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  • Home Credit Vietnam Triumphs Again: Wins Coveted Finance and Sustainability Awards for 2026

    Home Credit Vietnam Triumphs Again: Wins Coveted Finance and Sustainability Awards for 2026

    Home Credit Vietnam has been awarded ‘Finance Company of the Year’ for the second consecutive year, and also received the ‘Sustainability Initiative of the Year’ at the Asian Banking & Finance Retail Banking Awards 2026. The awards acknowledge the company’s robust business performance, as well as its endeavors in financial inclusion, promoting environmentally friendly consumption, and fostering community development.

    Striving for Sustainable Growth

    The FiinGroup’s Vietnam Consumer Finance Report 2026 indicates that Vietnam’s consumer finance market is evolving, with a shift in focus towards the quality of growth, operational efficiency, and risk management in the wake of a period of market instability. In this context, Home Credit Vietnam has consistently invested in augmenting its governance capabilities and integrating technology into its operations and customer service. The company has fortified its credit assessment models and digital systems, which has facilitated quicker processing of applications and honed loan portfolio management.

    Moreover, the company has crafted financial solutions tailored to diverse customer segments, considering their repayment capacity, and has enhanced the transparency of product information and loan terms to aid customers in making more informed borrowing decisions. These efforts have culminated in Home Credit Vietnam receiving the ‘Finance Company of the Year’ award, which acknowledges financial institutions based on their operational performance and adaptability to fluctuating market conditions. The company’s 2025 financial statements reveal a 36.8% increase in total assets compared to the start of the year, with an after-tax profit of VND2.077 trillion (US$79 million).

    Embedding Sustainability in Business Practices

    Pham Ngoc Khang, the Chief Strategy Officer and Chairman of Home Credit Vietnam’s ESG Steering Committee, emphasized that sustainable development forms a key part of the company’s long-term strategy. He asserted that a company’s growth should align with the interests of customers and communities, as financial solutions are truly meaningful only when they improve the quality of life and broaden people’s access to financial services.

    The company’s sustainability strategy, which was recognized by the ‘Sustainability Initiative of the Year’ award, centers on increasing access to responsible finance, promoting green consumption, and supporting community development. In 2025, Home Credit Vietnam launched preferential financing packages for electric motorcycles to spur the use of zero-emission transportation. They also broadened their financial literacy initiatives. By the end of 2025, the company’s Home Smart online platform had reached over 21 million people, and they had organized personal finance management workshops for over 4,000 students and women.

    Questions & Answers

    What awards did Home Credit Vietnam receive at the Asian Banking & Finance Retail Banking Awards 2026?
    Home Credit Vietnam was recognized as ‘Finance Company of the Year’ for the second year in a row and also received the ‘Sustainability Initiative of the Year’ award.

    What are some of the initiatives Home Credit Vietnam has undertaken to promote sustainable growth?
    The company has been investing in enhancing its governance capabilities, integrating technology into its operations, and crafting tailor-made financial solutions for diverse customer segments. They have also increased the transparency of product information and loan terms to aid customers in making informed decisions.

    What is the focus of Home Credit Vietnam’s sustainability strategy?
    The sustainability strategy of the company involves expanding access to responsible finance, promoting green consumption, and supporting community development. They have launched financing packages for electric motorcycles and extended their financial literacy initiatives to promote responsible lending.

  • Alexander Wong: From Credit Suisse to Citi – Shaping Investment Banking in Asia

    Alexander Wong: From Credit Suisse to Citi – Shaping Investment Banking in Asia

    In a recent development, Alexander Wong, ex-managing director of the now-inoperative Credit Suisse, has taken up a new role at Citi’s investment banking division in Asia.

    Alexander Wong Joins Citi’s Investment Banking Division

    Citi has officially announced the appointment of Alexander Wong as their new Managing Director for the investment banking sector. His primary responsibilities in this role will involve bolstering senior coverage within the industrials and mobility sector across the Asia Pacific region.

    Wong brings a wealth of experience and industry knowledge to his new role at Citi. His strategic thinking and leadership skills will be crucial in driving the growth and development of Citi’s investment banking division.

    Reporting to Lei Li

    In his capacity as the managing director, Wong will report directly to Lei Li, who is the APAC head of industrials for the investment banking division. Wong’s appointment is expected to significantly contribute to the strategic expansion and growth of the industrials and mobility sector in the Asia Pacific region.

