Empowering Rural Communities Through Innovative Finance

Vietnam’s Popular Credit Funds (PCFs) are undergoing a significant transformation, leveraging digital technologies and strategic partnerships to better serve their members and bolster rural economies. These efforts are primarily focused on streamlining operations, expanding access to financial services, and promoting cashless transactions.

Vinh Kim PCF: A case Study in Success

The Vinh Kim Popular Credit Fund stands as a prime exmaple of the positive impact PCFs can have on local communities. After 29 years of operation, the fund reported impressive results for 2024, including mobilized capital of 145 billion VND and after-tax profits exceeding 1.4 billion VND. Currently, the Vinh Kim PCF has an active loan portfolio of 125 billion VND, supporting approximately 1,600 member households.

Do Kim Lang, Chairman of the Board of Directors, emphasized the fund’s commitment to understanding and meeting the specific needs of its members. with the advantage of being close to members, understanding the needs, commercial capacities and finances of each member, the loans of the popular credit fund are timely, fast and effective. This localized approach allows the PCF to provide timely and effective financial support, driving economic progress in the region.

Recognizing the importance of modernization, Vinh Kim PCF is actively collaborating with Co-Opbank to implement cashless payment solutions and integrate digital technologies into its operations. This includes offering electronic money transfer services and facilitating the opening of transaction accounts for members.

Co-Opbank’s Crucial Role in Digital Transformation

Co-Opbank is playing a pivotal role in supporting the digital transformation of PCFs across Vietnam. By providing access to capital, technological infrastructure, and training programs, Co-Opbank is empowering PCFs to enhance their services and expand their reach.

Several PCFs have voiced their appreciation for co-Opbank’s support and have requested further assistance in navigating the complexities of digital payments and legal compliance. Luong Quoc Viet, Chairman of the Board of directors of the Long Ho Popular Credit Fund, highlighted the need for continued support in implementing cashless payment solutions effectively.

co-Opbank provides more support in terms of procedures and legal issues so that the credit fund can more effectively implement payments to the population.

Luong Quoc Viet, Chairman of the Board of Directors of the Popular Credit Fund for Long Ho, Vinh Long Province

The Long Ho PCF has been offering money transfer services since 2016 and has seen significant improvements since Co-OpBank upgraded its CF EBANK money transfer service to a 24/7 platform.This has facilitated faster and more convenient transactions for members. Moreover, the Long Ho People’s Committee plans to implement salary payments via Co-Opbank accounts, further promoting the adoption of cashless transactions.

Addressing Challenges and Looking Ahead

Despite the progress made, challenges remain in promoting widespread adoption of cashless payments, especially among individuals unfamiliar with Co-Opbank and digital financial services. Continued education and outreach efforts are crucial to overcome these barriers.

Nguyen Van Khiem, director of the Duyen Hai Popular Credit Fund, emphasized the importance of collaboration with Co-Opbank in promoting cashless payments. The Duyen Hai PCF has been actively encouraging customers to use bank transfers for payments and has invested in QR code scanning equipment to simplify the process.

In 2024, the Duyen Hai Popular Credit Fund mobilized 173 billion VND, an increase of 6 billion compared to the same period in 2023. The total loans in progress reached 155 billion VND. In 2025, the Duyen Hai People’s Army will form 146 additional members, bringing its workforce to 1,630 members. Loans in progress of 165 billion VND, a capital mobilized of 180 billion VND.

Looking ahead,PCFs are seeking continued support from Co-opbank in managing capital and ensuring stability within the credit system. By working together,these institutions can play a vital role in driving economic growth and improving the lives of people in rural Vietnam.