From good to excellent - What will lead TPBank to reach new heights?

With the wings of technology and the determination to innovate from its leadership board, TPBank has risen from the smallest bank in the system to become one of the leading financial institutions in Vietnam, ranked as the fourth most valuable private bank brand. TPBank’s achievements in products and services have helped redefine customer experience in the digital age. TPBank is still paving the way as a trendsetter, reaching from being a good bank to an excellent one.

In the book Good to Great - a famous work in the business and leadership world, author Jim Collins points out that the most important aspect for an organization to become excellent compared to others is to determine which area or segment your business can be the best in. The author introduces the concept of the hedgehog and emphasizes on understanding. Understanding the “best in the world” is a rigorous standard. Companies can make breakthroughs, set goals, and strategies based on their understanding of the organization’s core.

In addition, author Jim Collins also outlines 7 issues regarding disciplined culture that creates breakthroughs, including the spirit of thinking and doing; setting and achieving goals; building freedom and responsibility within boundaries; raising standards to new heights; only doing what is appropriate and refusing unnecessary things; selecting opportunities; and courageously redirecting resources into one or a few areas.

For companies that have made breakthroughs, technology is a catalyst. Excellent companies have 20% success due to technology, and 80% is due to the company’s culture. Leading companies pioneer the selective use of new technologies.

In Vietnam, businesses and financial organizations are still on the path to becoming symbols of the economy and contributing to the country’s development. Experiences from excellent companies in the US serve as inspiration for Vietnamese businesses to make remarkable progress.

Many Vietnamese businesses and financial corporations have made their mark in the market. In some organizations, the elements that make an excellent business have appeared and created breakthroughs.

TPBank is an example of a miraculous step forward, becoming one of the leading financial institutions in Vietnam in digital transformation, brand reputation, and market credibility over the past decade.

After participating in the restructuring of TienPhongBank - the predecessor of TPBank, Chairman of the Board of Directors Do Minh Phu and Vice Chairman Do Anh Tu brought a business philosophy that focused on customers and spread the desire to understand each individual customer of the bank. Every product and service is aimed at addressing customer needs and providing convenient and differentiated experiences.

Under the leadership of successful entrepreneurs in the market, TPBank understands what to focus on, prioritizes necessary activities, and knows how to reject inappropriate things. This is also one of the identifying factors of an excellent organization, according to author Jim Collins.

TPBank focuses on core business activities and always clearly defines its development path: sustainability, risk control, and asset quality improvement.

In 2022, while many banks in Vietnam were still implementing Basel II, TPBank had completed the implementation of Basel III and Basel III Reforms by SA. And by May 2023, TPBank continued to implement the Basel III Capital Calculation Project based on internal ratings-based approach (FIRB & AIRB).

TPBank is also a leading institution in applying IFRS 9 for international financial reporting standards, enhancing transparency and information disclosure quality, thereby expanding TPBank’s credibility and image in the international market.

By focusing on customers and combining with strict risk management, TPBank has maintained 10 years of continuous profit growth, with a customer base exceeding 10 million people, along with constantly improving financial health.

2023 is the second consecutive year that TPBank has been ranked by The Banker Asian as the leading institution in Vietnam for strong finance with high scores in components such as debt structure, deposit structure, credit surplus ratio to total deposits, and CAR ratio.

TPBank also elevates its brand with a valuation of $424.88 million, a strength index of 69.37, ranking among the top 4 most valuable private banks in Vietnam.

According to Alex Haigh, Chief Executive Officer - Asia Pacific of Brand Finance: “TPBank’s commitment to innovation is clearly demonstrated through an impressive rating of 9.9/10 in the “Innovation” research attribute. Maintaining a low non-performing loan ratio and implementing effective remedies are key factors.”

According to a Brand Finance representative, TPBank’s strategy of focusing on retail lending products is a key factor contributing to its success, particularly in a market with low penetration rates for retail lending. By addressing the demand for retail lending and implementing reasonable lending procedures through digital transformation, the bank effectively attracts and expands its customer base, particularly among young people. In addition, focusing on innovative financial solutions and partnerships is also a driving force for TPBank’s growth. The bank actively develops and integrates financial services into partner platforms through concepts such as Open Banking and Banking as a Service.

Innovation is an element that TPBank always applies in its business, including risk management and operating procedures. The bank continuously updates and applies the highest international standards for risk control and sustainable development - pioneering in meeting regulatory requirements in its operations and implementation at an advanced level.

From the early days of restructuring, technology was chosen as a competitive advantage. Digitalization is one of the four solutions in the State Bank’s restructuring plan. However, what makes TPBank special is not just the path of digital transformation but the way it is done. TPBank’s products, services, and features are technology solutions that originate from customer needs, making everything simpler, more convenient, and offering a differentiated experience.

TPBank’s prominent technology products have become symbols of digital transformation in the Vietnamese banking industry.

In 2016, TPBank introduced the LiveBank 24/7 automated banking model to serve customers anytime in Vietnam, aiming to transform from traditional branches to an automated transaction system.

The LiveBank 24/7 system was a “blockbuster” in the banking and financial market at that time, as for the first time in Vietnam, users did not need to visit a transaction counter to open an account, deposit cash into their account, register and receive an ATM card, or open a savings account… with an average transaction time of only 5-7 minutes. LiveBank 24/7 operates continuously, 24/7 and 365 days/year, which has brought about significant changes in users’ perception of financial services. This is also one of the turning points in changing people’s habits, shifting from offline to online channels.

