Over the past five years, TPBank has emerged as a player to note in Vietnam’s fast-evolving banking landscape. Its customer base grew almost five-fold, from three million in 2019 to nearly 14 million by the end of 2024, reflecting a sharp focus on digital-first strategies, enhanced customer engagement and technology-driven solutions.

A core part of TPBank’s growth was its emphasis on social and community banking, where it integrated banking functions into widely used communication platforms such as TikTok, Facebook and the local Zalo. Its Chat Pay feature, which converted informal chat messages into structured fund transfer forms, reflected the bank’s understanding of how customers engaged digitally. “We aimed to build communities where TPBank became the default platform for customers’ daily financial needs,” explained Hoai Nam (James) Tran, head of digital banking.

Alongside its digital initiatives, TPBank prioritised the application of artificial intelligence (AI) to enhance operational efficiency. AI tools were used for automated collections, internal process automation and solutions such as Smart Search and Copilot, which allowed employees to quickly access complex documents and policies.

James discussed TPBank’s innovations, its approach to managing challenges and how the bank balanced customer growth with operational resilience amid evolving regulatory frameworks.

Digital-first approach accelerated customer growth

TPBank’s reputation as one of Vietnam’s most digitalised banks is underpinned by its focus on digital-first customer acquisition. Between 2019 and 2024, the bank grew its customer base from three million to 14 million, adding two million new customers in 2024 alone. This momentum reflected TPBank’s efforts in leveraging technology-driven solutions to expand its reach while maintaining a strategic focus on customer quality.

James highlighted the role of digital acquisition channels in driving growth: “If I have 100 new customers, 75 of them come through digital channels,” he explained. This figure, representing 75% to 80% of new customer onboarding, illustrates the dominance of TPBank’s digital platforms in attracting users. Only 20% to 25% of new customers were acquired through traditional branches or retail banking officers.

TPBank’s focus on digital lending and buy now, pay later (BNPL) and emergency cash loan offerings played a pivotal role in its customer acquisition strategy. The bank tapped into rising demand for short-term credit solutions, particularly among young and digitally savvy users. BNPL products alone contributed to a substantial portion of customer growth from 2023 to 2024, with 2.5 million new customers.

James underscored the bank’s emphasis on integrating digital lending into customers’ everyday lives. “Our BNPL product and digital lending channels account for almost half of our digital acquisitions,” he noted. By embedding these services into its digital platform, TPBank was able to capitalise on the growing trend toward flexible, short-term financing options.

While TPBank continued expanding its customer base, the bank’s strategy shifted towards prioritising quality customers. This included targeting specific segments such as payroll users, micro, small and medium-sized enterprise (MSME) owners and households shop owners, where long-term value and engagement levels were higher.

James explained, “We are more selective now. We still open accounts for mass customers, but within defined parameters to ensure they meet specific quality criteria.” By aligning its acquisition strategy with customer segmentation, TPBank aimed to balance growth with sustainable profitability.

TPBank’s ability to onboard customers seamlessly was enhanced by its electronic know-your-customer (eKYC) framework for individuals, which allowed users to open accounts remotely through the bank’s mobile app, especially with the new integration of Vietnamese National Electronic Identification (VNeID) in October 2024. 

TPBank’s digital-first approach delivered exponential customer growth, particularly through its digital lending and BNPL offerings. By prioritising quality customers and leveraging seamless onboarding processes, the bank attracted large segments of Vietnam’s growing digital banking population. 

Innovations in social banking and embedded finance

TPBank is redefining digital banking by pioneering social banking in the country, offering customers seamless and innovative financial experiences. By integrating banking functions into platforms that customers use daily, not just in separate singular arrangement, TPBank is delivering personalised, accessible and user-friendly solutions.

One of TPBank’s standout offerings has been Chat Pay, a feature that allows customers to seamlessly perform fund transfers directly from chat messages. By copying and pasting payment details from conversations and using generative artificial intelligence (GenAI) and optical character recognition (OCR) technology on popular social messaging apps like Viber, WhatsApp and Zalo, or even giving audio commands, customers can convert free-text information into structured transaction forms in the TPBank mobile app, without using the keypad.

James highlighted the motivation behind the innovation: “We observed how customers were already sending payment requests through messaging apps. Instead of forcing them to switch to a bank app and manually fill in details, we made the experience seamless by enabling copy-paste functionality.”

The feature resonated well with customers, particularly those accustomed to informal payment methods. James described its impact: “This is the way people interact today – social banking mirrors how customers communicate and transact every day, whether they’re buying a product or splitting a bill.”

By enhancing convenience, Chat Pay has driven customer adoption and usage, replacing traditional fund transfers within TPBank’s ecosystem.

In addition to Chat Pay, TPBank expanded its presence on Zalo, Vietnam’s most widely used communication app, by launching a fully functional mini-app. Unlike basic versions offered by competitors, TPBank’s Zalo mini-app enables customers to perform end-to-end banking services, including opening new accounts, applying for credit cards, accessing BNPL options and making fund transfers.

James explained TPBank’s vision for the mini-app: “We aim to build a small, engaged community where TPBank becomes the default financial platform for users, just as WeChat does in China.” By offering embedded finance solutions on platforms customers already use, TPBank reduces friction and deepens customer engagement.

At the heart of TPBank’s social banking strategy is a focus on fostering network effects. By encouraging customers to onboard family members, friends and business partners, TPBank seeks to create small financial ecosystems within its user base.

James elaborated, “We wanted to create communities where using TPBank becomes the natural choice. If I refer my wife or brother, we all benefit from the convenience and connected experience.” 

The bank is also looking to introduce new features such as group deposits, enabling users to pool savings collaboratively. Such offerings mirror concepts like deposit scheme Busposito by WeLab’s Indonesian subsidiary, Bank Saqu, further underscoring the value of network-driven banking models.

