TPBank CEO Nguyen Hung: Why is the 100,000 VND gift on September 2nd so well received? After all, people's needs are the deciding factor in the success of digital transformation.

At the seminar "Opportunities to rise from digital transformation: Pioneering stories from the VNeID application and the Banking and Finance industry", TPBank CEO Nguyen Hung said that E-Vietnam can absolutely become a reality, not in the distant future. According to him, the success of digital transformation does not lie in technology, but in hitting the real needs of the people.

Mr. Nguyen Hung - General Director of TPBank

In recent days, the gift of 100,000 VND that the Government sent to people via the VNeID application on the occasion of National Day 2/9 has become the most hotly discussed story. This event is not only a social security activity, but also a "push" to bring tens of millions of people into the national digital ecosystem, the first step for a great journey called E-Vietnam.

This is the first time Vietnam has implemented a social security policy on a digital platform on a national scale. Tens of millions of people linked their accounts and received money in just a few minutes, creating a social phenomenon. Many experts compared this to a “stress test” for the national digital infrastructure and the banking system.

That story also reminds us of Estonia – a country with only 1.3 million people. Since 2000, with a GDP per capita of only 3,000 USD, but thanks to the E-Estonia strategy, the number has increased to 30,100 USD in 2023. It raises a big question for us: Can Vietnam do the same? What factors do we have in hand to turn the E-Vietnam aspiration into reality?

At the seminar "Opportunities to rise from digital transformation: Pioneering stories from VNeID application and the Banking and Finance industry", Mr. Nguyen Hung, General Director of TPBank, said that E-Vietnam can completely become a reality, not in the distant future, but in this decade, even though our population is 100 times that of Estonia.

Over the past time, we have witnessed great changes in the country. There were even times when businesses did not change as quickly as the Government in increasingly streamlining the apparatus. The determination to reform of the Party and the Government has created a foundation for the country to make a breakthrough.

A clear proof is VNeID. This is a tool that brings great benefits, when a series of utilities for life, finance and public services are integrated on VNeID, that will be a solid foundation for the successful implementation of E-Vietnam.

He also pointed out that the 100,000 VND event is a clear demonstration of a fundamental principle: digital transformation must come from the real needs of the people. As long as there are specific and practical benefits, people will be willing to experience them, thereby forming digital habits.

Speakers shared at the discussion.

Mr. Nguyen Hung also shared about TPBank's own journey, a typical example of transformation thanks to digitalization.

In 2011, TPBank was one of 9 weak banks that had to restructure. From that position, to be able to rise to the group of 10-12 leading banks today, is a long and very difficult process. "If we only compete in the traditional way with banks that have gone before, we will hardly have a chance, especially when the State limits the expansion of the physical branch network," he said.

Therefore, right from the restructuring, TPBank has identified the only way to expand its customer network without being limited by space and time - the digital channel. That is a strategic direction.

"It can be said that 'necessity is the mother of invention', in challenging circumstances, we chose the right trend", TPBank CEO shared.

The bank also considers data as a key factor. Along with that, artificial intelligence (AI) technology is applied to optimize resources, reduce operating costs and speed up the implementation of products and services. Thanks to that, TPBank has the conditions to focus more on human factors and customer experience.

As a result, up to 98% of transactions at TPBank are currently conducted on digital channels. Mr. Hung said: “Now money transfer only takes a few seconds, so why do customers have to carry cash for transactions? These practical benefits will help digital transformation succeed, and that is also an important premise for implementing E-Vietnam.”

From a bank that had to restructure, TPBank has now become a digital icon in the financial industry. That journey shows that when putting people's needs at the center, digital transformation not only helps a business change its position, but can also open the way for an entire country to move towards a prosperous E-Vietnam.