5. 5
Overview
Consumer Finance Industry
*Total debt of the consumer finance industry was 80,000 billion VND by 2018
Source: CafeBiz, One Road Research
55%
13%
10%
22%
Breakdown of Capital Raised by the
Consumer Finance Industry in 2018* (%)
FE Credit Home Credit HD Saison Others
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
FE Credit Home Credit HD Saison
FE Credit, 9000
Home Credit,
3000
HD Saison, 2000
billionVND
Funding needed to maintain an annual growth
rate of 20% in 2019
6. 6
Overview
Consumer Finance Industry
* Including all transaction fee and hedging costs
Source: Bloomberg, One Road Research
Sources of funding Percentage Interest rate
Equity 10-30% -
Onshore loans 10-30% 9%
Offshore Funding 10-30% >12%*
CD/TD 30-50% 8%-11%
Breakdown of Funding Sources for a Typical Consumer Finance Company
7. 7
Overview
Challenges of Capital Raising
ONSHORE LOANS MARKET
• Fluctuation of interbank market rates.
• Reduction in proportion of short-term funding for long-
term loans has minimized its attractiveness.
OFFSHORE FUNDING MARKET
Require high credibility.
High cost borrowing.
CD & DEPOSITS MARKET
The market is scattered and requires a lot of marketing efforts.
Stability in both funding term and cost of funding.
9. 9
Overview
Interest Rate Comparison | Channel
Interest rate comparison between different channels.
Source: Bloomberg, Asiabondonline, One Road Research
10.50%
9.25%
8.80%
3.40%
Corporate Bond CD (from non-banks) CD (from banks) Government Bond
Maturity of 12 months or longer
consumer finance
company)
10. 10
Overview
Interest Rate Comparison | Competitors
Interest Rate Comparison of Competitors.
Source: CafeBiz, FE Credit, One Road Research
FE Credit Home Credit HD Saison
Less than 12 months 8.25% 7.90% 8.13%
Over 12 months 10% 10% 8.75%
8.25%
7.90% 8.13%
10% 10%
8.75%
Less than 12 months Over 12 months
13. 13
Breakdown of Capital Raised
Source: Internal
25
20
20
Breakdown of capital raised by Home Credit
Equity (retained earnings & newly raised capitals): 25%
Debts raised from interbank market: 20%
Debts raised from offshore funding: 20%
Debts raised from selling CDs and term deposits: 35%
80%
13%
5% 2%
Banks Investment funds
Security firms SME
INVESTOR
14. 14
PR activities | Content
• Home Credit PR activities are present on domestic
and international websites.
• Very little contents about Home Credit (HC) are
found on international sites, besides Moody’s and
Global Capital Asia.
• Domestically, digital contents about HC are found
on most popular finance-centric sites like CafeBiz
and news channel like thanhnien.vn
• No PR activities geared towards investors are
found on either Home Credit’s website, Facebook
or YouTube.
INVESTOR
15. 15
PR activities | Video
• Lack of video contents catered to domestic and
foreign investors.
• 120 videos are all geared towards end users.
INVESTOR
16. 16
PR activities | Content
• HD Saison’s PR activities are present only on domestic
websites.
• HD Saison (HDS) has zero presence internationally.
• Like Home Credit, contents about HDS can be found on
most popular news sites like Vietnam Economic Times.
• Like Home Credit, no PR activities geared towards
investors are found on either HD Saison’s website,
Facebook or YouTube channel.
• Coverage of digital contents for investors are much
smaller than other consumer finance firms.
INVESTOR
17. 17
PR activities | Content
• Lack of video contents catered to domestic and
foreign investors.
• All videos are geared towards end-users. Only one
video to gain emotion from customers.
INVESTOR
19. 19
Breakdown Capital Raised
Source: Internal Estimation
20
20
20
Breakdown of capital raised by FE Credit
Equity (retained earnings & newly raised capitals): 20%
Debts raised from interbank market: 20%
Debts raised from offshore funding: 20%
Debts raised from selling CDs and term deposits: 40%
60%
10%
10%
20%
Banks Investment funds
Security firms SME
INVESTOR
20. 20
PR activities | Website
The only member of the Big 3 to have a web page catered to domestic and international investors.
