TPBANK: 15 Years of Miraculous Breakthrough

Thời báo Ngân hàng•12/05/2023

After 15 years of remarkable breakthroughs, TPBank continues its pioneering journey to new heights, affirming its leading position in digitalization. From being one of the smallest banks, TPBank now holds a distinct position, ranking among the top in business efficiency and continuously experiencing strong growth to become the number one digital bank in Vietnam.

After 10 years, the owners, who were "outsiders" from the FMCG industry, successfully restructured a struggling bank, transforming TPBank into a shining star in terms of profit and total asset growth, and a prime example of digital banking success.

The Vietnamese banking industry has undergone more than 70 years of formation and development, and today the system comprises over 30 commercial banks. Having experienced many ups and downs, the positions of these banks in the market have become strongly differentiated. Some young banks, thanks to their differentiated business strategies, have risen to the top, establishing their position in the market.

TPBank – one of the youngest banks in the system – is a prime example of a bank that is "small but mighty." Looking at TPBank's current position, few remember that the bank once went through an extremely difficult period when it was among the nine weak credit institutions in 2011. While most banks chose mergers and consolidations, Tienphongbank (TPBank's name at that time) proceeded with self-restructuring and became a prime example of the most successful self-restructuring in the Vietnamese banking system to date. On May 5, 2023, this bank officially celebrated its 15th anniversary with many brilliant successes.

TPBank currently ranks 15th in terms of outstanding loan balances within the banking system. In 2022, pre-tax profit reached over VND 7,800 billion, a 120-fold increase compared to its first year of establishment. For many years, TPBank has consistently been among the Top 10 most profitable private banks.

After 15 years of pioneering the digital journey and 10 years following its restructuring, TPBank has now affirmed its position as the number one digital bank in terms of technical infrastructure and technological human resources, as well as possessing a comprehensive digital ecosystem across all customer communication channels. When discussing digital transformation in the banking industry, TPBank is the first name that comes to mind. This recognition is evidenced by numerous awards and rankings both domestically and internationally, as well as by TPBank's incredibly impressive performance indicators after its restructuring.

Thanks to its pioneering digitalization, TPBank's customer base has grown at a phenomenal pace, especially in 2022 when it attracted an additional 3.7 million customers, bringing the total number of individual customers to 8.5 million. Previously, it took the bank 11 years to acquire its first 3 million customers. Furthermore, another indicator of the effectiveness of LiveBank and the digital banking app is the steadily improving rate of regular customer usage, which has increased 4.5 times in the past 5 years. This leapfrog adoption of technology 7 years ago was a major turning point contributing to TPBank's current success.

Even the most optimistic dreamers could hardly have imagined TPBank's success after 15 years of transformation. From a "small guy" always harboring a "big dream" about digital banking, TPBank is becoming a "big boy" in the banking system. However, in reality, TPBank's only path was to accelerate digitalization to serve millions of customers with a relatively small number of branches. Without leading through digital banking, and consistently pursuing this goal, TPBank would not have been able to reach its current scale and gain the trust of its customers. This is also the basis for TPBank's strong investment in deploying groundbreaking digital banking solutions, tailored to the specific financial needs and habits of each customer. Undeterred by competition and copying, TPBank continuously innovates to serve customers across all communication channels.

In its current digital transformation phase, TPBank's focus on digitizing internal processes, establishing intelligent bots utilizing AI & APIs, ChatGPT, minimizing manual tasks, leveraging the latest technologies, and maximizing the capabilities of its personnel, especially IT staff, is crucial. Increased automation and digitalization, along with building a robust digital capability system, not only enhances TPBank's efficiency in serving customers but also fosters sustainable growth and inspires sustainable transformation within the community.

TPBank has also consistently ranked highly in numerous major domestic and international rankings. For example, thanks to its leading position in many criteria such as capital adequacy ratio, profitability, asset quality, liquidity, etc., TPBank ranked Top 1 among Vietnamese banks included in The Asian Banker's list of the strongest banks in Asia- Pacific in 2022. Furthermore, from 2018 to the present, TPBank has consistently been rated A by the State Bank of Vietnam, the highest rating based on Circular 52/2018/TT-NHNN regulating the ranking of credit institutions and branches of foreign banks. This demonstrates the comprehensive strength of TPBank's governance system.

In his message commemorating the 15th anniversary, Mr. Do Minh Phu, Chairman of TPBank, stated: “At 15 years old, TPBank is ready for the vast opportunities of the digital era. With the new term of the Board of Directors recently elected by the 2023 Annual General Meeting of Shareholders and the Third Strategic Cycle 2023-2028, we will continue to be a passionate and inspiring bank for the digital lives of tens of millions of Vietnamese customers. TPBank will continue to strive to become a strong private financial group, elevating its position domestically and reaching regional prominence. TPBank will forever uphold the spirit of a pioneer, braving the waves and conquering the vast ocean, firmly holding the sea to continue its powerful growth, leaving its mark on the highest peaks.”

Looking ahead, TPBank can confidently assert its experience and capabilities, continuing to create success, leading the way, maintaining its distinctive position, and constantly adapting to the evolving economic landscape. Digital transformation and a customer-centric approach remain key long-term strategies for the bank to continue providing innovative and superior financial solutions compared to the market.

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