Workshop

Building a lending business for Vietnam's digital driven economy

The influx of startups, as well as small and medium enterprises (SMEs) in the ASEAN regions, have attracted the attention of numerous global investors and venture capitalists. It will help both developing and less developed countries advance and ultimately reduce poverty, increase employment and have various positive multiplier effects in the countries.

Vietnam is seen as an economically viable place for multinational companies to operate. Various big corporations like Coca-Cola, Nike, and Adidas, etc. have all been working there for many years. However, at the same time, the role of small and medium enterprises in Vietnam’s economy and industry is critically important. Today with emerging many SMEs across the country, there is an urgency and need for Vietnam to compete, encourage business startups and be innovative in terms of SME development and its financing.

Indeed, it is well known that small and medium enterprises have played a significant role in Vietnam’s economy. Also, MSME finance is a classic issue among bankers. However, questions still remain in the field of MSME financing. Why are SMEs in Vietnam faced with challenges accessing finance and credit despite their expected contribution to the country’s economy?

Given the recent environment that disruptive technologies-driven fintechs have been coming up, we may need to reinvent MSME lending practice by changing our paradigm and making the most use of those fintechs. During this workshop, we will learn more about disruptive strategies for a successful MSME finance in developing economies. Delegates attending this workshop will gain complimentary access to the Future of Finance Vietnam 2019, the leading annual conference that brings financial institutions, regulators, policy makers, BDS providers to meet and share the most professional insights, work on detailed solutions and discuss latest and even future trends in the financial services industry.

 

Workshop Trainer:


Yoshiyuki Oba

SME Financial Architect & Fintech Accelerator, Emerging Markets

Yoshiyuki has 28 years of multinational experience in SME financial architecture in Japan & Asia. Through his projects financed by international agencies such as JICA, IFC, he has trained and consulted with thousands of SME bankers, SME business owners, and MSME policy makers throughout Asia.



Building a lending business for Vietnam's digital driven economy Workshop

Wednesday, 9 January 2019

08:30

Registration

09:00

Welcome Note and Introduction by Yoshiyuki Oba, SME Financial Architect, Emerging Markets

09:30

Understanding the MSME finance landscape in the world
MSMEs are faced with many challenges and there is still a huge financial gap of US$8.1 trillion for them around emerging economies, which can be recognized as huge potential markets for all legacy banks and digital lenders.

  • Challenges and opportunities for financial institutions
  • Economic growth & SME finance gap
  • Lack of mid-to long-term financing for SMEs’ business growth
  • Issues on regulatory environment
  • Collateral-based lending as a symbolic practice

10:30

Networking break

11:00

Paradigm shift from ‘ego-system’ lending to ‘ecosystem lending’
Before thinking about which fintechs to utilize for upgrading MSME banking practice, it is essentially important for the financial institutions to reconsider about their banking model and their people.

  • Maximize benefits for target communities
  • Smart money (loan + business support)
  • Disruptive technologies to be utilized for the paradigm shift – AI, big data, and mobile access
  • Case studies
  • Group exercise

12:00

Lunch

13:00

Understanding the role of credit risk management and credit assessment processes
The credit risk department of a traditional bank is usually designed for either consumer lending or corporate borrowing. Small businesses lending is not, as assumed by some, a mix of both. It requires a different treatment that every bank has to design for itself. This session will explore infrastructure such as credit scoring for small business customers, credit approval process and its changes in the transformation from traditional lending practice to IT-backed lending as well as AI/ML-driven lending.

  • Best practices in credit quality and consistency for successful SME market
  • Financing gap for SMEs and the rationale for credit guarantee schemes
  • Does the SME stand on the five pillars of sound credit?
  • Utilising process and producers to evaluate SME credits offered by fintechs
  • Understanding management accounts data to power lending decisions, drive process efficiencies and mitigate portfolio risk
  • Analyzing management accounts data for determine reliability, or default probability

14:00

Trends of driving innovations in the financial services industry and disruptive technologies
Because there have been a lot of new disruptive technologies and fintech startups, the financial institutions need to understand the trends of innovations in financial services and the applicability of disruptive technologies into their business reality.

  • Lower barriers to entry
  • Affordable infrastructure such as data analytics, AI, and cloud computing
  • New currencies and credit systems affecting incoming banking and investment players
  • Changing consumer behavior and expectations from financial services providers.

14:30

Networking break

15:00

Outline of MSME Ecosystem Lending
A cloud-based platform for realizing “MSME Ecosystem Lending”, the key to future success for financial institutions.

  • IT-backed credit scoring and PD prediction
  • Social credibility-based lending
  • Credit appraisal & collateral-based lending
  • ‘Relationship Lending’ supported efficiently by fintech
  • Benefits to the user of the solution

16:00

Dialogue: Evaluation on Vietnam’s SME finance & action for SME finance development
We will discuss the following key questions: What kind of SME banking model will be desirable in Vietnam? Which fintech-driven solutions will be necessary for the implementation of such a desirable model? What should bankers do for SME customers in the ultimately automated banking system? What kind of skills and senses will be required for the future SME bankers? What is your plan for reinventing your SME banking model?

  • Evaluation criteria
  • Quantitative sufficiency
  • Appropriateness of credit conditions
  • Diversification of financial channel
  • Practical issues
  • Future direction of SME banking in Vietnam

17:00

End of the workshop

*This is a working agenda, content and speaker will be updated on timely basis.

For more details please contact:
Daisy Wang
Programme Manager
dwang@theasianbanker.com
Tel: (86) 10 5869 4641