Finance is about far more than just numbers on a balance sheet. It’s about discovering human potential and creating inclusive economic opportunities that empower people and uplift communities.
This forward-thinking philosophy from Khang Pham Ngoc, General Director of Home Credit Vietnam Finance Company Limited, captures his visionary approach to leadership. Rising from Chief Finance Officer at Home Credit Vietnam to leading one of Vietnam’s most innovative financial institutions, he is pioneering new frontiers at the intersection of banking and socioeconomic impact.
Home Credit Vietnam’s ethos hinges on sustainable and community-driven financial solutions. The company supports people underserved by traditional banks. This aligns directly with the government’s financial inclusion strategy, opening doors to new opportunities for these customers. “Our mission goes beyond just offering financial products,” Khang affirms. “We empower our vulnerable and unbanked customers to access simple and quick loan packages in line with their financial capacities.”
This inclusive philosophy harmonizes seamlessly with Home Credit Vietnam’s digital-first business model. By leveraging cutting-edge fintech capabilities, the team meets consumers on the digital platforms they frequent most, offering customized lending options tailored to their unique needs and means.
Let us learn more about his journey:
The path to Home Credit Vietnam
Khang’s journey to Home Credit Vietnam wasn’t random, as he harbored a vision for the future from a young age. At just 12 years old, he identified his ambition: Banker or CEO. This early aspiration planted the seed that would guide his career path. For Khang, the path to realizing his childhood dream was not without its challenges and obstacles. Over the course of 23 years, he navigated through the finance industry, diligently honing his skills and accumulating invaluable experiences along the way.
Before returning to Vietnam to work for Home Credit, he had spent a long career in various financial management and planning roles in France. This breadth of experience has not only honed his skills as a finance professional but has also imbued him with a profound understanding of business operations and strategy. From navigating the complexities of corporate finance to spearheading strategic initiatives, his multifaceted career path reflects his versatility and agility in adapting to diverse environments and challenges.
However, his journey back to Vietnam and into consumer finance wasn’t entirely preordained. By chance, his previous manager sought a CFO in Vietnam with a double culture background, which coincided with his need to return to Vietnam for family reasons. This confluence of fate and opportunity led him to his current position in this industry, and he has now been with Home Credit Vietnam for over 6 years.
Driving Financial Eminence
In his position, Khang recognizes the profound significance of numbers in shaping organizational strategy and execution and holds a deep-seated desire to forge meaningful connections between financial data and business objectives; therefore, he assumes a multifaceted role that transcends traditional financial responsibilities.
At the heart of his role lies a dual mandate: to act as both a defender and an enabler of the organization’s financial health. In his capacity as a defender, Khang ensures discipline and effectiveness in operational processes. This instills confidence in stakeholders and mitigates risks, thereby fortifying the foundation upon which the organization’s success rests.
Conversely, as an enabler, he catalyzes innovation and strategic empowerment, creating a culture of continuous improvement and forward-thinking within the organization. Central to Khang’s approach is a focus on striking the delicate balance between short-term objectives and long-term goals. Leveraging his financial acumen, he deftly allocates resources and capital to maximize returns while safeguarding the organization’s long-term sustainability.
By adopting a strategic lens that reaches beyond immediate gains, he ensures that every financial decision is aligned with the overarching vision and mission of the organization. Laying the groundwork for enduring success and prosperity. He has already demonstrated an ability to go beyond expectations by encouraging open communication and collaborative partnerships with internal teams and external stakeholders.
Khang cultivates an environment of trust and mutual respect where diverse perspectives are valued, and constructive dialogue thrives.
Navigating Challenges, Embracing Opportunities: The Future of Finance in Vietnam:
Khang’s position as General Director at Home Credit Vietnam grants him a unique position to observe and anticipate the future trajectory of the finance industry in Vietnam. In this ever-evolving landscape, he identifies a myriad of challenges and opportunities that will shape the industry’s course in the years to come.
At the forefront of opportunities lies Vietnam’s rapidly growing middle class and their increasing embrace of digital technologies. With a population that is becoming increasingly connected and tech-savvy, the market presents vast opportunities for financial inclusion and digital innovation. As consumers seek financial solutions, there is a growing demand for digital banking services and mobile payment platforms, driving the need for agile and customer-centric fintech solutions.
Moreover, Vietnam’s robust macroeconomic fundamentals and favorable demographic trends further bolster the outlook for the finance industry. With a young and dynamic population coupled with sustained economic growth, Vietnam stands poised to become a key player in the global financial landscape. As the country continues to attract investment and encourage innovation, the finance sector is primed to play a pivotal role in driving economic development.
