Vaymuon.vn the largest peer-to-peer (P2P) lending platform in Vietnam on Thursday signed a strategic cooperation agreement with Vietinbank Insurance Corporation to protect loans.
According to the agreement, both borrowers and lenders will be protected from unpredictable risks that prevent them from paying or collecting debts. With the insurance policy, lenders should find it easy to provide loans to borrowers.
P2P lending is a new way of debt financing that allows people to borrow and lend money without having to go through a traditional financial institution. The P2P lending platform uses technology to connect borrowers and lenders faster.
The platform, developed by start-up Vay Muon Joint Stock Company, enables people to easily borrow small amounts of money using a mobile app called Vay Muon Vay tien.
Speaking at the signing ceremony, Dao Thi Trang, director of Vay Muon Joint Stock Company, said the signing was another step towards the company’s vision of a safe financial ecosystem.
Trang said the company has finished calling for investment in its seed-round funding. It is calling for between $5 and $10 million in its series A funding round to continue to develop technology platforms such as artificial intelligence (AI) and auto call as well as new products to take advantage of more than 12 million customers from its parent company NextTech Group.
The capital will also be used to further expand its foreign markets in Myanmar, Cambodia and Thailand.
After two years as Vietnam’s first P2P lending platform, vaymuon.vn now has around two million borrowers and 400,000 lenders.
As a start-up, Vaymuon.vn received capital from NextTech Group, now the strategic investor with 20 per cent of its shares. It now has a staff of more than 200 and continuous to invest in information technology and AI application to automatically review and approve loans nationwide.
