CIMB Bank Vietnam and F88 form partnership to boost financial inclusion

Thursday, Dec 09, 2021 14:35

CIMB and F88 Business JSC tie up to boost financial inclusion. — Photo courtesy of the firm

F88 Business JSC, the largest financial services chain in Viet Nam, has entered a new strategic partnership with CIMB Bank Vietnam – one of the leading banks in Asia – to promote financial inclusion to the unserved and underserved sector of the economy.

According to the latest statistics from the General Statistics Office (GSO), in the third quarter of the year, the country recorded more than 28.2 million people unemployed, or experiencing income reductions because of COVID-19. The situation makes it harder for workers to access bank loans as they fail to prove their financial ability.

Understanding the difficulties of Vietnamese workers, the strategic alliance could lead to productive institutional collaborations in financial markets, thereby expanding the array of financial products, and scaling up access of rural households and micro-businesses to financial services. The companies have shared a commitment comprising a new theme in lending services.

Phung Anh Tuan, CEO of F88, said both have the same objective which is to provide highly competitive professional financial solutions that are easy to access for vulnerable groups in society. This strategic alliance will help F88 take another step forward in promoting greater financial inclusion across Viet Nam.

“We are delighted to welcome CIMB Vietnam as our strategic partner. CIMB Bank is regionally renowned for its strong industry experience and innovative financial services. Through partnering with CIMB Vietnam, we are looking to take another step forward in promoting greater financial inclusion across Viet Nam, to digitise financial services and improve the lives of the consumers and businesses they touch,” Tuan added.

Sharing the purpose of this strategic alliance, Thomson Fam Siew Kat, CEO of CIMB Vietnam, said F88 has developed a strong physical network with 500 branches to serve customers nationwide and has achieved significant business growth and financial success since launch.

“The primary aim of this strategic alliance is to improve the flow of credit to the unserved and underserved segment of the economy at an affordable cost. This happens as banks have lower cost of funds and F88 has greater reach beyond tier-2 centres. We have employed strategic alliances with many firms to effectively manage costs, overcome resource and technology constraints, and enhance our competitive position. With F88, we are looking to tap new segments, manage costs, access both parties’ technology and infrastructure, and acquire new skills to provide an expanding array of financial services to wider markets while the global economy is recovering from the pandemic,” Thomson said. — VNS

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