Bank

A Fairer Outlook for the Mortgage Market

When it comes to pawnshop loans, many people still envision 'high interest rates and high risks'. However, the reality is quite different. With proper regulation and professional management, the pawnshop loan market can offer quick, transparent, and secure financial support to a diverse range of customers.

Administrator

13 September, 2025

672

## Change is not “whitewashing”

The perception of pawnshops as “licensed loan sharks” stems from the belief that they exploit the vulnerabilities of working-class people who cannot obtain loans from banks. This has led to hesitancy and even avoidance of this accessible borrowing method.

However, pawnshops are not as negative as they are made out to be. They offer an alternative form of lending, distinct from traditional bank loans. Pawnshops do not require income verification or consider bad credit history, making borrowing more accessible. Nonetheless, this increased accessibility comes with higher risks and borrowing costs. Yet, for those with limited options, pawnshops remain a vital solution. Unfortunately, some shops have taken advantage of this desperation, leading to industry-wide prejudice.

One company, F88, is working diligently to change this perception. When asked why they chose F88, customers shared that they felt welcomed and valued, rather than being looked down upon or taken advantage of. This stems from F88’s focus on service quality over price as the sole competitive factor.

Since its inception 12 years ago, F88 has established a network of 900 professionally run and controlled stores, leveraging technology and operating based on a unique cultural foundation. Instead of avoiding prejudices, F88 embraces them as challenges to be addressed through change. They believe in evolving, not “whitewashing,” to improve, overcome market bottlenecks, and deliver genuine value to borrowers, thereby diminishing preconceptions. F88’s transformation is anchored in three unconventional pillars: corporate culture, business model, and modernization.

As of August 2025, F88 announced impressive metrics: a 91% customer satisfaction (CSAT) score, a 77% net promoter score (NPS), and a 50% customer return rate. How did they achieve this?

F88 started by building a strong corporate culture founded on a set of values: kindness from the heart to action, integrity to the core, innovation to lead, and agility to accelerate. These principles shape all aspects of the business, from employee recruitment and training to service delivery and customer care. From referring to employees as “financial consultants” to continuously enhancing customer service standards, F88 demonstrates its respect for borrowers. They are the only pawn lending company to establish a dedicated customer care department.

From its inception, F88 prioritized a neat, clean, transparent, and respectful environment for its customers, setting itself apart from typical pawnshops (photo from 2013)

While many industry players opt for small-scale operations to maximize short-term profits, F88 chose to build an ecosystem with a long-term vision. Their strategic partnerships with MBBank and CIMB to create a financial services ecosystem reflect this approach. Modernization, often deemed unnecessary in the pawn lending market, is another key aspect of F88’s strategy. They successfully established a smart operations center, connecting data from 900 stores, utilizing AI for optimized operations and performance monitoring, standardized advisory and automated debt reminder processes, and implementing biometric identification and data management systems. The pinnacle of their modernization efforts is digital transformation, resulting in the My F88 mobile app.

Within eight months, My F88 garnered 218,000 registered users, facilitated over 280,000 electronic contracts, and disbursed nearly VND 777 billion in loans. This significant step forward aligns with F88’s goal of digitizing 80% of transactions by 2026.

Changing perceptions takes time, and it won’t happen overnight. But F88’s efforts are commendable and worth recognizing.

## From F88 to the Broader Perspective

In the context of promoting inclusive finance, the F88 model is a valuable solution to bridge the financial gap among different social groups. By adopting technology to manage risks, enhance service quality, and pursue comprehensive transparency, F88 sets a positive example for the market. Having more enterprises like F88 will create avenues for millions of blue-collar workers to access safe capital.

It’s a challenging goal, but if achieved, it will create long-term value for customers and the economy. According to a Fiin Group report from June 2025 on the alternative finance industry, there were approximately 23,000 traditional pawnshops in Vietnam at the end of 2023, operating in a rather linear and spontaneous manner. In contrast, the number of modern pawnshops was modest, with nearly 1,200 establishments, but they are gradually gaining market share due to their transparency, standardized processes, and technological capabilities.

Looking at the broader industry, if more businesses embrace a structured approach with risk management, a robust governance system, and a commitment to transparency, the alternative finance sector will become healthier and play a more critical role in the national inclusive finance strategy.

In a market with ample room for growth, pioneers like F88, who dare to challenge preconceptions, will set new competitive standards instead of merely following the tide. F88 demonstrates that even a traditionally stigmatized model can embark on a sustainable growth trajectory when guided by modern thinking and transparent operations. This benefits not only the company but also the industry, which needs a reshaping.

– Minh Tài – 11:01 11/09/2025