Cake by VPBank offers salary advances to workers via VNPT Money

Han Nguyen Monday | 06/27/2022 14:50

Cake by VPBank has just cooperated with VNPT-Media and Be Earning to deploy salary advance service to more than 30 million Vinaphone subscribers, through the VNPT Money app.

After the cooperation agreement, workers who are Vinaphone subscribers can now use the VNPT Money application to register and receive an advance of 2-3 million VND from Cake by VPBank, and repay within 7-30 days. In particular, the fee and interest rate of the salary advance is just from 8% per year. Customers have the right to choose a tip-money model for the payment amount. Salary advance service is operated on the principle of “3 Nos”: no hidden fees, no proof of income, no collateral.

Salary advance feature from Cake by VPBank on VNPT Money.

In the context of many people's income shortage after the pandemic and the inflation, the salary advance model from Cake by VPBank is considered a bright spot in the microfinance segment in Vietnam, contributing to the fight against black credit.

Fulfilling market’s needs

According to the survey results conducted by the Vietnam General Confederation of Labor in March 2022, up to 56.1% of workers said that their salary and income are just enough to cover the living expenses; 21% said they had to spend frugally to get by; and 13.2% said their current income is not enough to live on.

Besides, a large part of workers have to borrow money to survive: 11.2% of workers have to borrow money monthly to stabilize their lives; 35.6% of workers sometimes borrow money every 3-4 months; 35.6% of workers have to borrow money 1-2 times a year and only 17.7% of workers have not borrowed at all.

Meanwhile, most financial companies focus on the 3-12 month loan segment, and banks give priority to over-12-month loans. This has inadvertently reduced the opportunity to access safe capital, causing workers to seek quick and unofficial loan solutions, such as usury, when they need a small amount of money right away.

While nearly 80% of Vietnam's population has yet to access bank capital, the consumer finance market share and secondary loans have great room for development, the tripartite cooperation of Cake by VPBank, VNPT-Media and Be Earning Company will help increase opportunities to access safe finance for millions of people across the country.