Techcombank spearheads financial innovation, deepens regional footprint

Vietnam’s leading private lender Techcombank is spearheading financial innovation by fostering strategic partnerships, embracing digital transformation and prioritizing talent acquisition.

This approach is charting its path to success and increasing its influence in the regional and international financial landscape, the bank says in a release.

The release highlights Techcombank’s major role in organizing the Singapore Regional Business Forum (SRBF) on Friday that welcomed more than 500 of the most influential figures from the business and political circles in Vietnam and Singapore.

This year's forum carried special significance as it marked 50 years of bilateral ties and a decade of strategic partnership between the two nations.

Techcombank says it was proud to represent Vietnam’s banking industry and engage the forum’s distinguished audience with its groundbreaking achievements and important mission of leading digital transformation of the local financial sector.

Its sponsorship and presence at the SRBF highlighted the great distance Techcombank has traversed, with the group celebrating its 30th founding anniversary this year, the bank notes.

It also signified an unwavering commitment to revolutionizing the banking landscape. The bank's visionary approach, encapsulated by its "Change banking, change lives" motto, has garnered widespread acclaim from customers and other stakeholders.

Ringing endorsement

Techombank’s approach and achievements found emphatic endorsement from Kok Ping Soon, CEO of the SRBF. “Techcombank's unwavering focus on innovation, technology and diverse financial services offerings align perfectly with the objectives of the forum, namely the fostering of regional collaboration and sustainable growth.

“As a key player in the Southeast Asian financial landscape, Techcombank's continued contributions will undoubtedly benefit Vietnam, Singapore, ASEAN and beyond. This will help us shape the future of banking together and elevate the region's economic prosperity,” Kok said.

Jens Lottner, CEO of Techcombank, also highlighted the significance of the bank’s presence at the forum and its commitment to bolstering the relationship between Vietnam and Singapore.

"Techcombank's participation in the SRBF is a testament to our relentless pursuit of collaboration and sustainable growth, not only within Vietnam but also in the region via cooperation with partners.

"As the foremost Vietnamese bank, we recognize the pivotal role of the Vietnam-Singapore partnership in propelling economic prosperity. We eagerly anticipate engaging with key stakeholders, shaping the future of the financial landscape, and solidifying Techcombank's position as a front runner in the industry," Lottner said.

In addition to providing core banking services, Techcombank has adopted a strategic model of nurturing important ecosystem partnerships, which have helped shape its three-pillar approach, focusing on digitalization, data, and talent.

By embracing international standards and forging connections with leading entities worldwide, the bank has demonstrated its commitment to providing best-in-class services and contributing meaningfully to the global financial ecosystem.

Pioneering moves

An early instance of this strategy was its 2009 alliance with global consulting giant McKinsey & Company - the first such move by any Vietnamese bank.

Other significant recent partnerships include the establishment of an integrated financial services ecosystem with Masan through the launch of the 'all-in-one' WINLife ecosystem, the crafting of a hyper-personalised banking experience through a tie-up with Adobe, and the provision of premier payment solutions for SMEs in collaboration with MISA.

Techcombank has also recorded success in regularly raising capital at international debt markets. In 2022, the bank raised $1 billion through a syndicated loan - at that point the largest-ever medium and long-term transaction for a Vietnamese bank - to support the bank’s ambitious growth and transformation agenda.

The bank further showcased its dedication to enhancing the data and digital expertise of its workforce through strategic collaboration with Amazon Web Services (AWS). This empowered 2,800 employees with advanced Cloud technology training, which led to around 250 distinct AWS certifications.

Such partnerships underscore the role of innovation and collaboration in today's interlinked business world. As Techcombank plans its future, it aspires to lead regional success through close collaboration with trusted partners.

Achievements recognized

Techcombank’s strides in innovation and collaboration have led to its recognition as the fourth highest-ranked Vietnamese company on Forbes's annual list of 2,000 largest companies worldwide in 2023.

With remarkable 2002 figures in revenue, profit, and assets, which reached $1.8 billion, $1.1 billion and $29.7 billion respectively, the bank continues to solidify its position as a leading player in the Vietnamese banking market.

A key driver of success lies in an unwavering focus on digital adoption. By leveraging technology and delivering seamless banking experiences, the bank has attracted a substantial customer base, positioning itself as a pioneer in the digital banking landscape. In Q1/2023 alone, the bank welcomed 424,000 new customers, expanding its overall customer base to an impressive 11.2 million, 68% of them acquired through digital platforms.

Techcombank's commitment to innovation extends beyond Vietnamese borders as its talent acquisition drive demonstrates. For example, the bank was the first in Vietnam to organize overseas talent roadshows in leading global cities like Sydney, London, San Francisco and especially Singapore. Recognizing the exceptional talent pool and thriving business environment in Singapore, Techcombank has strategically designated it as a primary recruitment hub outside of Vietnam.

CEO Lottner emphasized: “By organizing talent roadshows in prominent global cities, Techcombank successfully engaged Vietnamese professionals with unique international experience, solidifying its position as a leader in attracting top-tier talent. This emphasis on Singapore underscores Techcombank's commitment to building a world-class team for driving innovation to deliver outstanding customer experiences and fueling our continued growth.”

Techcombank expects consolidated pre-tax profits of VND22 trillion ($937.6 million) in 2023, down 14% year-on-year.

The bank's credit balance by the end of this year is estimated at VND511.3 trillion ($21.78 billion), which is a growth rate of around 15%, according to documents submitted at its annual general meeting in April. The on-balance sheet bad debt ratio is estimated at less than 1.5%.

Techcombank is listed on the Ho Chi Minh City Stock Exchange (HoSE) as TCB, which closed Friday’s session at VND31,550 ($1.33) per share.