TPBank General Director reveals the secret to "understanding customers"

At the Smart Banking event organized by the State Bank, TPBank's General Director Nguyen Hung shared the secret to help TPBank understand customers, the premise for creating the most suitable products, bringing the best experience to customers. True to the slogan "Because we understand you", the purple bank really has its own way to understand customers. That is exploiting and using data to analyze and make decisions. The bank has a huge source of data resources such as customer data, data from open data sources, data from partners. Especially with the advantage of being a bank that transformed digitally very early, the number of TPBank transactions on digital channels has always increased steadily and strongly, exceeding the average standard and continuously leading the banking industry. Transaction output on digital channels accounts for 98% of the total bank, the total transaction value accounts for 86% of the total bank. This shows that data is TPBank's strength. But how to exploit, use data, and create suitable banking products is not easy to do. TPBank democratizes data General Director Nguyen Hung shared: “For proposals for approval, we do not “prescribe medicine”, do not rely on the subjective will of experts and leaders, but we require departments to make decisions based on data. Data will tell us about preferences, needs, appropriate application options and expected results in the future. Predicting on data will bring the most accurate results. Therefore, TPBank democratizes data, or in other words, we widely apply data mining to all departments in the bank”.

TPBank General Director shared

At TPBank, data exploitation is not only limited to the Data Center or the Information Technology department. According to the general convention in banking, all proposed work must have data collection, analysis, and decision-making based on data. This also means that TPBank must invest heavily in technical technology infrastructure. All departments and units must do this as a KPI in digital innovation, including business or operational support departments. This data democratization is being widely applied throughout the bank, avoiding localized data that is difficult to exploit and connect. Data can be exploited not only by management but also at any level. "Of course, democratization must be done but there must still be decentralization to ensure security and compliance with the provisions of the law and the State Bank of Vietnam," Mr. Hung added. "Data-based decision making" brings outstanding results to TPBank

After decentralizing and properly exploiting data, TPBank has continuously scored points in its journey of serving customers. As one of the pioneering banks in lending on digital channels, TPBank's products are always the priority choice of customers because data has helped TPBank launch products that suit the needs and financial capabilities of customers in the shortest time. Mr. Hung said that up to now, there are about 3 million customers using this service of TPBank but the bad debt rate is extremely low, achieving high business efficiency. Because data has helped TPBank understand customers' behavior, preferences and ability to pay for products. TPBank has researched and applied credit scoring solutions with customer data warehouses, open data and reliable scoring models to support and facilitate customers' access to loans, while it only takes less than 2-3 minutes to successfully disburse to customers. “Seizing the opportunity to meet customers' needs, while at the same time saving more costs than traditional consumer lending methods, operating entirely on digital channels helps us gain higher efficiency.”

Another example of applying data internally, TPBank uses an AI model to analyze customers at transaction points, predict customer behavior at transaction points, and calculate the appropriate level of cash balance to maintain daily at 500 LiveBank 24/7 automatic banking points. After using AI analysis and prediction, TPBank saved 25% of cash balance, increasing the efficiency of capital use for the bank. Because for a commercial bank, the amount of cash balance is equivalent to thousands of billions of VND that need to be balanced, not to mention traditional costs such as mobilizing cash vehicles and cash staff every day. Mr. Hung commented that in the context that data is considered a new source of energy and determines many things in the digital transformation game, knowing how to exploit and use data will bring the best results for a business. And TPBank is making great efforts on this journey. “We, TPBank, aim to become a data-driven bank, making all decisions based on data, serving personalized experiences, bringing the best experiences suitable for each customer”. Source: https://daibieunhandan.vn/tong-giam-doc-tpbank-he-lo-bi-quyet-thau-hieu-khach-hang-post394866.html