TPBank CEO: Digital transformation has changed the future of banking

Mr. Nguyen Hung, CEO of TPBank, said that digital transformation has helped TPBank rise from a weak bank to a leading group, contributing to bringing Vietnam to a digital nation.

Speaking at the seminar "Opportunities to rise from digital transformation: Pioneering stories from the VNeID application and the Banking and Finance industry" on September 9, TPBank CEO shared about the bank's transformation journey over the past decade.

Mr. Nguyen Hung, CEO of TPBank, shared at the seminar "Opportunities to grow from digital transformation: Pioneering stories from VNeID application and the Banking and Finance industry". Photo: TPBank

Mr. Nguyen Hung said that before becoming one of the leading banks in digitalization, TPBank was in the weak group. In 2011, the bank was at the bottom of the ranking of Vietnamese commercial banks, subject to mandatory restructuring.

In that context, the board of directors chose the only path: developing digital channels - where there are no limitations in space and time to serve customers.

"If we compete with the traditional model, TPBank has almost no chance, especially when the State restricts branch expansion. In times of difficulty, invention is born, we choose the digital path and that choice is right on trend", Mr. Hung shared.

To realize this strategy, TPBank has deployed the LiveBank 24/7 automatic branch model nationwide, which has been approved for testing by the State Bank. To date, the bank has about 400-500 LiveBank points, effectively replacing traditional branches, both saving costs and bringing a convenient experience to customers.

TPBank's LiveBank counter. Photo: TPBank

Thanks to that, although the number of physical branches is not large, TPBank still attracts a large number of customers. Currently, 98% of customer transactions take place on digital channels, the customer base reaches more than 14 million people, ranking among the banks with the largest customer base in Vietnam.

According to Mr. Hung, this development comes not only from internal efforts but also from the general foundation of the banking industry. Vietnam currently has up to 86% of adults owning a bank account, creating conditions for digital financial services to spread rapidly. In particular, all payment transactions are currently free for people.

"In Europe or the US, transaction fees are quite high, few countries offer free payment transactions like Vietnam. This is a great effort of the entire banking industry to maintain a huge payment system, even though it does not directly benefit", he emphasized.

TPBank CEO commented that the reform determination of the Party and Government has created a foundation for Vietnam to rise up, moving towards the goal of becoming a digital nation.

To contribute to the common goal of the country, in addition to building a digital bank, TPBank also deployed the integration of the VNeID application and the population database into its operations, helping eKYC achieve high accuracy, prevent fraud and promote cashless payments.

A representative of TPBank said that VNeID is a clear demonstration of the practical benefits that digitalization brings to the people. On the occasion of National Day, September 2, tens of millions of citizens experienced online public services for the first time through this application. TPBank accompanied the Government, participating in connecting accounts to pay gifts via bank accounts, and giving an additional 100,000 VND to customers who successfully linked their social security accounts on VNeID.

"We have no intention of doing any business in this program. The bank just wants to send a small gift to thank customers," Mr. Hung shared.

According to him, the large number of participants shows the strong spread of digital transformation, and also reflects people's readiness to access digital financial services.

"After all, the real needs of people are the key factor determining the success of digital transformation. It is the small, practical daily benefits that will create usage habits, then gradually spread into big changes," TPBank representative emphasized.