Vietnam fintechs in hot seat with lending malpractice on government’s radar
About seven in 10 people in the country are unbanked and underbanked, opening the door to fintech to bridge the gap
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[HO CHI MINH CITY] Not long after closing a US$50 million financing round in early March, Vietnam’s largest pawnshop operator F88 Investment was confronted with allegations that some of its staff had used extortion methods in its debt collection activities.
Police forces in several provinces also said that some of the lender’s 830 branches had overcharged their clients with extra fees, said a report in a newspaper run by the Ministry of Public Security.
The ongoing investigation into the financial services company has thrust Vietnam’s unbanked and underbanked segment into the spotlight – a segment comprising about 70 per cent of the population – with the prolonged Covid-19 pandemic and uncertain economic conditions over the last couple of years leading to mounting demand for quick and easy loans.
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