INTERNATIONAL UNIVERSITY – VIETNAM NATIONAL UNIVERSITY OF

HCMC
School of Business

Principles of management
Lecturer: N.N Tung

2022
GROUP
REPORT
GROUP PHUOC_THIEN

https://www.homecredit.vn

20 Nguyen Dang Giai, Thao Dien ward,

Thuc Duc city, Ho Chi Minh City.
CONTENTS
ABOUT COMPANY .................................................................................3
Mission.................................................................................................................................................................4
Products.............................................................................................................................................................4
Customers........................................................................................................................................................5
Competitors....................................................................................................................................................5
ORGANIZATION..............................................................................................6
Organizational Chart................................................................................................................................6
Decision-Making Process......................................................................................................................6

LEADERSHIP STYLE...........................................................................................7
Motivational Environment.....................................................................................................................7
Effectiveness of the Organizational Communications.....................................................7

CONTROLLING PROCESS.................................................................................8
Types of Control...........................................................................................................................................8
Financial Controls.......................................................................................................................................8
Operation Controls...................................................................................................................................10
NEW MANAGERIAL PRACTICES.....................................................................12
Technology utilization............................................................................................................................12
Ethics..................................................................................................................................................................13
Employee Empowerment....................................................................................................................13

REFERENCES.............................................................................................................14
TEAM MEMBERS.......................................................................................................15
 PAGE 03

INTRODUCTION
WHAT IS HOME CREDIT?
Home Credit is one of the first financial
companies in Vietnam, officially put into
operation in 2008. Home Credit
Vietnam's full name is Home Credit
Vietnam One Member Finance
Company Limited.

CONVENIENCE
Home Credit is famous for its quick and easy personal loans and consumer
loans for customers. The company also encourages customers to improve
their consumer credit knowledge through consulting or advertising in ways
that are directly approached.

SERVICE FORM
Home Credit with a total of more than 8,500
employees present across the country, Home
Credit has been approaching 14 million
customers with 03 main service forms:
+ Installment loans for household appliances,
electronics, Motorbike
+ Installment cash loan
+ Credit card
+ Buy now pay later

BRANCH
Home Credit currently has more than 5,000
small business shops in 63 cities in Vietnam.
Home Credit also has a customer support
service and online profile creation compared to
the online form. This helps to save maximum
travel budget costs as well as save budgets and
costs for many consumers
 PAGE 04

MISSION
Home Credit always commits that:
Always friendly and professional
Fast and proactive
Ensure transparency and publicity
Always happy to help

PRODUCTS
Home Credit provides customers with 5 products:

Cash loan: Target audience is all Vietnamese citizens between the ages of 20
and 60 years old and not an existing customer of Home Credit, Home credit
provides a type of cash loan product with a preliminary amount of up to
200,000,000 with interest rate Only from 0.65 - 2.33% / month (7.8 - 27.96% /
year), term from 3 to 57 months.

Credit card: Home Credit card is an international Home Credit Visa credit card
issued by the financial company MTV Home Credit Vietnam, with a parent
company in the Czech Republic. With Home Credit card, customers can make
payment, withdrawal and installment transactions within the limit provided by
Home Credit Vietnam.

Home PayLater: This form of payment allows consumers to buy goods first, pay
later in the form of installments, which can be divided into several months
depending on personal financial capacity. Customers can shop comfortably
and choose the form of installment payment within 1, 3, 6 or 12 months, and enjoy
interest rates from 0%.

Insurance: Home Credit company specifically launched 7 main types of

insurance: Financial Security Package, Comprehensive Phone Protection
Package, Critical Illness Insurance, Private Home Insurance, Full Motorcycle
Protection Insurance Package Representative, Inpatient Health Insurance,
Personal Accident Insurance.

Motorcycles, electronics: Vietnamese citizens from 20 to 60 years old with no

bad debt history are supported by Home Credit for car purchases, electricity
installments up to 80 million VND, 0% interest. Home Credit supports customers
to buy motorbikes with installment payments of most popular brands such as:
Honda, Yamaha, Vinfast,...
Formula to calculate the monthly payment amount:
Daily interest amount = Actual balance x Interest rate/365
 PAGE 05

CUSTOMERS
Home Credit is currently cooperating with 5,500 business partners, owns more than
9,400 service referral points nationwide, attracting 1 million new customers every
year, with more than 60% of customers aged 20 to 30 (here is the age with the largest
consumption expenditure).
Home credit is aimed at people who have needs but cannot access credit finance.
Especially in a time when the "demand" for consumer loans is very high and the
potential for development of the consumer finance segment in Vietnam is quite
large, the "supply" is limited.
With the orientation of being a responsible lending consumer finance company, the
business expands opportunities to access official credit sources for many customers
through the product "buy first, pay later", creating favorable conditions for customers
who have not demonstrated the financial ability to access the necessary capital.
One of Home Credit's strategic retail partners is The Gioi Di Dong - a business with a
dense network of stores across the country. Thus, Home Credit has access to the
whole retail market through The Gioi Di Dong as well as to people who have shopping
needs but do not have enough funds.

