Big Data transforms Home Credit Vietnam operations
Czech-backed Home Credit Vietnam effectively uses digital technology in its Vietnamese operations.
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Big Data is about deriving new insight from previously untouched data and integrating that insight into enterprises’ business operations, such as data warehouses, business processes, and applications.
In Home Credit, underwriting is a mostly automatic process. Specifically, clients fill out an application form with their personal information such as identity card number, phone number, working place, and email.
Home Credit will get more information from shops that the clients regularly visit, and also pick up data about the shops’ products, their brand names, and prices.
Based on such information, Home Credit will examine the clients’ data on the State Bank of Vietnam’s Credit Information Centre and combine its findings with information from internal blacklists and external databases.
After this, Home Credit’s technological system will combine all collected information to grade clients.
Based on their scores, the company will decide on the loans it is willing to make available for the clients. If necessary, Home Credit will cross-check clients’ information by working with their work place before granting a loan.
“Notably, at present, all of these processes take only 15 minutes. Some 95 per cent of our clients can have our final decision within such a very short time,” Butler said.
In addition, Home Credit has also been using Facebook for its business. Some 86 per cent of clients have provided their Facebook address for the company.
Facebook can also help the company classify risky clients, as their personal information can be verified within two minutes.
In the past, if a client wished to take up a loan from Home Credit, various types of information and papers were required, while company employees had to take time to conduct these procedures.
At the same time appraising the clients’ personal information also took up the employees’ valuable time. This made the process of borrowing a difficult and wearisome for clients.
In addition to Vietnam, Home Credit also operates in many other nations including Russia and China, focusing on lending to consumers seeking to purchase durable goods. In these nations, it offers loans for first-time borrowers, as well as revolving credit lines and credit cards to existing customers, maximising the strong cross-selling opportunities that exist across the business.
