'If we don’t take on hard tasks, who will?': Military Bank exec

Vision towards a digital enterprise

MB began its digital transformation journey in 2017 and has since poured trillions of dong (VND1 trillion = $38.32 million) into the effort, guided by a vision to become a digital enterprise. Investments in cutting-edge technologies have enabled the bank to develop an innovative digital business model, cementing its role as a market leader.

“To transform into a digital enterprise, MB’s workforce must also embrace a digital mindset, apply the business model of a digital company, and build a platform that aggressively scales customer base and revenue on digital channels,” said chairman Luu Trung Thai.

With this approach, MB was among the early movers in Vietnam’s digital banking space, adopting digital platforms six to seven years ago. That early investment is now bearing fruit, as the bank ranks among the country’s leading financial institutions.

Few financial groups in Vietnam can match the breadth of MB’s ecosystem, which spans banking (MB, MBV, and MB Cambodia), life insurance (MB Ageas), non-life insurance (MIC), fund management (MB Capital), debt and asset management (MB AMC), securities (MBS), and consumer finance (Mcredit).

Thai said Resolution 57 on breakthroughs in science, technology, innovation, and national digital transformation, issued by the Politburo - Vietnam's highest decision-making body, serves as the lodestar.

He emphasized that investment in technology, innovation, and digital transformation is not only the responsibility of the state but of all economic sectors.

“As the legal framework continues to evolve to institutionalize this vision, we are seeking shareholder approval for a concrete plan to proactively map out our investment roadmap for technology, including the potential establishment of a technology fund and other development funds tailored to the characteristics of a military-run bank,” the chairman said.

Vice chairman Vu Thanh Trung also stressed that thanks to strong investments in recent years, the bank expects revenue generated from digital channels to account for around 40% of total revenue in 2025, rising to 50% in 2026.

In certain segments such as retail, the target is even more ambitious, with up to 70% of revenue projected to come from digital channels, he said.

However, as more transactions move to digital platforms, cybersecurity has emerged as an increasingly critical concern - one that every financial institution must prioritize.

“With 30 million existing customers, 98.6% of whom are individuals transacting via digital channels, cybersecurity is no longer a matter of choice, but a mandatory requirement,” said Trung.

Prioritizing customer account security, MB has poured substantial resources into cybersecurity, centering efforts around four key pillars.

First, all IT projects must run hand-in-hand with cybersecurity. Starting July 2024, MB’s mobile app includes a feature to detect counterfeit apps. If a device has malicious fake software installed, MB will automatically disconnect it, alerting the customer that their mobile device hosts fraudulent software. To date, MB has blocked 99% of counterfeit apps on the Android platform.

The second pillar is an AI-driven risk monitoring and control system. MB has significantly ramped up investment in this system, especially as the MB app sees up to 20 million daily users.

MB launched its AI-powered transaction monitoring system in 2024. Within the first three weeks, it detected and blocked 2,700 suspicious fraudulent transactions. Since then, the system has been identifying and preventing about 1,000 dubious transactions monthly, involving amounts around VND30 billion ($1.15 million).

“With such a massive volume of data, manual review and post-transaction checks are impossible, as scammers can transfer funds out of customers’ accounts within minutes. The only effective solution is real-time transaction blocking,” Trung noted.

The third pillar, Trung said, is collaboration and information sharing with competent agencies. In July 2024, MB partnered with the Department of Cyber Security and Hi-tech Crime Prevention (A05) under the Ministry of Public Security to share lists of accounts involved in or suspected of fraud.

“Before any transfer is made, if an account is found on the blacklist, we immediately alert the customer and may even suspend transactions for accounts we have identified as fraudulent,” according to the vice chairman.

Suspected fraudulent accounts detected by MB are handed over to the Ministry of Public Security. In return, the ministry provides the bank with a “blacklist” of suspected scam accounts, enabling both parties to cross-check data.

The fourth and most critical pillar of MB’s cybersecurity framework is investment in human capital. The bank actively recruits cybersecurity talent as early as their university years.

If we don’t take on hard tasks, who will?

For MB customers, it’s clear that the bank’s app is more than just a platform for client-bank interaction - it also serves as an ecosystem where MB’s partners can participate, generating revenue for both the bank and its collaborators.

“MB operates with a platform mindset, not just delivering services, but creating experiences, including the generation of livelihoods for our partners,” said Trung.

“Digital transformation isn’t just about IT - it spans multiple domains, including customer experience design, all of which require reskilling. We believe that working in banking doesn’t necessarily require a banking background. What truly matters is the ability to deliver.”

This mindset runs through nearly all of MB’s operations. For example, with credit growth targets of 24% in 2025 and 35% in 2026, CEO Pham Nhu Anh said the bank will allocate 50% of its credit to the retail segment. The remaining 50% will go to businesses, including large corporations, and micro, small and medium-sized enterprises.

The challenge with micro-enterprises lies in their higher risk profile and big costs due to the typically small loan sizes. However, by leveraging its data platform, the bank can identify lower-risk customer segments, helping to manage risk coefficient effectively. This is one of the key outcomes of MB’s digital transformation.

With over 30 million customers, MB now enables clients to apply for loans automatically through its automated lending and disbursement platform.

MB is currently piloting lending models in rural and remote areas to lower borrowing costs for vulnerable populations, in line with directives from the State Bank of Vietnam. The initiative requires robust data and new business models.

“As a digital enterprise, MB must reach vulnerable customers in remote areas, as well as small and micro-sized businesses - key segments targeted by the national financial inclusion strategy,” Anh said.

For social responsibility, the CEO said MB leads the banking sector in green lending, with green loans accounting for about 8% of its total outstanding loan portfolio.

“Green lending is not just about profits, it’s tied to social responsibility - delivering community value, supporting environmental protection, and promoting sustainable development,” the CEO affirmed.

Additionally, the bank allocates a portion of its annual profits to social responsibility initiatives. In 2024, MB contributed nearly VND400 billion ($15.32 million) to social welfare programs, including over VND150 billion ($5.75 million) dedicated to government and Ministry of Defense-led efforts to eliminate temporary and dilapidated housing.

In 2025, the bank will continue with such large-scale housing program. Simultaneously, it will implement the major HiGreen Truong Sa initiative, aiming to plant one million trees in the Truong Sa (Spratly) archipelago.

“MB recognizes this is no easy task given the harsh natural conditions in Truong Sa - intense sun, strong winds, scarce fresh water, and transportation challenges heavily dependent on weather. If we don’t take on the tough tasks, who will? MB is not afraid of challenges,” Anh said.

According to the CEO, it is precisely through hardship that MB grows stronger, with a forged spirit – unafraid to venture far and face challenges, all in service of the nation.

Speaking about the housing, tree-planting, and sustainable finance programs, chairman Thai emphasized that the bank sees these initiatives as crucial responsibilities, reflecting MB’s commitment to its customers, the community, the environment, and the mandate entrusted by the Ministry of National Defense.