COMPETITORS

Currently, Home Credit's major competitors include: FE Credit and HD Saison.

FE Credit is a company in the same industry as Home Credit, after 6 years of
operation, has risen to the top of the unsecured consumer lending market. Up to now,
the Company has served nearly 3 million customers, cooperating with more than
4,000 partners at more than 5,800 points of sale nationwide. The company added 2.7
million new accounts and its active customer base hit 3.3 million by the end of 2016, a
market share of nearly 70% at the end of 2016.
FE Credit is the fastest growing financial institution in Vietnam with outstanding loans
at the end of 2016 reaching VND 30,000 billion and pre-tax profit of VND 2,000 billion.
The company also just signed a contract of $100 million with Credit Suisse to increase
its financial potential for business development.
Besides these two leading financial companies, since May 2015, with strategic
investment capital from Credit Saison financial group (Japan), HD SAISON has
developed a network of referral points for divine services speed in Vietnam with more
than 4,500 points nationwide.
By the end of 2016, after more than 1 year of operation, HD SAISON had lent loans to
more than 2 million customers at more than 7,500 service introduction points at
motorbikes, automobiles, electronics, phones, and furniture stores, travel agency,
wedding center in all 63 provinces.
Cash lending is also the backbone of HD SAISON's activities as the Company
promotes linkages with a number of schools to lend cash to students for co-tuition
and sponsor teachers for consumer credit. The company provides installment loans
with value from hundreds of thousands of dong to tens of millions of dong. HD
SAISON's ambition is to become a leading consumer finance company in Vietnam in
the near future, thanks to the support of foreign partners.
 PAGE 06

ORGANIZATION
THE STRUCTURE OF THE ORGANIZATION (ORGANIZATION CHART)

MANAGEMENT
Home Credit Group’s management comprises the Board of Directors, Executive
management, and Country management.

In Home Credit Viet Nam, Country Directors is the highest governance level of
the Company, who has the full power on behalf of the Company to decide,
executes the rights and obligations. Follow the Country Director will the
Department Directors who will operate activities of the company, create value
for stakeholders, draw on best practice and management standards.

CENTRALIZED FUNCTIONS
Many of our key business functions are centralized: risk management, finance
and IT among others. This integrated structure makes our organization more
efficient, as we can share expert knowledge drawn from the various markets in
which we operate.

THE DECISION-MAKING PROCESS

Home Credit’s robust corporate governance provides a sustainable foundation
for their success and growth. The Board of Directors is responsible for setting
Home Credit’ s strategic direction and risk appetite – and is the ultimate
decision-making body for matters of Group-wide strategic, risk, financial,
regulatory and reputational significance.
Next, the strategic plan from Home Credit Group will be applied for every
subsidiary in each country. In Home Credit Viet Nam, Country Director and
Department Directors will discuss to define the plan or request from the Group
Company. After the identifying phase, each department director will provide
the possible solution from their expertise and receive the KPI for their team.
Then, the Director and Heads in each department will be liable for execution of
the decision.
 PAGE 07

LEADERSHIP
MOTIVATIONAL ENVIRONMENT
A motivating work environment provides clear direction so employees know what is
expected of them. Moreover, employees need objectives that are consistent with
the company's strategic plan in addition to clear direction.

Stimulating corporate culture: Home Credit is renowned for its open and personal
communication style, a healthy respect for the variety of experiences and
viewpoints of employees, roles and management systems with clearly defined
responsibilities and authorities, and a welcoming environment where staff
members can influence their own futures and contribute to the expansion of the
business.

Progressive education and development: Home Credit encourages its workers'

professional and career growth and provides a wide choice of top-notch training
opportunities. Each new employee goes through an invaluable orientation phase to
welcome you as a new team member and familiarize you with the company, its
values, and its strategic goals.
Pay attention to employee feedback, value it, and work to provide you with as
many opportunities as possible to succeed and advance within Home Credit.

Rewarding employee performance: Provide employees with a competitive benefits

package based on company and individual performance in relation to set personal
and corporate goals, as well as a variety of extra bonuses including team-building
exercises, workshops, and employee parties.

