CEO Nguyen Hung Reveals TPBank's Secret to 'Understanding Customers'

At the Smart Banking event organized by the State Bank of Vietnam (SBV), TPBank CEO Nguyen Hung shared the bank’s approach to understanding customers, which forms the foundation for creating the most suitable products and delivering the best experiences to customers.

True to its slogan "Because We Understand You," TPBank has its own unique method for understanding customers. This method involves leveraging and utilizing data for analysis and decision-making. The bank has access to a vast resource of data, including customer data, open data, and partner data.

Especially, with the advantage of being an early adopter of digital transformation, the number of transactions on TPBank's digital channels has consistently increased steadily and robustly, surpassing the industry average and continually leading the banking sector.

Transactions on digital channels account for 98% of total transactions, with total transaction value making up 86% of the bank’s overall transactions. This shows that data is a significant strength of TPBank. However, the challenge lies in how to effectively mine and use data to create suitable banking products, which is not an easy task.

Democratizing Data at TPBank

CEO Nguyen Hung shared: “For approval proposals, we don’t ‘guess’ or rely on the subjective will of experts or leaders; we require all departments to make decisions based on data.”

CEO Nguyen Hung shared at the event. (Photo: TPBank)

"Data will tell us about preferences, needs, suitable application methods, and predicted outcomes for the future. Predictions based on data will yield the most accurate results. Therefore, TPBank has democratized data, or in other words, we apply data utilization widely across all departments in the bank."

At TPBank, data mining is not limited to just the Data Center or the IT department. The general rule within the bank is that all proposed work must involve data collection, analysis, and decision-making based on data. This also means that TPBank has invested heavily in technological infrastructure. All departments and units must implement this as a KPI in digital transformation, including business and operational support units.

This democratization of data is being widely applied across the bank to avoid isolated, difficult-to-access, and disconnected data. Data is not only managed by leadership but is accessible for exploitation at any level. "Of course, democratizing data still requires decentralization and classification to ensure security and compliance with legal regulations and the SBV’s guidelines," Mr. Hưng added.

"Data-Driven Decision Making" Brings Remarkable Results for TPBank

After decentralizing decision-making and implementing proper data utilization, TPBank has consistently scored high marks in its customer service journey. As one of the pioneers in offering digital lending, TPBank's products are always a preferred choice for customers because the use of data allows TPBank to offer products that match customers' needs and financial capabilities in the shortest time possible.

Mr. Hung stated that, as of now, approximately 3 million customers are using this service at TPBank, with an exceptionally low non-performing loan (NPL) ratio, achieving high business efficiency. This success is due to the way data helps TPBank understand customers' behaviors, preferences, and repayment abilities. TPBank has developed a reliable credit scoring solution using customer data, open data, and scoring models, making it easier for customers to access loans. Additionally, it takes less than 2-3 minutes to successfully disburse funds to customers.

“Seizing the opportunity to meet the exact needs of customers, while saving costs compared to traditional consumer lending methods, the operation entirely on digital channels helps us achieve better results.”

CEO Nguyen Hung Shares at the Event (Photo: TPBank)

Another example of how TPBank applies data internally is through using AI models to analyze customer behavior at transaction points. The AI predicts customer behavior at these points and calculates the optimal cash reserve level needed to maintain daily operations at 500 LiveBank 24/7 ATMs.

After using AI for analysis and forecasting, TPBank has saved 25% of its cash reserves, improving the efficiency of capital usage for the bank. For a commercial bank, managing cash reserves is crucial, as it involves balancing thousands of billions of dong, not to mention the traditional costs such as dispatching cash transport vehicles and fund staff every day.

Mr. Hưng commented that, in the context where data is considered the new energy and plays a pivotal role in digital transformation, knowing how to leverage and utilize data will bring the best outcomes for a business. TPBank is making significant efforts in this journey. "Our goal at TPBank is to become a data-driven bank, making all decisions based on data to provide personalized experiences and deliver the best experiences tailored to each customer."