TPBank’s initiatives in social banking have delivered results, with features like Chat Pay and the Zalo mini-app, contributing to transaction volumes. By embedding financial services into social platforms, TPBank has started to differentiate itself from competitors that still rely heavily on standalone banking apps.

James positioned the bank’s approach as forward-looking: “We believe social banking is the future. Customers are already interacting on these platforms – it’s natural for us to meet them where they are.”

While other Vietnamese banks have begun exploring embedded finance, TPBank remains among the most active in this space. Its focus on delivering transactional capabilities, rather than basic information services, has set it apart.

TPBank’s leadership in social banking and embedded finance reflects a deep understanding of evolving customer behaviours. Innovations like Chat Pay and the Zalo mini-app demonstrate the bank’s ability to integrate financial services into everyday communication platforms, enhancing convenience and user adoption.

However, challenges remain in expanding these solutions beyond urban centres and ensuring sustained adoption. As Vietnam’s financial sector becomes increasingly competitive, TPBank’s ability to scale its social banking strategy and deepen customer engagement will be critical to maintaining differentiation.

Harnessing AI and GenAI to drive efficiency and personalisation

TPBank has taken a strategic approach to integrating AI and GenAI across its operations, enhancing both internal processes and customer engagement. Recognising the transformative potential of these technologies, TPBank has invested in building internal expertise while selectively leveraging external solutions to drive innovation and efficiency.

A key focus for TPBank has been improving operational efficiency through automation and AI-powered tools. One notable example is the implementation of Smart Search and Co-pilot, a GenAI-based tool that allows staff to quickly access policies, documents and internal processes in natural language.

James explained the benefits of Smart Search: “Instead of manually searching through  SharePoint for specific policies or processes, staff can now input a simple question in plain language and receive a precise, cited answer instantly.” This has significantly reduced time spent navigating complex documents, allowing employees to focus on higher-value tasks.

In addition, TPBank has applied hyper/AI-RPA (robotic process automation) to automate repetitive tasks, such as loan approvals and internal reporting. These AI-driven solutions have enhanced productivity and reduced turnaround times, leading to improved service delivery.

James noted: “We focus on using AI tools to cut short SLAs (service level agreements) and improve internal efficiency. It’s about finding the balance between automation and human oversight.”

TPBank has also integrated AI into its risk management framework, particularly for credit scoring and loan underwriting. AI algorithms analyse customer data to assess risk profiles more accurately, enabling the bank to approve loans faster while maintaining credit quality.

In the area of collections, TPBank has implemented AI-driven automated reminders for its growing BNPL customer base, which now serves one million users annually. This approach ensures timely communication with borrowers while optimising collection processes.

James highlighted its impact: “With millions of BNPL users, we don’t have the resources to manage collections manually. AI helps automate 80% of these processes, making collections more efficient and scalable.”

A critical part of TPBank’s AI strategy has been finding the right balance between building internal capabilities and adopting external technologies. James explained: “It’s always a balance between build and buy. We invest in training our own teams while leveraging open-source models for specific applications.”

He acknowledged the challenges of retaining AI talent in Vietnam’s emerging market: “There’s a lot of competition for AI expertise, but we invest in our staff, sending them for training and experimenting with new technologies in-house.”

James also noted that while GenAI remains a powerful tool, it must be applied thoughtfully to avoid issues like model “hallucinations” or inaccurate outputs. “We start with specific use cases, test results and scale cautiously to ensure reliability.”

TPBank’s adoption of AI and GenAI reflects its strategic approach to enhancing operational efficiency, risk management and customer engagement. Tools like Smart Search, automated collections and AI-driven credit scoring have delivered measurable benefits, while early experiments with GenAI show promise for future applications.

However, challenges remain in scaling these solutions and retaining AI talent in Vietnam’s competitive market. Ensuring rigorous testing and regulatory compliance will be key, as TPBank expands its use of AI to drive further innovation.

Navigating regulatory compliance and system resilience

TPBank’s digital journey has been marked by confronting challenges and opportunities, particularly in navigating regulatory frameworks and ensuring system resilience amid growing customer demands. 

On regulatory compliance, TPBank has been preparing to comply with State Bank of Vietnam (SBV)’s latest requirements to integrate customer biometric information into the national information portal. This applies to fund transfer transactions over VND 10 million ($391.47) per transaction or VND 20 million ($782.93) per day by 1 October 2024, and all customer transactions by 1 January 2025.

James acknowledged the challenge of scaling biometric onboarding: “The timeline is tight, and onboarding biometric data for millions of customers requires significant resources and coordination. But we recognise the importance of meeting this requirement.” While the regulation aims to enhance transparency and security, the timeline and resource implications have placed additional pressure on TPBank and other Vietnamese banks.

James acknowledged the risks of technological upgrades: “It is the reason we have robust risk management framework and business continuity planning in place with the core system upgrade.  If we don’t innovate, we risk being left with legacy systems that can’t scale.”

To strengthen resilience, TPBank prioritised measures such as rigorous system testing prior to major upgrades, enhanced monitoring tools to detect potential failures early, and closer collaboration with technology partners to ensure stability during transitions. These efforts aim to reduce the likelihood of future outages and reinforce customer confidence in TPBank’s digital platforms.

Balancing innovation with operational resilience

Amid TPBank’s innovations in social banking, AI adoption and customer-centric strategies, challenges such as the recent system outage and regulatory demands for biometric onboarding highlight the need for operational resilience alongside innovation.

As TPBank continues to scale, balancing technological advancement with trust and system stability will be essential for maintaining its position in Vietnam’s competitive banking sector. James summarised it best: “Innovation is a necessity, but it must be balanced with trust and accountability.”