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F88 to open pawn shops in HCMC in Q3

Released at: 17:51, 12/03/2018

F88 to open pawn shops in HCMC in Q3

Photo from tinhayphapluat.net

Pawn shop chain to expand to southern city in third quarter.

by My Van

F88 will open its first pawn shops in Ho Chi Minh City during the third quarter of this year, marking its expansion in Vietnam’s pawn shop market, according to CEO Phung Anh Tuan.

The company had nearly 40 pawn shops in Vietnam's north as at February, in Hanoi, Hai Phong, Vinh Yen, Thanh Hoa, Bac Ninh and Bac Giang, serving hundreds of customers each day. Lending totaled nearly VND600 billion ($26.3 million) last year, in 50,000 contracts.

With a goal of having 300 stores by 2020, F88 has now achieved 13 per cent of its plan. It recently launched its first artificial intelligence (AI) equipment for product valuation in its collateralized loan service.

Customers can accurately estimate the value of their assets with the AI equipment to avoid being put at a disadvantage when borrowing money from banks or financial institutions. This also differentiates F88 from other pawn shops in the market.

Mr. Tuan said that valuations are the greatest risk in the pawn shop model. “If you don’t meet standards and make a loan higher than the value of the collateral, you will lose money if customers don’t return to reclaim their assets,” he explained.

According to Mr. Tuan, the company has nearly 300 employees. Most of its mid- to high-level personnel have been recruited from large banks and financial institutions in Vietnam.

After receiving investment from Mekong Capital in January 2017, F88 became the first pawn shop chain in Vietnam.

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