    Past Experience at Credit Suisse

    Before taking up his new role at Citi, Wong served as a managing director at Credit Suisse. He was instrumental in managing and developing the mobility and industrial technology sectors in his previous role. His past experience and achievements in the industry are expected to contribute significantly to his success at Citi.

    Questions & Answers

    What is Alexander Wong’s new role at Citi?
    Alexander Wong has been appointed as the new Managing Director for the investment banking division at Citi. His role will primarily focus on enhancing senior coverage in the industrials and mobility sector across the Asia Pacific region.

    Who will Alexander Wong report to at Citi?
    In his role as Managing Director, Alexander Wong will directly report to Lei Li, the APAC head of industrials for the investment banking division.

    What was Alexander Wong’s role at Credit Suisse?
    Prior to his role at Citi, Alexander Wong served as a Managing Director at Credit Suisse, where he was responsible for managing the mobility and industrial technology sectors.

  • UBS Braces for Massive Job Cuts amidst Costly Credit Suisse Integration: 10,000 Positions at Stake by 2027

    UBS Braces for Massive Job Cuts amidst Costly Credit Suisse Integration: 10,000 Positions at Stake by 2027

    Swiss banking giant UBS is preparing for a comprehensive round of job cuts due to the slower and more expensive than anticipated integration of Credit Suisse. Insider data shows that approximately 10,000 jobs are predicted to be cut by 2027, a substantial move in CEO Sergio Ermotti’s strategy to bridge the efficiency gap with worldwide competitors.

    Job Cuts Ahead

    In line with internal statistics, the bank is anticipating approximately 10,000 job losses in the upcoming three years, impacting both Switzerland and international locations. UBS plans to minimize the reductions as much as possible, relying on natural attrition, early retirements, and internal mobility. However, large-scale layoffs seem inevitable, according to the bank.

    Projected Workforce Reduction

    If the planned downsizing goes ahead, UBS’s workforce is projected to decrease to around 95,000 full-time positions. The reduction has been noticeable since the commencement of Credit Suisse’s integration, plummeting from almost 120,000 employees in mid-2023 to roughly 104,000 positions by 2025, an average loss of more than 1,250 per quarter. Larger quarterly job cuts of up to 2,000 are now anticipated.

    Integration Challenges and Rising Costs

    The integration process is lagging behind schedule. About 85 percent of clients have been migrated, but many large and convoluted accounts remain, demanding intensive manual labor. The longer Credit Suisse systems stay in operation, the more the cost burden increases.

    Pressure on Cost Efficiency

    UBS CEO Sergio Ermotti committed to savings of $13 billion and has so far achieved $10 billion. Nonetheless, the organization-wide cost-income ratio remains high at approximately 77 percent. In contrast, similar institutions operate far more efficiently, with Morgan Stanley at 67 percent, Société Générale at 61 percent, and Santander at just 41 percent.

    Challenges in Wealth Management

    UBS’s flagship global wealth management division appears to be a weak spot as costs remain stubbornly high, with a cost-income ratio close to 80 percent. Elevated compensation packages for client advisors, particularly in the U.S., significantly undermine the bank’s benchmark ambitions.

    Hope for Regulatory Relief

    Despite persistent market uncertainty over future Swiss capital regulations, there are indications of potential improvements. There are reports that the Finance Ministry is considering easing requirements, which could bolster the bank’s valuation as it continues to undergo restructuring.

    UBS is now faced with two critical tasks: delivering the promised synergies and regaining profitability momentum. The effectiveness of job cuts and system consolidation will be crucial in persuading the market that the Credit Suisse integration can ultimately generate shareholder value.

    Questions & Answers

    What are the expected job cuts at UBS?
    Approximately 10,000 positions are expected to be eliminated by 2027.

    What challenges is UBS facing with the integration of Credit Suisse?
    The integration process is behind schedule and proving to be costlier than anticipated. Many large and complex accounts remain, requiring intensive manual work.

    What is UBS’s current cost-income ratio and how does it compare to other institutions?
    UBS’s cost-income ratio is approximately 77 percent. In comparison, Morgan Stanley operates at 67 percent, Société Générale at 61 percent, and Santander at just 41 percent.

