Report on General Information of Techcombank

Class: QTRE303(2425-1)GD2.8
Reporters:
- Đỗ Trâm Anh (MSV 2312550004)
- Nguyễn Ngọc Linh (MSV 2312550039)
1. General Information of Techcombank
● Name: Vietnam Technological and Commercial Joint Stock Bank (Techcombank)
● Products and Services:Techcombank is dedicated to every customer to help
Vietnamese people have a better financial life.
○ Personal banking
○ Business banking
○ Priority banking
○ Investing

(1) Basic Digital Banking service

❖ Single/Batch domestic transaction
❖ QR code payment
❖ Bao Loc Certificate of Deposit
❖ 24/7 online bill payment
❖ FX selling
❖ Tax and custom payment
❖ Loan payment

(2) Advanced Digital Banking service

❖ International money transfer
❖ Buy foreign currency for international money transfer

(3) Connecting to MISA Bankhub with multiple utilities in order to fulfill the demands of
enterprises.
❖ Online payment directly from accounting software without re-accounting
❖ Automatic reconciliation
❖ Automatic generation of receipts/payments
❖ Transaction history lookup from accounting software

● Vision: Change banking, change lives. Uplifting everyone to reach their full
potential.
● Mission: Lead the digital transformation of the financial industry, enabling
individuals, businesses, and corporations to progress and thrive sustainably.
● Core Values: The values that Techcombank commits to implement in all actions to
get core success include
 ○ Customer Centricity: WE EXCEED EXPECTATIONS. We put the
customer at the center of everything we do
○ Innovation and creativeness: WE CREATE THE NEXT. We explore new
opportunities to deliver meaningful experiences
○ Collaboration for common objectives: WE PARTNER WITH PURPOSE.
We are a diverse team, united by shared goals
○ Self-development: WE REACH FOR OUR POTENTIAL. We always
strive to advance ourselves
○ Work efficiency: WE TAKE OWNERSHIP. We hold ourselves
accountable for our actions
● Customer Segments:
○ Personal customers: At Techcombank, each customer is a unique individual
to be served with products personalized to each customer’s needs.
○ Business customers: Techcombank brings a range of diverse products with
simple processes to help bring outstanding benefits for small to medium
scale businesses.
○ Large enterprise customers: Together with a team of leading financial
experts, Techcombank is offering comprehensive financial solutions,
tailored to the needs of large enterprises.
○ Investors: Techcombank is committed to delivering long-term benefits,
worthy of investors’ trust.

2. General Environment Analysis

a. General working environment of Techcombank

Each year, Techcombank recruits 1,850 new employees, 65% of whom are recent
graduates. The leadership of the Human Resources Division at the bank views this as a
strategic direction to align with the operational model of a modern bank, setting a
standard for service and upholding the core value: customer first.

Employees are considered the backbone of Techcombank. Since its inception, the bank
has upheld the philosophy of self-reliance, standing on “two feet.” In line with this belief,
building a high-quality workforce, implementing modern technologies, and fostering
proactivity and creativity are crucial. Techcombank also has policies in place to regularly
develop and retain its human resources.

About the general environment in which Techcombank is operating, the Vietnamese

government is implementing supportive policies to promote digital banking and financial
inclusion in Vietnam. Our country’s stable economic growth serves as a strong
foundation for further financial development. Rapid urbanization and a tech-savvy
population are driving an increasing demand for digital banking services. Consumers
show a high preference for personalized financial products, reflecting a shift towards
more tailored financial experiences. There have been significant advancements in fintech
and digital transformation, which have reshaped the financial landscape. Additionally, the
adoption of mobile banking apps is on the rise, facilitating greater financial accessibility.

b. Opportunities:

A survey conducted by Vietnam Report in June 2022 revealed that over 48% of
respondents believed the banking sector has played a crucial role in Vietnam’s economic
recovery. The operational capacity of the banking industry was viewed very positively,
with 77.7% of customers acknowledging that banks have maintained good customer
service levels, and 58.9% stating that banks have adjusted their products and services
appropriately in response to changes caused by the pandemic.

This positive perception of the banking sector comes in the context of significant
developments in Vietnam’s financial landscape. The country’s digital economy is
experiencing robust growth, fueled by stable economic performance, rapid urbanization,
and a tech-savvy population that increasingly demands digital banking services. In
response to these trends, banks have strategically adopted and enhanced digital platforms,
meeting consumer expectations through personalized financial products and services.

Moreover, there is high potential for expanding wealth management services in Vietnam.
As consumer preferences become more sophisticated and as the population’s financial
literacy improves, there is a rising demand for tailored financial planning and investment
opportunities. Banks have responded to this by partnering with fintech companies to
drive innovation and deliver more accessible, efficient, and customer-centric financial
solutions. These collaborations have further accelerated advancements in fintech and
digital transformation, positioning Vietnam's banking sector to lead in financial
innovation.

