Home Credit Vietnam - September 2021 by Business Review Asia

Agile to Win Over the Pandemic DIGITAL REPORT 2021

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Home Credit Vietnam: Agile to Win Over the Pandemic

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HOME CREDIT VIETNAM

Anastasia Fokina, Chief Operations and Digital Transformation Officer, talks how Home Credit Vietnam adapts and adjusts to drive business during COVID-19

nastasia Fokina has had a whirlwind of a year. After working with Home Credit Kazakhstan for eleven years, she decided to reinvigorate her experience by joining Home Credit Vietnam. A few months before, however, she and her family had flown to Bali on vacation... just as the COVID-19 outbreak hit and international borders closed. After six months of being stuck, she managed to move her entire family to Ho Chi Minh City (without returning to Kazakhstan) and launched into her new role as Chief Operations and Digital Transformation Officer in October of 2021. She laughs, somewhat ruefully. ‘That was how I started my job here—agile to adapt!’

Anastasia Fokina, Chief Operations and Digital Transformation Officer

The Mission Home Credit Vietnam has been a big name in the financial services market for over 12 years, serving nearly 12 million customers across 63 provinces nationwide. The company is the very first consumer finance company in the region, rated the Most Desired Brand in Vietnam. Since its first day joining the market, Home Credit Vietnam has pursued its mission to better the lives of its Vietnamese customers with innovative products, responsible lending, and tech-driven solutions. The company helps Vietnamese customers access easy financing, safely achieve their daily financial goals, and feel positive about life. homecredit.net

HOME CREDIT VIETNAM

Agile to Win Over the Pandemic

“ Regardless of who our customers are, we enable them to have the life they want, the way they want. We want them to feel good in life” ANASTASIA FOKINA

CHIEF OPERATIONS AND DIGITAL TRANSFORMATION OFFICER, HOME CREDIT VIETNAM

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“Driven by the promise of making customers feel good and the core nature of a market pioneer, we’ve always pushed ourselves to quickly adapt to the fast-paced business environment’, Anastasia says. ‘The current pandemic is a clear example of our agility, and digital innovation is our ultimate goal’. Digital Innovation In Vietnam, with its various stages of lockdowns, customers turned to the internet for solutions to their sudden challenges. A significant number tried new digital services: 41% of all digital service consumers were new (higher than the SEA average), with 94% of these new consumers intending to continue their behavior post-pandemic. With the fast-paced market conditions

HOME CREDIT VIETNAM

of COVID, Anastasia’s mission and innovate based on the way was to quickly adapt to the people shop during the pandemic’. changing market. Following positive feedback, 1997 Seeing an increased number of Home Credit Vietnam accelerated Year founded online transactions and limitations its push for virtual credit cards. of applying for physical cards, her Launched in May, the cards 132,400+ team came up with the idea of a became available the first week Number of Employees virtual card solution. Like an online of August. Now, customers can loan with flexible payments, all have a card in their app and use it €14,7bn customers had to do was apply to shop the same way they would Revenue through an app. Limits appeared with a physical card. In addition, instantly, allowing them to pay as needed. the virtual credit card is entirely online and ‘Home Credit, as the pioneer in the via Mobile App, from registration and usage consumer finance market, has helped to management. Customers only need to change the way people use financial spend 30 minutes applying for the card. You products’, Anastasia explains. ‘Our automation can apply with only a few documents and system allows customers to apply for a loan access immediate offers: 2% cashback for and get a disbursement within 10 minutes. all online transactions, 45% days of interestAs a result, the company can quickly adjust free, 0% interest rate with an equal payment homecredit.net

FPT.AI - Amplify Business Productivity Disrupt business operational efficiency with a comprehensive AI-based solution "Make in Vietnam"

FPT Smart Cloud drives productivity for Home Credit Vietnam Le Hong Viet, CEO of FPT Smart Cloud, discusses partnering with Home Credit Vietnam to enhance productivity and reduce OpEx with the leading AI solutions. FPT Smart Cloud is driving new growth for the FPT Corporation through its cornerstone product, FPT.AI. “FPT.AI is used to disrupt businesses by creating a big jump in productivity, which is exactly what we’re doing with Home Credit Vietnam,” says Le Hong Viet, CEO of FPT Smart Cloud. FPT Smart Cloud was selected by Home Credit Vietnam as key technology partner. The two companies came together in 2019 with the goal of executing a two-year project to improve Home Credit Vietnam’s customer engagement capabilities, which led to FPT Smart Cloud’s Voicebot technology being selected to provide AI-powered virtual customer support agent solutions. “We spent six months building up a new platform for this purpose, as well as setting up the virtual agents for Home Credit,” says Viet. “Then, we spent another six months doing a proof-of-concept, calibrating the virtual agents, piloting the project, and pushing