  • Samsung Set to Shake Up Personal Finance: Barclays Partnership Brings Samsung Credit Card to Compete with Apple

    Samsung Set to Shake Up Personal Finance: Barclays Partnership Brings Samsung Credit Card to Compete with Apple

    Samsung is reportedly preparing to launch a Samsung-branded credit card in the United States, in a strategic collaboration with Barclays that will capitalize on Visa’s extensive global payment network.

    Samsung Eyes U.S. Financial Sphere

    Samsung is reportedly planning to broaden its financial services portfolio in the U.S. market. A partnership with the British banking giant, Barclays, would provide a solid foundation for both companies to further penetrate the U.S. market. For Samsung, this means fostering increased loyalty within its client base; for Barclays, it opens up opportunities for greater lending scope.

    The formal announcement of the partnership is expected by the end of the year, with Visa being selected to manage the payment network.

    If successful, the Samsung credit card is unlikely to be a singular venture. It has been suggested that the credit card could be the cornerstone of a more expansive financial product offering, potentially involving a high-yield savings account, a digital prepaid account, and even a buy-now, pay-later option.

    Samsung’s Bid to Emulate Apple’s Success

    With this move, Samsung is evidently looking to replicate Apple’s successful foray into the U.S. financial sector. Apple has already established a strong foothold in the country with the Apple Card and Apple Pay, while Samsung’s financial tools have yet to achieve similar success.

    Samsung anticipates that by launching its own credit card, it can further solidify its ecosystem through Samsung Wallet. The card could provide cashback rewards that are directly deposited into users’ Samsung accounts, offering them an easy way to finance future purchases. This setup is expected to encourage users to remain within Samsung’s ecosystem, regardless of whether they’re purchasing a new Galaxy phone, a TV, or even a smart refrigerator.

    This strategy reflects the approach taken by Apple back in 2019 when it launched the Apple Card, in cooperation with Goldman Sachs and Mastercard. The card, which offers cashback benefits and interest-free financing for Apple products, has been successful in substantial growth of Apple’s financial presence.

    Broadening Samsung’s Ecosystem

    Samsung and Apple have been longstanding competitors in the smartphone market, but as hardware advancements slow down, the focus of competition is shifting towards ecosystem services. Financial products such as the prospective credit card could enable Samsung to fortify its relationship with U.S. consumers, thereby enhancing the relevance of Samsung Wallet.

    If Samsung’s plans come to fruition, it could be a significant step into the realm of personal finance. It’s clear that the ongoing rivalry with Apple is evolving, moving from a battle over pocket space to a contest for wallet share.

    Questions & Answers

    What is Samsung’s projected strategy for the U.S. financial market?
    Samsung reportedly plans to launch a Samsung-branded credit card, in partnership with Barclays and utilizing Visa’s global payment network, with potential future offerings including a high-yield savings account and a digital prepaid account.

    What is the aim of Samsung’s credit card venture?
    Samsung hopes to enhance customer loyalty and keep users within its ecosystem by offering incentives such as cashback rewards which can be easily used for future purchases.

    How does this move reflect the changing competition between Samsung and Apple?
    As hardware development slows, competition is shifting to ecosystem services. Both companies are expanding into the financial sector, with Samsung’s credit card venture marking a new stage in its rivalry with Apple.

  • UBS Set to Appeal Crucial Court Ruling on Credit Suisse AT1 Bonds: A Challenge to Ensure Credibility and Recovery

    UBS Set to Appeal Crucial Court Ruling on Credit Suisse AT1 Bonds: A Challenge to Ensure Credibility and Recovery

    The Swiss Federal Administrative Court’s partial ruling on October 13, 2025, sparked controversy over the legal legitimacy of deeming Credit Suisse’s AT1 bonds valueless. This occurred subsequent to an appeal lodged by Swiss financial regulator, Finma. Now, UBS has publicly announced its intention to file a similar appeal.

    UBS Announces Appeal

    UBS made a public announcement in tandem with the release of its third-quarter results for the year 2025. The bank expressed its decision to challenge the Federal Administrative Court’s partial ruling in the AT1 litigation. The bank stated that the appeal aims to ensure the court considers their perspective on the significant facts relating to the acquisition. Further, UBS conveyed that filing an appeal is necessary to maintain the credibility of AT1 instruments, given their crucial role in the resolution and recovery of banks.

