VIETNAM NATIONAL UNIVERSITY

UNIVERSITY OF ECONOMICS AND BUSINESS

PRESENTATION REPORT
TOPIC: CUSTOMER PARTITION IN BANKING 5.0

Lecturer: Mrs. Phung Thi Thu Huong

Mr. Pham The Thanh
Student: Pham Thi Tra Anh (Leader)
Dao Thi Thanh Van
Nguyen Hoang Giang
Phi Thanh Thuy
Han Quynh Thu Thuong
Vu Thuy Trang
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Class: QH2019E – TCNH CLC4

Hanoi, 2021

TABLE OF CONTENTS

A. Introduction........................................................................................................2
B. Customer Partition.............................................................................................3
1. Millennials and Generation Z.........................................................................3
2. Segmentation with AI.......................................................................................5
C. Robo Advisors.....................................................................................................8
1. What Is a Robo-Advisor?................................................................................8
2. Understanding Robo-Advisors........................................................................8
3. Robo-Advisor Architecture.............................................................................9
3.1. Classification of Robo-advisors..............................................................9
3.1.1. Active and passive robo-advisors.........................................................9
3.1.2. Automated robo-advisors and Hybrid robo-advisors..........................11
3.2. Technologies integrate with the robo-advisor platforms.......................11
4. How do Robo-advisors work?.......................................................................12
5. Robo-Advisors in Banking 5.0.......................................................................13
5.1. Development of Robo-Advisors over time..............................................13
5.2. Role of Robo-Advisors..........................................................................13
6. Benefits and Challenges of Robo-Advisors..................................................15
6.1. Benefits of Robo-Advisors....................................................................15
6.2. Challenges of Robo-Advisors................................................................16
7. Current status of Robo Advisor and Development potential of Robo
Advisor................................................................................................................17

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7.1. Current status of Robo Advisor:............................................................17

7.2. Development potential of Robo Advisor................................................18
8. Application of Robo-advisors in VN.............................................................18
D. Conclusion.........................................................................................................22
REFERENCES......................................................................................................23

A. Introduction
The fifth industrial revolution can be expected to be characterized by the spread of
solutions such as Artificial intelligence (AI), robots, and actions on sustainability.
A broad fifth industrial revolution, based on technologies, such as robots, attention
to sustainability, mobile phones, AI/cognitive computing, and predictive modeling,
would affect the entire banking business model. These innovative solutions enable
new ways of communicating, information sharing, and banking. There is a need for
a new vision of banking. This vision is called banking 5.0.
Examines innovation in banking and calls it banking 5.0. Innovation is necessary
to face new challenges for organizations. It is essential to improve the
organizations’ effectiveness, efficiency, ethics, and economics and meet the
growing needs of adding value and supplying delights to customers by each
component of its business model. It is possible to summarize the innovation goals
in three aspects.
AI, robots, and sustainability will characterize the fifth industrial revolution. Each
one of these aspects will have a profound impact on banking. Banks will not
disappear significantly, because some will transform profoundly and partner with
the start-ups. The competition will be fierce. New types of banking will spread,
thanks to the fifth-generation technologies. Andrew Ng compared the
transformative power of AI to that of electricity, saying, “Just as electricity

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transformed almost everything 100 years ago, today I have a challenging time
thinking of an industry that I do not think AI will transform in the next several
years.” The analysis of industry 5.0 shows a lot of uncertainty about what it will
bring and how it will disrupt business. It is going to break down barriers between
the real world and the virtual one. The next step of the industrial revolution will be
to respond to the customers’ high demand for individualization in the products and
services they buy.
The customers will choose and be willing to pay more for the services and
products with distinctive marks of personal care and professionalism like in wealth
management consultancy. This demand for individualized touch will be rising in
the future much more because customers look to express their individuality
through the products and services they buy. Financial institutions will satisfy this
demand efficiently, effectively, and economically by combining humans and
intelligent robots. The efficient cooperation between persons and solutions will
affect the economy, ecology, and the social world. On the other side, AI and robots
will need more electrical energy for their computers to run. Hence the importance
to take all the possible actions to assure sustainability of the environment with a
green approach. There are other social and economic consequences connected with
banking 5.0, called by some authors Globotics.

B. Customer Partition
1. Millennials and Generation Z
An exciting segment, especially for banking 5.0, is about the so-called millennials.
Millennials (or generation Y) are the generation between 1980 and 2000.

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- Generation Z (Gen Z) is the demographic group succeeding millennials.

