Home Credit, one of the leading corporations in consumer finance with total assets of €18.5 billion in 10 countries, including Việt Nam, has just published its first report on environmental, social, and corporate governance (ESG). Annica Witschard, CEO of Home Credit Vietnam spoke with Thu Ngan of Việt Nam News about how Home Credit Viet Nam empowers the lives of Vietnamese customers.

Annica Witschard - CEO Home Credit Viet Nam

Annica comes from Sweden, a Nordic country, and has spent more than 15 years of her career in the Nordics, Europe, the US, and the Philippines within the banking and consumer finance industry. She has been at “Home” here in Việt Nam since early 2020.

Why is Home Credit starting to report its ESG actions now?

I personally, and the company, believe that ESG has always been a part of Home Credit’s DNA, even before it was called ESG. Since the beginning of our operations, we have always served customers in emerging markets, fulfilling our duty as a socially responsible lender.

We understand that our customers are increasingly making purchasing decisions with some ESG related themes in mind, and as a result, brand loyalty is closely linked to these efforts.

Besides, you know, from what I observed during catch-up sessions and meetings, many of our colleagues are saying that ESG matters when it comes to pride in our company brand. We, therefore, owe it to our customers, employees, shareholders, and other stakeholders to take a transparent approach to how we report on ESG issues.

Could you elaborate more on the message: “To empower customers to live the lives they want now”?

Think of a man who does not have income proof but needs a motorbike to earn a living and support his family. Or a mother with a monthly salary of 5 million VND who needs to pay school fees for her child. Without consumer finance companies like us, either they will give up their plans or end up using loan sharks because they cannot borrow from the banks.  

We are serving more than 12 million customers nationwide - most of whom are low-income, without credit history, and of course, not being served by traditional banks. We help them access financing quickly, easily and safely to achieve their daily goals, so that they feel good and positive about life. In another word, we perform financial inclusion while ensuring customer’s affordability, stressing a responsible financing approach. 

Transparency, fairness and financial literacy are core parts of responsible financing approach - this what sets Home Credit apart. This also means offering customers the right products based on their needs and financial capacities, ensuring that they clearly understand all essential information related to the service, as well as helping them with a sustainable repayment plan.  

The company really puts the effort and resources to integrate financial literacy into the processes and operation, making sure customers understand their benefits and commitment before taking a financing service. At the same time, we promote a comprehensive understanding of finance through several customer activities, both online and offline, such as roadshows, workshops, in-store events, brochures, publications, competitions, media campaigns and mobile games, etc.

Interestingly, the company is seen as “a friend” in the eyes of its customers. The majority of our customers are actually recommending Home Credit services to their families or friends. I am proud to say that 65 per cent of our customers strongly recommend us to their families and friends and 75 per cent of new volumes are generated from returning customers. We are rated Most Desired Brand in the Annual Brand Health Check.

How does Home Credit differentiate from other players in the market? 

Do you know that we are one of the first companies that launched a 0 per cent IR program at all electronic stores? Today, many of our contracts are at 0 per cent, supporting customers to buy essential consumer goods or home appliances.

Besides, as I shared previously, we strongly promote ESG practices across the Home Credit group and at Home Credit Vietnam. Moreover, as a responsible lender, we have been very consistent in pursuing a sustainable growth strategy, ensuring long-term social positive impact through financial inclusion and customers’ affordability. Around 40 per cent of our customers are first-time borrowers, which is a very good number. And our NPL is consistently maintained below 3 per cent - the lowest in the Vietnamese consumer finance market.

On top of that, we put a strong emphasis and consistent effort towards CSR activities, as an act of giving back to the community. For the last 7 years, we have partnered with the Social and Community Committee of Women Newspaper to provide free loans to women entrepreneurs in the North of Việt Nam. Most recently, we are supporting six start-ups owned by women in partnership with the Vietnam Women's Union. In August 2021, we offered more than 500 scholarships, gifts, and school facility renovation package to children in Buon Ho - Dak Lak.  Besides, we always actively connect with charity organizations and provide support to children and those in need.  

The COVID-19 pandemic proves that the company’s commitment to ESG is more than words – it is intrinsic to the way we operate. When the pandemic raged back and Saigon was hit the hardest, Home Credit launched Home Love to quickly aid the city - a place that welcomed the company's very first footsteps to Việt Nam and “Home” to many Vietnamese people.

Apart from the 1 billion VND donation to the national vaccine fund, the company brought more than 30,000 meals, necessities and mid-autumn festival packages to people in need such as nurses, doctors in field hospitals, soldiers, children and homeless people.

Home Credit launched Home Love to quickly aid the city - a place that welcomed the company's very first footsteps to Việt Nam and “Home” to many Vietnamese people

What level of financial investment will Home Credit be committing towards these ESG initiatives over the coming years?

You know, ESG is not only a line item in our budget. What we are striving to do is widen our embrace of ESG and ensure there is consistency and coherence in our approach.  

In Việt Nam, we will continue to better the lives of Vietnamese customers. We will bring more optimal financial services, continue to promote a responsible finance approach to empower customers to live the lives they want, now.

Home Credit at a glance