What benefits do customers gain from the banking-insurance ecosystem race?

A new trend is emerging as banks deeply integrate insurance into their digital ecosystems, creating a one-stop shop for all of their customers' financial and protection needs.

The Vietnamese financial market is witnessing a significant shift as many banks are no longer limited to their role as intermediaries in distribution. Instead, they are proactively building integrated banking-investment-insurance ecosystems, aiming to comprehensively serve customer needs and enhance the customer experience.

Overcoming traditional "Bancassurance" stereotypes

The period of rapid growth in life insurance brought with it a number of problems such as a lack of transparency, advice not tailored to needs, and inconsistent experiences, which affected customer trust in bancassurance (insurance distribution through banks).

According to Associate Professor Dr. Nguyen Huu Huan, a senior lecturer at the University of Economics Ho Chi Minh City, a new trend is clearly emerging: large banks are not only collaborating in insurance distribution but also establishing their own insurance companies. This will be an inevitable direction as banks possess superior advantages in brand recognition, digital platforms, and a massive customer base.

Owning an insurance company allows banks to proactively manage products, operations, and distribution, generating new and sustainable revenue streams while reducing reliance on credit. Globally , models like those of Crédit Agricole, BNP Paribas Cardif (France), and Banco Santander (Spain) have proven effective: cross-selling rates triple, operating costs decrease by nearly 30%, and customer relationships are significantly strengthened.

In Vietnam, the collaboration between Techcombank and Techcom Life Insurance Joint Stock Company, announced on November 14th, marks a significant step forward in the trend of integrating "banking and insurance". With its strong technology platform and large user base, Techcombank is transforming insurance from an "add-on" product into a natural part of the customer journey, aiming for comprehensive financial and health protection solutions.

Experience seamless service across a single platform.

Currently, users' financial and insurance journeys are fragmented: a banking app for managing expenses, another app for investing, and a separate portal for tracking insurance policies. This is inconvenient, especially when monitoring policies or making regular premium payments.

The integrated banking-insurance model effectively addresses this issue. With Techcombank and Techcom Life, data and spending behavior are seamlessly connected, enabling the creation of an "all-in-one" customer experience journey.

Techcombank understands its customers' financial habits, while Techcom Life provides customized insurance solutions tailored to each stage of life. Customers can receive advice, purchase, manage policies, and file claims all on a single platform.

Mr. Nguyen Quang Huy, CEO of the Finance and Banking Faculty at Nguyen Trai University, believes that this integration allows for the creation of personalized insurance products in real time, tailored to each customer's financial stage. The entire process, from consultation and purchase decision to contract management and claims processing, is conducted on a single platform. This represents a step forward from "selling insurance through banks" to "selling insurance within banks."

Furthermore, this convergence has paved the way for new products such as "behavioral insurance," "instant insurance," and "microinsurance"—more affordable and accessible. This contributes to expanding national insurance coverage, reducing financial risks for citizens, and easing the burden on the budget during social events.

Younger generations of customers (Gen Y and Gen Z) are familiar with digital banking; they view insurance as an "embedded service" within the financial ecosystem, rather than a standalone product. They prioritize speed, autonomy, and transparency, and are willing to perform all transactions themselves with just a few taps.

Mr. Chung Ba Phuong – General Director of Techcom Life shared: "Techcombank and Techcom Life strictly adhere to legal regulations. All insurance transactions are based on mutual agreement and the genuine needs of customers, aiming for their long-term benefits. Both Techcombank and Techcom Life have established internal monitoring mechanisms and transparent consultation processes, ensuring that all transactions stem from customer needs."

Raising market standards and promoting healthy competition.

The deeper involvement of banks in the insurance market, such as Techcombank, is expected to create a significant impetus for the entire industry. In just a short time, Techcombank and TechcomLife have launched their first products, demonstrating their strategic implementation capabilities and strong potential.

According to Associate Professor Dr. Nguyen Huu Huan, in the initial stages, products offered by banks may not differ significantly. However, the biggest advantage of banks is their complete digital ecosystem – something many traditional insurance companies lack. By understanding customer needs, banks can develop more suitable insurance, investment, and savings packages, enhancing customer experience and improving service quality.

It is clear that the integrated banking-insurance model is a natural development of the modern financial market. The pioneering role of digital banks like Techcombank not only contributes to "raising the standards" of the insurance market, but also brings practical value to customers and helps build a sustainable financial ecosystem for national prosperity and social welfare in Vietnam.

Source: https://nld.com.vn/khach-hang-huong-loi-gi-tu-cuoc-dua-he-sinh-thai-ngan-hang-bao-hiem-196251212085444159.htm