    Crucial Component of the Rescue Package

    UBS underscored that writing off Credit Suisse’s AT1 instruments was a pivotal part of the rescue package. The bank expressed its belief that the write-off complied with the contractual terms of the AT1 instruments and the applicable law. UBS also maintained that Finma’s decision was within legal bounds.

    UBS further made reference to the conclusions drawn by the Parliamentary Inquiry Commission (PUK). PUK had declared that Credit Suisse would have been insolvent without the aid from the rescue package. They would have been incapable of continuing operations after Monday, March 20, 2023.

    Inadequate Ruling

    The Federal Administrative Court had concluded in October that the legal grounds for Finma’s decision to declare Credit Suisse’s AT1 bonds valueless were insufficient. Finma had already challenged the decision at the Federal Supreme Court, and UBS has now decided to do the same.

    Questions & Answers

    Why has UBS decided to appeal the partial ruling of the Federal Administrative Court?
    UBS intends to appeal the ruling to ensure that their viewpoint on the key facts concerning the acquisition is considered by the court. Additionally, they believe that an appeal is necessary to uphold the credibility of AT1 instruments, given the significant role they play in the recovery and resolution of banks.

    What was UBS’s stance on the write-down of Credit Suisse’s AT1 instruments?
    UBS has emphasized that the write-down of Credit Suisse’s AT1 instruments was a fundamental part of the rescue package. The bank believes that the write-down was in line with the contractual terms of the AT1 instruments and the law, asserting that Finma’s decision was lawful.

    What did the Parliamentary Inquiry Commission conclude about Credit Suisse’s situation?
    The Parliamentary Inquiry Commission concluded that without the rescue package, Credit Suisse would have become insolvent and would not have been able to continue operations beyond March 20, 2023.

  • UBS Challenges Swiss Court Verdict on Credit Suisse’s AT1 Bond Valuation: A Game Changer in Bank Recovery?

    UBS Challenges Swiss Court Verdict on Credit Suisse’s AT1 Bond Valuation: A Game Changer in Bank Recovery?

    The Swiss Federal Administrative Court issued a partial ruling on October 13, 2025, which put up for debate the legality associated with deeming Credit Suisse’s Additional Tier 1 (AT1) bonds as worthless. The ruling came in response to an appeal lodged by Switzerland’s financial regulator, Finma. Now, UBS has declared its intention to lodge their appeal as well.

    UBS to Appeal Ruling

    In line with the release of its results for the third quarter of 2025, UBS announced its plan to challenge the partial ruling of the Federal Administrative Court relating to the AT1 litigation. The bank clarified that this step is being undertaken with the aim of ensuring that the court considers its perspective regarding the relevant facts associated with the acquisition of the AT1 bonds.

    UBS also emphasized that the appeal is essential in order to preserve the credibility of AT1 instruments, considering the integral role these play in the resolution and recovery process of banks.

    Key Component of the Bailout Package

    UBS highlighted that the devaluation of Credit Suisse’s AT1 instruments was an important part of the bailout package. The bank maintained that the devaluation was in line with the contractual terms of the AT1 instruments and the applicable legislation. It also asserted that the decision taken by Finma was lawful.

    UBS pointed to the conclusions reached by the Parliamentary Inquiry Commission, which determined that Credit Suisse would have faced insolvency without the bailout package and would not have been able to continue its operations after Monday, March 20, 2023.

    Challenging A Questionable Verdict

    In October, the Federal Administrative Court ruled that the legal foundation for Finma’s decision to deem Credit Suisse’s AT1 bonds as worthless was inadequate. Finma has already taken a step to challenge this decision at the Federal Supreme Court, and UBS has now announced its decision to do the same.

    UBS has also addressed several questions related to the AT1 issue on its FAQ page.

    Questions & Answers

    Why is UBS appealing the ruling?
    UBS is appealing the ruling to ensure the court considers their view regarding the acquisition of the AT1 bonds and to safeguard the credibility of AT1 instruments due to their key role in the resolution and recovery of banks.

    Why was the devaluation of Credit Suisse’s AT1 instruments a critical part of the bailout package?
    The devaluation was crucial as it was in line with the contractual terms of the AT1 instruments and the applicable law. Without the bailout package, Credit Suisse would have faced insolvency.

