“Alternative Finance: Unlocking Access and Opportunities”
“Big players” serving the underbanked
FirstCash Holdings, a US-based pawnshop operator listed on Nasdaq, showcases the potential of alternative finance. With over 3,000 stores in the US and South America, FirstCash is set to acquire the UK’s largest pawnshop chain, H&T, for $297 million, marking its expansion into Europe. FirstCash’s market capitalization on Nasdaq stands at $6.1 billion.
TMX Finance LLC, another US company, specializes in consumer loans, particularly auto title loans and short-term loans. With a vast network of stores and an online platform, TMX has over 900 locations across 14 US states.
Like FirstCash, TMX targets individuals who typically lack access to traditional credit from banks or mainstream financial institutions, offering easy cash and quick approvals based on unencumbered vehicle ownership.
The boom in alternative finance is also evident in Asia. Thailand’s Ngern Tid Lor is a prime example, combining an extensive branch network (nearly 1,500 locations) with a focus on vehicle title loans, catering to the underbanked.
Ngern Tid Lor’s loan portfolio grew from $50 million (2009) to over $3 billion by 2024, alongside leadership in insurance brokerage. Its efficient operations and positive social impact kept bad debt ratios low while meeting the market’s growing demand for flexible and accessible financial solutions.
Ngern Tid Lor’s success attracted significant investor interest during its IPO in 2021, with a $1.2 billion offering size and a $2.7 billion market capitalization at the time.
In Indonesia, PT Pegadaian evolved from a traditional pawnshop organization into a leading diverse financial services provider, serving over 24 million customers through a network of 4,086 outlets. Average loans per store ranged from $0.49 million to $0.52 million during 2020-2022.
PT Pegadaian is actively pursuing digital transformation through the Pegadaian Digital app, targeting the unbanked and underbanked. They aim to offer 24/7 digital services and reduce time-to-market by 20 times through partnerships with tech and fintech companies.
According to Global Growth Insights, the global pawnshop market reached $41.18 billion in 2022, projected to grow to $42.44 billion this year and $54 billion by 2033.
Untapped potential in Vietnam
FiinGroup highlights the recent growth of alternative finance business models alongside traditional credit institutions, notably pawnshop lending systems. This growth is attributed to Vietnam’s consumer lending through credit institutions, which stood at only 28.5% of GDP in 2023, lower than regional peers like Thailand (44.5%), Singapore (55.7%), and Malaysia (65.2%). Meanwhile, the demand for financial services among Vietnamese is substantial.
FiinGroup’s June report revealed that registered pawnshops across Vietnam generated approximately $8 billion in revenue in 2024, underscoring the demand for pawnshop services and the significant growth potential for alternative finance providers. The compound annual growth rate (CAGR) of alternative finance providers’ revenue during 2021-2023 exceeded 38%, per FiinGroup.
FiinGroup also points out that alternative lenders primarily target low- and middle-income earners with monthly incomes of $200-$400, representing about 47% of the working-age population. However, the number of alternative finance providers in Vietnam remains limited, indicating untapped market potential.
Among domestic alternative finance providers, F88 stands out as the undisputed leader in the new-generation pawnshop sector regarding market share, outstanding loans, revenue, and store count.
F88’s outstanding loans witnessed remarkable growth, surging from VND 422 billion in 2019 to VND 4,820 billion in 2022, contributing over 80% to the new-generation pawnshop sector’s loan growth. By the second quarter of 2025, F88’s outstanding loans reached VND 5,543 billion, a more than 45% increase year-over-year.
F88 is the undisputed revenue leader in the alternative lending market, generating VND 2,333 billion in 2023, far surpassing its new-generation pawnshop peers. F88’s revenue grew by over 100% consecutively from 2020 to 2022. In the first half of 2025, F88’s revenue stood at VND 1,742 billion, a 30% increase compared to the same period in 2024.
With 888 stores nationwide, F88 offers superior customer access compared to other pawnshop chains. F88 has built a solid competitive advantage through its efficient business model and product diversification strategy, focusing on auto and motorcycle collateral loans, which have lower non-performing loan ratios due to secured assets.
Moreover, F88 has proactively boosted non-interest income by cross-selling standalone insurance packages (covering hospital allowance, health care, personal accidents, motorcycle rescue, and auto-civilian accidents) and providing other value-added services like bill payments, top-ups, Lazada consignment, and acting as an agent bank.
F88’s recent listing on the stock exchange is a milestone for alternative finance in Vietnam, akin to FirstCash in the US and Ngern Tid Lor in Thailand.
– 16:28 13/08/2025
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