Effectiveness of Policy Credit in Nghia Hanh District

Not only does it help reduce transaction time and workload, but the policy credit management application of VBSP also enables Heads of Savings and Credit Groups to better monitor capital sources, ensuring accuracy in all interest collection and savings deposit activities. The application of credit management technology not only optimizes management processes but also plays a crucial role in enhancing the quality of policy credit activities in Nghia Hanh District (Quang Ngai).

People exchange policy information through VBSP's application

Practical Effectiveness

The Savings and Credit Group of the Farmers’ Association in De An Village, Hanh Phuoc Commune, Nghia Hanh District consists of 56 members, with a total outstanding loan balance of nearly VND 2,108 million. Ms. Le Thi Lam Hong - the group leader shared that each month, 50% of borrowing households come to her house to pay interest and savings deposits, while she has to collect payments from the remaining households individually. Every time a household makes a payment, she records it manually, issues receipts and delivers them to the households. During transaction sessions, she manually sums up the figures and then works with VBSP officers to review and verify the records to ensure accuracy ands compliance, which takes considerable time.

“For over four months, since installing and using the Policy Credit Management Application on my phone, I have been able to update transaction data whenever I collect payments. This has significantly streamlined the process, cutting transaction time by more than 50%. More importantly, all interest collection and savings deposit activities are now managed with much greater accuracy and efficiency”, Ms. Hong added.

Since October 2024, VBSP Nghia Hanh District has implemented the Policy Credit Management Application for members of the District Board of Representatives of VBSP, Commune People's Committee Chairpersons, Commune Poverty Reduction Committees, village heads, entrusted mass organizations and 205 Savings and Credit Groups. After more than five months of implementation, 385 people have been guided on how to install and use the application.

Contributing to Enhancing Policy Credit Quality

According to Mr. Do Van Kha - Director of VBSP Nghia Hanh District, the use of the Policy Credit Management Application by Savings and Credit Group Leaders for interest and savings collection has made transactions with VBSP officers at commune transaction points more convenient and efficient, thereby improving the overall quality of policy credit operations. The application enables group leaders to record and synchronize transaction data directly on their phones, significantly reducing transaction time with VBSP officers and effectively supporting the digital transformation of the banking sector.

Additionally, the application provides detailed information on loan programs, interest rates, customer databases and related regulatory documents. Currently, 100% of the Savings and Credit Groups in Nghia Hanh conduct transactions through this application. Commune-level association and organization officials also use the application to review financial data and guide members in understanding policy credit information.

The Policy Credit Management Application is one of the most successfully implemented software solutions by VBSP Nghia Hanh District in the past year. To further enhance IT application and digital transformation in banking operations, VBSP Nghia Hanh has expanded its implementation of digital banking products and services, such as using the Mobile Banking app for debt collection by Savings and Credit Groups and applying software for evaluating entrusted activities and monitoring commune transaction operations via IP cameras.

With the support of digital banking software, district-level VBSP Board of Representatives members, bank staff and entrusted mass organizations can now access and utilize online data quickly, replacing traditional manual methods. This advancement significantly improves the quality of policy credit in Nghia Hanh.

Hai Chien