Additionally, the banking industry is focusing on sustainable finance and supporting

green initiatives. With increasing regulatory emphasis on environmental considerations,
banks are aligning their strategies with government policies promoting green banking and
financial inclusion. As a result, Vietnam's banking sector not only supports economic
growth but also contributes to the development of a more sustainable and digitally
integrated financial environment.

c. Threats

Navigos Search evaluates that the pool of candidates in the field of digital transformation
within the banking sector in Vietnam is currently very limited, both in terms of quantity
and quality. In terms of quality, it is rare to find candidates with the experience needed to
implement and apply the most advanced technologies. Regarding quantity, although
banks have a high demand for a large number of recruits within a short period, the
number of qualified candidates is insufficient to meet this demand.
According to Navigos Search’s observations, the competition for candidates in this
industry is extremely intense. Positions related to IT, which form one of the critical
foundations for digital transformation, are particularly scarce. It is not only banks that
require IT roles; companies from other sectors, such as finance, e-commerce, healthcare,
and education, are also vying to recruit candidates in this field.

Recruiting, attracting, and retaining IT candidates at banks has always been a “headache”
for employers. These candidates often do not stay long in one place, as they have diverse
fields to choose from for work. This leads to fierce competition among companies in the
market to attract candidates, with banks having to offer attractive recruitment policies
regarding salaries, bonuses, and social benefits.

Another challenge is that business models and payment management practices may need
to be reconsidered to align with trends in smart management, mobile banking models,
digital banking, and electronic payments. Additionally, banks need to research and
maximize customer experience in the payment field to meet the increasing demand for
cashless transactions in the technology era.

The challenge for the entire banking industry in Vietnam, particularly in the payment
sector, within the context of the Fourth Industrial Revolution, lies in ensuring the security
of banking and payment systems, protecting information, and addressing issues related to
high-tech crime. Additionally, there are challenges related to the skill level, competence,
quantity, and quality of the IT workforce.

3. Porter's Five Competitive Forces Analysis

a. Threat of new entrants:

In Vietnam, establishing a bank requires high capital (3,000 billion VND), a large
number of shareholders, and stringent qualifications, limiting new entrants. Major banks
like Vietcombank, Agribank, and Techcombank already dominate the market, benefiting
from economies of scale and strong brand loyalty, making it challenging for newcomers
to build a customer base. Additionally, while new technologies could provide
opportunities for entrants, only foreign banks with substantial capital can leverage these
effectively, as local private banks face capital limitations. Thus, the threat of new entrants
remains low in the industry.

b. Bargaining power of suppliers:

Due to low switching costs, customers can easily change banks, putting pressure on
Techcombank to maintain competitive interest rates. Economic downturns, such as the
COVID-19 pandemic, have led to decreased interest rates and lower deposit volumes.
To retain customer loyalty, Techcombank must focus on building trust and accessibility
by expanding its branch network. Additionally, the bank relies on suppliers for essential
office facilities and a skilled workforce. Although supplier power in the banking industry
is generally low, during economic crises, suppliers can pose a moderate threat to
profitability.

c. Bargaining power of buyers:

The banking industry has a broad customer base, including individuals, households, and
businesses, each with distinct service needs. To meet these needs, banks like
Techcombank offer tailored services, such as housing loans, car loans, and business
loans, often with additional incentives like discounts or insurance. Due to high price
sensitivity and low switching costs, Techcombank must maintain competitive interest
rates to retain existing clients and attract new ones. During crises, such as the Covid-19
pandemic, reduced demand for loans and increased deposit activity pressure banks to
adjust interest rates to support affected businesses, directly impacting profitability.

d. Threat of substitutes:
To support the Vietnamese government’s goal of reducing cash usage to under 10%, the
fintech sector in Vietnam has experienced rapid growth in recent years, with products like
digital banking and electronic payments with the customer base for fintech products is
large and expanding. Government support, including a reduced corporate tax rate for
fintech companies (Resolution 41/NQ-CP, 2016), further encourages this sector's
development. The rising prominence of fintech increases the competitive pressure on
Techcombank, necessitating investment in technology and service innovation to retain
and grow its customer base.

e. Industry rivalry:
Vietnam's banking industry remains highly competitive. Although the threat of new
entrants is low, Techcombank faces moderate bargaining power from suppliers and
customers, along with significant threats from substitute products. The market is
dominated by established banks with substantial capital and extensive experience,
intensifying competition. In 2023, Techcombank encountered additional challenges from
compressed Net Interest Margin (NIM), increased Non-performing Loan (NPL) ratios,
and a slowdown in key sectors like bonds, bancassurance, and real estate. Despite these
pressures, Techcombank demonstrated resilience, exceeding its profit projections by 4%
through effective cost control and maintaining a low NPL ratio (1.2%) and strong Capital
Adequacy Ratio (14.4%). However, regulatory restrictions on exiting the industry further
elevate the competitive intensity, requiring Techcombank to remain agile and innovative
to sustain its market position.