    What was Finma’s decision regarding Credit Suisse’s AT1 bonds?
    Finma decided to render Credit Suisse’s AT1 bonds worthless. However, the Federal Administrative Court ruled that the legal basis for this decision was insufficient. Finma and UBS have both decided to appeal this decision.

  • Ios 26 Update Revolutionizes Apple Wallet With Enhanced Card Information Storage

    Ios 26 Update Revolutionizes Apple Wallet With Enhanced Card Information Storage

    The recent iOS 26 update has unveiled a host of minor enhancements, including a significant upgrade to the Apple Wallet. The digital wallet can now store detailed information about all your credit and debit cards, enhancing the user experience and accessibility.

    Storing Card Details in the Wallet App

    The iOS 26 iteration of Apple Wallet now allows detailed storage of physical card information alongside their digital counterparts within the app. This empowers users to access essential information such as the card number, expiry date, and other specifics, even in the absence of the physical card.

    Previously, the Wallet was somewhat limiting, offering no option to store comprehensive physical card information for debit and credit cards—a feature exclusive to the Apple Card. This update simplifies and enhances the user experience, positioning the Wallet app as a comprehensive replacement for a physical wallet—a functionality competitor apps like 1Password have been offering for a while.

    Manual Data Entry

    However, while this feature enhances convenience, Apple Wallet does not automatically store all card details. Users must manually input the information into the app. This can be done through a straightforward process:

    1. Open Wallet and select a card.
    2. Click on the ‘123’ button in the upper right corner and authenticate with FaceID or a passcode.
    3. Select “Add Physical Card information.”
    4. Scan the card or manually input the details to be saved.
    5. Confirm by tapping ‘Done.’

    Users can store the card number, expiration date, security code, cardholder’s name, and even add a specific description. Aside from the card number, all other details are optional, allowing users to customize what gets stored. This feature is particularly useful for cards with dynamic security codes.

    Apple has assured users that the saved data is both encrypted and stored in the user’s iCloud Keychain, accessible only by the particular user. Importantly, this information does not get used for Apple Pay transactions.

    A Competitive Edge

    The addition of detailed card information storage to Apple Wallet effectively eliminates the need for many users to stick with 1Password instead of transitioning to Apple’s own Passwords app. This development underlines Apple’s strategy of integrating features of utility apps into its operating systems, rendering separate apps superfluous.

    Questions & Answers

    What new features does the iOS 26 update bring to the Apple Wallet?
    The iOS 26 update allows users to store detailed information about their physical credit and debit cards within the Wallet app.

    How does one add physical card details to the Apple Wallet?
    Physical card details can be added manually by selecting a card within the Wallet app, clicking on the ‘123’ button, selecting “Add Physical Card information,” scanning the card or manually entering the details, and confirming the action.

    Is the card information stored in Apple Wallet secure?
    Yes, Apple assures users that all stored data is encrypted and kept in the user’s iCloud Keychain, accessible only to the user. The stored card information is not used for Apple Pay transactions.

  • AEON Credit Service Reports Impressive 31.3% Profit Surge to US$13.9 Million in Q1!

    AEON Credit Service Reports Impressive 31.3% Profit Surge to US$13.9 Million in Q1!

    AEON Credit Service (Asia) Company Limited has announced promising financial results for the three-month period ending May 31, 2025, showcasing its resilience and strategic focus in a competitive market. The company recorded a revenue of HK$442.2 million (approximately US$56.33 million), reflecting a 3.7% increase year-on-year. This growth was primarily fueled by enhanced interest income and a steady rise in revolving credit card and personal loan receivables, underscoring the firm’s robust lending framework.

    Moreover, AEON Credit’s after-tax profit reached HK$109.3 million (US$13.92 million), marking a 31.3% surge compared to the same period last year. With earnings per share climbing to 26.11 HK cents, up from 19.88 HK cents, the company is clearly on a bullish trajectory, toasting to a fruitful quarter.

    Operational Profits and Strategic Enhancements

    Operating profit before impairment losses saw an impressive increase of 8.7%, rising to HK$229.7 million. Concurrently, the company’s cost-to-income ratio improved, dropping to 44.6% from 47.3% the previous year, signaling efficient management and cost control.

    To navigate the intricacies of credit exposure, AEON Credit has bolstered its credit assessment model. This strategic move allows the company to better manage higher-risk advances and receivables, ensuring that growth is sustainable and backed by robust risk management.

