Thursday, 2 December 2021

MBBank’s traditional FX products with derivatives provide optimal solutions for clients

5 min read

By The Asian Banker

Military Commercial Joint Stock Bank’s (MBBank) digital channels have contributed nearly 20% of the bank's earnings from foreign exchange (FX) gross revenues and fee income in 2020.

  • MBBank’s FX volume grew by more than 100% in 2020 
  • Providing an optimal structured solution to hedge the client's exchange rate risk
  • The proportion of transactions on digital channels reached nearly 95% through digital transformation

Singapore, 3 August 2021– Military Commercial Joint Stock Bank (MBBank) was recognised as Best FX Bank in Vietnam at The Asian Banker Transaction Finance Awards 2021. 

MBBank leveraged digitalisation to provide optimal solutions in its FX business

MBBank and Techcombank were the finalists for the Best FX Bank in Vietnam award. MBBank scored higher in product and service capabilities, channel capabilities, financial performance and customer experience.

Financial Performance: FX volume grew by more than 100% in 2020

MBBank’s core proposition is built around providing a combination of traditional FX products with derivatives. FX volume increased by more than 100% in 2020 while revenues grew by 150%. The bank has a 9% FX market share in Vietnam, higher than the previous year’s 8.6%. The FX business has continuously contributed a higher proportion to the bank’s gross revenue in recent years. Digital channels contributed nearly 20% of the earnings from FX gross revenue and gross fee income in 2020. 

Business Mandate: Providing an optimal structured solution to hedge the client's exchange rate risk

The bank gained a $100 million structured deal with a combination of FX spot and a cross-currency interest rate swap to hedge the client's exchange rate risk. MBBank promptly advised the customer on spot FX transactions or derivatives to meet the liquidity needs as well as manage exchange rate risk or maximise customers' profits from foreign currency flows. The impetus for deals remains on a combination of traditional FX products with derivatives in order to come up with optimal solutions for clients.

Technology: Proportion of transactions on digital channels reached nearly 95% 

MBBank launched an online international money transfer service. It provided an automatic foreign currency transactions on BIZ MBBank, an online transaction platform for corporate clients. It provides foreign currency buying service to individuals on the app. Its digital transformation has attracted a large number of new customers. By November 2021, the proportion of transactions on digital channels reached nearly 95%. 

Techcombank has large intra-day processing payment capabilities and competitive brand franchises in 2020. The bank increased its throughput capacity to 13 million transactions per day and fully migrated all payment transactions such as cross-border, domestic and customs  to e-channel, which significantly reduced lead time for payments and operational costs. 

MBBank gradually digitised every step in the transaction process, providing customers with increasingly automated and efficient transaction methods. MBBank was one of the first banks to deploy FX and derivatives services on MBBank app for individual customers and BIZ MBBank for corporate customers. It is one of the first banks to launch a chatbot tool to automatically consult market information as well as conduct FX transactions with corporate clients. MBBank has always been in the top three choices of clients for FX trading because of its market share and position, efficient digital transformation process and highly qualified services. 

About Transaction Finance Awards

The Asian Banker Transaction Awards Programme, refereed by prominent global bankers, IT consultants and academics, is the most prestigious of its kind in the Asia Pacific. Recipients of the awards are honoured in a gala event to recognise their efforts in bringing superior products and services to customers. A stringent and comprehensive evaluation process determines the awardees. For specific details relating to description of the awards, evaluation criteria and process, visit http://www.asianbankerawards.com/transactionawards/index.

About The Asian Banker 

The Asian Banker is the region’s most authoritative provider of strategic business intelligence to the financial services community. The global research company has offices in Singapore, Malaysia, Manila, Hong Kong, Beijing, and Dubai, as well as representatives in London, New York, and San Francisco. It has a business model that revolves around three core business lines: publications, research services and forums. The company’s website is  www.theasianbanker.com.

For more information, please contact:

Mobasher Zein Kazmi

Head of Research 

Direct: (+61) 452 514 145  

Email: mkazmi@theasianbanker.com 



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