Techcombank redefines Vietnam’s banking landscape through digital innovation
In this article (5)
Technological and Commercial Joint Stock Bank (Techcombank) is redefining banking services by using digital corporate identity and setting innovation benchmarks.
The bank ended H1 with 12.2 million customers, adding around 1.4 million new customers during the period, with 45.3% acquired digitally and 43.8% through ecosystem partners.
It set a record for customer acquisition in the first half of the year, with even more than across the whole of 2022.
The number of retail customer transactions through e-banking channels grew to 499.7 million during Q2, up 16.4% quarter on quarter, while total transaction value amounted to about VND2.3 quadrillion, up 6.8% in comparison with the previous quarter.
Techcombank also launched a new merchant proposition, extending integrated and customized digital offerings to Vietnamese households and micro-SMEs.
The bank was one of the first in the market to launch an instant notification application for multi-cashiers and owners. This solution significantly removes transaction bottlenecks and allows businesses to optimize efficiency.
Techcombank’s relentless pursuit of customer-centricity has yielded remarkable results.
Today, more than 90% of the bank’s retail transactions are conducted digitally, marking a 40% surge in new digital customers in 2022.
The remarkable retention rate of 88% further affirms Techcombank’s triumphant adaptation to the digital age.
Techcombank’s unwavering commitment to digitalization extends far beyond the corporate banking sphere. The bank has successfully broadened its reach, providing basic accounts to millions of customers.
In a mere two years, its active digital customer base has skyrocketed from 2 million to nearly 5.3 million, Pranav Seth, chief digital officer of Techcombank, underscored the potential of digitalization to democratize access to banking services, at the Singapore Regional Business Forum (SRBF), held on July 7 in Hanoi.
Seth said that by seamlessly integrating the bank’s digital corporate identity with lending capabilities, they had unlocked unparalleled support for businesses participating in the digital economy.
“This integration has propelled Techcombank to trailblazer status in the digital economy, enabling it to provide critical financial assistance to enterprises navigating this transformative landscape,” he said.
“It set a record for customer acquisition in the first half of the year, with even more than across the whole of 2022.”
As Techcombank continues to leverage digitalization to enhance services and expand its market presence, it stands as an unparalleled exemplar for other banks navigating the treacherous waters of the digital economy.
The bank’s success underscores the transformative potential of digitalization, offering a tantalizing glimpse into the future of banking in an increasingly interconnected and digital world.
During the SRBF, Techcombank unveiled two pivotal partnerships that promise to reshape Vietnam’s banking landscape. The first was a strategic alliance with the esteemed Singapore Business Federation, aimed at fostering cooperation between Vietnamese and Singaporean businesses.
The second was an audacious collaboration with global titans Kyriba, Deloitte Vietnam, and PWC, targeting the pioneering of revolutionary payment and treasury management solutions in Vietnam.
On July 24, Techcombank announced its financial results, which showed steady performance during the second quarter in an environment that remains challenging.
The bank continued to outperform the market in credit and deposit growth, while NPL and CAR stayed at healthy levels.
The result shows increases in CASA balances, and the ratio improved to nearly 35% at the end of the period.
Beyond the normalization of interest rates and aggressive customer acquisition strategies, CASA is expected to further benefit from the targeted propositions that are being developed in corporate as well as retail banking.
Besides, its funding position remained robust, with a regulatory loan-to-deposit ratio of 80.4% on June 30 and a short-term funding to medium- and long-term loan ratio of 31.6%.
Techcombank achieved PBT of VND11.3 trillion and TOI of VND18.6 trillion, broadly stable versus Q1.
Total assets grew 17.4% year on year to VND732.5 trillion in H1.
Questions & Answers
Q.What proportion of Techcombank's new customers were acquired through digital channels and ecosystem partners in the first half of the year?
What proportion of Techcombank's new customers were acquired through digital channels and ecosystem partners in the first half of the year?
During H1, 45.3% of Techcombank's new customers were acquired digitally. An additional 43.8% were brought in through ecosystem partners, contributing to a record customer acquisition for the period.
Q.How much has Techcombank's active digital customer base grown over the past two years?
How much has Techcombank's active digital customer base grown over the past two years?
Techcombank's active digital customer base has expanded significantly, growing from 2 million to nearly 5.3 million in just two years. This highlights the bank's successful digital transformation efforts.
Q.What new partnerships did Techcombank announce during the Singapore Regional Business Forum (SRBF)?
What new partnerships did Techcombank announce during the Singapore Regional Business Forum (SRBF)?
Techcombank unveiled a strategic alliance with the Singapore Business Federation to foster cooperation between businesses. It also announced a collaboration with Kyriba, Deloitte Vietnam, and PWC to pioneer payment and treasury management solutions.
Q.What were Techcombank's financial results for profit before tax (PBT) and total operating income (TOI) in the second quarter?
What were Techcombank's financial results for profit before tax (PBT) and total operating income (TOI) in the second quarter?
Techcombank achieved a PBT of VND11.3 trillion and a TOI of VND18.6 trillion, which remained broadly stable compared to the first quarter. Total assets also grew by 17.4% year-on-year in H1.
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