    Marketing Innovation and Customer Engagement

    The financial institution is also reaping the rewards of its focused marketing efforts. By employing targeted marketing and innovative digital advertising campaigns, AEON Credit has stimulated spending and maintained momentum in its credit card segment, even as personal loan sales faced a decline.

    Looking towards the future, AEON Credit is betting on its “AEON HK” mobile app as a cornerstone for acquiring new customers for both credit card and personal loan services. Moreover, the company is in the process of developing a new rewards platform tailored to its customers in Hong Kong, promising a more convenient way to redeem premium points and e-coupons. It seems the customer experience is set to take flight, with rewards that will surely keep clients engaged and coming back for more — because who doesn’t love a little extra something on their shopping spree?

    Questions & Answers

    How did AEON Credit perform financially in Q1 FY2024/25?
    AEON Credit reported a revenue of HK$442.2 million, a 3.7% YoY increase, while profit after tax surged by 31.3% to HK$109.3 million.

    What factors contributed to AEON Credit’s revenue growth?
    The growth was primarily driven by higher interest income and an increase in revolving credit card and personal loan receivables.

    What future initiatives is AEON Credit undertaking to enhance customer engagement?
    AEON Credit plans to leverage its “AEON HK” mobile app for new customer acquisitions and is developing a rewards platform for easier premium point and e-coupon redemptions.

  • UBS Launches Exciting New Partnership in Private Credit Sector

    UBS Launches Exciting New Partnership in Private Credit Sector

    On Tuesday, UBS announced a dynamic new partnership with US-based General Atlantic, aimed at transforming the private credit landscape. This strategic collaboration is set to provide clients with enhanced access to direct financing and innovative funding solutions, marking a significant step in building a robust private credit offering for both institutions.

    Strengthening a Collaborative Foundation

    This new agreement formalizes and expands upon an existing relationship, uniting two financial powerhouses to create a compelling market presence in the private credit space. Coupling UBS’s renowned advisory and investment banking capabilities with General Atlantic’s extensive network and established expertise as a private lender sets the stage for a market-leading proposition in private credit services.

    Pioneering a Market-Leading Private-Credit Platform

    The partnership is strategically positioned to develop a top-tier private credit platform, leveraging unique growth opportunities for clients. The collaboration will bolster General Atlantic’s Credit platform, enhancing its issuance capabilities while simultaneously opening new avenues for UBS’s Global Banking capital-markets franchise.

    With a focus on expanding services, the GA Credit team will oversee investment initiatives and guide a specialized private-credit division. This team will incorporate seasoned professionals from UBS Asset Management’s Credit Investments Group (CIG), emphasizing secured direct loans to enterprises operating in North America and Western Europe.

    Anticipating Consumer and Market Impacts

    As this collaboration unfolds, it has the potential to reshape the retail sector by providing companies with improved access to necessary funding, thereby fostering innovation and growth. The enhanced private credit options could lead to increased investment in projects that drive consumer engagement and satisfaction.

    Questions & Answers

    1. What is the purpose of the UBS and General Atlantic partnership? The partnership aims to enhance access to direct financing and innovative funding solutions, creating a strong private credit offering for clients.
    2. How will the collaboration benefit clients? Clients can expect improved access to secured direct loans and innovative financing options from a market-leading private credit platform.
    3. Which regions will the new private credit focus on? The private credit services will primarily target companies in North America and Western Europe. This strategic alliance not only strengthens the foundations of private credit services but also signals an encouraging shift for investment opportunities within the retail sector, indicating a robust response to evolving consumer trends.

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  • Citizen database helps reduce credit default risks

    Citizen database helps reduce credit default risks

    A trial credit scoring model that encompasses the national citizen database has proven useful for lenders as it reduces lending risks by up to 20%.

    The model, which is built on the standards of global credit scoring company FICO, is now almost complete with 18 citizen data fields, Vu Van Tan, deputy head of the citizen administration unit under the Ministry of Public Security, said at a meeting on August 7.

    The model was tested by MB’s consumer loan unit MCredit on 10,000 data fields, PVcombank with 20,000 fields, and fintech firm Datanest with 60,000 fields.

    These companies saw their credit risks reduced by 7-20%.

