Consumer Finance Customer Survey 2015

StoxPlus has been issuing the annually updated Vietnam Consumer Finance (“CF”) Report in the last three years, providing the first and most comprehensive report on this sector. Taking into account feedbacks from our clients, in addition to the comprehensive analysis of the market itself, we conducted our first CF customer survey this year to better assess the experience and satisfaction of finance companies’ customers.

The research, conducted 500 respondents in Hanoi, Ho Chi Minh, and Da Nang, who already used CF services within the last 2 years, were chosen to answer the 17 questions about consumer finance service providing by finance companies (selected list including: HD Saison, Home Credit, FE Credit, ACS Trading, Prudential Finance, JACCS, Toyota Finance, MobiVi, and Others). 500 other respondents who intended to use consumer finance service in the future were surveyed to answer questions on their future demand.

Below are the most critical findings that could change the consumer finance market in the next few years:

• Vietnam consumer loan has reached US$10.4bn as of August 2014 and is expected to continue its fast-growing trajectory in 2015: Finance companies have the fastest growth in consumer loans compared to other types of players. This result is due to the easy credit (quick loan processing) business model, so finance companies can charge the highest interest rate in the market (ranging from 30-80% APR depending on products).

• CF customers tend to be Mass – Upper Mass individuals. Their monthly income mostly ranges from VND3-7mn (US$150-350): In our sample size of 500 CF users, more than 70% of participants have monthly income ranging from VND3-7mn (or US$150-350) with the mean of the population at VND6.44 million.

•  In terms of customer experience, we assess separately customers who use consumer goods installment loans vs. those who use cash loans: The two groups differ in customer acquisition channels, sales channels, and payment approaches. While point of sales are the most popular customer acquisition, sales agent at POS is ranked most effective for sales channels and as for payment methods, traditional way is preferred such as cash at physical location.

• Customer satisfaction was ranked with overall CF products of each finance company, as well as satisfaction with detailed product features: Indeed, HD Saison Finance ranked first out of all CF companies in term of customer satisfaction, followed by ACS. However, satisfaction with each product feature varies.

• An improved experience is key to realizing growth for finance companies. Customers usually expect more on all aspects of products: When asked to evaluate 9 elements – or benefits – survey response point to shortfalls in meeting basic expectation, such as the appropriate interest rate, quick appraisal time or short time disbursement, the continued importance of effective and convenient channels.

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