Digital Banking: A Fierce Race to Increase Profits

When digitalization puts profits at stake

In the context of the 4.0 industrial revolution and the increasing trend of digital consumption, the Vietnamese banking industry is witnessing an uncompromising race in applying technology to business operations. At the Sao Khue Awards 2025, many banks were honored for their outstanding digital products. For example, BIDV was honored with 7 outstanding information technology products and solutions; Vietcombank had 5 digital solutions recognized; VietinBank was named with 5 products and services; Agribank appeared with 6 digital services... and a series of other banks such as Eximbank, MB, HDBank all had 1-3 products and services awarded this time.

The recognition from an award more or less shows the strong participation and investment of banks in applying information technology and developing digital products and services to meet modern transaction needs. But what is more noteworthy is that the clear signs in business results have been showing: investing in digital transformation is no longer a technology story, but a driving force for revenue and profit growth. This is also a demonstration of a well-calculated effort, aiming to transform into a comprehensive digital bank.

This also explains why banks are increasingly increasing their spending on technology, with technology budgets accounting for 10-15% of total annual operating expenses.

Banks invest heavily in applying information technology and developing digital products and services. Photo: Duy Minh

At the shareholders' meeting held last week, a representative of PvcomBank's leadership said that in 2024, capital mobilization on the bank's online channel increased by 22% compared to 2023, showing positive signs for the goal of expanding the mobilization channel while creating a premise for the strong development of digital banking services in the future. This impressive result is thanks to PVcomBank's outstanding advantages, especially the well-invested digital platform, contributing to improving user experience and promoting the development of modern financial products.

The financial market is witnessing a clear stratification: banks that have accelerated digitalization are dominating in terms of profits, new user growth, and expanding service ecosystems, while banks that have been slow to invest in technology are starting to face cost pressures and the risk of losing young customers.

The latest figures released by banks show impressive growth in pre-tax profits in the first quarter of 2025, for example: Vietcombank reached 11,000 - 11,300 billion VND, up 3 - 5%; MB's profit increased by 10%, leading thanks to the expansion of its "digital banking" portfolio; VIB's profit increased by 5%, recording a growth rate of digital customers of up to 40%... Some other banks estimated: Techcombank was 8,300 billion VND, up 6%; TPBank was 2,000 billion VND, up 9%. The common point of banks is that profits from digital products and services in the following year are often higher than the previous year.

According to experts in the banking and finance sector, investment in cloud computing platforms, AI-integrated data processing systems and real-time customer experience applications has helped banks optimize operating costs, increase labor productivity and grow service income. Notably, the cost-to-income ratio (CIR) of many banks has tended to decrease in the last 3 quarters thanks to digital transformation. At MB, CIR decreased to 34%, the lowest level ever. At TPBank, investment costs for traditional transactions decreased by more than 40% compared to the same period. All of these factors have contributed to the steady increase in banks' profits every quarter and throughout the year.

Digital Banking: A Race Without a Finish Line

At the 2025 shareholders' meeting of banks that just took place, and certainly for banks that are about to hold it, "digital banking" is one of the topics that is mentioned frequently. Not just a slogan, specific strategies have been outlined in published reports. For example, Techcombank has determined that it will increase investment in digital platforms and AI to "personalize" services for each customer, aiming for a "data-driven" bank. MB announced that it will become the leading digital bank in Vietnam and develop a military financial ecosystem, integrating banking, insurance, and investment on a single application.

Another bank, VIB, emphasized that it will accelerate its "digital first" strategy, aiming for 90% of customers to make digital transactions by 2026. Or ACB aims for 80% of transactions on digital platforms by the end of 2025, while deploying AI chatbots to support customers 24/7. As for BAOVIET Bank, the message sent is to continue promoting the digital transformation strategy, developing digital banking, and increasing online deposits on online channels.

One of the big 4, BIDV, has approved a plan to build a large-scale Data Center in Hoa Lac, hoping to turn the bank into a solid digital platform for the public and private sectors. According to BIDV Chairman Phan Duc Tu, the bank is comprehensively reshaping the bank based on a digital platform. The goal is not only to save costs, but also to improve customer experience, contributing to sustainable growth.

Mr. Vu Van Tien - Vice Chairman, permanent member of the Board of Directors of ABBank at the recent shareholders' meeting also affirmed: ABBank must digitally transform and apply technology to optimize operational efficiency.

Another piece of information that shocked the financial market and may be a source of sadness for many bankers is that at the Vietinbank shareholders' meeting, Chairman of the Board of Directors Tran Minh Binh said that the bank is implementing a strategy to streamline and streamline its system and will be the first bank in the big 4 group to cut its transaction system. "VietinBank plans to cut several hundred transaction points and replace them with digital platforms to better serve customers and enhance their experience. This is a goal that VietinBank is investing heavily in and will see clear results in the near future," Mr. Binh emphasized.

Not digitalizing means falling behind "Digital transformation is no longer a trend, it is a way of survival. Those who are slow will be eliminated from the game" - Mr. Nguyen Dong Lam, Deputy General Director of VIB also sent the bank's message to shareholders.

Digital transformation in the banking sector is no longer a choice but an imperative. Banks that know how to invest, adapt quickly and put customers at the center of the digital journey will be the most resilient and powerful players in this increasingly fierce digital finance race.

Thuy Linh

Source: https://congthuong.vn/ngan-hang-so-duong-dua-khoc-liet-gia-tang-loi-nhuan-384405.html