Saturday, 15 June 2024

TPBank redefines customer experience through multiple interconnected digital ecosystems

5 min read

TPBank has developed digital ecosystems in collaboration with fintech and tech startups to have a better customer engagement and experience. The bank built an ecosystem of banking and non-banking services to address customer needs. These products and services were provided through a combination of physical and virtual channels, as well as third-party platforms.

  • Accelerating the use of digital platform in the face of pandemic and disruptors.
  • TPBank’s ecosystem consists of over 100 partners across financial and non-financial industries.
  • Transaction banking ecosystem helps grow new customer acquisition by 40%.

TPBank built a series of ecosystems with third-party service providers in 2021, as part of its digital transformation. Its collaboration with service providers enables TPBank to meet customers’ financial needs and enhance their access to its banking capabilities.

These service providers include travel agencies, airlines, securities companies, insurance companies, e-commerce startups, and payment intermediaries such as e-wallet and payment gateways.  TPBank’s digital ecosystem connects to over 100 partners via open application programming interface (API) across financial and non-financial industries.

Nguyen Hung, general director of TPBank said, “TPBank's massive ecosystem can serve multiple customer requests, and demonstrate the consistency and synchronisation of customer experience across all transaction channels”.

Accelerating the use of digital platform in the face of pandemic and disruptors

The COVID-19 pandemic has pushed the banks to transform the way they do business. Customers have shifted to online and remote channels, as traditional face-to-face interactions and travel were restricted. This shift in service preference is predicted to be permanent, prompting banks to move more services and products to digital platform and digitise their internal processes.  The banks with more holistic digital banking propositions, and customer-centric ecosystem stand to benefit.

The rise of fintech and tech start-ups has disrupted the banking industry. Incumbent banks have faced increasing threats from fintechs such as Timo and Finhay and tech start-ups like Grab and Shopee because of their rich customer data and insights. They are more agile and have flexible operating model that provide better customer experience. Incumbents like TPBank recognised this so, they find ways to collaborate with them to make a wider ecosystem. 

TPBank’s ecosystem consists of over 100 partners across financial and non-financial industries

TPBank developed an open API platform to connect with third-party service providers. Its ecosystem consists of over 100 partners via open API across financial and non-financial industries. Hung said having an entire ecosystem makes it easier to meet the needs of customers, especially with the support of technology.

“The customer experience will be better, and they will come back to TPBank. Building an ecosystem is oriented to what customers need, and that is the story of TPBank from the early days of its establishment,” he said.

Its payment intermediaries’ partners include internationally renowned companies like VISA, Master Card, JCB, Alipay, UnionPay, and all the biggest payment and e-wallets in Vietnam. Service provider partners also include financial service firms such as TPBank Securities, and insurance companies, Sunlife, InOn and People Trust Insurance. TPBank has several non-financial partners in tourism, entertainment industry such as VieON, and Mobilott, and education, which include Funix and State Security Commission. Other partners are from public services including social securities, healthcare, utilities and telecommunication.

TPBank collaborates with leading fintech companies to provide banking services on e-wallets and services platforms, which resulted in new customer acquisitions from partner channels. Its internet banking platform provides access to a wide range of services that strongly engage its users. It also launched other smart lending and digital sales and marketing initiatives. This transformation enables TPBank to take advantage of the opportunities presented during the pandemic.

Transaction banking ecosystem helps grow its new customer acquisition by 40%

TPBank’s transaction banking ecosystem helped increase its new customer acquisitions by 40% through digital channels. It saw a 120% growth in transaction volume on digital channels. TPBank’s digital users increased by 38% to 2.9 million in 2021, compared to 2.1 million in 2020.

TPBank’s mobile banking users increased by 53.3% to 2.3 million in 2021, from 1.5 million in 2020. An active digital customer has at least one financial transaction on the digital channel in a month. In 2021, TPBank’s mobile active users reached 85%.

Hung said digital innovation enables TPBank to increase its customer base, establishing itself as one of the top banks in the market.

“With the launch of a series of digital products and services designed for specific customer segments and a diverse digital ecosystem, the bank has made it easier for customers to access banking services,” he said.

Early technology investment enabled TPBank to minimise operating time and costs, as 80% of its banking operations are performed based on data analysis and decision-making.

About 80% of products and services apply technology, artificial intelligence (AI), and big data, using 300 robots to help reduce manual and reporting works. Notably, a representative of TPBank said the bank’s operating costs was reduced by up to 50% through the use of chatbots and virtual assistants.

This year, TPBank continues with its comprehensive digital innovation strategy of building a smart bank to address the needs of all customers throughout their life cycle. It provides a fast connection on an open banking platform to enable partners to combine products, services and data while increasing business efficiency on the digital platform and enhancing the experience of both individuals and corporate customers.

Leading banks have established innovation centres to improve customer offerings and experience. They have developed customer ecosystems and their strategic and tactical approaches vary.

TNEX, a digital-only bank launched in 2020 developed a merchant ecosystem that enables street sellers to open a bank account with them. It accepts all types of digital payments through its app. The merchant app enables users to manage inventory, create marketing campaigns and track sales. TNEX’s registered digital users reached 500,000 in 2021.

In December 2020, it launched two TNEX apps; one for Gen Z and the other one for micro-merchants. TNEX has built advanced digital tech platforms using data science, cloud and APIs.

Meanwhile, BIDV has built new ecosystems and business models to implement foundational IT projects that accelerate the development of digital distribution channels. It digitises traditional products and develops new products on its digital channels. Paygate, a payment ecosystem is an automatic deposit investment system and bilateral payment for Vietnam social security. BIDV has more than 2,200 payment services from more than 1,500 different partners.

TPBank’s digital ecosystems address the challenges that have an impact on society such as openness of platforms, app, services and interoperability. The bank has a wide range of services and products and has a big opportunity to build an ecosystem that meets customers’ ever-changing needs and wants.

The bank has gradually consolidated its nationwide branch-office system. It constantly expands its cooperation with major partners, which is part of its long-term vision and sustainable development roadmap.  

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