However, amidst these opportunities, he acknowledges the presence of significant challenges that must be navigated to ensure sustainable growth and resilience. One such challenge is the issue of market fragmentation, characterized by the presence of numerous players operating in silos, often resulting in inefficiencies and duplication of efforts. In a fragmented market, achieving scale and nurturing collaboration becomes increasingly challenging, hindering the industry’s ability to realize its full potential.
Furthermore, global economic uncertainties and geopolitical tensions present additional headwinds for the finance industry, posing risks to stability and growth. As Vietnam’s economy becomes increasingly interconnected with the global market, it becomes susceptible to external shocks and volatility, necessitating prudent risk management practices and strategic foresight. Despite these challenges, Khang remains resolute in his optimism about the future of consumer finance at Home Credit and the economy of Vietnam in general. With a relentless drive to excellence and a focus on creating value for customers and communities, Home Credit believes that the industry has the resilience and adaptability to overcome obstacles and thrive in the face of adversity.
A recent report by Decision Lab, in collaboration with Home Credit Vietnam, has shown that despite the greater demand for consumer credit and personal finance products, not all consumers can borrow from banks. The report says that those with low incomes might not have the paperwork required for a bank loan. About a third of people either do not have or would not be comfortable providing their labor contract (31%) or wage slip (33%) as part of a loan application. This lack of access to loans is increasing the appeal of credit cards and buy-now-pay-later (BNPL) plans. Almost half (44%) of people used a credit card over the last 12 months. Meanwhile, BNPL has amassed a 16% share of the consumer credit market despite being a relative newcomer to Vietnam.
Consumer finance companies such as Home Credit can help bridge the gaps in access to credit and financial literacy. Unlike banks, consumer finance companies can make it easier for people on low incomes to access credit through simpler application forms, faster approval procedures, and more convenient digital platforms. This helps them achieve their daily financial goals, enabling them to feel good and positive about life.
Meanwhile, consumer finance companies are in a position to empower people to take control of their money by strengthening financial literacy. Educating customers on borrowing, budgeting, and saving can help them avoid irresponsible lenders, achieve their long-term financial goals, and avoid bad debt.
Sustainable Finance for a Brighter Future
Home Credit Vietnam’s mission is to empower people to live the life they want. They achieve this by providing accessible and responsible financial solutions. These solutions, including service cash loans, installment loans for motorbikes, and consumer goods through 16,000 points-of-sale nationwide, empower people to pursue their dreams, achieve their goals, and build a brighter future for themselves and their families. Home Credit Vietnam strives to make a meaningful impact in the lives of its customers.
However, the company’s obligation to sustainability goes beyond its core business operations and puts environmental, social, and governance (ESG) at the heart of its commitment to responsible business in Vietnam. Home Credit is also the pioneering consumer finance company in Vietnam, applying ESG principles to all activities.
For example, to improve financial literacy, Home Credit has accompanied the Communications Department under the State Bank of Vietnam to develop the Smart Money series on television and radio. In addition, this digi-finance company also collaborated with Vietnamese financial experts to publish the book “Now You Know: A Guide of Smart Money Management.” To support the community, it has embarked on the Home for Life project, in which Home Credit helps women take control of their lives.
For nearly 10 years, Home Credit has coordinated with local women’s unions to deploy loan packages as well as financial and livelihood support programs for disadvantaged women in localities nationwide. As a result, hundreds of disadvantaged women and their families have received support to improve their income and quality of life.
Within the framework of the project, Home Credit also organizes training sessions on financial management and livelihood skills for women under Home Credit’s comprehensive digital financial model. Moreover, Home Credit Vietnam embraces digitalization as a means to enhance its sustainability efforts and deliver greater value to its customers. By leveraging progressive technologies and digital platforms like the Home App and Home PayLater, the company aims to streamline processes, improve efficiency, and enhance the overall customer experience.
From digital onboarding and loan approval processes to online financial education resources and mobile services, Home Credit Vietnam is at the forefront of driving digital transformation in the finance industry. Led by Khang Pham Ngoc, Home Credit Vietnam is driving positive social impact in 2024 by providing accessible and responsible financial solutions.
“We do things right by focusing on the customer,” emphasizes Khang. This translates to prioritizing customer needs across both their financial services and online offerings, ultimately serving the well-being of the Vietnamese community.
Khang Pham Ngoc: Redefining the Boundries of Conventional Banking