it to completion. In total, we delivered on this partnership exactly a year ahead of schedule.” This achievement, Viet explains, is due to the “very close collaborative relationship between the two project teams,” which worked together to execute their strategy while avoiding the most common pitfall of AI customer service integrations. “Sometimes, AI can reduce the human workload and create efficiencies, but also result in a reduction of customer satisfaction,” says Viet. “This project managed to not only boost productivity and reduce costs, but also increase customer satisfaction.” Today, FPT Smart Cloud’s virtual agents handle more than 5mn calls for Home Credit Vietnam monthly, and are capable of extending to 12mn calls during peak times. FPT Smart Cloud and Home Credit Vietnam look to continue the collaboration with new AI solutions already in discussion, which are the implementation of Call Quality Enhancement, Knowledge Base and Chatbot, assuring both companies stay ahead of the AI revolution and create impacts on business performance.

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HOME CREDIT VIETNAM

ANASTASIA FOKINA TITLE: CHIEF OPERATIONS AND DIGITAL TRANSFORMATION OFFICER INDUSTRY: FINANCIAL SERVICES LOCATION: VIETNAM Senior–level executive with extensive experience in Finance, Operations and HR in diverse industries including banking, investment holdings, non-for-profit organizations, logistics, manufacture, and financial services. CIMA/CPA qualified with deep expertise in managing Strategic Planning, FP&A, Transfer Pricing, Treasury, Accounting, Business Intelligence, PMO Offices, ERP System Implementations, Back-office Operations, and Call-Centre Management. Proven ability to improve operations, impact business growth and maximize profit through achievements in finance management, cost reduction, internal controls, productivity/ efficiency improvement, business processes redesign, motivation schemes redesign and quality improvement. Managed €1bn assets company, bringing stable 50%+ Return on Equity results. Managed team up to 400+, successfully implemented cultural, customer focused call-center, and brought incredible deliveries, setting up a new benchmark for the call-centre industry in Kazakhstan.

EXECUTIVE BIO

transformations within

plan conversion. Also, customers can upgrade the Virtual card anytime to a plastic card with more benefits available. This is one of the very first options like this in the market—and incredibly convenient during the time of COVID. ‘You have a credit card integrated into your smartphone’, Anastasia says. ‘How cool is that?’ Mobile Technology Asked about her opinion on the rising trend of Buy Now Pay Later (BNPL), Anastasia tells

HOME CREDIT VIETNAM

“ Instead of needing plastic, you can pay at any time, with your smartphone” ANASTASIA FOKINA

CHIEF OPERATIONS AND DIGITAL TRANSFORMATION OFFICER, HOME CREDIT VIETNAM

us: ‘It’s nothing strange or new to HomeCredit. This is the product that the group has been offering for the last 20 years: 0% interest rate and monthly equal installments for customer purchases. We’re now moving it online across the globe for a flawless experience via our app’. She’s also leading the app project to align with a mobile-first strategy, applying advanced data analytics, artificial intelligence, and other disruptive technologies. Home Credit is the very first Consumer Finance homecredit.net

HOME CREDIT VIETNAM

Company (CFC) company to launch their loan service via an app, which is now at 12 million downloads. ‘I feel grateful that I’m empowered to bring about change’, she adds. ‘Not everything was easy, but we did it in a very short time’. This is a perfect example of how Home Credit adapts to change. For example, the company is planning to launch a QR code option in the near future, so that even with a virtual card, clients can pay in-person at shops and banks, as well as at e-commerce sites.

DID YOU KNOW...

WHO DOES HOME CREDIT VIETNAM SERVE?

