VIB will deploy the latest version of Temenos’ Core banking solution, R23, on the AWS cloud platform and VIB’s private cloud. The project is coordinated by ITSS, a Swiss tech solution and service company.
VIB – The first bank in Vietnam to deploy Temenos’ Core banking solution on the cloud
Mr. Tran Nhat Minh, Deputy CEO and Director of VIB’s Banking Technology Services, said, “As part of our strategy to become the leading retail bank in Vietnam, VIB is always at the forefront of investing in technology initiatives, digitalization, and building a robust and advanced technology platform. The banking industry in Vietnam is undergoing significant transformation driven by the increasing demand for digital customer experiences and the constant development of technology. Among these changes, moving core banking systems to the cloud has emerged as a game-changer, promising flexibility, innovation, and enhanced customer experiences. This modernization project of Core banking on the Cloud is a testament to VIB’s commitment to continuously improve service quality and operational efficiency, while creating a strong platform to serve customers in this rapidly evolving digital era.”
With this project, VIB will deploy the latest version of Temenos’ Core banking solution on the AWS Cloud and VIB’s private cloud infrastructure. This marks an important step towards the comprehensive restructuring and digital transformation of VIB’s digital platform, aligning with the “Mobile first – Cloud first – AI first” strategy.
With “Cloud first”, VIB is leading the way in deploying Temenos’ Core banking solution on the Cloud platform, utilizing native cloud services. This ensures automatic and rapid infrastructure scaling, seamless superior service delivery, limited impact in the event of service attacks, and optimizing new development and operating costs.
With “Mobile-First”, Mobile Banking is a strategic factor, and deploying Temenos’ Core Banking solution on the Cloud platform will provide powerful API interfaces and high-operational performance, enabling VIB to maintain 24/7 services, enhance the best customer experience, and ensure seamless access to the bank’s services via mobile banking.
With “AI first”, VIB has been applying AI and machine learning to provide predictive analysis and appropriate financial solutions. The deployment of Temenos’ Core Banking will enhance the quality of input data through tight automated system controls, a crucial input supporting the “AI first” strategic factor.
Mr. Ramki Ramakrishnan, CEO, APAC, Temenos, said, “We are delighted to welcome VIB as the first bank in Vietnam to deploy Temenos’ Core banking solution on the cloud, further consolidating our position in this important market. Temenos provides a reliable core banking platform for leading banks globally, including prominent banks in Vietnam, spanning retail, corporate, asset management, and private banking segments. The banking industry in Vietnam has undergone significant growth in the past decade and is home to some of the largest and most innovative banks in Southeast Asia, including VIB. With VIB’s pioneering position in cloud-based banking technology, we are excited to collaborate as a strategic partner to support their future development.”
Upgrading infrastructure to meet the rapidly growing speed and long-term digital strategy
The strategic transformation phase (2017-2026) marked impressive growth, making VIB one of the leading retail banks in Vietnam. Until now, VIB has been the bank with the highest proportion of retail loans, accounting for over 85% of the loan portfolio. Over the past seven years, the bank has achieved double-digit growth in retail credit portfolios, reaching 32% thanks to changes in business strategy and successful penetration and expansion into the retail customer segment.
Alongside the goal of becoming the most innovative bank in Vietnam, VIB is implementing a long-term digital strategy with digital banking witnessing strong growth in the penetration rate and digital transformation. From 2017 to 2023, the digital transaction growth rate reached 100%, with over 300 million digital transactions expected in 2023, of which over 94% of retail transactions will be performed digitally, and millions of customers will be using digital banking services regularly.
The modernization project of Temenos’ Core banking on the AWS Cloud is VIB’s latest step in its digital transformation journey, contributing to building a robust infrastructure that facilitates the application and development of the latest technology products. This optimizes customer experience, meets growth plans, and caters to the future market of digital banking services, products, and transactions.
Mr. Eric Yeo, Director of AWS Vietnam, said, “The cloud computing revolution has brought optimization of operations, improved security, and reduced operating costs, minimizing service disruptions during peak periods. We are proud to collaborate with VIB, Temenos, and ITSS on a journey to contribute to reshaping the financial industry in Vietnam. This technology platform helps the bank meet rapid growth capabilities in the future.”
Expanding an innovative technology solution ecosystem, customer-centric
A diverse technology product ecosystem, serving essential financial needs of users
With a diverse product ecosystem, integrated with the most advanced technologies such as AI and AR, superior convenience and speed, VIB has established itself as one of the pioneering banks in delivering innovative digital products, putting customers at the center. The digital strategy has also earned recognition from organizations at home and abroad for high-tech products, leading the trend.
Using Temenos’ Core banking with Cloud-native and Cloud-Agnostic characteristics in this project allows VIB the flexibility to navigate through different cloud platforms while promoting rapid service deployment, product development, and constant innovation for VIB. The new system will also facilitate rapid upgrades, expansion, and introduction of new digital banking products and services to the market, saving significant time. Additionally, with high operational performance and flexibility, VIB maintains 24/7 services, enhancing the best customer experience. Customers will have absolute security when using VIB’s services as AWS’ cloud platform is equipped with over 140 compliance and security certifications.
Mr. Manju HC, CEO of ITSS Global, said, “ITSS Global is pleased to leverage over two decades of experience in core banking system transformation to support VIB in innovating faster, utilizing cloud capabilities to develop their business while meeting commitments to sustainability. ITSS’s highlights are acceleration tools, practical experience in the global market, and how we always focus on end-user experience while facilitating the digital transformation process. We believe that ITSS’s experience in deploying Temenos’ Core banking solution on the Cloud computing infrastructure at numerous banks worldwide will help VIB deliver products and services that meet customer expectations.”
