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VIB: Strategy for leading card trends

VIB has successfully transformed from a corporate customer-oriented into a professional retail banking model

Vietnam International Joint-Stock Commercial Bank (VIB) is one of the top banks in Vietnam with more than 11,000 staff, 178 branches and transaction offices in 27 key provinces/ cities across the country, and nearly four million individual and corporate customers nationwide. VIB has consistently worked as the most innovative and customer-centric bank in Vietnam. Their retail banking segment has particularly taken part in the bank’s strategy as the top priority for investment to make VIB become the leading retail bank in terms of quality and scale. In November 2020, VIB formally listed its shares on the Ho Chi Minh City Stock Exchange (HoSE).

A Strategy For Leading Card Trends
Strategizing retail as a key business segment, VIB has successfully transformed from a corporate customer-oriented into a professional retail banking model. After more than 5 years of transformation, VIB is now the leading retail bank with a proportion of up to 90% of the credit portfolio structure, of which about 90% of retail outstanding loans have guaranteed assets.

Belong with the bank’s retail strategy, its many hero products are highlighted on the market. At the moment, VIB represents more than 35% of Mastercard’s overall spending in Vietnam. In terms of quantity and quality, VIB also leads in the growth rate of Mastercard credit cards, which is five or six times higher than the overall market average.

VIB entered the local credit card industry with the introduction of all card products in 2019. According to information made public by the Vietnam Card Association in June, VIB comes fourth in total card expenditure despite having the eighth-most issued cards of any bank in Vietnam.

There are now more than 500,000 VIB credit cards in circulation, which is more than six times the 90,000 cards observed in 2018. The amount of money Vietnamese consumers spent annually on VIB credit cards has also surged, rising from VND 8.4 trillion (USD 360 million) in 2018 to VND 72 trillion (more than USD 3 billion) in 2022, an increase of 8.6 times. In addition to house loans, vehicle loans, business loans, and insurance, credit cards are one of VIB’s business sectors when the bank implements its primary strategy of moving to the retail sector and boosting digitization. This method has significantly increased VIB’s fee income.

According to VIB’s executive pre-tax and after-tax profits for the entire year 2022 are expected to be higher than the estimates given by the General Meeting of Shareholders of VND 10.5 trillion and VND 8.4 trillion, respectively. These figures could be even higher if VIB took into account the extraordinary profits from some cooperation agreements that the bank would likely complete in 2022.

The Best New Card Offering – VIB Family Link
Launched in September 2021, the VIB Family Link credit card allows customers to accrue reward points for family-bonding costs. This card line provides exceptional rewards for family spending on holidays, birthdays, weddings, weekend eating, gifts other than for children’s birthdays, medical education, and savings and insurance packages. These rewards are tailored to each cardholder. Additionally, all points are instantly transformed into savings accounts for kids that provide families with competitive interest rates.

Over the past year, VIB has assisted over 10,000 cardholders who are parents in bettering the quality of family life through the Family Link card line. It has also provided more practical solutions for efficient spending management and made contributions to advancing the all-around development of Vietnam’s future generations.

Most Innovative New Credit Card Service – Vietnam 2022
VIB is one of the top banks in the field of digitizing credit card issuance. The full digital channel has been used to issue more than 50% of VIB’s new cards. The idea of a “virtual card,” “virtual switchboard,” and “virtual financial expert” has also been launched by the bank, and it has been well welcomed by local customers.

Most recently, VIB introduced Vie, the nation’s first virtual financial counsellor that offers guidance on card application and card use. In 2020, with virtual card technology (Virtual Card) and Green PIN to support automatic credit limit approval. VIB was the first bank in Vietnam to permit customers to open a credit card 100% online.

In addition, VIB places a strong emphasis on providing excellent customer service. Currently, the Virtual AI Agent, a virtual switchboard service, is used to answer 10% of customer calls.

In Vietnam, VIB has also been acknowledged as the top bank for customizing credit cards. It currently offers nine different credit card lines and is getting ready to introduce a number of card lines with new features in order to keep up with the smart spending habits of millennials and Generation Z and satisfy the needs of customers in all facets of life, including travel, shopping, online consumption, household spending, instalment payments, and gas filling.

Analysts claim that VIB was a market pioneer in diversifying its credit card portfolio, which has contributed significantly to the growth of the cashless trend in Vietnam by altering consumers’ perceptions of credit cards over time.

VIB Wins Many Prestigious International Awards
Nowadays, VIB’s efforts have been recognized by prestigious awards from international organizations. Recently it bagged two awards at the International Finance Awards – “Best New Card Offering – VIB Family Link” and “Most Innovative New Credit Card Service – Vietnam 2022”. The two awards honour VIB’s tireless efforts to innovate and set the standard for card trends in Vietnam. The bank has now achieved this accolade from the international media for two years running.

International Finance Magazine lists VIB as one of the top banks in Vietnam for credit cards. The VIB Family Link credit card is highly praised for having features designed to foster family unity and offering a complete solution for every modern family that wants to manage daily expenses and create investments for their children’s future. It also values the unique marks VIB has earned as a result of its credit card personalization and digitization plan. The bank’s unique innovations are the most convincing proof of its dedication to Vietnam’s cashless lifestyle and smarter spending.

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