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MB Bank advances ESG strategy with green credit initiatives

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MB Bank's brand reputation continues to be affirmed in prestigious rankings and awards both domestically and internationally

As the global economy faced significant challenges from the economic downturn in 2023, MB Bank (Military Commercial Joint Stock Bank) stood firm in overcoming difficulties, making multiple breakthroughs in implementing its digital transformation strategy. There was a substantial leap in customer numbers, reaching 26.5 million customers by the end of 2023, an eight-fold increase compared to 2017, thereby making MB Bank the one with the most extensive customer base in Vietnam.

According to the Annual Report of MB Bank, “By the end of 2023, our total assets increased by 29% to approximately VND 950 trillion; outstanding loans surged by over 28.8% to reach VND 615 trillion; the group’s net profit exceeded VND 26 trillion.”
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MB Bank has always maintained the market lead, when it comes to providing diverse and secure services and products, possessing modern information technology infrastructure and expanding aggressively into new market segments besides the traditional market of a commercial bank. Leveraging that advantage further, MB Bank has connected BaaS (Backend-as-a-Service) to businesses from various sectors, such as financial services, logistics, and securities, through over 600 APIs (Application Programming Interfaces), making it one of the banks with the most diverse APIs.

During an interaction with International Finance, MB Bank CEO Pham Nhu Anh said, “We expect our BaaS to gradually strengthen and reaffirm its commitment to accompany businesses in the digital transformation journey. In addition, our team is focused on building and developing the Mini App Market (MB Market Place) to transform the MBBank App into a super app platform, integrating various non-bank services on a single platform to serve the daily needs of over 20 million users.”

When discussing MB Bank’s digital transformation roadmap, the company is focused on achieving business growth while also prioritising corporate responsibility towards society and the environment. In early 2023, the bank showcased a strong dedication to the ESG (Environmental, Social, and Governance) strategy by adhering to international measurement standards and emphasising the positive impacts on customers and the environment.

Following the directions of the Vietnamese government and the SBV (State Bank of Vietnam), MB Bank has researched and improved credit policy mechanisms linked to environmental and social management, aiming for green banking and green credit. This involves providing credit and payment services in environmentally friendly sectors.

“We made significant moves in developing green credit, with a total value reaching VND 56.829 trillion, an increase of 22% compared to 2022. The bank focused on clean, renewable energy and industry sectors, clearly reflecting its substantial shift towards sustainable financial activities. We also digitalised 90% of its internal operations, reducing reliance on paperwork and aiming for a green working environment, aiming to achieve a 100% digitalisation ratio,” the MB Bank CEO added.

Last year, MB Bank launched the “Hi-Green Campaign,” a participatory CSR campaign under the venture’s ESG strategy. The move attracted participation in sports activities and provided direct support based on accumulated volunteering points.

“Accordingly, for each valid kilometre of running or walking, we will donate VND 3,000 from the group’s social charity fund to transform self-generated landfill sites into community ecological spaces and public playgrounds. After about two months, the campaign achieved its goal of VND 8.1 billion to transform self-generated landfill sites into ecological playgrounds for the community,” he told further.

As it ended 2023 as a year of strong and sustainable development, MB Bank’s brand reputation continues to be affirmed in prestigious rankings and awards both domestically and internationally.

MB Bank has been listed by Forbes magazine as one of the top six banks in Vietnam for three consecutive years (2021-2023), based on operational efficiency and profitability criteria.

Furthermore, MB Bank’s automated banking model — SmartBank, received two international awards, the Asset Tripple A Award for being the “Best Digital Branch Project” and the Global Economics’ honour of “Digital Transformation Bank of the Year.” These awards further validate the bank’s digital transformation efforts, which place customers at the centre.

“In 2024, we remain steadfast in our vision for 2026: ‘Becoming a Digital Corporation, a Leading Financial Group’ with the strategic goal of being ‘Top 3 in terms of efficiency in Vietnam, aiming at the Top in Asia.’ Our strategy focuses on customer experience and value-added initiatives for customers, thereby adding value to our bank. Throughout this journey is a consistent governance culture, guided by the philosophy of customer-centricity,” CEO Pham Nhu Anh noted.

The approach of “Customer-Centricity” is based on three pillars: ‘Customer Attraction’, which deals with building excellent experiences, apart from understanding and fulfilling customer expectations. Second one is ‘Flexibility & Agility, an idea that propagates MB Bank to be agile, optimise and efficiently leverage technology, market, and customer needs. The third pillar being “Group Synergy,” which talks about connecting the whole MB Group, by building the “One ID Digital Experience,” apart from proposing excellent operational values.

“To serve 30 million customers by 2024, achieve a consolidated profit of VND 30 trillion, and have total assets of VND 1 trillion, we are aiming to be a leading bank in digitisation and a pioneering bank in sustainable development and social responsibility. With its big moves and innovative strategy, we are affirming its position in the financial market and is ready for new opportunities in the digital banking industry,” CEO Pham Nhu Anh concluded.

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