The only member target SME as key investors for growth.
INVESTOR
21. 21
PR activities | Content
• Media presence is in the form of digital articles
written on FE Credit’s website and other popular
finance-focused and general news channels like
CafeBiz and Zing.
• Ratio of English-speaking articles to articles
written in Vietnamese is 21%.
• The majority of English-speaking contents were
translated from Vietnam-oriented contents.
• Lack of English-speaking articles catered to
international investors.
INVESTOR
23. 23
PR activities | Content
• Lack of video content catered to domestic and
foreign investors.
• 28 videos are all geared towards end users.
INVESTOR
24. 24
SUMMARY
FE Credit Home Credit HD Saison
FOR INVESTOR
Local Media coverage High Average Low
International coverage Low Average Low
Seminar sponsorship High Average Low
YouTube channel High Average Low
SMEs Penetration High Low Low
30. 30
Investor Profile
Offshore loans are often denominated in U.S.
dollars. These loans are provided by credit funds
and international banks who issue various types of
medium to long-term loans in search for attractive
yields.
31. 31
Direct Audience Portrait
Offshore Fund Managers:
• What they read: analysis about new trend in
market.
• Where they read: Newspapers such as CNN and
Forbes and independent newsletter such as
Seeking Alpha, Motley Fool, Asian Nikkei Review
and One Road Research.
Onshore CFOs and Managers of SMEs:
• What they read: Interested in reading info about
corporate management.
• Where they read: News on CafeF and VnExpress
and financial analysis in their industry.
32. 32
CREATIVE RATIONALE
Not to put everything you have in one basket is the basic finance theory
that we all learned in school. Every baskets has its opportunities and
risks. Every percentage of returns also count. And we, not only can we
give you the higher interest rates, but we also ensure liquidity for your
investments. We give you the advisory for your financial funding. We give
you the information. We give you the chance to enlarge your opportunity.
37. 37
What we provide
INTERNATIONAL PRESENCE
INVESTOR
INDEPENDENT RESEARCHES
NEWSLETTERS CHANNEL CREATION
EXPAND SMEs
BASE
CONNECT GLOBAL FUND MANAGERS
38. 38
STRATEGIC FRAMEWORK
Month Jun Jul-Sep Oct-Dec
Phase Coverage Amplify Engagement
Key message TRUE PARTNER OF FINANCE
Objective
Activities
Local PR: Enhance local awareness about
investment opportunities in FE
International Coverage: for investment
opportunities
Instruction Clip: Connect brand knowledge to
SME’s customer
Expert Opinion: Independent expert opinions
Newsletter Channel Creation: Pushing SME
approach via letter to email.
Linkedin Lead Generation: Approaching
international/local investor via email marketing to
expand both fund manager and SMEs base
Channel
Local online PR
International online PR
Local online PR
Local newspaper
International online newspaper
Local online PR
International online newspaper
Linkedin
Content Movement WHO WE ARE WHAT WE DO A PARTNER FOR YOU
39. 39
CONTENT DIRECTION
FOR INVESTOR
Leader Position Product & Services Customer Education
Outstanding operating performance in the
past 5 years
Consumer loan trending Asian
countries
Investment channels for saving plan
Comparing FE’s operating performance with
other peer companies
Why debt could create growth in
Asia
Financialization process in emerging market
Innovation leading position for FE in
consumer finance industry
How to invest in consumer loan
growth
SME treasury management in Vietnam
FE’s customer data base and loyalty
Introduction about investment
Opportunities in certificate of deposit
(CD)
Foreign investors are seeking for yields in emerging
market
FE’s technology partner uplifts FE’s positions
How investment funds are investing
in FE Credit
FE’s nationwide distribution network
How investment funds are
investing in consumer loan
industry
Investment opportunity for VPB in 2019
Investment opportunity in FE Credit
Fund mobilization plan for growing of
consumer loan company
Interest rate comparison between FE and
peer companies
43. 43
Phase 1
Local & International online PR
Objective:
• Increase local and international presence.
