Representatives of Vay Mượn Joint Stock Company and Vietinbank Insurance Corporation sign the co-operation agreement. — VNS Photo Vũ Hoa

HÀ NỘI — Vaymuon.vn – the largest peer-to-peer (P2P) lending platform in Việt Nam – on Thursday signed a strategic co-operation agreement with Vietinbank Insurance Corporation to protect loans. 

According to the agreement, both borrowers and lenders will be protected from unpredictable risks that prevent them from paying or collecting debts. With the insurance policy, lenders should find it easy to provide loans to borrowers.

P2P lending is a new way of debt financing that allows people to borrow and lend money without having to go through a traditional financial institution. The P2P lending platform uses technology to connect borrowers and lenders faster.

The platform, developed by start-up Vay Mượn Joint Stock Company, enables people to easily borrow small amounts of money using a mobile app called Vay Mượn – Vay tiền.

Speaking at the signing ceremony, Đào Thị Trang, director of Vay Mượn Joint Stock Company, said the signing was another step towards the company's vision of a safe financial ecosystem.

Trang said the company has finished calling for investment in its seed-round funding. It is calling for between US$5 and $10 million in its series A funding round to continue to develop technology platforms such as artificial intelligence (AI) and auto call as well as new products to take advantage of more than 12 million customers from its parent company NextTech Group.

The capital will also be used to further expand its foreign markets in Myanmar, Cambodia and Thailand.

After two years as Việt Nam’s first P2P lending platform, vaymuon.vn now has around two million borrowers and 400,000 lenders. 

As a start-up, Vaymuon.vn received capital from NextTech Group, now the strategic investor with 20 per cent of its shares. It now has a staff of more than 200 and continuous to invest in information technology and AI application to automatically review and approve loans nationwide. — VNS