In recent years, alongside the “cashless” trend, there has been a boom in e-banking applications and digital-only banking models. Today, most commercial banks have been building their own digital platforms, offering diverse and ever-improving online financial services, making the digital transformation race in the banking industry more vibrant than ever.
Amidst this backdrop, to enhance their competitiveness in the market, banks and credit institutions must continuously update their technology and closely follow the smallest needs of users to retain existing customers and attract potential new ones.
Although it only entered the market in 2021, Cake, a digital bank, has gradually proven its leading position in the field of digital banking. Cake not only provides a complete range of digital financial products and services like a traditional bank, but it also continuously conquers users with its most advanced technology solutions.
Recently, Cake became the first bank to successfully implement Visa’s Cloud Connect comprehensive card management system in the cloud, marking a significant breakthrough in modernizing payment processes and affirming Cake’s pioneering position in technology solutions in Vietnam.
According to experts, Cake’s success in moving its entire card management system to the cloud will bring superior benefits, including reduced infrastructure costs, increased transaction speed, enhanced flexibility, and improved operational efficiency. As a result, Cake is ready to upgrade future payment methods to meet the increasingly high demands of its customers.
In Vietnam, Cake is the only digital bank that meets the ISO/IEC 30107-3 standard for facial biometrics, as recognized by iBeta. Cake also complies with the highest international standard for payment card data security, PCI DSS LEVEL 1 (4.0).
After almost four years of operation, Cake has become a well-recognized digital-only bank, with 62% brand awareness, 4.6 million individual customers – leading the group of digital banks in the market, a deposit growth of 8,000 billion VND, and receiving about 300,000 loan/credit card application files each month.
With its “innovation DNA,” Cake has completely conquered consumers with its advanced technologies. With its rapid and solid development, Cake is in the top 5% of effective digital banks globally.
At the recent Better Choice Awards (BCA) 2024, Cake excelled, surpassing other candidates to win the “Bank of the Year in Technology” category with the highest score from the Evaluation Board.
Mr. Nguyen Huu Quang, CEO of Cake Digital Bank by VPBank, shared that when it comes to customers, Cake has two main keywords: “understand” and “connect.” “By understanding our customers, we can develop the most suitable products and services for them,” he said.
And to “understand” and “connect,” AI is the “ace up their sleeve.” By applying AI and Machine Learning to its marketing activities, Cake was able to identify its target customer group aged 22-30 and 30-40, determine their needs and lifestyles, and then offer the most practical financial products and services.
For young customers, Cake prioritizes time and convenience. By leveraging AI to simplify the user journey, Cake enables users to open a bank account in just 2 minutes entirely online. Other transactions, such as money transfers, bill payments, and opening savings accounts, take only a few seconds. Applying for a credit card, registering for a loan/quick loan/PayLater, etc., also takes just 2 minutes to get approved without any complicated paperwork.
With AI generative technology, Cake also meticulously analyzes customer behavior, identifying those who intend to open a card, start a savings account, or invest. This allows Cake to propose relevant advertisements and provide specific advice to each customer. In the next phase, Cake aims to continue providing digital financial solutions and services designed in a “personal tailor-made” style, matching the needs, behaviors, and habits of its target customer group.
Additionally, by leveraging AI in governance, marketing, and 100% online transaction channels, Cake minimizes operating costs, thereby offering benefits like free account opening, free cash loading, money transfers, and withdrawals, and free SMS banking services to all customers.
Since the beginning of 2024, Cake has been taking significant strides with its NEXT GEN AI BANK strategy, where AI is not just a slogan but a reality applied to every aspect of the customer journey and system governance.
By thoroughly understanding its target customers and their desires, Cake has successfully embedded finance, linking a diverse ecosystem of partners across various industries: ride-hailing, telecommunications, investment funds, digital finance, entertainment, and insurance. Customers can access Cake’s financial services, such as credit card applications, savings accounts, consumer loans, and buy-now-pay-later options, from multiple touchpoints within this partner ecosystem.
Speaking about the outstanding features that Cake has been providing to its users, CEO Nguyen Huu Quang affirmed, “That is the strength of a digital bank: ‘tailor-made’ financial services, relying on technology capabilities and big data.”
Most recently, Cake became the first digital bank to pioneer consumer lending at The Gioi Di Dong, offering tech-savvy young customers a 100% digital lending solution. This allows them to apply for loans and receive approval anytime, anywhere, simply by providing a photo of their Citizen ID Card.
These partnership models not only help Cake expand its product distribution channels but also open up opportunities to provide comprehensive digital financial services to over 50 million customers nationwide. The impressive number of users, loan applications, and deposit amounts, achieved in just under four years of operation, strongly testify to the appeal of this digital-only bank.
“Personalization: Elevating the Digital Banking Customer Experience”
Today, customers seek not only excellent banking services but also genuine human connection during their online transactions. Thus, banks and credit unions must embark on a digital transformation journey to enhance their customers’ digital experience, employing strategies rooted in customer insights and advanced technology.
AI: The Growth Lever for Retail Banking
Artificial Intelligence (AI) offers a plethora of advantages for retail banks. By leveraging AI, banks can enhance customer experiences, bolster security and fraud detection measures, optimize operational processes, innovate new products and services, and efficiently conduct credit analysis and risk assessments.
TPBank’s Strategies Fueling Its Rapid Ascent
As a customer-centric strategy has long positioned TPBank amongst the front-runners shaping the landscape of retail banking in Vietnam, the superior and trendy nature of its products backed by cutting-edge digital banking technology that “anticipates and moves fast,” has also made TPBank the primary transaction bank for many customers.