These segments are highly active on the web, social media, and mobile
phones.
- Generations Y and Z represent more than a quarter of the world population.
According to statistics, in Vietnam, Millennials and Gen Z or collectively
known as Millennial Z currently account for 47% of the country's population
(45 million people) and are becoming key factors contributing to the
development of the current digital economy.
- It is a significant but relevant challenge for financial institutions to gain
these market segments. They are the customers of the future.

Other information about gen Z: Most of Vietnam's Generation Z young people are
very interested in social issues such as social responsibility, environmental issues
and gender equality.

- The survey on career choice published by Adecco Vietnam in 2019 confirms

that Vietnam's Generation Z from a very young age has always been
cautious in choosing job opportunities. Accordingly, the top priority of
Generation Z young people when choosing a job is 'salary and financial
benefits', followed by 'qualification' and 'job satisfaction'. The survey also
shows that 48% of Gen Z young people find work through social networks,
only about 19% choose a career through school.
- According to a Forbes article titled 'Understanding Vietnam's Generation Z',
this generation uses an average of 2.77 social media platforms per week.
However, they tend to use more anonymous social networking platforms,
such as Snapchat.
- At the same time, according to a report by Dell Technologies titled
'Generation Z: The future has become the present', although the top priority

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of young Generation Z when looking for a job is job security and benefits.
financial benefits, they are less concerned with promotion and more
concerned with the growth of their company. The report also indicates that
43% of Vietnamese Generation Z want to work in organizations that are
socially and environmentally responsible.

Banking 5.0 changes not only the banking services but also the relationship with
the customers. Nowadays, the millennials want instant control of everything and
look for more innovative products and services. Many millennials living in big
cities do not own a car. These customers do not rely on their private sphere, as
family or friends, to get information.

Millennials prefer online reviews or social communities, like specialized forums

and other online sites. Several factors and features play a unique role in getting
these segments, like quick transactions and transparency, convenience in shopping
online, timesaving, cost-effective, high freebies as discount coupons. With the
radical diffusion of mobile phones and other mobile devices, millennials affect the
old generation of customers’ behavior. This effect is known as “equalizing.”

Its consequence may be severe for a static industry like banking that has
traditionally targeted a non-digital native market. The financial institutions that
have shown a management mindset, a forward-looking attitude, and implemented
digital solutions are still few.

This situation suits agile, digital-oriented innovators: like fintech organizations. A

survey showed that Millennials and Gen Z had the most fintech accounts overall.

Gen Z saw a rise of 14% of inexperienced users (or a 27% increase), and
millennials saw an increase of 8% (or a 17% increase). A substantial number of

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Baby Boomers (26%) rely on some sort of fintech account, contradicting the
general opinion that digital tools are exclusively for younger people.

2. Segmentation with AI

The combination of big data, AI, and expert professionals supports a customer
segmentation based on risk. The model uses the banking domain knowledge to
extract features from raw data via data mining. Such a system would use high, and
low-level engineering approaches on transaction description to extract semantic
items. All the extracted information will be linked to the banking domain
knowledge, using developed APIs to create contextualized data. This
contextualized data can be used to classify the transaction as either risky or not.
Next, a subject-matter expert would analyze the input dataset and label each
transaction to zero or one. Zero is not risky, and one shows a relationship with a
risk activity.

Subsequently, several machine learning algorithms can be used to evaluate the

system’s results and compare the proposed method’s outcomes with the ones of a
classic approach that is a combination of regular text cleaning and index searching.
This method can classify more transactions compared to conventional methods.
The system would allow the financial institutions to better understand their
customers and their behavior by detecting risky activities, money laundering,
transactions with sanctioned organizations and people, and, most importantly,
finding the propensity to pay back loans.

Another approach is based on a Recency, frequency, and monetary value (RFM)

model to compute the customers’ value for the financial institution. Based on three
distinct types of clustering algorithms, two other models can be applied to the data,
which has customers’ RFM values, to obtain customer segments. In the first model,

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K-Means algorithms have been used twice to separate customers into five attracitiv
clusters based on their recency, frequency, and economic backgrounds.

The second model is built by the synthesis of DBSCAN and K-Means algorithm.
First, DBSCAN supplies outliers/noise in the dataset. A second step, based on K-
Means, uses these outliers/noise to separate them into two clusters according to
their recency. As a result, this model supplies the most valuable customers for the
financial institution.