Content:
• Publishing of English articles about consumer industry prospect in
Asia and Vietnam.
• Increase positive market awareness about operation of consumer
finance companies.
• We have connections with many renowned financial newsletter and
media such as CNN, Forbes, Seeking Alpha, Oneroad Research.
44. 44
Phase 2
Instruction Clip
Objective:
• Connect brand knowledge to SME’s customer.
• Financial demand suggestion.
Content:
• How you can benefit from investing in FEC.
• Management the cashflow of SMEs.
45. 45
Phase 2
Instruction Clip – Demo content
Figure 1 Figure 2 Figure 3 Figure 4 Figure 5
Corporate decisions for people
working with treasury functions.
All decisions include corporate
mananement, funding and cash
management.
The role of cash management.
Cash management helps you to
better control your cash surplus,
which could survive your
business. The key issue is you
must think about how to manage
your cash holding and surplus,
especially when you are in
surplus. It should be kept safe for
upcoming usages yet still
generate desired profits.
Investment channels for cash
management in Vietnam and
their differences in expected
return. There are different
investment channels you could
use to invest your cash surplus:
banking deposits, government
bonds, corporate bonds or
buying certificate of deposit from
consumer lending companies.
How FE products could help you to
enhance yield of your company’s
cash surplus. Compared to other
fixed income instruments, FE
products generate more returns
while carrying minimal risks for
investors
Convenience of the investment
products for both buying selling. It
is very easy for buying and selling
without much transaction costs. FE
Credit also supports investors by
providing liquidity.
46. 46
Phase 2
Expert opinion
International Fund Manager
Founder of Phoenix Capital
Financial Director of CIMA
Author of "The Big Trade: Simple
Strategies for Maximum Market Returns“
15 years of experience in capital markets
and fund management
Objective:
• Increase the coverage of independent researches writing about
investment in consumer finance companies.
Content:
• Publish independent articles discussing about investment
opportunities in consumer finance in Asian and Vietnam.
• Enhance the quality of published articles about the prospect of
consumer finance industry in Asia and Vietnam.
48. 48
Phase 2
Enhance The Quality Of Local Publication
Objective:
• Increase the coverage of independent researches writing about
investment in consumer finance companies.
Content:
• We are experts in contributing about the development trend of
banking system and non-bank institutions.
• We are working with many partners in providing researches
about investment opportunities in Vietnam
• We have access to a list of financial experts who can contribute
content about consumer finance industry prospects.
49. 49
Phase 2
PR Online - Demo
HOW TO BENEFIT FROM CONSUMER LENDING TREND IN ASIA
Content direction: Discussion about the history of debt utilization for
boosting growth and why Asian countries are focusing on consumer
lending growth now. Discussing about leading consumer lending
companies in Asian countries, including FE Credit. These companies are
raising funds with attractive yield to expand their local market.
Introduction:
How debt could boost economic growth
Why Asian countries are redirecting capital toward household.
Body:
How debt could boost economic growth
Relationship between economic growth and credit growth in Asian
countries
How debt could help countries to transit between economic phases.
Why Asian countries are redirecting capital toward household
The trend of focusing of individual loan for banking system in recent years
How consumer lending is booming in Asia
Why the redirection is a must for Asian countries
How leading consumer lending companies are expanding in their local
markets
Discussion about the expansion of many consumer lending companies in
Asian countries such as China, Thailand…
Discussion about the profitability
Discussion about FE Credit and how FE has raised capital international with
renowned financial institutions.
Conclusion:
Remind about the big trend for consumption and consumer lending
Remind about the investment opportunities for international banks and
investment funds
50. 50
Phase 3
Newsletter Channel Creation
Objective:
Approaching global fund managers, local investment funds via email
with informative news to expand SMEs base.
Tracking with FEC Newsletter.
Activities:
• Trend update
• Financial forecast
• Frequently asked questions
• Updates on changes
51. 51
Phase 3
Linkedin Lead Generation
Objective:
Create marketing funnel for approaching global fund managers, local
investment funds through Linkedin: fund manager, bank manager.
