Digital Transformation: Strategies for Success

Sharing with Banking Times, Mr. Nguyen Hung, General Director of TPBank emphasized: Digital transformation for us is no longer a choice but a strategy for success.

What is your view on the digital transformation landscape in the banking industry over the past time and the industry's contributions to the trend of the digital economy in general?

Digital transformation in the banking industry is being done quite well and on schedule. Banking is considered as a leading industry in digital transformation compared to other industries.

As the lifeblood of the economy, the banking industry has contributed significantly to promoting the development of the digital economy by providing quick and convenient transaction solutions for businesses and people. At the same time, promote and actively contribute to the Project on development of non-cash payment (CTM) in the period of 2021 - 2025.

With products and services that are constantly being updated with superiority, the banking industry has contributed to a rapid increase in the rate of CTM. The rate of transactions and the proportion of transactions on digital channels increased significantly. In particular, the successful application of eKYC technology has contributed to the universalization of finance, making it easier for people to access and use bank accounts.

Specifically, at TPBank:

Do you have suggestions and recommendations for the process of digital transformation of the banking industry in the coming time?

In order to create a favorable environment for the digital transformation process in the coming time, we have three main recommendations as follows: Accelerate the digitization of population data to help credit institutions easily manage and verify information of client; To soon complete and promulgate the User Protection law to manage and protect user information; Promulgating laws related to electronic signatures and entering into electronic contracts.

In the industry's digital transformation efforts in general, TPBank has made great impressions. Can you cite evidence to confirm this leadership position?

In terms of scale, we currently have about 80% of customers using TPBank's digital banking services (about 6.5 million out of 8 million individual customers using Mobile App applications and performing banking transactions). transactions on the web / automatic transaction channels TPBank LiveBank 24/7).

TPBank's digital services not only meet almost 100% of financial needs, but we have also built a comprehensive digital ecosystem to meet almost all payment needs in all areas of life. client. Specifically, on the App of TPBank Mobile, it has connected with more than 50 different partners and provided more than 2,000 payment services from public services, entertainment, tourism, shopping, health care, transportation, real estate, etc. real estate, service bills…

  Regarding the payment ecosystem, we provide a full range of POS, SmartPOS, QR Code solutions and are providing a network of up to millions of units. In addition, TPBank is also a leading bank in packaging financial solutions and embedding them into partner platforms (Open Banking/Banking as a Service) so that customers can instantly perform financial transactions on the Internet. e-commerce applications, fintechs, e-wallets… Specifically, TPBank is the first unit to deploy the BNPL- buy now pay later product with the largest e-commerce platform in Vietnam. and regions – Shopee, or the electronic wallet with the largest market share in Vietnam, is Momo. In 2022 alone, more than 1 million customers use this service to shop. TPBank is also the bank with the largest share of wallet connection service coverage in Vietnam, having connected with 12 e-wallets and accounting for more than 90% of e-wallet service users in Vietnam.

In addition to the coverage of 100 transaction offices, TPBank also develops a network of 24/7 automatic transaction offices TPBank LiveBank with 450 points nationwide, covering more than 40 provinces and cities, always open 24/7 and 365 days a year. . Customers can always easily perform banking transactions without even carrying cards or identification documents, 100% using face/fingerprint for transactions.

  This is also a great competitive advantage of TPBank in the transformation and development of digital services. Currently, TPBank has almost completed the digital transformation roadmap with most of its core products and services as well as operations have been digitized and has entered the Digital Innovation phase: Developing services. 100% products on digital channels with completely new and breakthrough business models to provide to the market. The effects of this digital revolution have also helped us to be recognized as one of the leading banks in the field of digital banking recognized not only by domestic regulatory agencies and organizations but also by domestic and foreign organizations. evaluation by famous units in the world.

  With customer-centricity and expectations, customers' needs are changing rapidly in this 4.0 era, participating in the digital transformation race for us is no longer a choice but an option. strategy to succeed, when designing new, faster, more convenient and personalized experiences through the application of the fruits of technology.

Can you share about TPBank's upcoming orientation and strategy?

  We will definitely continue to invest in this area, to further improve our digital banking ecosystem, to provide customers with the highest quality products, thereby accelerating the transformation. traditional transactions on digital channels. In just 3 years since the pandemic, we have moved 95% of our transactions to digital. Both the number of transactions and the transaction value have also increased by 8-10 times in just these 3 years, demonstrating TPBank's strong push in the transition process and also contributing to the promotion of digital finance of the company. nation.

  In order to continue to popularize digital payment solutions, TPBank is in the process of promoting the attraction of customers to open accounts and access the Bank's services such as payment/money transfer/using payment cards. through digital channels. Currently, 80% of our new customers have opened accounts through digital channels.

One of the Bank's upcoming strategies and also in line with the Government's orientation (Project 06) is that TPBank will be one of the first banks to link up with a centralized database on population for application. in a series of solutions for customer identification and authentication (such as eKYC, customer identification at Automated transaction machines, at counters), thereby shortening customer authentication time while ensuring ensure the security of the system. We also hope that in the future, 100% of customers can use their chip-mounted CCCD to transact/withdraw/pay for services without needing to carry a bank card.

  Investing in new technologies while ensuring applicability is also extremely urgent. Biometric, AI, ML, Big Data solutions are carefully selected by the Bank to serve in all activities from product design, customer care, risk management, as well as internal operations. . With the goal of providing the best customer experience and also optimizing operating costs, thereby contributing to the Bank's sustainable development, especially in the current period.

  Our solutions also have the goal of replicating TPBank's customer base, thereby also contributing to the projects of the Government and the State Bank (CTM and Financial Universalization) to reach the target of 100% of people by 2030. Vietnamese people will use banking services and 90% will use digital banking services.

How has TPBank resolved difficulties and challenges in ensuring safety and security (including service providers and service users) in the digital environment?

In order to ensure safety and security in the digital environment, we have combined measures both internally and externally, specifically:

Internally, we build a dedicated department in the information technology sector to prevent, monitor and handle incidents. Along with that, we also regularly create hypothetical situations to test the system as well as increase the ability to respond when incidents occur.

Along with that, we also constantly upgrade the system, update new technologies and tools in the world.

In addition, we also cooperate with partners, consulting through 3rd parties (such as FPT, Viettel) to prevent and prevent risks to find vulnerabilities, if any, periodically.

Thank you Sir.