A journey of dramatic transformation.
Tracing back through history, Techcombank , a private joint-stock bank established in September 1993, began to attract attention in the late 2000s with its new developments. In 2008, Mr. Ho Hung Anh became the bank's 5th Chairman of the Board of Directors, and from then on, Techcombank implemented an impressive transformation roadmap.
In 2009, Techcombank became the pioneering bank in Vietnam to invest a large budget to invite McKinsey – a leading global strategic consulting firm – to collaborate in building a professional and effective business strategy and corporate culture according to world standards.
In 2018, Techcombank made a significant mark in the Vietnamese banking system by successfully selling 164.1 million shares to foreign investors at a price of VND 128,000 per share, raising approximately US$922 million. According to Ernst & Young, Techcombank's IPO was considered one of the three largest IPOs in Southeast Asia at that time.
This IPO attracted participation from over 150 investment funds worldwide. Among them, two independent investors managed by Warburg Pincus – a leading global private equity fund management company specializing in long-term growth potential – injected over $370 million, equivalent to approximately VND 8,400 billion, into Techcombank.
Explaining this massive investment in Techcombank at the time, a representative from Warburg Pincus stated: “Techcombank possesses all the best conditions with a leading position in the retail banking sector… and will continue to strengthen its leading position in Vietnam to become one of the leading banks in Southeast Asia.” Along with this, Warburg Pincus also appointed personnel to the Board of Directors. Since March 2019, Mr. Saurabh Narayan Agarwal, CEO of Warburg Pincus LLC, has been a member of Techcombank's Board of Directors.
10 years without paying dividends to focus on investing in the platform.
To date, Techcombank remains a top name among banks in terms of digital transformation. World-class partnerships have enabled Techcombank to possess superior technology, top-tier human resources, and build a highly specialized team within its system. The bank focuses on investing in market research and understanding its customers to develop solutions – and package solutions – tailored to each segment and customer group.
In mid-2016, Techcombank made a strong impression by announcing its Zero Fee policy – completely free online electronic money transfer transactions. From a market perspective, many questioned, "How long can Techcombank persevere?", because at that time, revenue from transfer fees was considered a "golden goose" for banks.
However, Techcombank has remained steadfast in its success and delivered significant benefits to its customers. The number of Techcombank's EBanking transactions increased from 9.0 million in 2016 to 22.2 million at the end of 2017. By 2023, in the second quarter alone, the number of transactions by individual customers through electronic banking channels had increased to 499.7 million, while the total transaction value reached 2.3 trillion VND.
It is clear that Zero Fee and, now, Techcombank's Cloud-first policy have contributed to a larger transformation: changing the way the banking industry operates. Following a $300 million investment in technology systems from 2016-2020 (excluding personnel costs), Techcombank is now continuing to invest over $500 million in its 5-year strategy from 2021-2025, aiming to pioneer large-scale digital transformation projects to build new competitive capabilities.
According to the bank's management, the decision to not pay cash dividends for 10 years, implemented since 2013, has helped the bank accumulate a solid financial foundation to invest in technology infrastructure, serving the interests of its capital customers and supplementing resources for long-term investment plans. As a result, Techcombank continues to hold a leading position in terms of investment in technology infrastructure, even at a level comparable to or higher than most other banks in Southeast Asia.
Another reason is to ensure the bank's management maintains a growth rate of approximately 10-20%. According to Basel 2 standards, to be able to invest in additional loan portfolios, a bank must have a high level of equity capital, which acts as a buffer against risk, helps build credibility in the market, increases the ability to raise capital and expand credit, and diversifies its loan portfolio. As of the end of 2022, Techcombank ranked second in the entire system in terms of equity capital, with VND 113,424 billion. Furthermore, Techcombank has consistently maintained a capital adequacy ratio (CAR) above 15% for many years.
At the Techcombank Shareholders' Meeting 2023, Chairman of the Board of Directors Ho Hung Anh revealed that "this may be the last year Techcombank does not pay cash dividends."
“I remember at the 2013 Shareholders' Meeting, I said that for the next 10 years, the bank would not pay cash dividends. This year marks the 10th year, and I believe this will be the last year Techcombank does not pay cash dividends. Anything can happen, but the bank will always ensure the interests of shareholders, while also ensuring the bank's operations,” said the Chairman of Techcombank.
The journey of creating heritage.
Thanks to its consistent implementation of the "Customer-centric" strategy, Techcombank marked the first six months of 2023 with a total of 12.2 million customers, including approximately 1.4 million new customers, with 45.3% joining through digital channels and 43.8% through partners within its ecosystem. Superior customer experiences and trust helped the bank's key indicator, current account deposits (CASA), to rebound, reaching nearly 35% growth by the end of Q2 2023.
In 2023, Techcombank was also the only private bank to be included in Brand Finance's ranking of the Top 163 most valuable banking brands globally. Techcombank was also the "Most Valuable Private Banking Brand," ranked in the Top 8 "Most Valuable Brands in Vietnam," and in the Top 18 "Most Valuable Banking Brands in Southeast Asia." According to Brand Finance, Techcombank was the fastest-growing banking brand in Vietnam in 2023, achieving a brand value growth rate of 47%, reaching US$1.4 billion.
At the recent Annual General Meeting of Shareholders, Techcombank Chairman Ho Hung Anh shared: "I have always believed that Techcombank's future value will be 5 to 10 times its current value."
Over the past period, Techcombank has partnered with Hanoi and Ho Chi Minh City to create leading marathon events with the message "Running for a superior Vietnam." In 2022 alone, Techcombank contributed nearly VND 80 billion (approximately USD 3.4 million) to community activities, including supporting disadvantaged ethnic minority communities and sponsoring tuition fees for students. "Techcombank will join hands with the community and the country to create a meaningful legacy for future generations," added Ms. Thai Minh Diem Tu, Marketing Director.
Doan Phong
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