Cake by VPBank and the journey of building a digital bank with a focus on inclusive finance.

In a society that is "digitalizing every breath," financial services are constantly evolving to adapt and develop. Accordingly, digital banks are gradually changing how people access and use money, thanks to their mastery of technology, sustainable development orientation, and comprehensive financial strategies.

Digital banking - expanding financial connections.

Nowadays, smartphone-based financial platforms have become almost an independent banking transaction channel, replacing traditional bank counters.

Opening an account takes only a few minutes through electronic identity verification (eKYC), and transactions such as payments, money transfers, savings deposits, and consumer loans are all carried out quickly and securely right on their mobile phones. People not only save time and money but also participate more deeply in the digital economy .

With geographical barriers gradually being removed and transaction costs being minimized across all parties, digital banks have emerged as agents helping to expand financial connectivity.

Cake Digital Bank currently serves 6 million customers, offering a comprehensive range of products online, helping customers access all their financial needs no matter where they are.

Among them, Cake by VPBank , listed in TAB Insights' Top 100 fastest-growing digital banks in the world, is one of the few purely digital banks to record profits after only 3.5 years of operation.

Cake's user base has grown rapidly since its launch in 2021, reaching 5 million in 2024. Each month, Cake processes 700,000 loan and credit card applications, an impressive number compared to traditional banking models.

One of the factors contributing to its impressive growth is Cake's strategic choice: penetrating every small link in the economy – from ride-hailing drivers, small business owners, students, new employees, freelancers, to residents in remote areas. A large proportion of these are people who have never had full access to traditional banking services, or are limited by a lack of credit history.

Cake offers a comprehensive range of products at low cost, including many services that are completely free. Anyone with an internet-connected smartphone and a national ID card can easily access Cake's diverse product ecosystem and distribution channels.

According to statistics, Cake's customer retention rate for basic financial services is 95%.

With its own ecosystem and extensive network of partners providing practical services, Cake is well-positioned to increase customer loyalty. Globally , lessons from successful models show that an ecosystem is a crucial factor.

For example, Seabank Indonesia, a leading digital bank in Indonesia, significantly increased its user base to 10 million customers by the end of fiscal year 2023 through its partnership with e-commerce platform Shopee.

Another example is the Gigacover platform (Singapore), which collaborates with delivery platforms to provide suitable insurance for ride-hailing drivers. Survey results show that 80% of drivers are willing to pay for these insurance products.

Cake also focuses on providing flexible financial services to underserved groups, such as self-employed individuals without credit histories. For example, Cake has implemented a quick loan feature, allowing users to receive disbursements immediately, helping them avoid resorting to predatory lending while improving their financial health.

In addition, Cake strengthens its offline presence by partnering with large physical store networks such as The Gioi Dien May and Dien May Xanh, where customers can easily borrow cash to spend on essential consumer goods, or by establishing an online presence on large-scale user platforms such as Viettel Money, ZaloPay, VNPay, and FPT.

These expansionary steps in multiple directions have helped millions of people gain easier access to traditional financial services, providing them with timely capital to develop small businesses or meet other essential needs such as investment or insurance.

Mr. Truong Hong Hoang, Director of Business Development for the Service Sector at The Gioi Dien Dong (Mobile World), and Mr. Nguyen Huu Quang, CEO of Cake Digital Bank, announced the launch of the MWG Paylater postpaid service.

Digital banks like Cake play a crucial role in perfecting the cashless payment process – which has been promoted by regulators for the past six years – enhancing inclusive financial access and contributing to building a sustainable digital economy.

Targeting vulnerable groups is one of the highlights of the National Financial Inclusion Strategy. Accordingly, people have the right to access basic financial services and "no one is left behind".

Financial inclusion has four key pillars: the legal framework, innovation in financial service delivery models, financial literacy education, and the application of digital technology.

Opportunities remain wide open for purely digital banks thanks to their advantages of low operating costs and flexible accessibility. They are also a suitable tool for bridging the financial access gap in Vietnam.

The global reality shows that many digital banks are serving millions, even tens of millions, of low-income or first-time banking users, with promising results.

Mastering technology, driving innovation.

To develop a sustainable, purely digital banking model, a prerequisite is understanding and mastering technology. Technology will help analyze user behavior to offer more suitable, highly personalized products and respond promptly to even the smallest changes in consumer behavior.

Cake chose a challenging path: developing its own technology, rather than relying on international platforms.

Currently, Cake has mastered various technologies such as eKYC, open banking (which allows for the integration of additional financial services from other providers), cloud-based core-card (which optimizes costs, offers flexible customization, and quickly responds to customer needs), and the application of artificial intelligence (AI) throughout its entire operational process (from registration and approval to service delivery).

In the context of AI being a growth driver in many industries, Cake aims to become the "Next Gen AI Bank," focusing on three criteria: security, simplicity, and intelligence. By mid-2025, Cake will possess an AI ecosystem with hundreds of distinct models, notably having successfully developed the first Vietnamese Large Language Model (LLM) for a bank.

Cake's dynamic and creative Vietnamese workforce is one of its strengths, enabling it to master advanced new technologies.

Beyond applying technology to product innovation, security is also a top priority for Cake. In addition to achieving many of the highest and latest international security standards, Cake proactively uses machine learning algorithms to scan transactions and detect unusual behavior, protecting customers from fraud risks without disrupting their experience.

According to Mr. Nguyen Huu Quang, CEO of Cake by VPBank, digital banks need to focus on applying advanced technology to create flexible and accessible financial products, especially for customer groups not yet served by traditional banking services.

These strategies not only help digital banks build trust with users, but also drive the growth of the banking industry across the region.

At the end of 2024, the Politburo issued Resolution 57 on breakthroughs in the development of science, technology, innovation, and digital transformation, opening up a space for digital transformation and innovation, and encouraging Fintech companies and purely digital banks to boldly expand.

But the key to implementing Resolution 57 lies in mastering technology; otherwise, digital banks will merely be a digital shell for the old model.

The positive aspect currently is that, with the rapid changes in technology and efforts to access and apply new technological advancements, digital banks in Vietnam are approaching the region in terms of technology and are not lagging behind in terms of system development capabilities.

According to experts, the current competition is not only between banks, but also involves Fintech and Bigtech. However, the opportunities are still immense, as millions of people in Vietnam still lack full access to financial services. Technology will be a key factor to continue exploiting to meet this unmet need.

Expectations are placed on digitally-driven banks like Cake, with their ability to continuously innovate and launch products and services based on new technologies. This allows them to flexibly respond to rapidly changing market conditions and make services more accessible to users.

Overall, the purely digital banking model is becoming a crucial driver in expanding connectivity and realizing the national goal of inclusive finance, as well as promoting scientific progress and innovation.

By mastering technology and pursuing a sustainable development strategy, Cake has affirmed its pioneering role, contributing to the realization of inclusive finance goals within Vietnam's digital economic development landscape.

Source: https://baodautu.vn/cake-by-vpbank-va-hanh-trinh-xay-dung-ngan-hang-so-theo-dinh-huong-tai-chinh-toan-dien-d327919.html