Over the past two decades, LDB has played a leading role in implementing state economic policies and supporting national development, while strictly adhering to domestic and international banking regulations.

Industry observers note that LDB is “one of the most outstanding financial institutions to watch” in the region. Its strategy has combined sound financial performance with modernisation initiatives, earning accolades as a fast-growing bank with innovative employee- and customer-focused programmes.

Expanding electronic payment networks

LDB’s roots lie in a government-led restructuring of Laos’ fragmented banking sector. In 2003, the Lao government merged two troubled state banks, Lane Xang Bank and Lao Mai Bank, into the new Lao Development Bank. The merger aimed to revitalise financial stability by consolidating capital, eliminating overlapping structures, and rebuilding public confidence in banking.

The newly formed LDB inherited a nationwide network and the mandate to support national socioeconomic development. In its early years, the bank focused on strengthening its balance sheet and human resources, recruiting competent personnel to meet its redefined mission.

Throughout the 2000s, LDB systematically upgraded its systems and services. Notably, it migrated to a modern core-banking platform (“T24”) by 2010, connecting all branches online and enabling real-time inter-branch operations. It also introduced new customer products: ATM and electronic POS networks, and as a pioneer among Lao banks, a mobile banking service (marketed as “LDB Trust”) fully integrated into electronic payments.

By integrating ATM transactions into mobile/ e-commerce channels, LDB laid the groundwork for Lao consumers to conduct electronic payments nationwide. The bank concurrently expanded its credit portfolio to support small and medium enterprises (SMEs) in agriculture and rural development, aligning its loans with the goal of job creation and poverty reduction. These early reforms set the stage for LDB’s future growth, building capacity and technological capability within the organisation.

Data-driven transformation for growth

Having experienced the global COVID-19 shock and a broader government push to reform state-owned enterprises, LDB embarked on a major privatisation in 2021. This restructuring aligned with national policy to turn specialised state banks into more competitive joint enterprises.

Under the new ownership, LDB overhauled its corporate governance and leadership. A new Board of Directors was appointed, supported by governance committees meeting international “three lines of defence” standards.

Sitthisone Thepphasy was named Board Chairman, bringing a vision-focused leadership style praised for disciplined oversight and ethical rigour. The management adopted a unifying slogan: “Change for the Target to Success,” emphasising strategic focus and streamlined processes under the refreshed organisational structure.

LDB’s mission and vision were recalibrated to be more customer-centric: its official vision now is “to be the bank that customers can trust for getting the best services, the best technology, and the best staff responses.”

In practice, the executive team, led by President Chanthanome Phommany, pursued a data-driven transformation. They conducted granular financial analysis to identify underutilised capital, optimise branch performance, and restructure costs. This led to clear strategic plans and improved employee development programmes, reinforcing professionalism across the bank. Management reports that in the first year of the new regime, LDB significantly outperformed peers in profit growth and asset expansion.

Expanded physical presence nationwide

With visionary leadership, LDB substantially grew its physical and service footprint. LDB operates over 18 branches, supported by 75 service units, 263 ATMs, and eight foreign-currency exchange offices nationwide. These units extend banking access even to remote districts. With expanded staffing and training programmes, LDB emphasises a professional workforce that can support its complex product range.

In an exclusive interview with International Finance, LDB Managing Director Fongsamout Douangchai, said, “Our product lineup is broadened. The bank now offers a full spectrum of commercial banking services: household and corporate deposits, term loans (including mortgage and auto loans), trade finance, and international remittances. In particular, we have issued UnionPay and Visa debit/credit cards, enabling customers to transact at home and abroad with global networks. It provides SWIFT-based international transfers and partners with Western Union for rapid remittances.”

“The bank introduced LDB Biz, an online banking platform for businesses (including payroll services), so corporates can manage accounts and salaries without visiting branches. We also installed extensive payment infrastructure: over 260 ATMs, plus electronic point-of-sale (POS) terminals and QR-code readers, to facilitate digital payments countrywide. In sum, our expanded branch network and service portfolio now cover all major banking needs of Lao businesses and citizens,” he added.

