From strategy to sustainable development action: TPBank reaps many successes

Integrating ESG criteria into each bank activity, using technology as a spearhead throughout to support the promotion of sustainable values, TPBank's distinct position as a "digital bank for humanity" has been recognized and honored by many prestigious domestic and foreign organizations for its pioneering role in green development and sustainable development in Vietnam.

Sustainable development is no longer a slogan but has become a guideline for the operation of the entire economy. The banking industry is considered the lifeblood of the economy, playing an important role, even a leading role in the sustainable development of a country. Accordingly, ESG (Environmental - Social - Governance), short for Environment - Society - Governance, has quickly become one of the most mentioned keywords in the financial sector in recent years. Banks are aware that integrating ESG into business activities not only helps banks have a prosperous future but also ensures environmental friendliness, increasing responsibility to the community and society. Moreover, as a capital channel for the economy, they also expect to have similar positive impacts on people and businesses - the bank's customers.

According to the State Bank's statistics, currently 80-90% of banks have applied part or all of ESG in their operations. Up to nearly 50% of other banks have established a risk management department for lending credit to protect the environment. Some banks have also issued a "Green Credit Framework" and a "Sustainable Loan Framework" to provide a process for using and managing loan capital for projects in green and emission-reducing fields. Many credit institutions have published separate reports on sustainable development. This information shows a strong change in the thinking and actions of the industry in a short time to seriously practice ESG. Typically, at TPBank , since 2008, when the restructuring began, the bank has focused on sustainable development strategy and pioneered digitalization activities to promote and effectively support the successful development roadmap of a modern, advanced and humane bank. Mr. Nguyen Hung, General Director of TPBank said: "From the foundation of understanding, of the strategy of focusing on customers and human resources in all activities, TPBank has created and implemented digital solutions and digital products to continuously improve 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 is always the guiding principle on the journey of "Purple Bank's" aspirations to reach new heights.

In TPBank's recently published sustainable development report, the bank's leaders also affirmed: "Increasing values ​​and implementing social responsibility and being environmentally friendly are always present throughout the orientation of sustainable, fair and responsible development in all strategies and operational plans of TPBank."

On the path of sustainable development to create positive values ​​for customers, the community and itself. TPBank has chosen digital transformation very early in the Vietnamese market. Early and fast digitalization not only brings resounding business successes but also makes positive contributions to ESG in both internal operations within TPBank and in products/services for partners and customers. For many years, more than 90% of TPBank's activities have been carried out on a digital platform and the number has even reached nearly 100%. This helps the bank significantly reduce paperwork, save energy and reduce carbon emissions. TPBank said that from 2022 to present, digitalizing transactions and customer records has helped TPBank reduce up to 90% of paperwork, thereby minimizing emissions to the environment as well as saving resources and energy. In addition, thanks to optimizing the information technology system, TPBank has reduced 30% of electricity consumption. According to TPBank, "digital banking for humanity" is the desire to bring to the market leading products and services with high technology content to serve people, for the development of society, minimize environmental impact and promote sustainable development. In recent 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 will 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 also bring a new breeze, changing the way customers communicate with the bank, more modern, efficient and friendly. The bank also constantly improves biometric authentication technology, launching the eCM digital assistant to help customers make transactions without paperwork.

10 years ago, customers were required to go to the counter, during business hours, on working days to request to open an account, fill out paperwork and wait to receive a card. But since the appearance of LiveBank, customers can open an account online at smart transaction points 24/7 without wasting a single piece of paper. After that, TPBank quickly applied eKYC technology to identify customers online, helping customers to open an account on the TPBank App completely online. The number of documents reduced per customer may not be much, but for tens of millions of customers, and over the years, it is a huge number. Just the account opening activity has reduced so much paperwork, so when TPBank digitizes its operations nearly 100%, it can be imagined how "huge" the number of documents and records is reduced. According to statistics, each year, TPBank saves 4,100 tons of paperwork thanks to digitizing processes and transactions. LiveBank 24/7 meets 90% of customers' transaction needs, but operating costs and environmental impact are only 1/10 compared to 1 branch/transaction office. Automatic robots also help approve customer loans faster, save time and especially minimize procedures for customers.

