Funding Societies partners VPBank to facilitate SME financing access in Vietnam
[SINGAPORE] Digital finance platform Funding Societies on Friday (Jun 20) entered a commercial agreement of an undisclosed value with Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to help small and medium-sized enterprises (SMEs) access financing from the lender.
The partnership aims to address financial gaps for SMEs in Vietnam, which were estimated to stand at US$24 billion or around 2.11 times the current lending level for such businesses as at August 2024, financial data provider FiinGroup indicated.
Kelvin Teo, co-founder and group chief executive of Funding Societies, said: 'We bridge the SME financing gap by reaching, assessing and channeling viable SME borrowers with one of Vietnam's most trusted banks.'
Through a loan channeling arrangement, Funding Societies will connect potential borrowers to VPBank via its newly launched financing application, SmartSME, to facilitate the process of obtaining financing.
The fintech startup will draw on its expertise from prior ventures in countries across South-east Asia – including Singapore, Malaysia and Indonesia – to identify eligible SMEs that are seeking financing and to bring them onboard the SmartSME platform, which was launched on Tuesday.
It will screen potential borrowers for eligibility by using its proprietary artificial intelligence-driven credit technology to assess SMEs' loan repayment abilities to mitigate risks, as the SmartSME platform offers unsecured loans.
Funding Societies said the collaboration is expected to enhance opportunities for the private sector to access capital resources. This is in line with the Vietnam government's newly issued directive, Resolution 68, that outlines the role of the private sector as a key driver of growth for the nation.
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