An F88 store in HCM City. Standardising services and operational procedures has enabled F88 to offer consistent service quality across its growing national network. — Photo courtesy of F88

HÀ NỘI — With a continuously upgraded and increasingly sophisticated governance system, F88 Investment Joint Stock Company (F88) is laying the groundwork for strong and sustainable growth in the alternative finance sector — a segment with vast potential, but also higher risks compared to traditional banking.

F88 focuses on delivering comprehensive financial services, including secured loans, insurance distribution and various banking utilities. Its service offerings are carefully designed to meet customer needs, with standardised processes and a strong risk management framework.

In the secured lending segment, F88 offers title lending solutions, where customers can use their motorbike or car registration papers as collateral. This form of lending is particularly suited to individuals with limited access to traditional credit.

As for insurance, F88 partners with major insurers to distribute non-life and health insurance products. The company has set its sights on becoming the leading non-life insurance agency in Việt Nam.

F88 also provides a range of value-added financial services in collaboration with partners such as Payoo and Bao Kim, offering bill payments, e-wallet top-ups and convenient checkout options in partnership with e-commerce giant Lazada. Additionally, F88 is working closely with major banks and logistics firms to expand its network and offer more accessible financial solutions to customers.

The company's core clientele are individuals who have limited or no access to traditional banking services. Its integrated approach means customers using secured loan services are also potential users of its insurance and value-added financial products, and vice versa.

Standardising services and operational procedures has enabled F88 to offer consistent service quality across its growing national network, ensuring reliable access for a broad customer base.

F88 recognises that while alternative finance presents significant growth opportunities, it also comes with inherent risks. Risk management, therefore, remains central to the company’s development strategy.

Loan approvals are carefully assessed based on the value of collateral, ensuring that borrowers benefit from fair lending terms while having a clear path to reclaiming their assets. On average, F88 disburses around VNĐ13 million (US$500) for loans secured by motorbikes and VNĐ150 million for those backed by cars.

To manage collections, F88 has implemented a multi-phase debt recovery process combining automated reminders, direct collection efforts and repossession when necessary. These processes are backed by proprietary technologies, including GPS tracking systems installed on collateral assets.

F88 has also developed a robust internal data system for asset valuation and customer creditworthiness evaluation, applying tiered loan approval protocols depending on the loan amount.

In managing delinquent loans, F88 adopts a cautious approach. Loans overdue by more than 90 days are fully provisioned (100 per cent) to mitigate risk. Compared to typical provisioning practices in banks and financial companies, which reserve 50 per cent for loans overdue 181–360 days and 100 per cent for those overdue beyond 360 days, F88’s policy is markedly more conservative. This ensures that reported profits accurately reflect the company’s financial health.

Gearing up for a breakthrough year

With a solid governance foundation and prudent risk control, F88 has grown rapidly. From 2022 to 2024, the company achieved a compound annual growth rate (CAGR) of 48 per cent.

In 2024, F88’s total loan disbursements reached VNĐ12.07 trillion. Momentum has continued into 2025, with disbursements in the first quarter hitting over VNĐ3.2 trillion — a 25 per cent year-on-year increase.

A senior executive revealed that F88 is targeting a 26 per cent increase in net revenue and a 53 per cent rise in after-tax profit for 2025. These ambitious goals are underpinned by strong market potential in title lending. A recent EY Vietnam survey found that over 40 per cent of respondents have not yet accessed formal banking services, highlighting a large underserved population.

The Government's push to promote legal, inclusive financial services while curbing unregulated lending models also provides a supportive policy environment for firms like F88.

Another major strength lies in F88’s growing physical presence. The company now operates nearly 900 stores nationwide. Recently, it entered a strategic partnership with a major domestic corporation that owns around 10,000 transaction points across the country. This partnership will boost F88’s reach to nearly 11,000 locations, including both its own stores and partner-operated outlets.

Thanks to this expansive network, F88 is well-positioned to scale up its customer service. In the first quarter of the year alone, the company disbursed VNĐ3.2 trillion in loans, up 25 per cent year-on-year. Revenue and pre-tax profit increased by 21 and 204 per cent respectively over the same period.

With its strong internal capabilities and favourable market conditions, F88 is confident in its plan for breakthrough growth in 2025.