Human-centric digitalization is the ‘key’ to empowering small merchants.

As Vietnam accelerates its transition from presumptive taxation to self-declaration, the household business sector is facing a critical test of professionalization. Speaking with TheLEADER, Fred Lim, Chief Digital Commercialization Officer of Hong Leong Bank Berhad, said the bank is bringing a fintech mindset to transform the “invisibility” of small merchants’ financial data into actionable insights - thereby democratizing access to capital based on real operating performance rather than collateral.

“The ultimate goal is not merely revenue,” he emphasized, “but to drive social mobility - helping millions of small businesses formalize their financial capabilities and reach larger economic opportunities.”

HLB has recently pioneered the integration of core banking services directly into the SoBanHang platform - from account onboarding and QR payments to bookkeeping and e-invoicing. How does this initiative reflect the bank’s strategic positioning toward micro–merchants and SMEs as Vietnam transitions from flat tax to a declaration regime?

Fred Lim: We view Vietnam’s transition from a flat-tax regime to a declaration model not merely as a regulatory update, but as a pivotal moment of professionalization and digitization for the household business sector. Our strategy is to ensure this transition empowers rather than burdens the business owner.

We have long moved away from the concept of traditional banking that requires customers to come to us. In Malaysia, we pioneered out-of-branch banking by introducing tablet-based mobile banking, meeting customers where they are. This was transformative for time-poor mSME clients, enabling on-site account opening and seamless salary management. We further revolutionized the landscape by digitizing financing document submissions.

Now, we are translating that legacy of innovation to the Vietnamese market. Our vision is to localize banking experiences directly into the operational heartbeat of these businesses. By integrating core pillars - account onboarding, QR payments, bookkeeping, and e-invoicing - directly into the SoBanHang platform, we are creating a seamless digital environment. We are essentially embedding the bank where the work happens, reducing operational friction and supporting Vietnam’s broader vision for a transparent, digitally robust SME economy.

Will this integrated proposition pave the way for automated lending products built upon So Ban Hang’s transaction data in the future?

Fred Lim: Absolutely. We are fundamentally rethinking credit accessibility. Historically, the 'invisible' nature of financial records has been the single greatest barrier to SME lending. We are turning that invisibility into insight.

By capturing real-time payments, sales, invoices, and cash flow digitally on SoBanHang, we are building a high-quality data foundation that serves as a new form of digital collateral. Our long-term ambition is to transition from collateral-heavy assessment to risk-based, behavior-driven lending. This is about democratizing capital—enabling small businesses to access credit more responsibly and easily than ever before, based on the strength of their actual performance.

From your perspective, which valuable lessons from the Malaysian market has HLB tailored and applied to craft digital solutions for Vietnamese household businesses, particularly regarding compliance with the new tax regulations?

Fred Lim: While markets differ, the evolution of the SME sector in Malaysia and Vietnam shares a common DNA. Our Brand Promise, Built Around You, means, in our quest to build digital solutions for our customers, we have adapted a philosophy of 'Human-Centric Digitization' based on proven principles:

Firstly, designing for the micro-entrepreneur means recognizing that solutions must be intuitive for the smallest merchant from the outset, rather than being scaled-down versions of tools built for large corporations. This ensures that products are grounded in real-world usage and can grow sustainably alongside the business.

Secondly, compliance needs to be invisible to the user. By automating compliance processes, manual data entry is eliminated, along with the associated risk of errors, enabling merchants to focus on their core operations with greater confidence.

Thirdly, trust is built through transparency. By providing clear financial dashboards, we empower business owners to manage cash flow proactively, strengthening both day-to-day decision-making and long-term financial discipline.

Ultimately, we are tailoring a solution that is both regulation-ready and merchant-friendly, ensuring that digital adoption is driven by utility, not just obligation.

So Ban Hang’s CEO has emphasized a vision to build an “all-in-one application” platform. How does HLB position itself in enabling So Ban Hang to expand into more sophisticated banking services within this ecosystem?

Fred Lim: We view our relationship with SoBanHang as a co-innovation platform rather than a traditional distribution partnership. From the start, we approach this from a fintech perspective, rather than your typical bank product. This mindset allows us to move with speed, agility, and a readiness to pivot that is rare in our industry.

If SoBanHang is the agile interface that merchants love, HLB provides the institutional backbone that powers it. We bring regulatory-grade financial infrastructure, robust risk and cybersecurity frameworks, and APIs that allow for the seamless embedding of complex banking journeys.

