Many impressive figures on the results of digital transformation of the entire industry were announced at the event Digital Transformation of the Banking Industry in 2023. Governor of the State Bank Nguyen Thi Hong said that currently, many banks have more than 90% of customer transactions conducted on digital channels; many credit institutions have good operating efficiency thanks to active digital transformation, reducing the cost-to-income ratio (CIR) to the threshold of 30%, approaching the ratio that many regional and international banks are striving towards in digital transformation. Notably, about 74.63% of adults now have a bank account, compared to the figure of 68% reported 1 year ago.
Military Commercial Joint Stock Bank (MB) is a typical example of a bank that has successfully transformed digitally, leading the market today. This bank has recorded a transaction rate via digital channels reaching 95% and the transaction scale is among the top in Vietnam.
Behind the impressive numbers of digital transformation of the entire industry in general and MB in particular mentioned above, the process to achieve that result was not easy.
Mr. Pham Nhu Anh - General Director of MB
Mr. Pham Nhu Anh, General Director of MB said: "Digital transformation has become a common trend for all banks as well as other organizations. However, not all units are successful because this requires a huge, systematic and professional investment."
The challenge for organizations that transform digitally very early, such as at MB, is that in the beginning, they have to spend a lot of resources and money without knowing whether the results are as expected or not. MB CEO affirmed: "Digital business is very different, it's not just about spending money to see the results right away. We put money and people into it, but whether the market accepts it or not is another story. Therefore, we can only work hard little by little, mobilize the resources of thousands of people, invest tens of millions of dollars every year for 5 years continuously to get the results like today".
It can be said that MB is one of the banks with the most impressive growth in new customers in the past year thanks to digital transformation. MB surprised everyone by attracting more than 7 million new customers in 2022 alone. Accordingly, this bank has more than 20 million customers, or about 20% of Vietnam's population, with MB accounts.
In addition, digital transformation activities contribute greatly to the bank's business results. In 2022, this bank recorded revenue on digital channels growing twice as fast as in 2021. The application of technology helps MB operate more efficiently, bringing the ratio of operating costs/total income to below 30%, among the lowest in the market.
In 2023, MB continues to set a growth target, bringing the number of customers to about 25-27 million. This figure was approved by the Board of Directors at the recent Annual General Meeting of Shareholders. In 2026, MB is ambitious to reach the milestone of 30 million customers.
Mr. Pham Nhu Anh emphasized that MB's goal is not only to be a digital bank but also to become a digital enterprise by 2026. This is also a big difference for MB in the market. MB's ambition is that 50% of the group's revenue will come from digital channels in the future. The development of digital enterprises will continue to be based on two main platforms: MBBank App (for individual customers) and BIZ MBBank (for corporate customers).
"MB will improve customer experience on 2 platforms, continuously update (upgrade) products. We will also focus more on data-based business, using AI, Big Data to have personalized products for each customer, best serving each specific customer. This will take some time, but if done, it will be very effective," he said.
In addition, in recent times, MB has also strongly deployed the MB SmartBank model (smart automated banking) and has been relatively successful. Currently, MB serves a very large number of customers, up to more than 20 million. Therefore, in addition to improving the experience on digital channels such as App MBBank and BIZ MBBank, it is still necessary to continue developing the transaction network because users will still need direct touch points. However, expanding the network in the traditional way will be very costly and MB has developed the MB SmartBank system to help the bank serve customers more comprehensively.
"The effectiveness of digital transformation has helped MB grow strongly in the past 5 years and continue to grow in the coming time," Mr. Pham Nhu Anh affirmed and was confident about the bank's strategy in the coming years.
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