Speaking at the seminar "Growth Opportunities from Digital Transformation: Pioneering Stories from the VNeID Application and the Banking and Finance Industry" on 9/9, TPBank CEO Nguyen Hung shared the bank's journey of transformation over the past decade.

TPBank CEO Nguyen Hung speaking at the seminar "Growth Opportunities from Digital Transformation: Pioneering Stories from the VNeID Application and the Banking and Finance Industry". Photo: TPBank

TPBank CEO Nguyen Hung speaking at the seminar "Growth Opportunities from Digital Transformation: Pioneering Stories from the VNeID Application and the Banking and Finance Industry". Photo: TPBank

Mr. Hung revealed that before becoming one of the leading banks in digitalization, TPBank was once among the weakest. In 2011, the bank ranked last among Vietnamese commercial banks and was subject to mandatory restructuring.

In that context, the leadership chose the only path: developing digital channels – which are not limited by time or space in serving customers.

"If we competed using the traditional model, TPBank would have almost no chance, especially when the State was restricting branch expansion. Necessity is the mother of invention, so we chose the path of digitalization, and that choice aligned with the trend," Mr. Hung explained.

To realize this strategy, TPBank deployed the 24/7 LiveBank automated branch model nationwide, with permission for a pilot program from the State Bank of Vietnam. To date, the bank has approximately 400-500 LiveBank locations, effectively replacing traditional branches, saving costs and providing a convenient customer experience.

TPBank's LiveBank kiosk. Photo: TPBank

TPBank's LiveBank kiosk. Photo: TPBank

As a result, despite having a limited number of physical branches, TPBank has attracted a large customer base. Currently, 98% of customer transactions take place on digital channels, with a customer base of over 14 million, placing TPBank among the banks with the largest customer portfolios in Vietnam.

According to Mr. Hung, this growth stems not only from internal efforts but also from the overall foundation of the banking industry. 86% of adults in Vietnam now have bank accounts, facilitating the rapid spread of digital financial services. Notably, all payment transactions are currently free for citizens.

"In Europe or America, transaction fees are quite high. Few countries offer completely free payment transactions like Vietnam. This is a significant effort by the entire banking industry to maintain a massive payment system, even without direct profit," he emphasized.

The TPBank CEO stated that the reform efforts of the Party and Government have created a foundation for Vietnam to rise and achieve its goal of becoming a digital nation.

To contribute to the nation's common goal, in addition to building a digital bank, TPBank has also integrated the VNeID application and the national population database into its operations. This integration helps achieve high accuracy in eKYC (electronic Know Your Customer), prevents fraud, and promotes cashless payments.

The TPBank representative said VNeID is a clear testament to the practical benefits that digitalization brings to citizens. During the National Day holiday on 2/9, tens of millions of citizens experienced online public services for the first time through this application. TPBank collaborated with the Government, participating in connecting accounts to disburse gifts via bank accounts, and also offered an additional 100,000 VND to customers who successfully linked their social security accounts on VNeID.

"We have no intention of commercializing this program. The bank simply wants to offer a small gift to show appreciation to our customers," Mr. Hung shared.

He believes the large number of participants demonstrates the powerful reach of digital transformation and reflects people's readiness to access digital financial services.

"Ultimately, the real needs of the people are the key factor determining the success of digital transformation. It is the small, practical, everyday benefits that form usage habits, gradually spreading into significant change," the TPBank representative emphasized.

Minh Ngoc