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MBBank drives Vietnam’s digital lending transformation

Becoming a digital enterprise and a leading financial group has been the motto of the MBBank

Vietnam-based Military Commercial Joint Stock Bank (MBBank) is a financial institution, which takes pride in being strong in its business management, maintaining transparency in giving out information, and offering convenience and trust to its customers, while providing its services.

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MBBank was recognized with ‘Best Automated Loan Process – Vietnam 2023’ and ‘Most User Friendly Mobile Banking Solutions – Vietnam 2023’ in the recently concluded Global Business Outlook Awards.

Becoming a digital enterprise and a leading financial group has been the motto of the MBBank.

Over time, a myriad of factors have synergistically fueled MBBank’s remarkable success, propelling them to secure numerous global accolades and recognitions. Among these pivotal elements, their ground-breaking product innovations, streamlined loan processes, and intuitively designed mobile apps stand out prominently.

MB Hi Collection: MBBank’s Revolutionary Product

For owning a credit card, one needs to prove his/her financial health, apart from undergoing a lot of paperwork. However, in the 21st century, with the rapid evolution of information technology along with the overall socio-economic development, card products have changed significantly to meet the increasing demands of customers.

In 2022, MBBank launched its “MB Hi Collection” in the Vietnamese market.

“Perhaps never before have customers become so crazy and tried to own such a card product like this. Right after being launched in just a few days, the MB Hi Collection card has come in short supply. Let’s decipher the attractiveness of this card,” MBBank recalled the initial moments of the launch of MB Hi Collection.

Without paying branch visits, customers can have their MB Hi Collection cards by opening a catalogue with hundreds of card templates on MBBank’s online shop, following which they can click upon a card to open the product and avail of the services.

“MB Hi Collection” is basically an integrated “2 in 1 Credit Card”.

“And yet, this is also a very smart card, helping owners to optimize the source of payment. The card will automatically prioritize the appropriate payment source for each withdrawal or payment transaction,” MBBank described the product.

“Confidentiality and safety with traditional cards, customers are usually afraid of being disclosed our personal information like card number, CVV … Knowing this, MB has turned MB Hi Collection into a very highly confidential card. No one can know your card information, even if they hold your card in their hand. Only you can query the full information of the card on the MBBank App easily and quickly,” it stated further.

After a transaction period, the card will self-assess itself to grant credit limit automatically to its users, and the latter don’t need to provide documents, records or go through procedures to avail the line of credit.

“One last point that makes MB Hi Collection so attractive to users is its reward points system for cards. Cardholders can enjoy discounts of up to 30% in many different forms: direct discount, gift voucher, refund… at nearly 1000 reward points nationwide with a variety of services: shopping, cuisine, tourism, education, health care, e-commerce platforms that are easily found on MB Bank super mobile App,” the bank stated further.

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Digital Lending & MBBank

MBBank, established in 1994, apart from possessing an outstanding risk management framework and modern IT infrastructure, has been rapidly expanding a diverse range of products and services, operating in both new and traditional market segments.

The bank launched its ‘Digital Lending Project’ in July 2020 with the mission of providing its customers with timely loans, through the MBBank App.

The ‘Digital Lending Project’ works on the principle of providing a proactive loan approval mechanism based on credit scores and personalised financial requirements, while taking factors like interest rates, terms, principal/interest payment methods, etc. into the play. Also, the entire paperwork gets done on the app itself.

MBBank provides a variety of consumer loan products like collateral-free, salary advance, credit card advances, along with other financial products like car loans, loans for business production and top-up loans for business production.

“The journey of borrowing experience in Digital Lending is carefully researched and designed to ensure that customers can easily apply for loans on the app without the need for a Relationship Manager. They are also able to track the entire journey of their loan. With MB’s vision as a digital group, Digital Lending is the strongest and number one development activity for MB in the Vietnamese market,” MBBank said.

MBBank customers get end-to-end loan experience without any contact with Relationship Managers (RM). MBBank also has its customer scoring model, where the system calculates and provides pre-approved credit limits for those who require the services.

Describing MBBank’s ‘Customer Scoring Model’

The system conducts real-time assessment of customer information such as fraud, CIC (Credit Information Center), and product conditions including average CASA (Current Account and Saving Account) balance, income level, age, nationality, etc. Then the system calculates and transfers the customer’s loan information to the appraisal and approval level according to the specified regulations. Once the loan gets approved, the customer gets the notification on his/her MBBank App screen.

“The system is based on the approved plan for automatic disbursement to a designated third-party account as specified by the customer. Credit documents are electronically signed and sent to the customer via email. Simultaneously, they are automatically stored in MB’s internal system in an organized manner, allowing for easy retrieval when needed,” MBBank stated further.

Customers can also access the app to monitor and retrieve details like interest rates, outstanding balance, projected interest, repayment schedules, and even perform actions like early repayments or settling the loan at any time. Customers can complete credit transactions in just two to three minutes through the app.

A Promising Future Ahead

MBBank’s overall digital lending ecosystem has been a huge hit since its inception. The number of customers generating loan transactions has reached 163,850, with a loan balance of 28,594 billion as of 2023.

“The credit quality is well controlled, with a rate of 1.06%. With the entire process of appraisal, approval, disbursement, inquiry, repayment, and loan document storage being fully automated, customers can execute transactions instantly without being limited by time or geography,” MBBank concluded.

MBBank’s digital solutions are helping to minimize costs, time, and effort for both its employees and customers, thereby resulting in better customer onboarding and becoming a viable business model for the global banking industry.

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