THE FUTURE OF CONSUMER FINANCE: TRANSPARENCY AND ACCESSIBILITY THANKS TO DIGITAL TRANSFORMATION

When Vietnam’s consumer finance market continues to recover and grow, digitalization has become a key driver in helping companies improve operational efficiency and meet the increasing expectations of customers. This contributes to shaping a more modern, flexible, and accessible consumer finance market.

Digitalization – the inevitable growth engine of consumer finance

In response to the “National Digital Transformation Program” and the “Digital Transformation Plan for the Banking Sector”, credit institutions have proactively developed digital transformation strategies in order to enhance the consumer experience. At the “Vietnam Financial Innovation Series” (WFIS 2025) in April 2025, Mr. Lê Anh Dũng, Deputy Director of the Payment Department, State Bank of Vietnam (SBV), stated that by early 2025, more than 90% of financial transactions at many credit institutions had been conducted through digital channels. This fact reflected a strong shift across the financial and banking sector in optimizing services towards the customer-centric goal.

The comprehensive digitalization trend has reshaped new standards in the financial and banking industry, where technology was no longer just a supporting tool but a core element of competitive strategies and sustainable development. Nowadays, customers not only seek fast and convenient financial services but also demand transparency and user-friendly experiences. Therefore, in the consumer finance segment, many companies have significantly invested in developing mobile apps, 24/7 chatbot support, and integrated financial utilities to help customers easily track and manage their loans. Notably, technologies such as Big Data and Artificial Intelligence (AI) have been widely adopted to personalize loan products and minimize credit risks.

Technology helps people in remote area access consumer financial services more conveniently. Photo: FE CREDIT

Digital transformation has also enabled consumer finance companies to expand their service networks, particularly in rural and remote areas where traditional financial services remain limited. The digitalization of lending processes has facilitated easier access to credit for millions of individuals, supporting both personal and household consumption needs.

Another key factor accelerating digital adoption across the industry was the increasing participation of younger customer segments in the consumer finance market. According to the report named “Decoding a New Era: Risks and Opportunities in Vietnam’s Banking and Consumer Finance Sector” released by Fiingroup in December 2024, Generation Z will emerge as a primary force driving technological innovation in the sector over the next five years.

As digital natives born and raised in the internet era, Gen Z consumers are naturally inclined to use financial services via digital channels such as mobile apps, e-wallets, and online platforms. Young customers, who have higher tolerance for risk than previous generations due to their rapid and varied access to financial information, are driving demand for new, more flexible, and diversified financial products such as credit cards and Buy Now Pay Later services. This shift brings both opportunities and challenges, compelling financial companies to restructure their product offerings and lending processes from complex and paper-based procedures to fully digitalized solutions.

FE CREDIT accelerates with digitized consumer lending platforms

As one of the leading companies in Vietnam’s consumer finance market, FE CREDIT has continuously innovated over the past 15 years to enhance customer experience, optimize operations, and expand market share. From 2022 to 2024, the company witnessed a significant shift with a growth of up to 60% in late Generation Y and Generation Z end-user segments, which resulted from its digital transformation journey.

Over the years, FE CREDIT has implemented various advanced technological solutions to digitize the traditionally complex, multi-step, and time-consuming consumer lending process. After a period of focused development, the company has launched FE ONLINE 2.0, which is a multifunctional financial mobile app, integrating a wide array of financial products and features. These include flexible cash loans, credit card applications, convenient digital banking services, and tools to track and manage loans.

In the past, a loan application could take several days to process and require customers to visit physical branches for consultation, registration, and disbursement. Today, with a fully digitized process, the entire experience has become significantly faster and more convenient. In terms of customer service, since 2020, FE CREDIT has also deployed an AI-powered intelligent chatbot that offers 24/7 customer support. In 2024 alone, the chatbot served over 130,000 users with more than 200,000 conversations per month, resulting in reduced response times and improved customer satisfaction.

“Cashless Day 2025” is an opportunity for enterprises to promote digital financial solutions to a wide range of audiences.

Photo: FE CREDIT

 Beyond its individual digital transformation efforts, FE CREDIT also actively supported initiatives of the Government and the State Bank of Vietnam by participating in activities to raise public awareness of digital transformation and financial inclusion.

On June 14^th – 15^th, 2025, FE CREDIT will accompany VPBank as a member of the VPBank financial ecosystem and participate in the Cashless Day 2025 event. This annual festival will be held to shape and reinforce customers’ habits, as well as change their behaviour in the adoption of digital payment methods and platforms. It also highlights the strategic role of cashless payment and contributes to the implementation of the Government’s “Scheme on Cashless Payment Promotion in Vietnam for the 2021-2025 Period”. At the event, FE CREDIT will introduce its multifunctional financial app named FE ONLINE 2.0, which promotes its consumer finance products and delivers interactive activities to encourage attendees to experience its offerings as well as receive attractive gifts.

In the digital era, enhancing customer experience is no longer an optional factor but essential. With a comprehensive digital transformation strategy and a long-term vision, FE CREDIT is not only supporting its customers but also helping to shape the future of Vietnam’s consumer finance industry by making it more modern, transparent, and accessible than ever before.