 Challenges

Content

131



132




133

Fintech's market dominance

Source: VIRAC, SBV

Economic cooperation model of Fintech companies in Vietnam, 2017


103

• Online installment loans



In Vietnam there are three models of Fintech loans: (1) online installment loans,

(2) online mortgage loans, (3) peer to peer loans (P2P)

Online Installment Loan Process


103



Fintech companies with purchase installment loan product

Mobivi Fe Credit

Year of

foundation

Major investors

Scale/Network

Main products

Fintech

products

Fintech

products

supported by

Installment

loans

Partners

Strategy/

Development

target


103

• Online mortgage loans



This model of online mortgage loans in Vietnam is being used by Tima, Mosa, Avay, etc.


103



Fintech companies with Online mortgage loan product

Year of foundation

Investor

Scale/Network

Website

Product

Form

Technology

Loan procedures

Age

Dossier appraisal period

Interest rate/Fee

Partner


103

• P2P loans




103

Advantages:




103

Risks:




103



Fintech companies with P2P loan products


145



P2P lending model of Tima

Operation model of Tima




143





6.3 Challenges

Content

144

Legal framework

Development trend of finance companies increases competition in the industry


6.3 Challenges

145

Habit of consumer loans and payment of Vietnamese people


Bad debt risks and debt recovery


6.3 Challenges

146

Sales channels


Retailing is concentrated in urban areas and still not focused on rural

areas

Barriers to entry


6.3 Challenges

147

Products are not diversified

Verification of customer information


Appendix

Content

148

No. Bank Acronym Address License no.Chartere

d Capital

Total assets Loans to customersProvision for loans

to customers

2017 2016 2017 2016 2017 2016

State-owed Commercial Bank

1

2

3

4

5

6

7

Appendix

List of commercial banks

149

Unit: VND billionList of commercial banks


Appendix


No. Bank Acronym Address License no.Chartered

Capital

Total assets Loans to customers

Provision for

loans to

customers

2017 2016 2017 2016 2017 2016

Joint Stock Commercial Bank

1

2

3

4

5

6

7

8

9

10

11

12

13

14

150


Appendix


151

No. BankAcrony

mAddress License no.

Chartere

d Capital

Total assetsLoans to

customers

Provision for

loans to

customers

2017 2016 2017 2016 2017 2016

Joint Stock Commercial Bank (continued)

15

16

17

18

19

20

21

22

23

24

25

26

27

28


No. Bank name Acronym Address License no.

Chartere

d

Capital

Total assetsLoans to

customers

Provision for

loans to

customers

2017 2016 2017 2016 2017 2016

100% Foreign-owned Bank

1

2

3

4

5

6

7

8

9

Appendix


152


List of finance companies active in the market (as of 12/31/2017)

Appendix

List of finance companies

Unit: VND billion

153

No. Company name Address License no.Chartered

Capital

1

2

3

4

5

6

7

8


No. Company name Address License no.Chartered

Capital

9

10

11

12

13

14

15

16

Appendix

List of finance companies

154


REPORT DISCLAIMER

155

Report disclaimer

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has

produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to

be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently

verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and

materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not

use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organization, or place it on a website for

public access without the express written permission of VIRAC.

SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US:

VIETNAM INDUSTRY RESEARCH AND CONSULTANCY (VIRAC JSC.,)

6th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam

Website: http://virac.com.vn/

Email: [email protected] | Tel: +84 463289520

http://virac.com.vn/

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Thank you !

consumer finance report 2018 - virac · company profile 102 1.4 major legal policies 27 5.1...

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