Segmentation with AI in Vietnam:

After more than 30 years of renovation, Vietnam has made strong progress,
becoming an integrated, dynamic and attractive economic platform for investment
in the region. In the forerunner of development and international integration, along
with the strong development of the 4.0 industrial revolution, Vietnam has
determined to focus on developing artificial intelligence (AI) - a spearhead, which
is expected to be forecasted. become the most disruptive technology in the next 10
years.

Artificial intelligence (AI) is coming to life in a powerful way, replacing many

jobs and workloads. Around the world, major powers have developed their own
development strategies for AI, taking AI technology as the core for the growth of
the economy. In Vietnam, the Government identifies AI technology as a
breakthrough and a spearhead that needs to be implemented. The Ministry of
Science and Technology focuses on advising and orienting to promote
development work, in which, focusing resources for artificial intelligence (AI)
development; at the same time continuously approve key points of the study
program, support Research and development of artificial intelligence technology,

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link researchers, investments, businesses, output research and applied artificial

intelligence.

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C. Robo Advisors

Some AI technologies can assist in market segmentation based on age or other

factors. They can also assist with client interaction. Robotization is one fascinating
solution. Younger generations are very interested in software robots. They are
content to interact with a robot rather than a human. When compared to high-level
and high-paid financial consultants, robots can dramatically cut the expenses of
particular transactions.

1. What Is a Robo-Advisor?

Robo-advisors (also called robo-adviser or robo-advisor) are digital platforms that

offer automated, algorithm-driven financial planning with little to no human
oversight. A typical robo-advisor employs an online survey to gather information
from clients about their financial position and future aspirations, and then uses the
information to provide recommendations and automatically invest client funds.

Easy account creation, robust goal planning, account services, portfolio

management, security features, responsive client care, extensive education, and
reasonable fees are all features of the finest robo-advisors.

2. Understanding Robo-Advisors

The first robo-advisor, Betterment, launched in 2008 and started taking investor
money in 2010, during the height of the Great Recession. Its initial purpose was to
rebalance assets within target-date funds as a way for investors to manage passive,
buy-and-hold investments through a simple online interface.

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The advent of modern robo-advisors has completely changed that narrative by

delivering the service straight to consumers. After a decade of development, robo-
advisors are now capable of handling much more sophisticated tasks, such as tax-
loss harvesting, investment selection, and retirement planning.

3. Robo-Advisor Architecture

For numerous conceptual features such as customer assessment and portfolio

administration, robo-advisors differ from existing online investing platforms or
online brokerages.

• Understanding consumer requirements and preferences, gathering customer

information, calculating risk tolerance, and considering external situations are all
competencies of robo-advisors.

• Developing a financial plan, determining capital allocation and portfolios, and

proposing financial products.

• Implementing the proposal, opening accounts, transferring assets, procurement on

the securities market.

• Performing periodic, or even continuous, performance assessments, dashboards

and status alerts, market updates, and financial markets analysis to monitor and
adjust financial products.

3.1. Classification of Robo-advisors

3.1.1. Active and passive robo-advisors

Robo-advisors can be classed as active or passive in terms of portfolio

management and dynamic or static in terms of customer evaluation.

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If the investing strategy and portfolio construction technique are determined after
the first adjustment to a customer's profile, a robo-advisor is termed static. From
then on, the robo-advisor will only execute automated rebalancing if the portfolio
composition departs from the best, such as due to market fluctuations. The robo-
advisor is classed as dynamic if the customer can effectively adjust the overall
approach during the partnership.

There are two types of robo-advisors: active and passive.

Active management Passive management

• Collecting data and regularly • Acting on established parameters.

assessing markets.
• Restoring the predetermined asset
• Making (optional) asset allocation mix on a regular basis.
changes.
• Investing decisions that are free of
• The goal is to outperform the human emotion.
market.
• Following the market's lead and
aiming for long-term growth.

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A Deloitte survey found that in 2016:

• Forty-two percent (42%) of robo-advisors were with pure passive management.

• Twenty-five percent (25%) of robo-advisors were with pure active management.

• Nineteen percent (19%) of robo-advisors had both options available to the

customer.

3.1.2. Automated robo-advisors and Hybrid robo-advisors

Another robo-advisors classification distinguishes between fully automated robo-

advisors and hybrid robo-advisors. The first one uses an online platform, which
transmits automated algorithm-based portfolio directly to the investor without
human support. The second type is a hybrid platform, which uses traditional
advisors to supply wealth management solutions. The latter model is a hybrid one
which creates individual customized service and manages the portfolios with both
computerized recommendations and financial analysts.