Building on these foundations, LDB has invested heavily in digital transformation. Its flagship LDB Trust mobile app has been positioned as a game-changer in Lao banking. The app functions as both an electronic wallet and a full-service bank portal. Users can transfer funds, pay utility bills (electricity, water, loans), top up phone accounts, and receive real-time account statements.

Unique features include integrated market data: customers can view Lao gold prices, Bitcoin values, foreign exchange rates, and interest rates on the go. By year-end 2022, over 50,000 merchants were registered on the platform, reflecting its adoption in retail commerce. LDB reports that usage of LDB Trust has surged after recent app improvements and customer incentive campaigns.

Alongside LDB Trust, LDB Biz was launched as a 24/7 web and mobile banking portal for corporate clients. Through LDB Biz, companies and organisations can initiate transfers and view statements.

LDB has also integrated its card services and mobile app: customers can link their UnionPay cards to LDB Trust for ATM withdrawals. These digital platforms support the bank’s customer-centric strategy. For example, LDB Trust includes e-commerce integration: it was among the first to tie ATM/mobile banking into online shopping. Users can make QR-code payments at merchants directly from the app and even promote their own business offers through in-app merchant portals.

The app’s design emphasises simplicity (one-click transfers, easy billers), so that even first-time users can transact confidently. As a result of these efforts, LDB Trust and LDB Biz have “performed soundly” as channels for transfers, bills, top-ups, and other services, greatly increasing convenience for Lao customers.

Another notable alliance is in the gold investment space. LDB has teamed with KPV Group (a leading Lao gold merchant) to integrate gold savings into digital channels. An “Easy Gold” joint venture arrangement enables KPV’s retail customers to use the LDB Trust app for gold purchases and instant settlement. For example, gold orders on the Easy Gold platform can be paid directly from an LDB account via the app. By embedding gold trading into LDB’s mobile wallet, the bank taps into both household savings and wealth-tech opportunities. While official details are sparse, this initiative illustrates LDB’s strategy of leveraging private sector partnerships (KPV Group, RMA, etc.) to extend its services and market presence.

Building strategic collaborations across diverse sectors

To broaden its reach and product capabilities, LDB has equipped itself by cooperating with resilient commercial banks in neighbouring countries such as Thailand, Vietnam and China. Acceleration initiated the development of LDB’s enabler to enhance its foreign trade facilitation capacity.

Commitment to sustainable development goals

Sharing his views about LDB implementing the ESG principles, MD Douangchai said, “We have woven environmental, social, and governance (ESG) principles into its business strategy. The bank explicitly supports Laos’s sustainable development agenda. Management emphasises financing clean hydropower export, eco-tourism, and modernised agriculture as part of the post-COVID economic recovery. In practice, our bank evaluates lending and investment projects against their ecological impact, and it offers tailored loans for green initiatives such as agroforestry or rural electrification.”

A pioneering aspect of LDB’s ESG push is its involvement in Laos’s nascent carbon market. The bank has facilitated carbon credit projects through a Lao firm, CS Carbon Company, which holds forestry concessions. Under the new national carbon credit decree, these projects cover an area of roughly 2.5 million hectares of forest land.

LDB has provided advisory and financial support to CS Carbon’s schemes, making it effectively the first Lao bank to back certified emission reduction initiatives. By integrating carbon credits into its portfolio, for example, enabling businesses to buy or earn Lao Carbon Units, LDB positions itself at the forefront of financing nature-based solutions. This aligns with the bank’s broader climate commitment and the country’s goal to tap international carbon funds.

“On the social side of ESG, we have adopted internal governance frameworks and staff welfare programmes consistent with international norms. The bank implements strict anti-money laundering (AML) and know-your-customer (KYC) systems as noted in internal reports, and has won awards for its employee welfare initiatives,” Douangchai added.

The board’s three lines of defence model and emphasis on professional ethics reflect an institutional commitment to good governance. These ESG efforts are now integrated into LDB’s brand and risk management outlook, reinforcing confidence among socially conscious investors and clients.

Multilingual digital solutions

LDB’s transformation has been communicated via high-profile marketing campaigns and user-focused technology. The bank deliberately adopted celebrity endorsements to raise brand awareness. For example, its LDB Trust app promotion in 2023 featured Thai television star Nine Naphat as the brand ambassador, tapping into his youthful fanbase.