LiveBank 24/7 can be said to be the first milestone that affirms TPBank’s pioneering spirit in the technology race. That pioneering spirit is still maintained through TPBank’s innovations and technology improvements in its products and services.

The bank is also continuing to develop a pilot LiveBank 24/7 + integrated with other services such as sending belongings, buying small items, and many amenities.

Recently, TPBank has launched the eCM digital assistant with 3-in-1 authentication at counters. Customers only need to register their profile once at the counter or LiveBank, they can then transact at the counter without having to carry their ID card or sign any documents.

At the Innovation and Creativity Exhibition of Vietnam 2023, TPBank was honored as the only bank to participate in the exhibition and created a considerable attraction at the integrated technology booth of the Ministry of Public Security with the duo of LiveBank 24/7 and eCM “Digital Assistant” - 3-in-1 identification device at counters. These are the first two devices and products of the banking industry system that have the ability to read chip-embedded citizen identification cards (CCCD) and identify customers for use in transactions through a successful connection to the Ministry of Public Security’s database.

LiveBank 24/7 is equipped with NFC technology integrated with a CCCD chip reading stream, and the upgraded NFC module of the eCM 3-in-1 device can scan the CCCD chip to authenticate and register a profile number at TPBank. With nearly 500 modern automatic banks LiveBank 24/7 and many eCM 3-in-1 devices at counters, TPBank will widely deploy this essential feature across its entire digital banking system in the near future. Customers can use their CCCD chip to authenticate and open an account, use financial services when transacting at counters with the eCM 3-in-1 device or at any LiveBank 24/7. An interesting thing is that TPBank customers have not had to carry any documents for a long time and transact very easily with LiveBank 24/7 through biometric authentication, ensuring the highest level of safety and security. Furthermore, gradually shifting traditional transactions to using modern technologies, authenticating with biometrics without needing paper, files, or certificates (paperless), not only increases customer convenience and service quality but also demonstrates TPBank’s commitment to protecting the environment, promoting green growth, and sustainable development.

Last year, TPBank also launched a series of prominent features on the TPBank Mobile app, such as ChatPay - money transfer via messaging interface, VoicePay - money transfer via voice commands, FacePay - face recognition for payments… that users prefer.

In 2020, TPBank was also one of the first banks to complete the account opening process through “electronic customer identification” (eKYC) on the mobile app. Accordingly, customers can verify their identity through video call technology, biometric identification and a series of technologies to check the authenticity of their ID card or citizen ID to open a bank account.

In addition, TPBank has built the TPBank Biz platform to help business customers manage finance and transactions conveniently on digital channels with many services such as online guarantees, electronic documents…

It can be said that the creative steps have brought TPBank’s name to the top of the list of bank brands loved by users, even though they are one of the youngest banks in the system at only 15 years old.

Recently, TPBank impressively won nearly 102,000 votes from the Better Choice Award 2023 Jury and the audience to become the winner of the Better Choice Award 2023 in the Innovative Choice Awards category - Sustainable Brand thanks to Innovation and Creativity.

Every new technology that is implemented by TPBank must meet the conditions of being the most modern, timely, and providing the best solution to the needs of users. This mindset has become the DNA of TPBank, helping the bank confidently navigate the digital transformation journey and lead the way.
TPBank has also been preparing digital banking resources for many years, including both capital and human resources. The Purple Bank is currently building an experienced and in-depth technology workforce, mastering resources and some technologies to participate in the digitization process, deploying according to the Agile, DevOps, and Design Thinking models. Thanks to this, TPBank always has technology autonomy, proactively implementing new projects quickly and effectively.
TPBank’s risk management activities are highly technology-driven. The bank has implemented artificial intelligence (AI) and big data in credit limit approval and loan application review. The pioneering use of technology and risk management has helped TPBank overcome the common difficulties of the market, even at times like the Covid-19 pandemic.

In the message of TPBank’s Chairman on the occasion of its 15th anniversary, Mr. Do Minh Phu shared: “At the age of 15, TPBank is ready for the opportunities of the digital age. TPBank will continue to be a passionate bank and accompany the inspiration for the digital life of tens of millions of Vietnamese customers”.
The captain of TPBank shared that the bank will continue to rise on its path to becoming a strong private financial group, raising its position in the country and region. The bank will always carry the pioneering spirit to brave the waves, traverse the countless seas, and firmly navigate the vast ocean to continue to grow strongly and leave its mark on the highest peaks.

TPBank is continuing to lead the way into the phase of digital innovation and creativity. Mr. Nguyen Hung, CEO of TPBank, has stated: "We are pioneers and undoubtedly the opportunities will be greater, but at the same time, the challenges are not small, including the cost of investing in technology. Therefore, once we have invested, we must lead in technology. We are committed to our goal and constantly improving to find the most effective, optimal digital methods that bring new experiences and elevate the value of our customers who accompany us."

A series of outstanding digital service products are being and continue to be developed by the bank based on top technologies such as AI, big data, machine learning… which are strongly and widely applied to all core banking services: payment, credit, deposit… With a diverse ecosystem connected to many services, the bank brings seamless experiences and benefits for users in the digital space. The connection between TPBank’s digital financial solutions and the comprehensive digital ecosystem in other fields of life provides an excellent experience for customers in the future digital society.