The strategy creates "acceleration" performances of TPBank

The strategy of focusing on individual customers and business households has long positioned TPBank in the leading group in creating retail banking trends in Vietnam. The superiority and trendyness of products backed by state-of-the-art digital banking technology that is "ahead and fast" also helps TPBank become the main transaction bank for many customers.

Speaking to shareholders at this year's annual meeting, Mr. Do Minh Phu, Chairman of the Board of Directors of Tien Phong Bank (TPBank) affirmed that this bank has gone through a business year of 2023 overcoming "headwinds" and persevering. moving forward and recording many growth milestones. One of last year's impressive achievements was the development of the retail segment.

By 2023, the number of TPBank's customers will increase to a record level of over 3.5 million, bringing the total number of customers served to exceed 12 million customers. In just three years, the bank has attracted more than 8.6 million new customers, double the total number of customers in the previous 12 years.

Focusing on individual customers and business households with high average income has made TPBank a leading bank in creating retail banking trends in Vietnam. But it doesn't stop there, TPBank's way of repositioning the market is also supported by the advantage of the digital banking technology strategy of "going first and going fast", technology, not any other strategy, helps TPBank " "take the spotlight" when customers choose the main bank to transact.

According to a recent study called "Byte-Sized Banking" (When the banking industry is measured in Byte units, jointly conducted by Economist Impact Research and Temenos), 75% of survey participants believe that technology and AI will has a major impact on the banking sector, and more than 70% believe that harnessing the potential of AI is a core factor that will help banks make an important difference in the future.

"Vietnam is in a favorable position to seize opportunities, leveraging AI to improve the payment experience for both consumers and businesses," Temenos said.

This is also what TPBank aims for. Artificial intelligence AI, Big Data, biometric technology are applied right in the simplest tasks, making two-way interaction of customers with the bank through digital banking products simple. and lean.

According to Temenos, banks and financial institutions can reshape the competitive market in the financial services industry by using new technologies, such as AI, Big Data to attract and strengthen connections with customers. products and optimize operational efficiency.

This strategy is not only applied to customers but is a comprehensive technology strategy applied to infrastructure, solutions, technology, and internal operating processes. More than 90% of TPBank's activities are digitized, ensuring there are no hard copies of records, papers, etc. in business processes. This allows all processes and procedures to proceed much faster, more securely, and ensures data integrity. The results of this strategy have been saving 40% of operating costs and 60% of average transaction time at the customer's counter.

The advantage of the technology platform also helps the bank quickly convince business customers with comprehensive and synchronous digital financial solutions.

"That is also one of the key factors for TPBank to promote loans for SME businesses, creating a positive driving force in the bank's credit growth," said a bank representative.

Digitizing the automatic credit limit process based on data analysis to disburse funds to customers has saved time and created convenience, business customers can track transactions over time. real and done in large quantities.

Thanks to "thoroughly completed KPIs", by the end of 2023, TPBank's total assets increased to more than 350,000 billion VND, exceeding the yearly plan, an increase of 9% compared to 2022. Customer loans exceeded the mark of 200,000 billion VND, increasing 27%.

Customer growth stories also help TPBank achieve impressive growth milestones. The rate of demand deposits (CASA) increased by 34%, exceeding VND 47,000 billion, contributing to the 7% growth in deposits of individuals and organizations. This is both a basis for the bank to save capital costs and a demonstration of its ability to ensure continuous and smooth transactions, according to the bank's representative.

TPBank also continues to demonstrate its sustainable financial foundation, maintaining the top position in Vietnam for the second consecutive year in The Asian Banker's list of "Strongest Banks in Asia Pacific". The basis of this position is a strict and comprehensive risk management system, improving business efficiency. TPBank completed the implementation of Basel III and Basel III Reforms according to SA very early. By May 2023, TPBank continued to implement the capital calculation project according to Basel III based on internal ranking methods (FIRB & AIRB). Leading in applying IFRS 9 on international financial reporting standards, enhancing transparency and information disclosure quality. TPBank's CAR ratio is always above 12%, much higher than Basel III's minimum requirement of 10.5%, among the highest in the industry.

This year, TPBank sets a separate pre-tax profit target of VND 7,500 billion, an increase of 34% compared to the previous year. To achieve the above goal, total assets are expected to increase by 9.36% to 390,000 billion VND. Outstanding loans increased by 15.75% to VND 251,821 billion.

Before the Congress, experts from KB Vietnam Securities Company commented that with efforts to promote bad debt handling in 2023, TPBank will significantly reduce the pressure on provisioning in 2024, this is the basis to determine business goals and sustainable development. In 2024, TPBank aims to control bad debt below 2.5%.