Local influencer Bella Lani was likewise engaged to reach millennial customers. These campaigns portrayed LDB Trust not just as a banking tool but as a modern lifestyle app, strengthening public trust and driving downloads. According to LDB’s management, the app saw “significant growth” after such promotions.

Technologically, LDB is integrating marketing and service channels. Its digital platforms now include targeted promotions and easy enrolment for customers: for instance, new app users receive welcome incentives and merchant coupons.

Douangchai also heaped praise on LDB’s digital offerings and innovative multilingual services for Laos’s diverse customer base.

“The bank’s social media and SMS channels push timely financial tips and e-coupon deals to stimulate usage. LDB Trust’s interface is gamified with loyalty points and gold purchase alerts, making banking more engaging. Furthermore, all of LDB’s digital offerings are multi-lingual (Lao, English, Chinese) to serve Laos’s diverse customer segments. In essence, LDB blends marketing creativity with tech features, ranging from one-click bill pay to integrated gold/ e-commerce modules, ensuring that product innovation remains aligned with customer convenience and lifestyle,” he noted.

Community support during crises

LDB has consistently demonstrated social responsibility, particularly during national crises and economic hardship. During the severe floods in northern Laos in September 2024, for example, the bank donated 500 million kip to relief efforts in Luang Namtha province. This contribution helped provide food, water, and medicine to affected families, alongside other private sector aid. The action was widely publicised to encourage solidarity (“share heart” campaigns) and exemplified LDB’s commitment to community support.

Beyond emergency relief, LDB contributes to long-term economic resilience. In the aftermath of the COVID-19 downturn, the bank aligned with government stimulus by offering affordable credit. Management notes that LDB worked to ensure businesses “have access to finance at reasonable interest rates” during recovery periods.

The bank also sponsors financial literacy programmes and SME workshops, aiming to strengthen the broader economic base. Internally, LDB maintains employee training, welfare benefits, and corporate volunteering days, reflecting the “social” in its ESG stance.

To sum it up, LDB leverages its financial resources and expertise for social good, whether through targeted funding (flood and pandemic relief), supportive lending to small businesses, or public education on banking. These community-oriented initiatives complement its commercial objectives, promoting goodwill and stability in the Lao economy.

Positioning for the future

The Lao Development Bank, celebrating over two decades of service, has evolved into a key player in Laos’s socio-economic development. Established in 2003 through the merger of two state-owned banks, LDB has consistently worked to restore public confidence, drive inclusive growth, and align its operations with national development goals.

LDB’s transformation goes beyond technical upgrades; it reflects a strategic vision. By expanding its presence in underserved areas, the bank has worked to bridge financial gaps, enhancing economic equity across the country. This expansion is paired with significant investments in digital banking, including platforms like LDB Trust and LDB Biz, which offer services such as digital savings, credit, transfers, and investment management. These innovations have improved banking convenience and accessibility, helping Laos transition to a digital-first economy.

LDB stands out in the competitive Southeast Asian banking market for its holistic approach, integrating technology, forming strategic alliances, and promoting sustainability. Moreover, its involvement in ESG-driven initiatives, including carbon credit projects covering over 2.5 million hectares of forestland, demonstrates a strong commitment to ecological and social responsibility.

The bank’s focus on customer experience is evident in its user-friendly mobile platforms, real-time financial insights, and integration of loyalty programmes, QR-code payments, and digital gold trading. These efforts have created a seamless banking ecosystem that resonates with customers’ evolving needs.

LDB’s strong financial performance, including record profits, a high return on equity, and one of the region’s lowest non-performing loan ratios, underscores the success of its transformation. Its resilience in adapting to disruptions, like the COVID-19 pandemic, demonstrates its solid governance and technological foresight.

“We are well-positioned to lead Laos’s banking sector into deeper ASEAN integration, greater access to global capital, and a rapidly evolving digital economy. Our continued focus on SME financing, green infrastructure, and inclusive banking will shape Laos’ financial future, positioning LDB as a model for emerging market banks worldwide,” MD Douangchai concluded.

