From strategy to sustainable development action: TPBank achieves many successes.

By integrating ESG principles into every aspect of the bank's operations and using technology as a cutting-edge tool to support and promote sustainable values, TPBank 's distinctive position as a "digital bank for people" has been recognized and honored by numerous prestigious domestic and international organizations for its pioneering role in green and sustainable development in Vietnam.

Sustainable development is no longer just a slogan but has become a guiding principle for the operation of the entire economy . The banking sector, considered the lifeblood of the economy, plays a crucial, even leading, role in the sustainable development of a nation. Accordingly, ESG (Environmental - Social - Governance), an acronym for Environment - Society - Governance, has quickly become one of the most frequently mentioned keywords in the financial sector in recent years. Banks are aware that integrating ESG into their business operations not only helps them have a prosperous future but also ensures environmental friendliness and increases their responsibility to the community and society. Furthermore, as a channel for capital flow in the economy, they also expect to have similar positive impacts on the people and businesses – their customers.

According to statistics from the State Bank of Vietnam, currently 80-90% of banks have applied some or all of the principles of ESG in their operations. Nearly 50% of other banks have established risk management departments for environmentally friendly lending. Some banks have also issued "Green Credit Frameworks" and "Sustainable Loan Frameworks" to provide procedures for the use and management of loan capital for projects in green sectors and those reducing emissions. Many credit institutions have published separate reports on sustainable development. This information shows a strong shift in the thinking and actions of the industry in a short period of time towards seriously practicing ESG. For example, at TPBank , since 2008, when its restructuring began, the bank has focused on a sustainable development strategy and pioneered digitalization to promote and strongly support its path to becoming a modern, state-of-the-art, and people-oriented bank. Mr. Nguyen Hung, General Director of TPBank, stated, "Based on a foundation of understanding and a strategy that prioritizes customers and human resources in all operations, TPBank has created and implemented digital solutions and products to continuously enhance customer experience. With the belief that development always goes hand in hand with human development, the comprehensive implementation of ESG, creating a green and sustainable future, has always been the guiding principle on the journey of TPBank's aspiration to reach greater heights."

In TPBank's recently published sustainability report, the bank's leadership also affirmed: "Increasing value and fulfilling social responsibility, while being environmentally friendly, is always present throughout TPBank's sustainable, equitable, and responsible development orientation in all its strategies and operational plans."

On its path to sustainable development aimed at creating positive value for customers, the community, and itself, TPBank chose to embrace digital transformation early in the Vietnamese market. This early and rapid digitalization has not only brought resounding business success but also made positive contributions to ESG (Economics, Growth, and Growth) in both internal operations within TPBank and in products/services for partners and customers. For many years, over 90% of TPBank's operations have been conducted on digital platforms, and this figure has even reached nearly 100%. This has significantly reduced paperwork, saved energy, and reduced carbon emissions. TPBank reports that from 2022 to the present, digitizing transactions and customer records has reduced paperwork by up to 90%, thereby minimizing environmental emissions and saving resources and energy. Furthermore, thanks to the optimization of its IT system, TPBank has reduced its electricity consumption by 30%. According to TPBank, "digital banking for people" is the aspiration to bring to the market leading products and services with high technological content to serve people, for the development of society, minimizing environmental impact and promoting sustainable development. Over the years, TPBank has been a pioneer in digitalization in Vietnam, with a series of technologies leaving their mark on the market. When mentioning TPBank, users immediately remember it as the first bank to launch LiveBank, integrating the most advanced technologies to meet up to 90% of customers' financial service needs. Features such as ChatPay, VoicePay, PastetoPay… on the TPBank app have also brought a breath of fresh air, changing the way customers communicate with the bank, making it more modern, efficient, and user-friendly. The bank also continuously improves its biometric authentication technology, launching the eCM digital assistant to help customers transact without paperwork.

Ten years ago, customers were required to visit a branch during business hours to open an account, fill out paperwork, and wait to receive their card. However, since the introduction of LiveBank, customers can open accounts online at smart transaction points 24/7 without wasting a single sheet of paper. Following this, TPBank quickly implemented eKYC technology for online customer identification, allowing customers to open accounts entirely online through the TPBank app. While the amount of paperwork reduced per customer may not seem significant, across tens of millions of customers year after year, the difference is substantial. If just the account opening process has reduced so much paperwork, imagine the enormous amount of documents and records that will be reduced when TPBank digitizes nearly 100% of its operations. According to statistics, TPBank saves 4,100 tons of paper annually through the digitization of its processes and transactions. LiveBank 24/7 meets 90% of customer transaction needs, but its operating costs and environmental impact are only 1/10 compared to a branch/transaction office. Automated robots also help to speed up loan approvals, saving time and minimizing procedures for customers.

