Financial group model in banking...

The banking ecosystem is increasingly expanding and diverse.

In recent years, the trend of developing according to the financial-banking group model has become increasingly clear, with many banks constantly expanding their ecosystems to provide comprehensive and closed financial services to customers.

In 2025, VPBank will continue to promote this strategy by announcing plans to establish a life insurance company with a charter capital of VND2,000 billion, and at the same time contribute capital and buy shares in a fund management company. These steps aim to complete the bank's financial ecosystem.

Currently, VPBank's group model includes four main members: parent bank VPBank, consumer finance company FE Credit, VPS securities company and non-life insurance company OPES.

Currently, VPBank's group model includes four main members: parent bank VPBank, consumer finance company FE Credit, VPS securities company and non-life insurance company OPES.

Mr. Bui Hai Quan – Vice Chairman of VPBank’s Board of Directors – emphasized that expanding into life insurance and fund management is part of a long-term development strategy, aiming to build a diverse and modern financial services ecosystem, better meeting the increasing needs of customers.

Similarly, after receiving OceanBank in the form of a compulsory transfer and turning this bank into a subsidiary (MBV), the Military Bank (MB) increased the total number of members in the ecosystem to 9 units.

Of which, there are 3 banks (MB, MB Cambodia, MBV) and 6 member companies operating in many fields such as securities (MBS), investment fund management (MB Capital), insurance (MIC), life insurance (MB Ageas), debt settlement (MBAMC) and consumer finance (MCredit).

Mr. Luu Trung Thai - Chairman of MB Board of Directors - affirmed that MB is one of the leading financial groups, with a comprehensive ecosystem covering many service areas, from traditional banking to investment, insurance, consumer finance and asset management.

In addition, although not publicly oriented towards operating according to the group model, some banks are still quietly expanding their ecosystems, often closely linked with real estate corporations with close relationships.

This year, many banks continue to express their ambitions to expand their operations into new areas: MSB, SeABank, and Sacombank plan to acquire securities companies; and Techcombank announced plans to establish a life insurance company with a minimum capital of VND1,300 billion.

Benefits and challenges

Over the past decades, the growth of Vietnamese banks has relied mainly on traditional commercial banking activities, especially credit. However, as net interest margins (NIMs) become increasingly difficult to improve and competition in the lending segment becomes increasingly fierce, banks are forced to seek new growth drivers.

Investment banking – including asset management, securities, insurance, mergers and acquisitions advisory, and a variety of financial services – is becoming a strategic direction. This also explains why more and more banks are joining the race to transform into multi-industry financial corporations.

In the digital age, building a comprehensive financial ecosystem that integrates many services on the same platform – also known as the “one-stop-shop – multi-utility” model – is becoming a core competitive advantage.

A bank with a poor ecosystem will have difficulty retaining customers. According to Dr. Can Van Luc, Chief Economist of BIDV , this trend has long been present in developed economies and Vietnam cannot stand outside this inevitable flow.

More and more banks are joining the race to transform into multi-industry financial corporations.

With strong support from technology, especially big data and artificial intelligence (AI), the financial group model allows banks to increase their ability to cross-sell products, personalize services to suit each customer, while better controlling risks and diversifying revenue sources.

The integrated ecosystem helps banks provide comprehensive financial solutions – from investment, savings, loans to asset management – ​​thereby optimizing profits, improving customer experience and strengthening competitive position.

The lesson from the insurance product disguised as investment that happened at SCB and some other banks is a serious warning. Without a clear legal corridor between commercial banking and investment banking activities, the risk of disputes arising is very high – even leaving “loopholes” capable of causing widespread crises.

Particularly worrying is the situation of some banks belonging to the ecosystem of real estate corporations, associated with the risk of complex cross-ownership and potential great risks.

Although the Law on Credit Institutions amended in 2024 has tighter regulations to prevent cross-ownership, according to the Governor of the State Bank, if shareholders or related persons intentionally conceal by "standing in their names", it will be very difficult for management agencies to detect and control effectively.

Source: https://baodaknong.vn/mo-hinh-tap-doan-tai-chinh-trong-ngan-hang-thuong-mai-vu-khi-canh-tranh-chua-co-la-chan-phap-ly-252639.html