The post LDB: Mastering the craft of banking in Laos appeared first on International Finance.

International Finance, a premier business media services provider, started its journey in 2013 with the aim of recognising industry talents, leadership skills, industry net worth and capabilities on an international platform.

In 2014, it made headlines by launching its maiden flagship programme in London. The industrious research and development team of International Finance helped the latter to recognise the best corporate talents and reward them on the strength of their applications and past accomplishments.

For nominations, International Finance gives priority to C-Level executives and senior management representatives in the fields of finance, banking, asset management, brokerage, insurance, energy, oil & gas, logistics and utilities from the Middle East, Asia, Europe and Africa.

Some of the past winners of the International Finance Awards include Saudi Telecom Company, Sharjah Asset Management, Oman Oil Corporation for Exploration and Production, Emirates NBD Egypt, BIDV, OCBC Bank, Barwa Bank, Saudi Enaya and Kuwait Aviation Services Company.

While in 2016, Southeast Asia became the second venue for International Finance Awards, by 2018, the number of dignitaries attending these ceremonies touched the 400 mark. The recognitions motivated the corporates to become industry leaders and take their ventures into a growth path through International Finance networking.

Our vision foresees a future where passion meets excellence. With conviction from the team of International Finance, “We are just getting started.” To all the business talents out there, this is the chance to grace your name on the International Finance Awards’ winner board.

The post 10th Annual International Finance Awards: Stage set for grand event in Thailand appeared first on International Finance.

Over the past two decades, the bank has actively and progressively contributed to the implementation of the state’s policies and guidelines, based on its rights and roles, in order to stimulate Laos’ social-economic development. Owned by the Ministry of Finance (MOF) and operating under the Bank of Lao PDR, LDB also actively complies with both domestic and international regulations.

After 1999, the Bank of Laos issued a policy to restructure state-owned commercial financial institutions, as apart from being localized in nature, these banks also lacked financial capacities and were riddled with overlapping organizational structures, along with other issues such as high operational costs, low competition capacities, limited business operations, and less openness to international cooperation.

Therefore, the government merged two local banks, Lane Xang Bank Limited and Lao Mai Bank limited, as one in 2003, which came to be known as Lao Development Bank (LDB). The purpose of this merger was to revitalize and rebuild strong stability, recreate trust in the society, turn the banking operations into a well-run business and facilitate the national socio-economic development with more qualified and competent personnel. The bank also strives to ensure its clients’ rights and interests, while effecting the implementation and expansion of the Lao government resolutions.

LDB has gone through a range of challenges, as the Laos economy kept on developing. Over the merging period, the policy was also changed and made flexible. With steady growth in terms of total assets, human resources, and technology development, the bank used the former accounting system called “Bank 2000” before migrating to the new Core Banking System “T24” in 2010.

Since March 2010, all LDB branches were connected to the bank’s network, which became online across the country. The Bank has also introduced new products and services such as ATMs, and EFTPOS (Electronic Funds Transfer Point of Sale), apart from becoming a pioneer, in terms of introducing Mobile Banking in the form of “M-Commerce”. ATM-based financial transactions became the first group of banking operations to fully integrate mobile banking into its e-commerce fold, apart from modernizing many aspects of its services. LDB is also providing loan services to promote and develop small and medium enterprises (SMEs), with an aim to strengthen the national economic base, create jobs for local people, and improve their lives.

However, the challenges from the COVID pandemic and economic recession are unavoidable to LDB. So, the privatization policy by the merger with Chaleun Sekong Energy Co., Ltd was applied to the bank in order to improve its performance. The vision behind the merger was also to implement the new policy and directions of the Lao government to transform and improve the structures of state-owned enterprises and commercial banks to become joint ventures. The government agreed to sign the joint venture MOU between Chaleun Sekong Energy Co., Ltd and the Ministry of Finance on 17/03/2021, thus commencing the joint study and discussion on issues such as the organizational structure and personnel and joint venture agreement. Through the study, research, and implementation in a strict and concise manner, LDB achieved outstanding results in the compliance, rules and regulations front. The government agreed to sign the joint venture agreement on 01/09/2021 between Chaleun Sekong Energy Co., Ltd holding 70% while 30% remaining held by the Ministry of Finance, of the shares.