    “After the trial, these companies all want to encompass the model in their operations officially,” Tan said.

    Banks and the Ministry of Public Security have long been working together to authenticate and synchronize the personal ID and credit information of over 40 million bank customers.

    The partnership also helped banks to launch money withdrawal services using ID cards at ATM. Bank customers can also use their electronic ID account to confirm identity.

    But as this partnership had its limitations in building an effective credit scoring system, the Ministry of Public Security has collaborated with the Hanoi University of Science and Technology to build the trial model using FICO standards.

    Deputy governor of the State Bank of Vietnam Pham Tien Dung said that credit scoring in Vietnam is gaining popularity among banks as it helps them to predict the probability of getting their money back from a borrower, and this only works with a precise database.

    A representative of state-owned lender BIDV said that the authentication of a third-party organization, especially a state-owned entity, plays an important role in credit scoring, ensuring that the data bank employees have collected is precise.

  • Mastercard launches global plan to recycle credit cards

    Mastercard launches global plan to recycle credit cards

    Payments company Mastercard on Wednesday launched a global project to recycle credit and debit cards as part of a plan to save the billions of cards in circulation across the industry from landfill.

    Initially partnering with British lender HSBC Holdings Plc in eight branches in Britain, Mastercard said banks across the world, some of which have launched local initiatives, would be able to join the programme and help build economies of scale.

    “We are inviting all card issuers around the world to partner with us, no matter what region they are in, and offer card recycling to their customers,” said Ajay Bhalla, president of cyber and intelligence at Mastercard.

    Under the plan, Mastercard will provide shredding machines to HSBC, each of which is capable of holding 10,000 cards, equivalent to 50 kg (110 pounds) of plastic. Once full, it will be transferred to a plastic recycling facility.

    Financial details about the plan were not disclosed. The pilot project, which will run for an initial six months, will allow customers to recycle any plastic card, including those from rivals.

    “This recycling pilot will provide us with some very important insight and will inform our longer-term plans,” said Jose Carvalho, head of wealth and personal banking at HSBC UK.

    Initiatives like Mastercard’s recycling programme not only promote sustainability but also offer banks opportunities to boost customer engagement through innovative offerings. For example, CIMB’s credit card promotion rewards users with attractive incentives for optimized card usage. By providing direct cash credit, CIMB’s promotion seamlessly blends financial rewards with responsible consumer behavior, underscoring the need for versatile credit card strategies in today’s market.

    Currently, Mastercard said it has around 3.1 billion cards in circulation. Each year, it estimates around 600 million cards are produced by the industry, each with a life span of around five years.

    The Nilson Report, which analyses the industry, put total cards in circulation at nearly 26 billion in 2022, and forecast that could rise to 28.4 billion by 2027.

    Soaring plastic use has created one of the world’s biggest environmental challenges, with plastic waste buried in landfills or polluting rivers and oceans. The manufacturing process for plastic is also a major source of planet-warming greenhouse gas.

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  • Loans to small businesses a booming business

    Loans to small businesses a booming business

    The business of providing loans to small and medium firms is booming in Vietnam with the rise of several platforms offering more accessible credit than traditional banks.

    Bonbon shop, a platform that helps 35,000 grocery stores connect with over 24 major manufacturers, recently launched a credit option of up to VND200 million ($8,563) for stores to buy supplies.

    The operator of the platform, DMSpro, has partnered with e-wallet SmartPay and lender VPBank to make the loans accessible.

    EVNFinance, a credit provider unit of the national utility Vietnam Electricity, recently launched loan packages of up to VND500 million for 36 months.

    It said borrowers could receive the money within eight hours of making their requests.

    Several foreign credit platforms have been making their way into Vietnam since earlier this year.

    Singapore-based fintech firm Validus entered Vietnam in January and appointed Dinh Van Binh, former vice chairman of Sacombank Investment, as its CEO.

    Vishal Shah, chairman of Validus’ emerging markets, said Vietnam was one of its main markets and the company will continue to invest to expand its presence.

    Also in January, Funding Societies, which claims to be the largest digital financing platform for small and medium companies (SMEs) in Southeast Asia, said that it had disbursed $20 million in loans in Vietnam and targets to increase this to $90 million this year and $1.3 billion in 2025.

    The company estimates that Vietnam has a credit “gap” of around $58 billion in funding SMEs, referring to the amount of money that small and medium businesses have not been able to borrow because of administrative and other blocks.