As SoBanHang expands its ecosystem, HLB is ready to deploy advanced financial services, such as automated lending, savings tools, and cash-flow analytics, ensuring the platform evolves into a true financial operating system for micro-businesses.

The movement from flat tax to declaration poses notable compliance challenges for household businesses. How does HLB’s integrated solution help shop owners mitigate compliance risks and accounting errors as they are required to adopt e-invoicing practices?

Fred Lim: We recognize that for the micro-entrepreneur, who often shoulders the burden of doing everything themselves, regulatory shifts are a source of significant anxiety. The transition to declaration introduces complexities regarding invoices and tax submissions where mistakes can lead to real financial jeopardy.

Our goal is to be the partner that lifts this weight, allowing them to focus on their main purpose: to sell, to serve their customers, and to make a living. We designed this solution to offer 'Compliance Peace of Mind.'

We address this by automating data capture at the source and linking payments directly to invoicing and bookkeeping. This digitization creates a 'golden record' of transactions, significantly reducing manual reconciliation errors. By ensuring data is clean and transparent, we allow shop owners to confidently meet regulatory requirements and focus their energy on growth rather than governance.

Regarding tax-standardized QR payments, how is the validation and data-synchronization mechanism designed between HLB, the SoBanHang platform, and tax authorities to ensure transparency and regulatory accuracy?

Fred Lim: We have engineered a three-layer validation framework that acts as a bridge of trust between the merchant, the bank, and the Regulator:

The first one is Bank layer. HLB verifies the authenticity of the banking transaction.

The second one is Platform layer. SoBanHang matches that payment with sales records and merchant profiles.

The last one is Regulatory layer. Tax authorities receive synchronized, structured data that adheres strictly to reporting standards.

This design ensures total transparency and accuracy, fostering a trusted ecosystem where compliance with Vietnam’s QR and e-invoice regulations is automatic and assured.

The exclusive incentive package — including free digital signatures, the VND 250,000 e-invoice bundle, and SoBanHang service discounts — aims to reshape user behavior toward digital financial solutions. How does the bank assess the long-term return on investment (ROI) of these incentives?

Fred Lim: We look beyond traditional ROI to what I would call 'Return on Digital Maturity.' Our incentive strategy is not about short-term acquisition; it is about catalyzing a permanent shift toward formal financial management.

We evaluate success through digital adoption metrics and the improved credit quality that results from better financial data. By lowering the barrier to entry with exclusive incentives, we increase customer lifetime value as these merchants formalize and grow. As they thrive, their need for sophisticated financial solutions expands, creating sustainable cross-sell potential and long-term economic value.

Based on your current partnership experience, does HLB intend to scale the Banking-as-a-Service model by collaborating with other fintech or business-management platforms beyond SoBanHang to expand SME customer acquisition in the near future?

Fred Lim: Approach this expansion with the same fintech entrepreneur mindset that sparked our collaboration with SoBanHang. The prioritisation of agility and co-creation, has proven that embedded banking is not just a project, but a highly scalable model for the Vietnamese market.

We are actively exploring opportunities to extend this infrastructure to POS providers, retail software, and industry-specific ecosystems in logistics and F&B. Our strategic goal is ubiquity: we want HLB’s financial services to be available wherever SMEs operate digitally. This allows us to broaden our reach efficiently and deepen our engagement with the real economy.

Beyond sales performance and operational efficiency, what social impact does HLB expect this solution to generate in enhancing financial management capabilities and accelerating the formalization of Vietnam’s digital economy among household businesses?

Fred Lim: We believe that formalization is a pathway to economic empowerment. Beyond efficiency, this partnership is a tool for social mobility. By helping household businesses gain financial literacy and confidence, we are enabling them to access affordable credit that was previously out of reach. This directly supports Vietnam’s national digital transformation agenda and builds a more resilient, transparent SME economy. It is perfectly aligned with HLB’s broader purpose: advancing meaningful financial inclusion across the region.

Given Hong Leong Berhad’s regional footprint, how promising do you view the potential to scale this collaboration model into other Asian markets — and is this already part of HLB’s long-term strategic roadmap?

Fred Lim: The core issues we are addressing - embedded banking, compliance automation, and SME digitization, are needs shared universally across rising Asian markets. Countries such as Malaysia, Singapore, Cambodia, and Indonesia exhibit similar characteristics: sizable informal sectors, rapidly expanding digital ecosystems, and a strong focus on modernizing tax systems. As such, we view this initiative not merely as a local solution but as a regional blueprint. Scaling this model is central to HLB's long-term strategy of constructing digital ecosystems that effectively support and empower micro-entrepreneurs throughout the region.

Thank you!