To deal with the challenges of the post-COVID period, Lao’s domestic population will contribute to the government’s policy to stimulate the economic recovery by creating a clean hydropower export industry, supporting Lao eco-tourism with a focus on potential entrepreneurs, promoting the agricultural sector to serve society within the country to meet the needs of local people throughout the country, providing trade-investment support, shops or distributors, and hospitals. LDB is actively working towards these goals to ensure that the businesses have access to finance sources at reasonable interest rates, apart from being able to perform management-related duties smoothly.

Through the joint ventures and management under Chaleun Sekong Energy Co., Ltd, LDB improved and reformed the organizational culture and working approach of its Board of Directors as well as the technical staff. Right now, it has more than 18 branches, 75 service units, 263 ATM machines, and eight currency exchange units across the country. LDB has been solving many issues, apart from determining and declaring the bank’s vision, missions, strategic plan, and business operation directions. Another obvious thing is the rapid business drive of the new standardized corporate governance and new Board of Directors, which is full of knowledge with great ability, expertise, experience, and professionalism, combined with the inspirational leadership of its Chairman, Mr. Sitthisone Thepphasy, who has a broad vision, apart from possessing great leadership-direction on business operations, knowledgeable skills and insights, ethics, and self-discipline.

Following the joint venture restructuring, LDB held a general meeting with the shareholders to approve the organizational structure, which consists of the Board of Directors, the Board of Management, the committees to the Board of Directors, the independent disciplinary committee, division committees, branch committees, and unit committee. All these panels met the international standard on corporate governance, known as the three lines of defence.

Mr.Thepphasy said, “I shall manage and drive LDB’s goals strongly. I would develop the LDB leadership staff so that they become stronger, more courageous, and responsible towards the target of fulfilling teamwork with professionalism and transparency, apart from having a cordial relationship with each other, and maintaining proper behaviours to achieve the target of making the organization stronger and profitable one. They must also ensure that our business operations comply with the regulations, as well as keeping the satisfaction of business partners in mind, so that the customers use our services more.”

LDB has revised its key documents in line with the latest business structure (which changed from the old to the new one), with a goal to adhere to the slogan “Change for the Target to Success”, which envisions the financial institution to be more concise, standardized, complete, harmonious and consistent, apart from sticking to its strategic plan, vision, and business operation approach under the new management, in order to be stronger comprehensively and sustainably, in terms of profits.

In addition, the documents’ improvement programme started with the revision of LDB’s internal regulations. This regulation set is the financial institution’s main document and it is based on the law on commercial bank management and related rules such as relevant regulations of the Bank of Lao PDR.

LDB has the vision of becoming the bank that customers can trust for getting the best services, the best technology, and the best staff responses. To realize this, the bank has taken measures towards reforming and building senior executives with ideas, imagination, teamwork models, and quality management by prioritizing each strategic task to satisfy its customers and partners effectively and sustainably. Apart from that, LDB has goals of reforming the research/study method form, building a professional team or procuring professionals to train and help decision-making in a highly systematic, scientific, and unified manner, to ensure the general interest, along with maintaining the bank’s status of being a profit-making institution with great responsibility and ethics.

Another priority area is to develop tools for analysing investment and cost-balancing approaches as scientific return indicators to facilitate accurate, clear and effective decision-making.

The Chairman of the LDB’s executive committee, Mr. Chanthanome Phommany, while talking about his organization’s highly successful transformation journey, remarked, “In the past 10 months, I would like to confirm that all parties, including the Lao government, the Bank of the Lao PDR, employees and customers have pleasantly welcomed the new board of directors with satisfaction and provided good support. We have goals and strategic plans defined in the 6-month plan before officially signing a joint venture with the government. I and the board of directors have led and managed the organization with a clear vision, have a complete systematic plan, focus on actual work, and transform the new mechanism of the Lao Development Bank to be able to run smoothly and effectively.”

