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Vietnamese enterprises “attack” the credit scoring market

Vietnamese enterprises “attack” the credit scoring market

Thursday 23, 04 2020
Given the rise of “unbanked” customers, there have been some agencies providing credit scoring service, including Vietnam Credit Rating.
(VNF) – The daily number of customers using cash loan service via financial agencies and the P2P platform is increasing sharply compared to the number of customers using disbursement service offered by banks, which reveals the overwhelming need for “unbanked” customers’ information and verification of their information. 

On September 10, 2019, in Hanoi, FPT Software held a seminar on introducing digital transformation solutions in Finance – akaFintech, attracting the participation of speakers including senior leaders, Vietnamese and Taiwanese Chief Technology Officers, and more than 40 senior leaders from finance, banking, insurance, and information technology corporations, etc.

Addressing the conference, Ms. Estela Gonzalez – the Global Marketing Director of  ThinkPower noted that in Taiwan, although fintech had started its development a long time ago, its growth remained modest. Possible obstacles include banks, hesitation in sharing individual information, and lack of cooperation among parties, etc.

More specifically, Ms. Estela said that while in some countries, banks must share data,  in Taiwan, no bank is required to do so. Nonetheless, Taiwan is encouraging its banks to share their data. As a result, currently, 24 banks have opened access to their data and 3 of them have agreed to connect with API.

In Taiwan, an application named Moneybook has integrated data of 27 banks, allowing customers to access information and transactions in different banks by using only 1 application.

In Vietnam, presently, most data of bank users are stored in banks themselves and the National Credit Information Center of Vietnam (CIC).

However, according to Mr. Nguyen Trung Duc – General Director of Bao Kim, the current unbank data market is even larger than the bank market. Statistics show that each day the number of people using cash loan service through financial agencies such as FE Credit, Home Credit, Mcredit, and P2P platforms is 7 times higher than that of the bank’s disbursement service.

Consequently, the need for information and information verification of this customer group is considerable. In the market, currently, there have been a number of agencies providing credit scoring service besides financial agencies, namely trustingsocial, Vietnam Credit Rating, and Credit Score, etc.

Representatives participating in the seminar also had the chance to directly experience and explore eKYC, which helps to identify customer via personal documents. The product, which is being developed by FPT Software, uses Robotic Process Automation (RPA) and Optical Character Recognition.

Some notable platforms such as akaChain – a blockchain platform – helps enterprises in quickly building business network systems and other distributed applications. Another example is akaBot – a comprehensive process automation platform for enterprises which automates various specialized activities, raising working pace and reducing regular human-made errors. 

Notably, FPT Software, along with Bao Kim, is developing and implementing iCredit – a service related to customer credit scoring, creating favorable conditions for enterprises in finance – banking to thoroughly understand customers and accurately assess potential risks posed by individual customers. This is also the first time the Blockchain technology is applied to digitalize the customer information verification activity in finance – banking in Vietnam.

>> Moody’s Lowered Vietnam’s Credit Rating
Compiled by VietnamFinance - Translated by Vietnam Credit

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