Vietcombank, one of Vietnam’s largest and most recognisable banks, reinforced its leading position in the retail banking sector by recording strong growth in new retail customers, financial performance and profitability in 2019.

It achieved a solid financial performance  as reflected by its double-digit growth in retail revenue. With greater focus on its retail customers, the bank was able to generate more revenue from this segment than other businesses. It was also able to generate sustainable revenue streams with a significant fee income contribution to its total retail revenue. By year end, the bank was able to improve its cost-to-income ratio and exhibit profitability through a higher return on equity compared to its peers.

Vietcombank also enjoyed another year of significant lending growth driven by its credit card business. In 2019, the bank introduced its Visa Signature card in line with the launch of its Vietcombank Priority Banking, which strengthened its engagement with priority customers. The bank enhanced the credit card product with innovative features, such as advanced contactless chip technology and 3D-Secure authentication solution (Visa Secure) for online payment transactions. It also allows cardholders to use the tap and go application in various global public transits. Given the notable results in both card issuance and spending, Vietcombank was able to secure its leading position in the credit card market.

Vietcombank was able to capture more retail customers in 2019, growing both accounts and deposits at double digit rates. At the branch level, the bank improved customer experience by adding net promoter score and the Mystery Shopper project as main key performance indicators at a bank-wide scale and in its e-banking channels. Its VCB-Mobile B@nking was also upgraded with two new interfaces customised for both affluent and mass customers. The bank extended the functionalities of its mobile banking app to 35 main services targeting a wide array of customer needs which boosted online transactions. Vietcombank now leads other banks in terms of peer-to-peer fund transactions with almost half of its retail base now digitally active.

For these successes, Vietcombank was awarded the Best Retail Bank, Best Credit Card Product and Best Mobile Banking App in Vietnam in 2020 by The Asian Banker

What has Vietcombank achieved in your journey to becoming the best retail bank in Vietnam?

Thomas W Tobin (TWT):  In 2019, Vietcombank had quite outstanding results, and the retail bank also had strong results. In terms of balance and revenue, we saw growth in terms of lending of 32%. And in deposits of 13%. Retail revenue was more than VND19,000 billion ($820 million), which was the highest in the market. And we also lead the market in terms of credit, growth and quality of our credit.

We launched our priority banking service for our top tier of customers, which gives a new outstanding service for our priority banking customers. We've already doubled the size of our priority banking customer base to more than 72,000 customers. Our net promoter score for 2019, rose up to 59 points, which is quite good anywhere in any market.

As retail banking evolves and as you go deeper and further into your digitalisation and transformation journey, what are you learning?

TWT:  Our aim is to digitalise the entire bank, and then to accelerate digitalisation of key journeys and processes for our customers. Customers want to use more and more digital tools and services. So, the bank needs to quickly compete and to provide those digital services for our customers. Whatever journey the customer is on, right from going through school, through their career, through their family life and finally into retirement, that we're there with them every step of the way.

What does it mean for your customers and what can they expect from Vietcombank?

TWT: Our customers can expect better, more convenient, safer and cheaper services. They can expect greater personalisation. We also want to continue to be their trusted partner, so that they know that they can rely on Vietcombank to look after them well. They can expect us to be a leader in a cashless society. Vietcombank is working with many partners in government, in hospitals and schools, with merchants with everywhere where you're doing business Vietcombank will be part of the infrastructure and part of the ecosystem.

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