As a result, LDB currently has a significant assets growth at 245% compared to 2021. In 2022, LDB was a profitable financial institution with positive cash flows. The earnings increased at significantly faster rates than Laos’ overall banking industry. ROE was 31% and NPL was only 0.02% at the 2022 end.

Giving his insights to International Finance about LDB’s transformation journey, Mr Phommany added, “We can give you some examples to get an understanding of how we think now. One – we thoroughly analysed the bank financials and business before we devise our strategies. We knew exactly how many thousand dollars are un-utilized, we calculated the exact Cost of Funds, we knew what exactly affects our Cost of Funds, we could precisely tell which branch is overusing funds with fewer returns, we could precisely see which branch overspends (in comparison to their business volumes) and so on.”

“We have defined a clear strategy, with the work of the board of directors in a systematic manner. All goals and action plans are defined in a standardized structure. Two – based on all our research & analysis, we had clear and focused strategies with the work of the board of directors in a systematic manner. Goals and action plans for all verticals & horizontals were well structured. Three – We have recruited employees with the knowledge and experience and we have improved the welfare policy for employees to stimulate and encourage the performance of employees,” he further added.

Mr Phommany also shared examples like LDB creating modern technologies and training its employees to operate via those solutions, in order to transform the company’s image.

Technology was once a pain point for the financial sector in general, especially across small markets. While they require huge budgets to stay in touch with the breakthrough solutions, the investments on the technology front have to bring back monetary benefits too. Therefore, the bank put a lot of effort to upgrade and develop LDB’s digital and core banking systems.

“We have improved the technology continuously and firmly. This could produce a good result as we can see the number of customers who have used our Mobile App (LDB Trust) has significantly increased and so on etc…” Mr. Phommany remarked. LDB has grown in each area in terms of personnel, professionalism, and modernization by applying new technologies in the banking network more and more than ever before.

“Although the technology budget is a huge amount and could be the major challenge for our development, we have some special reserves, which were related to profit generations and market demands. We have to ensure what you develop and offer to the market is suitable for customers’ behaviours. In addition, we also have many internationally recognized and renowned technology development partners. Therefore, all we did was to choose the right tech partners and motivate them to do better,” Mr Phommany said, while talking about LDB’s successful journey on the technology front.

“As of now, we can only say keep watching. We are determined to change the banking segment and we would surely provide what is best for our customers and for our staff,” he remarked.

Over two decades, the Bank has been upgrading its system and introducing various products and services to meet the current and future lifestyles such as deposits, loans, fund transfers, ATMs, Credit and Debit Card (Union Pay, Visa), mobile banking (LDB TRUST), LDB BIZ (Payroll), online statements, and EDC, SWIFT, Western Union, E-border and so on. Both LDB Trust and LDB BIZ have been performing soundly via mobile phone and web-based platforms to provide 24/7 convenient customer services such as money transfers, top-ups, bill payments (electricity, water, loan), easy passes, etc.

LDB TRUST has emerged as a game-changing one, with its mobile banking and E-Wallet facilities, to serve customers in a more convenient, quick, and modern manner with different features in order to process financial banking transactions including paying bills, fund transfers, etc. The users can manage their own money and follow bank statements in real-time by themselves. Apart from financial transactions, LDB TRUST can also be used for gaining market information on the gold price, Bitcoin value, mining, FX rate, and interest rates. Customers and businesses can track their fund transfers; check bills and promote their products as well (for businesses only). Currently, over 50,000 merchants are using the platform.

LDB BIZ is an internet banking solution for corporate customers such as private companies and international organizations. These ventures can process financial transactions by themselves without stepping inside LDB branches. It’s a safe and convenient method, as all the users need to do is log in on the web browser/application via computer, tablet, or smartphone.

Apart from offering international bank transfers by SWIFT (Society for Worldwide Interbank Financial Telecommunications), API, Western Union, and E-Border, LDB puts a special focus on the importance of strengthening and implementing risk management on the compliance related to laws such as Anti-Money Laundering, Combating the Financing of Terrorist (AML/CFT) and Foreign Account Tax Compliance Act (FATCA). LDB not only has created policies and procedures related to AML/CFT and international standards including Know Your Customer (KYC) and Customer Due Diligence (CDD) implementation, but also has the standard automated AML Compliance system, qualified personnel who has knowledge and skills on the AML field and has an AML/CFT program that meets the international standard.