    Nearly 46.8 percent of companies in Vietnam reported difficulties in accessing traditional bank loans last year, compared to 40.7 in 2020, according to a report by the Vietnam Chamber of Commerce and Industry (VCCI).

    Small companies often have to borrow money from friends or family or even assets to submit as collateral to raise capital, it added.

    Because of these challenges, the SMEs credit market is set to be the next race of many finance organizations, said Hoang The Hung, deputy director of EVNFinance.

    VPBank leaders said they have seen its funding for SMEs rising in the last six months as businesses restarted their operations and needed funds. They expect even stronger growth in the near future.

  • StanChart Profits Surge on Lower Credit Impairments

    StanChart Profits Surge on Lower Credit Impairments

    Significantly lower credit impairments coupled with positive business momentum led to a surge in Standard Chartered’s pre-tax profits for the third quarter.

    Standard Chartered posted $1.075 billion in pre-tax profits for the third quarter, according to its latest results, marking a 44 percent year-on-year increase.

    Not unlike its regional peers throughout the year, the reduction of credit impairments – 70 percent to $107 million compared to $353 million in the same period last year – was a significant contributor to the improved bottom line.

    In addition to an improved balance sheet, the broader business experienced positive momentum with net interest income up 7 percent to $1.735 billion and other income also up 7 percent to $2.03 billion.

    We delivered a return to top-line growth in the third quarter and achieved further progress against our strategic priorities, with a strong performance in our Financial Markets and Trade businesses and ongoing positive momentum in Wealth Management, said Standard Chartered chief executive Bill Winters.

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  • Singapore Crypto Startups Join Mastercard Engagement Program

    Singapore Crypto Startups Join Mastercard Engagement Program

    Two Singapore startups will help the payment giant accelerate innovation around digital asset technology. Singapore-based Mintable, a non-fungible token (NFT) marketplace; and Stacs, which provides a blockchain infrastructure for the financial industry to unlock value and enable effective sustainable financing, are among of a new cohort of seven startups at Mastercard’s «Start Path» global startup engagement program.

    The program supports fast-growing digital assets, blockchain, and cryptocurrency companies by providing access to strategic partnership opportunities, insights, and tools to grow. Companies participating in the new program aim to address pain points including asset tokenization, data accuracy, digital security, and seamless access between the traditional and digital economy.

    The announcement comes amid increased enthusiasm for a broader range of payment technologies in the Asia Pacific region as a result of the pandemic, and growing awareness of cryptocurrencies among the general public. Mastercard also said consumers are increasingly showing interest in being able to spend crypto assets for everyday purchases.

    We believe we can play a key role in digital assets, helping to shape the industry and provide consumer protection and security. Part of our role is to forge the future of cryptocurrency, and we’re doing that by bridging mainstream financial principles with digital assets innovations, Jess Turner, Executive Vice President of New Digital Infrastructure and Fintech, Mastercard, commented.

    Mastercard announced last week that it was looking to simplify for its partners the conversion from cryptocurrency to traditional fiat currency, and would be leveraging partnerships to help crypto companies offer card programs.

    Earlier this month, rival Visa reported that consumers spent more than $1 billion worth of cryptocurrency on goods and services through Visa’s crypto-linked cards in the first half of 2021.

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  • Vietnam’s credit growth doubles

    Vietnam’s credit growth doubles

    Bank credit growth from January 1 to June 15 was 5.1 percent, double the rate recorded in the same period last year.

    The jump came despite the fourth wave of Covid-19 because the State Bank of Vietnam made monetary policy more flexible and directed banks to focus on funding manufacturing and reduce lending to sectors with high risks, its deputy governor, Dao Minh Tu, said Monday.

    Average loan interests in April fell by 0.3 percentage points from December, he added.

    The central bank has also directed banks to delay debt payment or lower or scrap interests on customers affected by the Covid-19 pandemic to help their business recovery.

    Nearly 676,700 customers have seen the interests of their debts removed or reduced with a total outstanding loan of nearly VND1,278 trillion.

    The bank will continue to pursue a flexible monetary policy until the end of the year keep inflation under control and support an economic recovery.

    The pandemic has boosted demand for online payment. In the first four months, internet payment value surged 31 percent year-on-year.