True to the slogan “Because we understand you”, the purple bank really has its own way to understand customers. That is to exploit and use data to analyze and make decisions.
The bank has a huge source of data resources such as customer data, data from open data sources, data from partners. Especially with the advantage of being a bank that has transformed digitally very early, the number of transactions of TPBank on digital channels has always increased steadily and strongly, exceeding the average standard and continuously leading the banking industry.
Transaction volume on digital channels accounts for 98% of the total bank, total transaction value accounts for 86% of the total bank. This shows that data is TPBank's strength. However, how to exploit and use data to create suitable banking products is not easy to do.
TPBank democratizes data
General Director Nguyen Hung shared: “For proposals submitted for approval, we do not “prescribe medicine” or rely on the subjective will of experts or leaders. Instead, we require departments to make decisions based on data.
Data will tell us about preferences, needs, suitable application options and expected results in the future. Predicting based on data will bring the most accurate results. Therefore, TPBank democratizes data, or in other words, we widely apply data mining to all departments in the bank."
At TPBank, data exploitation is not only limited to the Data Center or the Information Technology department. The general convention in banking is that all proposed work must include data collection, analysis, and decision making.
This also means that TPBank must invest heavily in technical technology infrastructure. All departments and units must implement this as a KPI in digital innovation, including business or operational support blocks.
This data democratization is being widely applied in the whole bank, avoiding local data, which is difficult to exploit and connect. Data can be exploited not only by management but also at any level. "Of course, democratization but still must have decentralized layers to ensure security, and comply with the provisions of the law and the State Bank" - Mr. Hung shared more.
“Data-driven decision making” brings outstanding results to TPBank
After decentralization and proper data mining, TPBank has continuously scored points in its journey of serving customers. As one of the pioneering banks in lending on digital channels, TPBank's products are always the priority choice of customers because data has helped TPBank offer products that suit customers' needs and financial capabilities in the shortest time.
Mr. Hung said that up to now, there are about 3 million customers using this service of TPBank but the bad debt rate is extremely low, achieving high business efficiency. Because the data has helped TPBank understand the behavior, preferences and payment ability of customers for the product.
TPBank has researched and applied a credit scoring solution with a customer data warehouse, open data and a reliable scoring model to support and facilitate customers' access to loans, while taking less than 2-3 minutes to successfully disburse to customers.
“Seizing the opportunity to meet customers' needs, while at the same time saving more costs than traditional consumer lending methods, operating entirely on digital channels helps us gain higher efficiency.”
Another example of applying data internally, TPBank uses an AI model to analyze customers at transaction points, predict customer behavior at transaction points, and calculate the appropriate fund balance to maintain daily at 500 LiveBank 24/7 automatic banking points.
After using AI analysis and prediction, TPBank saved 25% of cash balance, increasing the efficiency of capital use for the bank. Because for a commercial bank, the balance of funds is equivalent to thousands of billions of VND that need to be balanced, not to mention traditional costs such as mobilizing cash vehicles and cash staff every day.
Mr. Hung commented that in the context that data is considered a new source of energy and determines many things in the digital transformation game, knowing how to exploit and use data will bring the best results for a business. And TPBank is making great efforts on this journey.
“We, TPBank, aim to become a data-driven bank, making all decisions based on data, serving personalized experiences, bringing the best experiences suitable for each customer” - General Director Nguyen Hung shared.
