Risk management is one of the most important parts of Home Credit’s business operation. It has built risk management capabilities with a unique set of qualities. Automatic decisions are made based on highly sophisticated scorecards, deploying big data in hundreds of variables of scorecards and credit assessment processes, constantly increasing usage and the effectiveness of big data.

Annica Witschard, CEO of Home Credit Vietnam presents to investors

“Advanced predictive models are applied widely in Home Credit to mitigate risks, including advanced machine learning approach and gradient boosting techniques leading to scorecards, advanced anti-fraud operations based on biometrics, sophisticated early warning system and active fraud score model, highly ethical and effective collection practices,” said Fabien Sanchez, chief risk officer of Home Credit.

Besides this, a robust collection strategy is carried out methodically, ethically, and professionally by Home Credit’s employees. Advanced collections strategies are supported by high-tech such as well-trained internal call centres and up-to-date voice technology.

Home Credit Vietnam’s leadership

Home App is the centre point of the customer journey, one central platform to onboard and an all-in-one digital financing solution. For daily usage, in-app content includes financial literacy, self-service features, and new partner integration, gamification, and a reward programme. For cross-sell, the app optimises sales funnel and loans, expands cross-selling, and prioritises sales-related features. This enhances customer engagement and customer experience.

“Home Credit achieves high ranking on consumer finance apps with 8.3 million registered app users, and 1.3 million monthly active users,” said Annica Witschard, CEO of Home Credit Vietnam.

In 2022, the company's sales volume grew by 20 per cent on-year driven by a strong consumer durable rebound after the pandemic and increased market share. Double digit growth on revolving balances contributed by Home Pay Later and Credit Card usage and spending.

Home Credit Vietnam’s CEO, CFO, and CRO in the Q&A session with investors

CFO Pham Ngoc Khang said that Home Credit reported strong liquidity with matching asset liability duration, strong capability to mobilise funding, supporting asset generation.

“Home Credit expanded fund-raising amid a challenging market in Q4/2022. Its funding channels include offshore loans, value paper issuance, and onshore loans. Entrustment lending is to extend its growth capacity,” Khang said of the funding results last year.

Liquidity and asset liability management also developed robustly. There was a high liquid asset/total asset of 24 per cent as of December 22, 2022, available base to support peak sales season, while the capital adequacy ratio was better than the regulatory requirements, with a solid capital buffer to face any volatile situations.

“Sustainable overall results in 2022 were driven by strong asset generation, resilient net interest margin and ongoing access to liquidity, continuous operational efficiency, and stable risk performance underwriting,” Khang said.

“Home Credit Vietnam expects to grow assets base driven by a sustainable asset generation on its core business, omnichannel distribution strategy to maximise cost efficiency. Robust profitability is supported by solid asset generation, inherent operating efficiencies, diversified funding and strong equity.”