THE EFFECTIVENESS OF THE ORGANIZATIONAL COMMUNICATIONS

The educational background, age and development of all three are completely
different. At Vietnam's top digital finance company, they are all given the
opportunity to grow their careers. Home Credit attracts young talent more and
more thanks to its cutting-edge and exciting workplace. Nearly 5,700 employees
have an average age of 28.7, with Gen Y (born 1981–1996) making up more than
80% of the workforce and Gen Z (born after 1997) on the increase. This
demonstrates the company's development strategy as well. "Young “profiles” are
important elements in Home Credit Vietnam's innovation and digitization
strategy.These factors have helped Home Credit surpass 500 companies to be
honored as "Asia's Best Place to Work" in 2021 from HR Asia magazine. This title
recognizes companies with outstanding remuneration policies, quality working
environment and activities that engage members.
 PAGE 08

THE PROCESS FOR CONTROL

TYPE OF CONTROL
Bureaucratic control: like many other companies, Home Credit also has its
policies, procedures to promote the employees, which is a form of bureaucratic
control. The company has competition among employees to reward Staff of the
month, Staff of the year. Moreover, each department has its own reward for
excellent staff.
Goal: make sure members behave toward one another respectfully and with no
suggestion of sexual pressures for improprieties

THE FINANACIAL CONTROLS

Definition: processes, policies, and procedures implemented to manage
finances. They play a role in achieving an organization's financial goals and
meeting corporate governance obligations, fiduciary duty, and due diligence.
Controls may be implemented with accountabilities, responsibilities, and
automation. The following are illustrative examples of financial controls.
PAGE 09
 PAGE 10

On a year-on-year basis for the third quarter, the Group achieved a

significant 75% rise in profit to EUR 173 million, compared to EUR 99 million for
the third quarter of 2017.

The key contributors to this improvement resulted from the growing volume of
digital sales while sustaining its low risk profile. Cost of risk slightly decreased
compared to the previous period and maintained a highly prudent reserve
level at an NPL coverage ratio of 131.7%.

Moreover, the in-store retail network in Vietnam and other Asian markets
nearly doubled in size, with overall point of sale locations growing to 434,232
and the company sustained its base of active customers at 28.9 millions, up
1.2% year-on-year, as our digital platforms and mobile applications deepened
our ability to regularly engage with consumers, support transactional
business and offer important educational services, such as financial literacy
tools.

OPERATION CONTROLS
RISK MANAGEMENT

For Home Credit, credit risk management is a competitive advantage.

Home Credit has a rigorous approach to addressing risks arising from
environmental, social, and governance factors – and to managing their effect
on broader credit, market, reputational and operational risks.

The Enterprise Risk Management Framework (ERMF) is designed to identify,

measure, manage, monitor and report risks that could affect Home Credit’s
ability to achieve our business objectives. The operational risk management
approach is based on four pillars:
Risk identification
Risk and control self-assessment, consolidated at Group level
Ongoing risk exposure monitoring through key indicators
Collection of data loss events, together with proper root-cause analysis
and action plan setup
 PAGE 11

After maturing the operation, it comes to using data science to assess credit
risk, examining customer information related to geography, transactions and
behavior as well as metadata. This reduces risks while boosting the
underwriting capability and allowing the company to customize our services
based on customers ’ needs and repayment ability. The ongoing research
and development also improves their approach to areas such as ‘know your
customer ’ (KYC) and identity checks so they have effective ways of verifying
identities – which means they can make it even safer for customers to use
digital services.

Home Credit is committed to building a sustainable business for all its

stakeholders, customers, and communities. By effectively managing
uncertainty, risks, and opportunities, they enhance their capacity to deliver
value.
 PAGE 12

NEW MANAGERIAL PRACTICES

In the era of new technology that always appears and changes every day, a
strong team needs to move and constantly change, both in terms of new
knowledge and working style. Therefore, at Home Credit, the spirit of initiative,
flexibility and creativity is always highly appreciated by the company.

TECHNOLOGY UTILIZATION

Concretizing this spirit, Home Credit has actively applied Agile project
management method, one of the latest management methods for departments
in the company to further promote the efficiency of work, reduce the time and
wait for “approval” from many levels.
Agile is a flexible software development methodology that is a specific approach
to software project management. It includes an integrated and interactive
workflow to get the product into the hands of the user as quickly as possible.
Besides, Home Credit applied DMS software:
Monitoring, managing and evaluating employee KPIs: with the number of
employees up to thousands of people on the digital map.
Visually assess the situation of decoration and display at transaction points.
Manage the entire working schedule of employees, set up daily and weekly
work schedules on the system.
Market survey application, update information.
Exploiting management reports for making strategies and policies for the
Board of Directors.
Record sales at transaction points…
 PAGE 13

NEW MANAGERIAL PRACTICES

ETHICS
Home Credit wants customers to have a positive experience with financial
solutions and live happily
Help people access credit easily
Support local retail partners
A responsible company, always acting with transparency, compliance and
customer focus
Home credit always has activities to support the community such as covid-19
epidemic, ...