A series of outstanding digital products and services have been and are being further developed by the bank based on leading technologies such as AI, Big Data, Machine Learning, etc., applying them strongly and widely to all core banking services: payments, credit, deposits… With a diverse ecosystem and connections to many services, the bank provides seamless experiences and significant benefits to users in the digital space. Customers enjoy convenient, fast, and efficient experiences, minimizing time, paperwork, and travel. In the field of risk management, mastering advanced AI models and building its own biometric data warehouse enables TPBank to detect risks early, readily respond to increasingly sophisticated technological fraud schemes in the market, and avoid dependence on any partners. Ms. Phuong Anh (30 years old) shared: "Those of us born in the 90s probably feel the changes most clearly when banks undergo digital transformation. In 2012, when I first opened a debit card, and in 2015 when I first opened a credit card, I remember vividly having to prepare a whole series of paper documents and waiting two weeks to receive the card. Now, I open a TPBank card completely online, without having to go to the bank, without using a single piece of paper, and I can even use the virtual card on the app to pay. Honestly, in the last 2-3 years, I've only had to go to the counter a few times; the rest of the transactions are done through the TPBank app." The rapid expansion of its customer base is one of the strong proofs of the attractiveness of TPBank's digital banking. In 2023, the number of new TPBank customers reached a record high of over 3.5 million, bringing the total number of customers served to over 12 million.

Besides digitalization, TPBank is also continuously promoting ESG through various other activities. Regarding the development of green credit products, TPBank is one of the banks actively supporting renewable energy projects, green agriculture, clean water management, and businesses owned by women. In 2017, TPBank was one of eight banks in the East Asia Pacific region to receive an award from the International Finance Corporation (IFC) in the field of trade finance for smart climate change adaptation projects. In 2019, TPBank signed a long-term contract for a $20 million green credit loan over 3 years from the Global Climate Partnership Fund (GCPF). In September 2023, DFC signed a commitment to provide a $100 million loan to TPBank with a 7-year term. The credit will be directed by the bank to individual customers, micro-enterprises, and small and medium-sized enterprises in Vietnam, including low-income female customers and businesses owned and led by women in Vietnam. TPBank also offers a special preferential credit package with a limit of VND 2,000 billion, prioritizing green development businesses, export businesses, and businesses owned by women from the WSMEs program. As an important part of its sustainable development strategy, TPBank always adheres to business principles in accordance with Vietnamese law, actively contributes to the state budget, and increases its responsibility to the community through charitable activities and support for vulnerable groups in society.

According to the list of the highest-paying private enterprises in 2024 (PRIVATE 100) recently published by CafeF, TPBank is among the Top 10 private banks and Top 15 private enterprises that contributed the most to the state budget in 2023. Specifically, in 2023, the bank contributed VND 2,419 billion to the state budget (including taxes and fees). In risk management, TPBank has implemented a Basel III capital calculation project based on internal rating methods (FIRB & AIRB). The bank has also integrated and developed a methodology for incorporating ESG factors into capital calculation according to IRB.

With strategic and comprehensive steps, TPBank has affirmed its pioneering position in digital transformation and sustainable development. TPBank's image as a "digital bank for the benefit of humanity" is not only unique and outstanding in Vietnam but is also increasingly enhanced regionally with a series of prestigious awards for digital transformation and ESG practices over the years. Recently, at the Global Trade Partner Meeting in Barcelona in early May 2024, IFC honored TPBank as "Best Trade Partner Bank - Gender Finance 2024". At the Sao Khue Awards Ceremony 2024, TPBank also excelled in three areas: Digital Banking, Innovation, and Solutions to Promote Digital Access, thanks to its continuous innovation efforts and practical contributions to the digital lives of millions of Vietnamese customers.

TPBank stated that in the coming years, the bank plans to continue expanding its portfolio of green credit products, increasing investment in renewable energy projects and sustainable agricultural development. Simultaneously, TPBank will continue to enhance its ESG implementation capabilities according to international standards, ensuring that all bank operations comply with sustainable development principles. Furthermore, TPBank intends to strengthen its social responsibility programs, aiming to improve the quality of life for the community and protect the environment, further solidifying its position as a modern bank that constantly innovates and is committed to sustainable values. Source: https://markettimes.vn/tu-chien-strateg-den-hanh-dong-phat-trien-ben-vung-tpbank-gat-hai-nhieu-thanh-cong-67613.html