vietnam retail bank of the year - techcom bank
TECHCOMBANK: Roaring Success
V
ietnam Technological and Commercial Joint Stock Bank, commonly known as Techcombank, is one of the largest and fastest growing commercial banks in Vietnam. Since its inception in 1993, the bank has demonstrated strong growth over the years, consistently exceeding 30% in both total assets and annual turnover. Its total assets in 2010 are almost 14 times of those in 2005, while the profits before tax have increased almost tenfold in the same period.
Strategic collaborations In 2006, Techcombank became the first Vietnamese bank to form a strategic partnership with HSBC. As a result, HSBC’s banking knowledge and best practices were transferred to Techcombank, especially in the risk management and retail banking area. In 2009, Techcombank’s collaboration with McKinsey brought strategic and technical support in the fields of management and development Nguyen Duc Vinh, CEO, Techcombank strategy. The support from McKinsey helped Retail Banking and Risk Management the bank to refine its focus on both SME Retail banking in Vietnam is quite a new segment but Techcombank has developed banking and retail banking. By the end of June 2011, total assets of a comprehensive strategy to target it. “The Techcombank reached over VND 176,822 market is still young with only traditional billion. Today, with an extensive network financial needs but we are set to provide a spanning nearly 300 branches/TSO and range of diversified to the latest products 1,091 ATMs; and a strong workforce of ranging from a very traditional one to latest technology-related products 7,337 professionally trained like internet banking. It can be staff, Techcombank is wellsaid that we are ahead of the placed to serve more than “We concentrate market and most of our com60,000 enterprises and 2 milour resources in petitors ,” he underlines. lion individual customers all developing the two Risk management is another over the country. main strategies of key area that the bank has bol“In order to achieve our asSME baking and stered in the last two years. A piration of becoming the best retail banking.” new Credit Oversight Unit bank and the leading busiand an appraisal office were ness in Vietnam, we concentrate our resources in developing the two established in order to enhance debt qualmain strategies of SME banking and retail ity management capabilities and consolidate banking,” says Techcombank Vietnam debt management into principal customer groups: corporate clients, retail customers CEO Nguyen Duc Vinh. SME banking forms the most important and institutional finance clients. The ensection of the economy. Techcombank re- hancement of the comprehensive risk manalised that it’s also one of the monitors of agement framework helped us reduce the Vietnamese economic growth in the up- ratio of non-performing loan to 2.29% as of 31 December 2010. coming years. With active support from its strategic partTechcombank created a specialised transaction banking unit to offer SMEs ners, HSBC and Mc Kinsey, the years 2009 products such as the supply channel, fi- and 2010 saw the bank complete the first nancial trade as well as technology-related phase of TechcomOne – a 5 year transformation program, in which it vigorously transproducts like internet banking. 30 ASIAN BANKING AND FINANCE | SEPTEMBER 2011
formed and restructured all functional units towards specialisation based on a modern global bank model. The most remarkable was the creation of a specialised Sales and Distribution Division independent of business and support functions. This allowed Techcombank to respond more effectively to the banking needs of each customer segment. “In 2009 and 2010, we also mobilised every resource to strengthen our foundations in order to consolidate on the course of transforming Techcombank into a modern and professional bank, including strategy, organisation structure, human resources, risk management, technology, and sales and distribution (Branch network). In terms of human resources, we implemented a number of initiatives to realise the mission of “creating the best environment for employees”. This resulted in a 38% increase in our workforce, bringing the total number of employees to 6,960 by end of 2010. “With the constant increase in the workforce, Techcombank aims to further leverage on staff capabilities and professionalism as key factors for rapid and sustainable growth,” Duc Vinh says.
CONTACT TECHCOMBANK Tel: +84(4) 39446368 Email: AssistanttoCEO@techcombank.com.vn Website: www.techcombank.com.vn