Activities:
• Target client setting
• Email extracting through system
• Email analyzing
• Optimal list setting
• Marketing with email list
• Email list optimizing
52. 52
Phase 3
LinkedIn Lead Acquisition Procedure
A lead list team will
find qualified leads
A lead generation
team will reach out to
prospects via
LinkedIn and email to
fill the pipeline with
warm leads
Create advertising
campaigns on
LinkedIn with video
ads, remarketing ads,
Inmail ads and
banner ads
Build a funnel where
we join other LinkedIn
groups to acquire
more leads
56. 56
Sponsor Suggestion
For Investor
Objective:
Raise awareness to the academics and the public.
Activities:
• Connect with university (such as Banking University HCMC) to
organize a seminar about Consumer Finance with financial
experts.
• FE Credit representative speech about positive aspects of FE
operation.
• Record and publish online video about the seminar.
Before discuss marketing strategy, I want to go through a few key points about your industry characteristics to make sure we are understanding clearly your situation:
+ large demand for fund raising to maintain high growth for consumer finance industry. FE Credit accounts for the largest market share so their pressure for you is also the biggest. CD and offshore funding plays an important role in funding structure
+ Each capital channel has each own characterstics and funding sources from CDs and offshore fund is very important to stabilize company’s operations. Fore these two sources, marketing strategy is especially important to attract investors both locally and internationally.
+ FE is doing a pretty good job compared to other competititors in the market
As you see on the chart, the fund structure for FE is pretty typical however what you can see is that most of CD issuance from Home Credit is held by banks and credit institutions. Through our survey, we know that Home Credit is not really focusing on SME segment for fund raising. They often go directly to the bank for negotiation.
Even in Home Credit website, we also don't see any info about the rasiing program from SMEs
After reviewing PR activities launched by FE and two largest competitiors, we can summarize with you a few points here and want to discuss with you some insights we have withdrawn:
For end-user segment: we found that there are some difficulties for customers to find information about FE’ products, procedures online due to the blockage from negative feedbacks from customers. It is normal when players can receive negative feedbacks from customer in this industry however what FE is facing is much more serious compared to other competitiors.
Moreover, the slogan of customer-focused of FE is not clearly reflected by FE activities. FE’s efforts to invest in technology to enhance convenience feature for customers. However, these improvements are not seen by customers who are blue color workers. What they see is that they are not really cared and consulted clearly when doing the borrowing.
For investor segment: despite of raising a lot of capital internationally however we are not seeing international coverage about investment opportunities in FE. You guys must have been raising funds from the consultance of investment bankers. However, in order for you raise more international capital from public market, even with better cost of funding. You should invest more for international coverage.
Content from independent experts are also a weak point for FE PR activities for both local and international markets.
Chia ra thành investor và end user
Here is the profile for different kinds of investors providing capital for FE
About direct audience who are ones to directly see and feel our PR programs. We have listed out their ch
After understanding about the characteristics as well as their motivation for providing funding, we can have in-depth insights for building PR program in approaching and sending investment messages to these investors.
1 2% cung la dang ke. Uy tin, dam bao tinh thanh khoan. Enlarge investor base.
Clip
Huong dan dau tu
Quan ly tai chinh sme
CHANCE-GIVER
Provides opportunities for investment diversification
PROVIDER
Provides investment opportunities for cash management in SMEs
CONNECTOR
Connects business for pushing personal consumption
Here is about the proposed content for PR program in 2019 for both investors and end users.
For investor, the content is clearly separated into three sections as the suggestion from your side. Most of the content will discuss about leader position of PE in consumer finance industry, which is booming in Vietnam as well as other Asian market. The second section will discuss about investment products where investors could expose to the prospect of FE. Raising the awareness of investment is also an important responsibility for PR team. And we try to disseminate that with the voice of independent experts.
The same situation also happens happened for end user segment. The voice of independent experts will play an important role in the PR program in both enhance customer awareness about the operation of consumer finance company