“Accelerating Growth: OCB’s Strategic Tech Investments and Customer-Centric Approach for the Final Sprint”

Accelerating Digital Transformation and Enhancing Payment Efficiency

The State Bank of Vietnam (SBV) reported that in the first half of 2024, cashless payment activities and digital transformation in the banking sector continued to yield positive results. The country’s critical payment systems operated smoothly and securely. Currently, over 87% of adults have a bank account, and many banks have processed over 95% of transactions digitally. Compared to the same period in 2023, the number of transactions through the interbank electronic payment system increased by 2.83% in volume and 26.94% in value.

As a pioneer in digital transformation, OCB has consistently prioritized investments in technology. In May 2024, the bank officially introduced OCB OMNI 4.0, optimizing consumers’ needs for speed and convenience and setting a new industry standard in Vietnam. With its one-touch QR payment feature, the app enables seamless transactions at thousands of different service points, from e-commerce to travel. The app also offers modern and convenient digital banking services such as account opening and management, money transfers, bill payments, card services, deposits, loans, and more.

OCB launches OCB OMNI 4.0, optimizing consumers’ needs for speed and convenience

In addition to OCB OMNI, Liobank, a digital banking product for the youth, introduced by OCB in early 2023, is one of the few products that has been well-received by Gen Z. Customers can enjoy the convenience of Shake to Pay, allowing them to transfer money by simply shaking their phones. This feature utilizes short-range NFC technology combined with Contact Matching, providing a fast, fun, and novel transaction experience for tech-savvy young users. The responsive money transfer feature also caters to the youth’s preferences, allowing them to transfer money without account numbers, send money to Liobank users in their phone contacts, and categorize utility bill folders for easier management. Notably, customers can instantly receive up to a 10% cash-back and have the flexibility to choose their cash-back category for the month. As of June 2024, Liobank has processed nearly 10 million transactions, achieving an impressive 200% growth rate compared to 2023.

“Currently, Liobank is one of the few applications in the market that can provide 100% online loans. Moreover, the app facilitates access to credit and credit cards with varying limits for individuals with middle to upper-middle income. All procedures and transactions on Liobank are fully digitized and automated, eliminating the need for customers to visit any branch to use the bank’s services,” added the OCB representative.

Furthermore, OCB’s digital payment solution, OCB Propay, saves businesses 80% of their time by employing modern Open API technology. OCB ProPay specializes in connecting all of a company’s individual management software, including the OCB OMNI digital bank, onto a single platform. This integration enhances information processing speed and ensures high accuracy regarding personnel, partner, and financial data…

The strong digital transformation has helped OCB attract a large number of customers transitioning from traditional to digital channels, enhancing payment efficiency and providing a solid foundation for its sustainable development strategy. Statistical data shows that, in the first six months of 2024 compared to the same period last year, OCB OMNI witnessed a 76% increase in transaction volume, a 52% rise in non-term deposits (Casa), and a 53% growth in term deposits (Esaving). In the card business segment, transaction volume increased by 27%, and net revenue grew by 32%.

Credit Growth as a Highlight, Ready to Surge in the Second Half

Despite the weak capital absorption capacity of the economy, banks, notably OCB, have made significant efforts to enhance businesses’ access to capital and promote credit growth. According to the recently published second-quarter financial report, OCB’s credit growth as of June 30, 2024, reached 6.3%, higher than the industry average. By gradually shifting its customer structure, improving competitiveness, and focusing on small and medium-sized enterprises (SMEs), OCB has offered numerous practical financial programs and solutions with fixed-rate incentives. As a result, credit for the SME customer segment increased by nearly 18%.

In addition to interest rate and exchange rate support, OCB is also committed to digitizing financial products and services to enhance convenience and reduce transaction time for corporate customers.

OCB continuously launches programs for SME businesses

As of the end of the second quarter of 2024, OCB’s market 1 mobilization slightly decreased compared to the end of 2023 due to the bank’s proactive source capital balance optimization, resulting in improved capital cost efficiency. Total net revenue increased by 2.4% year-on-year to VND 4,559 billion. The core business activities maintained stable growth thanks to the “sweet fruits” of the digital transformation strategy.

According to the financial report, in the first half of the year, increased provisioning and operating expenses led to a total bank profit of VND 2,113 billion, a 17.5% decrease compared to the same period in 2023. Commenting on this issue, the OCB leader shared: “Enterprises and individuals are still facing difficulties, resulting in high non-performing loans for the entire banking system. Therefore, to strengthen its buffer and ensure its operations amid a volatile market with many unpredictable variables, OCB has increased its provisioning. Additionally, we have focused on expanding our network, developing human resources, and investing in technology. While this may impact the bank’s profitability in the short term, it will lay a solid foundation for its long-term sustainable development.”

It is worth noting that, at the end of 2023, OCB opened 10 new branches and transaction offices. In 2024, with the approval of the SBV, the bank plans to open an additional 17 branches and transaction offices, bringing the total to 176 locations in 48 provinces and cities nationwide. The bank’s personnel increased by 12% in the first six months, and employee welfare and income improved, with a 15% increase.

As of June 30, 2024, OCB’s total assets remained stable at the beginning of the year, at approximately VND 238,884 billion. The bank effectively managed non-performing loans and complied with the SBV’s regulations regarding capital adequacy ratios and liquidity requirements.

The year 2024 is considered crucial in OCB’s development strategy for the 2021-2025 period. Therefore, in the last months of the year, the bank will focus on developing mid-to-high-end individual customers with tailored products that meet their specific needs. OCB will also maximize resources, prioritize business support, and streamline transaction processing. Additionally, the bank will implement new and effective policies to enhance credit quality, accelerate non-performing loan handling, and advance digital transformation.

“In the first half of the year, both market-driven and internal factors, along with proactive policies to support customers and increased technology and human resource investment, have resulted in second-quarter results and six-month cumulative figures that did not meet our expectations. However, with a focus on stable, transparent, and sustainable growth, a clear strategy, and a detailed action plan, I am confident that the bank will achieve better results in the second half of the year.” – Mr. Pham Hong Hai, CEO of OCB, stated.