Since its establishment, Home Credit has provided responsible financial credit and inclusive financial services for those who have difficulty accessing traditional financial services—especially those with little or no credit records. In 2020, one in every four customers served by Home Credit globally were new to credit.

homecredit.net

Finally, Home Credit includes alternative processes to underwrite customers based on gaming, innovative data, and advanced scoring. These processes adjust financing solutions to the needs of customers—even those who lack credit history and collaterals. All this adds up to an efficient system. ‘We’re empowered to run business in an agile way’, Anastasia concludes. ‘There are conflicts sometimes, but we all manage to get things done. In the end, we share a common goal—to make the customer feel good’. Stronger Together Since 2019, Home Credit has cooperated with FPT, which is Vietnam’s largest IT company with operations in over 20 countries throughout APAC, Europe, and the US. In the middle of the pandemic, their project teams implemented AI call centres, including voice bots, live chats, and chatbots. This automated solution helped Home Credit save costs, improve efficiency, and increase customer satisfaction. What’s more, it provided customers with valuable information regarding payments, insurance, and other financial opportunities. As a result of FTP and Home Credit’s collaboration, the solution processed more than 2,000,000 calls per month, sliced 50% of operating spend, and achieved 4.5 out of 5 points for customer satisfaction. ‘It’s what I call the synergy effect’, Anastasia explains. ‘One plus one equals not two, but three. By connecting Home Credit's scale and innovative risk approach with FPT’s operations and technology, we created one of the best customer experiences on the market’. She notes that although FPT is a large company, it always finds a tailored solution to customer needs. Home Credit has the

“ We’re helping citizens of all ages. Finally, they can save money for what matters most” ANASTASIA FOKINA

CHIEF OPERATIONS AND DIGITAL TRANSFORMATION OFFICER, HOME CREDIT VIETNAM

same approach. ‘We manage to be both agile and customer-oriented’, Anastasia explains. ‘To do so, we select partners that not only share our business, but also share our values. That’s the base for a successful partnership— stronger together’.

Agile Yet Responsible How does Home Credit Vietnam look after its customers? First, it offers loans based on a strict, automated evaluation process. The company leverages a credit scorecard, which is built on statistical models and many different factors to assess creditworthiness, helping customers avoid taking on too much debt. As a result, Home Credit has the lowest nonperforming loan (NPL) rate in the Vietnamese consumer finance market. The ratio has been maintained at lower than 3%, which is not compulsory but encouraged by the State Bank of Vietnam (SBV). homecredit.net

HOME CREDIT VIETNAM

To help ensure customers make the right borrowing decisions based on their own circumstances, a cooling-off period is offered as standard across all operations: up to 2 weeks after signing a loan contract, the customer can reconsider his or her decision and withdraw from the contract without any charges. This is one of the commitments to ensure that first-time borrowers and repeat customers alike feel safe and confident using the company’s products. In addition, financial literacy education helps Home Credit champion responsible lending. The organisation promotes an understanding of finance through roadshows, workshops, in-branch open days, in-store events, brochures, publications, competitions, media campaigns, mobile games, and public teach-ins in supermarkets, shopping malls, and communities. Its primary focus is to teach people about credit and promote responsible borrowing practices, help communities with the principles of money management and household budgeting, and educate children and students to help them become responsible adults. Finally, Home Credit has strict policies to protect customer data security. ‘Home Credit is a responsible company that consistently acts with transparency, compliance, and customer focus’, Anastasia tells me. ‘We ensure long-term benefits for customers, partners, and society’. She adds: ‘We want to build sustainable relationships with partners. In every partnership, we want our customers to win. We want our partners to win. And this focus on community is what makes us unique’. Prepared for the Future As we wrap up, I ask Anastasia about upcoming challenges. She gives me a 14

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“ We focus on giving Vietnamese workers who have informal jobs access to credit” ANASTASIA FOKINA

CHIEF OPERATIONS AND DIGITAL TRANSFORMATION OFFICER, HOME CREDIT VIETNAM

refreshingly direct reply: ‘We’re dealing not with challenges, but with opportunity. Home Credit Vietnam is more prepared than ever for the future. We have a staple app with all our major operations intact. The Vietnamese government supports the digitalisation of our economy. And our clients have high interest in virtual credit and other digital solutions’. At heart, the pandemic accelerated digital payments. Even eighty-year-old Vietnamese citizens with their hearts set on cash started using digital payments out

of necessity. ‘In normal circumstances, citizens might have taken years to make the switch’, Anastasia pointed out. ‘But 2021 changed everyone’s habits’. To her, this is one of the best outcomes that Home Credit could have anticipated. ‘We’re helping citizens of all ages’, she tells me. ‘Finally, they can save money for what matters most’.

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Home Credit International a.s. Evropska 2690/17 PO Box 177 160 41 Praha 6 Czech Republic

T +420 224 174 777 | www.homecredit.net