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Banking & Finance

FE CREDIT introduces $NAP lending platform

Released at: 13:03, 06/01/2019

FE CREDIT introduces $NAP lending platform

Photo: FE CREDIT

Lender aims to reshape Vietnam's consumer finance industry with new lending platform.

by Hong Nhung

FE CREDIT has employed new technologies to develop its end-to-end digital lending platform $NAP, after meticulous localization including but not limited to Vietnamese language and script, Selfie Face Recognition, AI-based Optical Character Recognition (OCR), Voice Based Virtual Assistant, Speech to Text, Device Based Scoring, Telco Data Scoring, eSignature, and more.

$NAP has overcome challenges for the traditional lending model by using OCR and Intelligent Character Recognition (ICR) to verify the customer’s identity and authenticate documents submitted by customers using their phone cameras.

FE CREDIT also deployed Selfie Face Recognition, which uses an applicant’s selfie photo to query their data and process their credit assessment accordingly. Face Recognition is not only relevant for storing customer information but also helps save time and manual effort for credit assessment and works towards minimizing fraud.

According to the National Financial Supervision Commission, consumer lending in Vietnam has been growing rapidly since 2015, with growth at 65 per cent in 2017 compared to 50.2 per cent in 2016, and with the percentage of consumer lending in total credit rising to 18 per cent in 2017 from 12.3 per cent in 2016.

Despite there being so many players in the market, the consumer experience still leaves much to be desired, especially the process of acquiring consumer credit being mostly manual and time consuming, taking up to four or five days.

FE CREDIT is the first in Vietnam’s consumer lending market to deploy an end-to-end digital lending platform, suitably named $NAP, which allows a complete digital process for loan applications, instant approvals, and immediate disbursements, taking only 10-15 minutes for customers to complete the process with money received within hours. It drastically increases its appeal among customers while mitigating the challenges faced in the traditional lending model.

Only two months after a pilot campaign for $NAP, applications and loan volumes increased significantly, by 280 per cent every month. By the end of November, the number of loan applications reached almost 150,000 and about 2,000 applications are received each day.

The app’s stability increased from 58 per cent during the pilot stage to over 97 per cent now; among the best levels of stability for an app that is only four months old. The company expects it to be 99 per cent in January.

“Customers are the center of our universe,” said Mr. Basker Rangachari, CMO of FE CREDIT. “Our single-minded agenda is how can we make the lending experience faster, easier and better for our customers. This is our DNA.”

The company is working on the possibility of extending its lending services to rural areas, to add to its urban and suburban presence. It has recently extended the platform to device-based account management, with a merchant module capable of accepting payments from the credit lines of FE CREDIT’s individual customers. The move opened up the opportunity to bring the 5 million plus micro-merchants who control 90 per cent of retail in Vietnam under organized finance through digital payments.

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