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|Consumer loans for ride-hailing drivers|
Although being classified under the category of subprime lending by commercial banks, ride-hailing drivers have gradually increased their income and ability to pay back debt. However, the classification reduces the chances of them accessing financial services to overcome financial challenges.
Furthermore, many divers remain hesitant about consumer loans from traditional banks due to the complicated requirements of income proof and documentation as well as the slow approval and distribution time.
As a result, many drivers have turned to risky informal lending solutions such as black credit and high-interest loan applications.
Cake is the first digital bank to pioneer consumer loan products for ride-hailing drivers. Be drivers can borrow from VND3 million ($130) to VND20 million ($870) over 3-24 months through Cake with no application charges and no requirement to mortgage any assets or documents.
This credit package aims to meet the urgent demands of ride-hailing drivers, allowing them to recover and improve their family life following the pandemic. Cake's consumer loan packages for drivers are coupled with outstanding benefits in terms of procedures, interest rates, approvals, and disbursement time. The product is expected to open up safe financial access and improve the livelihood of this unique target group.
Nguyen Huu Quang, CEO of Cake cited statistics revealing that approximately 70 per cent of the Vietnamese population is unable to obtain bank credit or is hesitant to do so due to procedural issues. Cake has unveiled the solution for drivers to reaffirm the role of fintech companies in enhancing financial inclusion.
“This new solution completes Cake's financial products and services offerings while also contributing to the Be Group's open technology ecosystem. Cake will continue to develop new solutions to serve both drivers and end-users in the future,” added Quang.