On July 2, the application “Fiin Creditadvance money for consumption” developed by Fiin Financial Technology Innovation Joint Stock Ccompany was officially launched, applying artificial intelligence technologies (AI) and big data. Accordingly, only with mobile phones, users will be paid in advance by Fiin to pay for daily shopping activities quickly and conveniently, even if the user has no money in the account.
The goal is young people who have not access to financial and banking services and attempt to popularise the digital payment model. Fiin Credit is the financial solution for most users, including low and middle income customers.
Tran Viet Vinh, Founder & Chief Executive Officer (CEO) of Fiin, shared that cashless payment was a global trend. Sooner or later, Vietnam would also participate strongly. Currently the market was expanding and was an opportunity for domestic and foreign companies to participate. They had tried to bring Fiin Credit to market, offered the most optimal cashless payment support tool.
According to CEO Fiin, the popular types of non-cash payment had certain limitations. For credit services such as Visa, Master Card, etc. provided by foreign countries, the number of people accessing was still low, most of them had high or good incomes. With Fiin Credit, credit services would be universal to many users.
Fiin Credit is completely free of interest and fees for users up to 45 days. Customers have a credit limit of 10 million to 50 million dong per month, according to the way provided through transaction history scoring. The customer is allowed to update credit limit if the history is good and if there is a risk of fraud, customer may be blocked.
After 45 days, Fiin’s interest and fee calculation with customers is similar to the applicable international card organisations, with over 20 percent per year. In addition, investors in Fiin are still guaranteed interest rate of 18 percent to 20 percent per year for loans on Fiin, because every money transaction on Fiin Credit is a consumer stimulus programme and Fiin pays interest.
Replying to BizLIVE about how Fiin Credit competed with other cashless payment methods such as E-Wallet with 10 percent to 20 percent discount payment, Vinh said that Fiin cooperated with customers, chain stores, encouraging consumer in stores. However, Fiin did not participate in the money-burning race but would provide services that bring added value to customers like young people in need of consumption.
A young person who had just gone to work for one to two years had an income of about 10 million dong per month. All living, dining and shopping expenses could account for 7 million dong. While using Fiin Credit, that person could use the money in advance for 45 days without paying interest and use the income to earn profit.
At the same time, CEO Fiin affirmed that Fiin Credit did not directly compete with payment intermediaries, with E-Wallets. Fiin launched that service after nearly one year of preparing a complete technology system. Fiin Credit service was expected to be deployed everywhere. Mobile phones only needed to install Fiin to be able to receive money immediately without waiting.
Fiin’s CEO also informed that non-performing loan ratio on Fiin’s system with peer lending was below three percent. Fiin always guaranteed investors’ benefits by acquiring loans and paying money in advance if the borrower had not paid. After that, Fiin would work with borrowers, structure debt, facilitate their repayment.
