The Evolution of Alternative Financial Services Globally and in Vietnam: Unlocking New Opportunities

Global “Big Players” in the Spotlight

FirstCash Holdings, a pawn services provider in the US listed on the Nasdaq, is a testament to the growth of this alternative finance business model. The company currently operates over 3,000 pawn shops in the US and South America. In Q3 of this year, FirstCash is expected to complete its $297 million acquisition of the UK’s leading pawn chain, H&T, to expand its presence in Europe. On the Nasdaq, FirstCash boasts a market capitalization of $6.1 billion.

Another US-based company, TMX Finance LLC, specializing in consumer loans, particularly auto-collateralized and short-term loans, is also thriving. The company operates through an extensive network of stores and online platforms, with over 900 locations across more than 14 states in the US.

Like FirstCash, TMX Finance LLC caters to 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 happening in Asia. In Thailand, Ngern Tid Lor is a prime example. Ngern Tid Lor’s success stems from combining an extensive branch network (nearly 1,500 locations) with its flagship lending product, motorcycle and auto collateralized loans, specifically targeting the unbanked population.

The company’s loan portfolio grew from $50 million (2009) to over $3 billion in 2024, while also leading in insurance brokerage. The combination of operational efficiency and positive social impact has kept Ngern Tid Lor’s non-performing loan ratio low while meeting the market’s growing demand for flexible and accessible financial solutions.

Ngern Tid Lor’s success created a significant draw for investors on the Thai stock market at the time of its listing. In 2021, the company conducted an IPO with a $1.2 billion offering size, and its market capitalization then stood at $2.7 billion. Ngern Tid Lor marked one of the largest IPOs in the financial sector and one of the top five IPOs on the Thai stock exchange up to that point.

In Indonesia, PT Pegadaian has 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. PT Pegadaian’s average loan balance per store ranged from $0.49 million to $0.52 million during 2020-2022.

To enhance financial inclusion for its customers, the company is actively pursuing digital transformation through the Pegadaian Digital app, specifically targeting the unbanked or those with limited access to formal financial services. Specifically, PT Pegadaian aims 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 size reached $41.18 billion last year and is projected to grow to $42.44 billion this year. By 2033, the global pawnshop market size is expected to reach approximately $54 billion.

Vietnam Market Taking Shape with a “Leading Player”

According to FiinGroup, alternative finance business models, particularly pawnshop lending, have been growing alongside traditional lending institutions in recent years. This growth is attributed to Vietnam’s total consumer loan debt through credit institutions in 2023, representing only 28.5% of GDP, a modest figure compared to regional peers like Thailand (44.5%), Singapore (55.7%), and Malaysia (65.2%). Meanwhile, the demand for financial services among the population is substantial.

FiinGroup’s report released in June showed that registered pawnshops’ revenue in Vietnam reached approximately $8 billion in 2024, indicating the significant demand for pawnshop services and the growth potential for alternative finance providers. The compound annual growth rate (CAGR) of alternative finance providers’ revenue during 2021-2023 was over 38%, according to FiinGroup.

FiinGroup also points out that the alternative lending organizations’ target customer base comprises low- and middle-income groups earning 5-10 million VND/month, representing about 47% of the working-age population. However, the number of alternative finance providers in Vietnam is still limited, leaving a vast potential market untapped.

Among the domestic alternative finance providers, F88 stands out as the leader in the new-generation pawnshop sector in terms of market share, outstanding loans, revenue, and number of stores.

Specifically, F88’s outstanding loans grew impressively from 422 billion VND in 2019 to 4,820 billion VND in 2022, contributing over 80% to the growth of outstanding loans among new-generation pawnshop chains. By the end of Q2 2025, F88’s outstanding loans reached 5,543 billion, a growth of over 45% year-over-year.

F88’s revenue reached 2,333 billion VND in 2023, with consecutive annual growth of over 100% from 2020 to 2022. In the first half of 2025, F88’s revenue was 1,742 billion, a 30% increase compared to the same period in 2024.

Regarding its network, F88 currently operates 888 stores nationwide, providing 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 collateralized loans, which have lower non-performing loan ratios due to secured assets.

Additionally, F88 has proactively boosted non-interest income by cross-selling standalone insurance packages (such as hospital allowance, health care, personal accident, motorcycle rescue, and auto-civil liability insurance) and offering value-added services like bill payments, top-ups, Lazada drop-off, and acting as an agent bank.

F88’s recent listing on the stock exchange can be considered a significant milestone for the alternative finance business model in Vietnam, akin to FirstCash in the US and Ngern Tid Lor in Thailand.