Techcombank ‘Auto-earning’ feature a social media trend in Vietnam

Less than three months after Techcombank introduced the “Let-your-money-work” Auto-earning feature on its mobile e-banking app, it has gone viral and become a social media trend.

Commenting on the success, the nation’s leading private bank said that a focus on meeting the needs of retail customers has been intrinsic to its growth strategy in recent years.

At the end of Q1/ 2024, the number of the bank's retail customers reached 13.8 million. In 2023, it attracted a record 2.6 million new customers.

The bank also noted that the increase in the number of retail customers has been accompanied by greater engagement with a broader spectrum of its services, from 1-2 earlier to an average of 4-5 at present.

This indicated that the retail customers’ primary banking relationship is with Techombank, a factor fuelling its sustained growth since 2006, according to Nguyen Anh Tuan, chief retail banking group officer.

“As early as 7 a.m., many customers use Techcombank's code to book a taxi or use points to redeem a coffee or buy breakfast. When they need to buy something for lunch, they use Techcombank's card or other payment solutions. In the evening, when they go shopping or engage with friends and relatives, they use Techcombank Rewards points for vouchers at stores, restaurants, and entertainment venues. This warms my heart,” Tuan said.

Techcombank marked itself as a pioneer in the Vietnamese banking industry in September 2016, when it introduced the “Zero Fee - Free E-banking Money-Transfer Policy,” propelling the industry’s digital transformation and championing the adoption of cashless payments.

The Zero Fee policy quickly spread throughout the entire Vietnamese banking market, benefiting customers nationwide.

This year’s Auto-earning feature is another breakthrough offering. With a simple one-time activation, customers’ idle cash in their primary account can earn optimal returns at a highly competitive rate of 3.1% per annum (depending on prevailing policies at the time), while remaining liquid and accessible for transactions when needed. This feature enhances convenience for the customer, automatically earning them profit on their idle cash, all delivered through a seamless digital banking experience, Tuan said.

Both “Zero Fee” and “Auto Earning” features align with the bank’s broader objective of advancing towards a cashless society and revolutionizing digital banking.

Pursuit of this objective has been supported by a substantial investment of $300 million in technology infrastructure from 2016 to 2020 (excluding human resource costs).

Techcombank has allocated a further $500 million for technology investment under its 2021-2025 five-year strategy.

“This money is being used to spearhead new projects and drive digital transformation, enhancing its competitiveness in the market.

"We hope customers always see Techcombank as a trusted companion in every step of their financial lives. With ‘Auto-earning,’ Techcombank's mobile app becomes a financial assistant in their pocket, helping customers multiply their funds effortlessly,” Tuan said.

Thorough preparation

Tuan revealed that prior to the official launch of “Auto Earning” in January 2024, the project team dedicated 18 months to designing, testing and constantly gathering feedback on the new feature.

This enabled the team to make necessary design adjustments and even restructure the customer journey and the feature’s functionality before it was ready for launch, he said.

“If you do something without a specific direction or vision, it will be stressful. But when you have a firm belief that once you roll out the feature, customers will love it and benefit from it, it is no longer a pressure. It becomes motivation,” Tuan said.

He added: “We had to identify which features needed to be improved for ‘Auto earning’ to provide the best convenience and support for our customers. Next, we engaged with customers through various interactive channels to get their feedback and assess their needs while using the application. Based on these insights, the bank continued to make necessary adjustments to ensure the most seamless customer experience possible.”

Tuan said the new feature was a key project prioritized by the board of directors, leading to additional financial and human resources being allocated for research and development.

Tuan emphasized the bank’s customer-centric approach, saying: “At Techcombank, we consistently prioritize meeting the needs of our customers, placing them at the heart of everything we do. With this new feature, customers can enjoy enhanced efficiency in time management and cash flow.

“Techcombank’s exceptional performance can be attributed to our steadfast adherence to the core cultural value of customer being the focus across all business endeavors.”

‘Long-lasting fortune’

The decision to activate Auto-earning during the Tet holiday aimed to usher in “a new year of luck and lasting fortune” for customers, Tuan said, adding: “The numbers speak for themselves. The feature’s unique value proposition has helped it attract nearly 500,000 registered users, helping propel Techcombank back to the top in CASA, with a ratio of 40.5% and a NIM of 4% at the end of Q1/2024. Buoyed by the success of this feature, we aim to attract two million new customers in 2024.”

Tuan, who has been with the bank for more than 18 years, said its ability to change and progress through investment in digitalization and attracting the best talent was key to its success.

He said the bank’s market-leading application of digital technology and data analysis has enabled it to gain deeper insights into customer needs and preferences.

However, technology alone is not enough, Tuan noted.

“Techcombank boasts over 11,000 employees, including Vietnamese and international talent. Our team comprises 18 different nationalities, all united in their commitment to delivering the best experience possible for customers and to fulfilling the bank’s vision of ‘Change banking, Change lives.’

“We hope that as we understand customers better, our solutions, especially unsecured lending solutions based on convenience, speed, timing, and suitability for customers, will be the next products that make a difference, enriching the convenience that we offer.”