Serving Rural Clients with Saving Groups and FinTech
Savings group number 14 in Nhan Buoi village, Vietnam has been accessing microfinance services since 2007.
Group member Truong Thi Than shares that as their earnings are regularly saved, members have capital to rotate to buy livestock, fertilizers and more. Profits from their many businesses over the years has helped them afford to better provide for their children’s educational needs, build new homes and purchase household necessities.
The many successes of the group members can be attributed to hard work and also the difference that access to finance can make. Many households that do not have such access to financial support have little options to borrow funds for their businesses, especially with no assets to show.
“The staff from the MFU helped us be more aware of managing credit, avoiding bad credit, how to save, and many other topics, and recently guided us on how to use technology like smartphones to communicate with each other by creating groups to remind each other to make repayments, as well as share experiences in life,” she says, adding that in the past they had had to travel long distances to show their ID card and make a loan application but that now they could simply use their phones to take photos, edit, and send it to the credit officers. “This is very convenient for us, and we are very thankful for the program."
VisionFund’s credit officers guide clients on how to make transactions and request for loans, as well as update loan activity information through Zalo and Facebook social networking apps, all using their smartphones.
Story by: Tran Thi Thuy, MFU Vietnam