“The Techcombank Strategy for the New Accelerated Phase: Aim High, Keep it Real.”

Techcombank: Forging Strategic Partnerships and Revolutionizing Vietnam’s Financial Landscape

In a Bloomberg interview from November 2024, Techcombank’s CEO, Jens Lottner, revealed plans to sell 15% of the bank’s shares to long-term strategic investors. This statement, reaffirmed at the 2025 Annual General Meeting of Shareholders (AGM), marked a significant step in the bank’s development strategy.

During the interview, Lottner emphasized that Techcombank is under no immediate pressure to find strategic partners due to its strong financial position. As of December 31, 2024, the bank’s total equity reached nearly VND 148,000 billion, and its capital adequacy ratio (CAR) was among the best in the industry. Techcombank is currently one of Vietnam’s financially healthiest banks.

However, the search for strategic partners goes beyond financial considerations, aiming to enhance long-term value for shareholders and customers. Currently, foreign investors hold approximately 22% of Techcombank’s shares, and the bank has an 8-10% foreign ownership limit remaining within the maximum limit of 30%. The plan to sell 15% of the shares, as revealed by Lottner, will prioritize strategic investors who can bring superior added value. This includes expertise in technology, international customer networks, or advanced governance experience, helping Techcombank consolidate its position and expand its financial ecosystem.

When asked about the criteria for selecting strategic partners, Lottner emphasized that Techcombank seeks not just capital but also partners who can support the bank in its digital transformation journey and business expansion. “Although there is always interest from investors who want to own a large stake in Techcombank, we need to identify the clear benefits that this strategic partner will bring. What we are looking for in a strategic investor is added value—whether it be in technology, customer networks, or specific expertise—to help the bank continue to develop and expand in the future,” affirmed Lottner.

At the 2025 AGM held on April 26, 2025, Techcombank reiterated the importance of finding strategic partners. The bank’s Chairman of the Board of Directors, Ho Hung Anh, and CEO Jens Lottner agreed to prioritize stability and long-term value in the partner selection process. Hung Anh stated that Techcombank could issue an additional 10% of shares to utilize the remaining foreign room and reaffirmed the plan to sell 15% of the shares as previously announced.

With a solid financial foundation, a pioneering digital transformation strategy, and a vision to expand regionally, Techcombank is currently one of the most attractive investment destinations for international investors.

Major Strategic Directions for the Next Five Years

Regarding future development strategies, Lottner stated that Techcombank would focus on expanding its customer base to include small and medium-sized enterprises (SMEs) and the mass market, in addition to continuing to serve the premium and large corporate segments. To achieve this goal, digitization and technology are key, enabling the bank to provide personalized financial solutions and optimize the customer experience.

Looking ahead over the next five years, Lottner emphasized that Techcombank would concentrate on several major strategic directions. Firstly, he affirmed that the bank would strongly focus on artificial intelligence (AI), Generative AI (GenAI), and data analytics, leveraging these technologies to close the gap with the world’s leading banks.

“Instead of taking 120 years like the world’s top banks, AI helps us shorten the gap to just a few years,” shared Jens. A prime example is Techcombank’s advanced credit scoring system, which utilizes GenAI to analyze images from small retail outlets such as eateries and coffee shops. The system evaluates factors like cleanliness, the number of QR codes, and customer density during peak hours to estimate the repayment ability of business owners. This breakthrough approach enhances credit assessment accuracy and loan approval speed for the SME and family business segments.

Techcombank is currently collaborating with leading Silicon Valley technology partners, including Amazon Web Services (AWS) and Google Cloud, to test and deploy various AI applications. In 2024, the bank delivered over 1.2 billion personalized AI messages, optimizing the customer experience and increasing engagement rates. Tools like AutoML, AWS Q, and Co-pilot are integrated to enhance data analysis efficiency, fraud detection, and targeted marketing. Additionally, Techcombank has migrated 70–80% of its data to a cloud data lake, establishing a robust foundation for future AI and data analytics initiatives.

Regarding the potential entry into the digital asset market, Lottner confirmed that Techcom Securities (TCBS), a subsidiary of Techcombank, is technologically prepared. The bank has developed an internal bond trading platform and implemented blockchain technology in several internal operations, such as securities trading and custody.

TCBS focuses not only on digital asset trading but also on aspects like digital asset custody, digital currency conversion, and comprehensive security. These solutions require close collaboration between the bank, technology partners, and regulatory authorities. With its blockchain expertise and TCBS’s thorough preparations, Techcombank is recognized as a pioneer in Vietnam’s digital asset space, poised to seize opportunities as the legal framework evolves. “If the legal framework permits, we can launch digital asset services very quickly,” asserted Jens.

Secondly, Techcombank is committed to deepening its engagement with customers’ real-life needs through strategic partnerships. During 2015–2020, the bank established a strong position in serving premium customers and large corporations through products like mortgage lending, corporate bonds, and fee waiver policies. Starting in 2020, Techcombank expanded into the middle-income and family business segments, leveraging technology to offer flexible financial solutions. For the 2025–2030 period, the bank aims to build a comprehensive digital ecosystem that connects customers’ financial and non-financial needs through strategic partnerships.

“We don’t need to own Vinmec or Masan, but we want to accompany them to create a seamless financial experience,” emphasized Jens Lottner. For instance, with Vietnam’s aging population and challenges in the healthcare system, Techcombank plans to collaborate with healthcare service providers to offer practical financial solutions, such as integrated medical payments or health insurance products. Similarly, the bank will explore partnerships with leading players in e-commerce, education, and retail to create a seamless financial ecosystem that addresses customers’ diverse needs beyond mere transactions.

Another notable strategic move by Techcombank is the establishment of a life insurance company. CEO Jens Lottner confidently shared that after ending its partnership with Manulife, Techcombank has submitted an application to establish its own life insurance company. “We don’t just want to distribute insurance—we want to own an insurance business. If we find a suitable partner, we will build it together. Otherwise, we will proceed on our own,” asserted Jens.

Techcombank’s life insurance model will focus on optimizing operating costs, leveraging technology, and digital distribution, aiming to achieve profitability earlier than the industry average. This plan not only expands the bank’s service portfolio but also strengthens its position in the financial ecosystem, catering to the growing demand for insurance products among Vietnamese customers.

Techcombank aims to reach a market capitalization of $20 billion by the end of 2025, a significant milestone in its five-year strategy (2021–2025). According to Lottner, the bank is on the right track: from $3 billion in equity in 2020, Techcombank has achieved $7–7.3 billion by 2024. If Vietnam’s stock market is upgraded to emerging market status and tariff barriers are relaxed, assets like TCBS and the future life insurance company will be “properly valued,” boosting Techcombank’s path toward the $20 billion market capitalization goal by the end of this year.