The first one is SWIFT Sanctions screening, which enables LDB to have the continuous assurance that no blacklists and sanction lists are transacted through LDB’s system.

The bank uses this to screen both incoming and outgoing transaction messages. If any of the messages match with the latest sanctions list, the financial institution gets real-time alerts and rejects transactions that are considered true hits.

Then comes the second mechanism in form of FICO Tonbeller compliance solutions or Siron AML, Siron AML Analysis and Siron KYC. The bank intends to use them to protect its products, services and its customers as well as the partners from financial crime. In the context of Siron AML and Siron AML Analysis, these two parts are used to prevent money laundering such as stopping criminals from becoming customers and monitoring suspicious activity. The bank uses Siron KYC to identify customer risk rating, and customer onboarding screening against sanctions and blacklists and is the tool for the bank to implement its customer acceptance policy.

The LDB recently bagged two awards, “Fastest Growing Commercial Bank in Laos” and “Best Employee Welfare Initiatives in Laos” at International Finance awards. This recognition comes as no surprise, given LDB’s track record of being one of the most customer-friendly and reliable banks in Asia.

The post Kicking Off Laos’ Banking Revolution appeared first on International Finance.

Q: Lao Development Bank is a two decades old Government Bank. September 2021 CSE partnered with the Government. What do you think has been the journey in the last 10 months?
A: I sincerely thank the International Finance for paying attention to the new management of our bank (LDB). In the past 10 months, I would like to confirm that all parties, including the Lao government, the Bank of the Lao PDR, employees and customers have pleasantly welcomed the new board of directors with satisfaction and provided good support. We have goals and strategic plans defined in the 6-month plan before officially signing a joint venture with the government. I and the board of directors have led and managed the organization with a vision, have a complete systematic plan, focus on actual work and transform the new mechanism of the Lao Development Bank to be able to run smoothly and effectively.

Q: Can you give us some insight on how you managed such a transformation (if it is not so confidential)?
A: Definitely much of this is confidential but we can give you some examples to get an understanding of how we think now. One – we thoroughly analyzed the bank financials and business before we devise our strategies. We knew exactly how many thousand dollars are un-utilized, we calculated exact Cost of Funds, we knew what exactly effects our Cost of Funds, we could precisely tell which branch is over using funds with less returns, we could precisely see which branch over spends (in comparison to their business volumes) and so on. We have defined a clear strategy, with the work of the board of directors in a systematic manner. For all goals and action plans are defined in a standardized structure.

Two – based on all our research & analysis, we had clear and very focused strategies with the work of the board of directors in a systematic manner. Goals and action plans for all verticals & horizontals were well structured. Three – We have recruited employees with knowledge, experience and we have improved the welfare policy for employees to stimulate and encourage the performance of employees.

Q: It sounds like you had a very clear plan of action. Can you also elaborate a bit more about some of your business strategies (again, if it is not very confidential)?
A: Maybe I share some examples – We have created and trained our employees along with using modern technology to transform the new image of LDB. If we do not focus on the development of technology systems, we would really feel handicapped. In 2022, we will have improved the technology continuously and firmly. We can see the number of customers who have used our Mobile App (LDB Trust) have significantly increased.

Q: That looks to be the right balance of Technology and People, great! Technology has been a pain point for all banks in any small market. The budget never seems to be enough to justify the massive investments needed for ever-changing banking technology. What did you do in this space?
A: Thanks for asking this. A lot of this actually is highly confidential. We can still share the large picture so that you can correlate to it. We do not think the technology budget is the major challenge for our development. We have many internationally recognized and renowned technology development partners. Therefore, all we did was to choose the right tech partners and motivate them to do better.

Q: So, it looks like you had to make some bold decisions for your tech partners. Do you also want to share some of your future plans and strategies?
A: As of now, we can only say keep watching. We are determined to change the banking segment and we would surely provide what is best for our customers and for our staff.

The post Lao Development Bank gets awards from International Finance appeared first on International Finance.