EMPLOYEE EMPOWERMENT

The company always upholds the spirit of work ownership, responsibility and
creativity in employees. With the majority of employees in their 20s and 30s, being
fair, proactively expressing opinions and communicating with superiors is always
encouraged at meetings at Home Credit.

Working environment at Home Credit: pioneering, innovative, fair and results-

oriented.

Not only being challenged in a dynamic working environment, each member at

Home Credit is given many opportunities to develop the full potential of each
individual.

Home Credit employees often participate in short-term exchange courses to

learn and share experiences between countries or directly exchange with senior
experts of the group at the Vietnam office.

So, putting the human factor as the key to the company's success, Home Credit is
constantly building and developing a perfect working environment to help
employees develop to their fullest potential. Thereby contributing to bringing the
best products and services to customers and making positive changes in their
lives.
 PAGE 14

REFERENCES

https://luatduonggia.vn/home-credit-la-gi-cua-ngan-hang-nao-co-lua-
dao-khong/
https://nhaphodongnai.com/home-credit-cua-ngan-hang-nao-
1654723854/
https://www.homecredit.vn/gioi-thieu
https://vaytienmat.homecredit.vn/bat-dau-vay
https://www.finhay.com.vn/the-tin-dung-home-credit#the-tin-dung-
home-credit-la-gi
https://technewsdaily.vn/home-credit-dau-tu-200-ty-vao-san-pham-tai-
chinh-so-mua-truoc-tra-sau-18347
https://www.homecredit.vn/san-pham-bao-hiem
https://nganhangviet.org/vay-mua-xe-may-tra-gop-home-credit/
https://zingnews.vn/tang-truong-kinh-te-dinh-huong-phat-trien-ben-
vung-cua-home-credit-post1341652.html
https://www.a-c.com.vn/vn/dich-vu-tai-chinh/cuoc-dua-tam-ma-tren-
thi-truong-tai-chinh-tieu-dung-
2725.htm#:~:text=L%C3%A2u%20nay%2C%20c%C3%A1c%20ng%C3%A2n%20h
%C3%A0ng,HD%20Saison%20v%C3%A0%20Prudential%20Finance.
https://www.homecredit.net/careers/why-work-for-home-credit.aspx
https://www.homecredit.vn/Vendor/kcfinder/upload/files/Home%20Credit%2
0Sustainability%20Report%202021%20-%20VN%281%29.pdf
https://www.homecredit.net/media/press-releases/2018/pr-27-11-2018.aspx
https://vietnamnet.vn/chia-khoa-hut-nguoi-tai-cua-home-credit-viet-
nam-619810.html?fbclid=IwAR14WlDDkOEVi8MHal0fPEAukWxPPwNJJl-
wI1l1oZ1JwlYjJAHn4Wqjs5g
https://hqsoft.com.vn/home-credit-giai-phap-quan-ly-tai-chinh/?
fbclid=IwAR3qPEtWlz7bdTZLwzydvqTMjQl2a2zIDkRW47S6-
b5DaTxfHULSSRhRA6Y
https://www.homecredit.vn/tin-tuc/home-credit-vietnam-linh-hoat-vuot-
bao-dai-dich?
fbclid=IwAR0t0A07gEKzSxHOPgEUyKTDYRAUbHOga3xoNybk2admozZgqsWSK
ClnVV8
https://vietnamnet.vn/chia-khoa-hut-nguoi-tai-cua-home-credit-viet-
nam619810.htmlfbclid=IwAR14WlDDkOEVi8MHal0fPEAukWxPPwNJJl-
wI1l1oZ1JwlYjJAHn4Wqjs5g
 PAGE 15

TEAM MEMBER

Number Name Student ID Contribution

Đinh Phước Thiện

1 BABAIU18331 20%

2 Đinh Quang Khải BABAWE19054 20%

Trịnh Thị Phương Anh

3 BAFNIU20253 20%

4 Võ Huỳnh Băng BAFNIU20255 20%

5 Võ Thị Minh Vương BABAWE20194 20%

THANK YOU FOR READING