A series of outstanding digital products and services have been and are being exploited by the bank based on leading technologies such as AI, Big Data, Machine Learning, ... applied strongly and widely to all core banking services: payment, credit, deposits ... With a diverse ecosystem, connecting with many services, the bank brings seamless experiences and great benefits to users in the digital space. Customers have convenient, fast, efficient experiences and reduce time, paperwork, and travel activities. In the field of risk management, mastering advanced AI models and building its own biometric data warehouse helps TPBank to detect risks early, be ready to respond to increasingly sophisticated technological fraud tricks in the market and avoid having to depend on any partner. Ms. Phuong Anh (30 years old) shared: "Generation 9x like me probably feels the changes most clearly when banks go digital. In 2012, the first time I opened a debit card, in 2015, the first time I opened a credit card, I remember clearly that I had to prepare a series of documents and wait for 2 weeks to receive the card. But now, I open a TPBank card completely online, without having to go to the bank, without using a single piece of paper, and can even use a non-physical card on the App to pay. Honestly, in the past 2-3 years, I have only had to go to the counter a few times, the rest are done via the TPBank App". The speed of expanding the customer base is one of the strong evidences showing the attractiveness of TPBank digital banking. In 2023, the number of new customers of TPBank reached a record of more than 3.5 million, bringing the total number of customers served to over 12 million customers.

In addition to digitalization, TPBank also continuously promotes ESG through many other activities. Regarding the development of green credit products, TPBank is one of the banks that actively participates in supporting renewable energy projects, green agriculture, clean water management and women-owned businesses. In 2017, TPBank was one of 8 banks in the East Asia Pacific region honored 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 green credit loan worth 20 million USD within 3 years from the Global Climate Partnership Find (GCPF). In September 2023, DFC signed a commitment to provide a loan worth 100 million USD to TPBank with a term of 7 years. The bank will target individual customers, micro-enterprises, small and medium-sized enterprises in Vietnam, including low-income female customers and enterprises and enterprises owned and led by women in Vietnam. TPBank also offers a special preferential credit package with a limit of VND 2,000 billion, giving priority to green development enterprises, export enterprises, and enterprises owned by women from the WSMEs program. As an important part of its sustainable development strategy, TPBank always adheres to the business principles in accordance with Vietnamese law, actively contributes to the state budget and increases its responsibility to the community through volunteer activities, supporting vulnerable groups in society.

According to the list of Private Enterprises Paying the Most Taxes in 2024 (PRIVATE 100) recently announced by CafeF, TPBank is in the Top 10 private banks and Top 15 private enterprises paying the most to the budget in 2023. Specifically, in 2023, the bank paid VND 2,419 billion to the State budget (including taxes and fees). In risk management activities, TPBank has implemented the Basel III Capital Calculation Project based on the internal rating method (FIRB & AIRB). The Bank also integrated and developed a method to integrate ESG factors in calculating capital according to IRB.

With strategic and comprehensive steps, TPBank has affirmed its pioneering position in digital transformation and sustainable development. TPBank's image of a "digital bank for humanity" is not only unique and outstanding in Vietnam but has also been increasingly enhanced in the region with a series of prestigious awards on digital transformation and ESG practices over the years. Recently, within the framework of the Global Trade Partner Meeting event in Barcelona in early May 2024, IFC honored TPBank as "Best Trade Partner Bank - Gender Finance 2024". At the Sao Khue 2024 Honoring and Awarding Ceremony, TPBank also excelled in 3 areas: Digital Banking, Innovation and Solutions to promote digital access thanks to its continuous innovation efforts that practically contribute to the digital life of millions of Vietnamese customers.

TPBank said that in the coming years, the bank plans to continue to expand its green credit product portfolio, increase investment in renewable energy projects and develop sustainable agriculture. At the same time, TPBank will also continue to improve its ESG implementation capacity according to international standards, to ensure that all bank activities comply with sustainable development principles. In addition, TPBank also plans to promote social responsibility programs, aiming to improve the quality of life for the community and protect the environment, continuing to make its mark as a modern bank, constantly innovating and committed to sustainable values. Source: https://markettimes.vn/tu-chien-luoc-den-hanh-dong-phat-trien-ben-vung-tpbank-gat-hai-nhieu-thanh-cong-67613.html