VIB, the International Bank, has set a new record by launching an installment payment feature directly on international debit cards. This innovation, recognized by Vietking as a first for a bank, allows customers to convert spending transactions into installment payments with just a few taps on the MyVIB app. The fully digitized solution is a breakthrough, extending a privilege previously exclusive to credit cardholders to the large segment of debit card users.

VIB Smart Card user. Photo: VIB

A recent FiinGroup report highlights a significant market gap in Vietnam, with over 125 million debit cards in circulation compared to nearly 13 million credit cards. This disparity points to a substantial, yet unmet, demand for flexible spending options among a large user base.

This new solution empowers VIB cardholders to make purchases using their payment account balance. They can then convert these transactions into installment payments to manage their cash flow effectively. Users gain flexibility, choosing to convert at the time of transaction or afterwards, rather than depending on point-of-sale installment schemes.

The system leverages data and artificial intelligence (AI) as its foundation. VIB automatically approves installment limits by analyzing transaction history, cash flow, spending behavior, and financial indicators, eliminating the need for paper documentation.

Each customer receives a personalized installment limit, tailored to their financial capability while ensuring risk control. On-time payments are recorded with CIC, enabling users to build credit history and gradually access higher credit products like credit cards, car loans, or home mortgages.

VIB offers competitive installment interest rates starting from 0,79% monthly, or approximately 9,5% annually. This applies to transactions from 3 million VND, with terms ranging from 3 to 60 months. Customers can also benefit from 0% interest promotions at over 100 partner merchants across various sectors, including: electronics, technology, education, travel, and fashion.

Importantly, cardholders continue to earn cashback and reward points, even after converting transactions to installment payments.

A VIB representative explains that the debit card installment feature extends the bank's developing "action finance" ecosystem. This ecosystem empowers users to proactively manage personal finances through digital tools, encompassing cash flow tracking, spending planning, profitable investments, and responsible credit access. Users can achieve greater spending flexibility and learn disciplined money management. "The solution contributes to shaping the consumption behavior and cash flow management of Vietnamese people, especially the younger generation striving for financial independence," the representative added.

This initiative earned VIB recognition from the Vietnam Records Organization as the first bank to offer personal installment registration through international debit cards. This achievement underscores VIB's strategy to lead in shaping a new generation of personal finance trends: flexible, proactive, and digitized.

Thai Anh