Shinsei Bank has joined Vietnam’s consumer loan market. Photo: risovalnaya.ru
Japan’s Shinsei Bank has signed a deal with Hanoi-based Military Bank (MBBank
) to acquire a 49% stake in MCredit Finance Company (MCredit), marking its entrance into Vietnam’s unsecured loan market.
MCredit, set up in March, was capitalized at about $20.7 million as of June. It will start the unsecured loan business from December, according to the Nikkei Asian Review.
Consumer finance company MCredit is wholly owned by MBBank after being restructured from Song Da Finance Company.
The deal is still subject to regulatory approval.
Shinsei Bank, through its subsidiary Shinsei Financial (SF), has been operating in the consumer loan business for five decades. SF is among the top firms in Japan in terms of technological solutions in the consumer credit market.