Robo-advisors supply more complex user interaction components (push

notifications for market updates, opportunity/risk alerts, dashboards, and periodic
portfolio reviews) and automated execution. Optionally, they can be allowed for
self-directed, discretionary interventions by the customer.

Robo-advisor platform providers could have a Business-to-customers (B2C) or a

Business-to-business (B2B) business model with a vastly different approach, costs,
and target customers. In the B2C case, the onboarding procedure to get the
customer (for example, fully or partially digital) should be considered an integral
part of the use case.

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3.2. Technologies integrate with the robo-advisor platforms

Robo-advisors may be put in place through the combination of different

technologies. The most important ones are:

• Cognitive systems: tools to support cognitive tasks and decision-making.

• Task automation tools: interactive, iterative, and evidence-based systems.

• Machine learning: tools to support capabilities in learning. They can be:

– Large-scale machine learning (for large-scale data sets).

– Supervised learning and reinforcement learning (supporting a process of

sequential and experience-driven decision-making).

– Deep learning (algorithms based on neural networks).

• Natural language processing: understanding language by attributing meaning

and purpose.

• Intelligent analytics/processing (predictive analysis and simulations, support for

rule-based automatic actions, recommendation engines, and context-aware
computing).

• Other technologies could be integrated with the robo-advisor platforms, such as

user interface, data visualization, and operational support.

4. How do Robo-advisors work?

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In the late Robo-Advisor, the word "robo" actually means "automated." The
algorithm, as previously said, is the heart of Robo-Advisor. The Robo-Advisor
algorithm is a computer's available path that has been pre-defined. When a
customer registers and gives information, the cataloging process begins. The client
provides the information by filling out a questionnaire. This table is intended to
assist robot advisors in gaining a better understanding of a client's financial history,
financial goals, and risk tolerance.

For instance, if a client expresses a desire to save for retirement. For long-term
growth, a robot adviser will likely propose an individual retirement account (IRA)
or a balanced ETF stock portfolio. However, if the customer needs to acquire a
house quickly. The robot can recommend a portfolio of high-risk short-term stocks
or cryptocurrency. The expected return on such investments, however, is also
higher.

5. Robo-Advisors in Banking 5.0

5.1. Development of Robo-Advisors over time

The first robo-advisory services were designed for retail investors. They were
introduced in the USA after the financial crisis of 2008, also as an answer to the
increasing distrust in the investment advisory banking. The first idea of robo-
advisory has been to disrupt banks’ human advisory services by offering affordable
investment advice to widen the customer base by including retail customers and
making sound investment decisions, recommending an ETF-based portfolio of
stocks and bonds. Investment process by robo-advisors was quite simple at that
time. The measurement of risk preferences relied on a few questions. It was not
enough to supply proper risk classification and hence to derive sound investment
advice.

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The robo-advisors became more complex over time, for example, by including
more asset classes, active funds, tax optimization, and so on.

Due to regulation and trust issues, such as moral hazards, investors are hesitant to
use robo-advisors. To mitigate the distrust issue, hybrid models are applied where
humans and robo-advisors are combined.

5.2. Role of Robo-Advisors

Robo-advisors have the goal to transform the traditional, person-to-person advisory
process into a digital, person-to-computer process.26 Online questionnaires and
self-reporting processes replace traditional investor profiling conducted during in-
person interviews and bilateral interactions. Algorithm and automated processes
quantify the customer’s investment goals/purposes, risk affinity/aversion, and
return/risk expectations. The assessment is not limited to risk profiling.

The customer portfolio management of robo-advisors differs from existing

approaches. Customer portfolio management is defined as managing portfolios
including one or more financial products, per mandates given by customers, on a
discretionary customer-by-customer basis. Robo-advisory is normally based on
products that require less active portfolio management, like Exchange-traded funds
(ETFs). Cost structures are often relatively simple and so easier to communicate.
The strategic asset allocation is based on the risk profile of the customer. A
quantitative model can define it. The provisioning of the full service via an AI
platform reduces staff and asset costs since many customers can be served
simultaneously. These solutions’ low complexity can for example support
explaining to a wide range of customers the portfolio’s management-related
benefits of ETFs.

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Currently, most financial institutions can use robo-advisors to augment and replace
customer interactions over time. It is interesting to use analytics and intelligent
machines to work even more in conjunction with banking specialists and advisors.
This way will better address customers’ needs for customized and proactive
advice. Financial institutions will strengthen the provision of value-added services
in an increasingly competitive industry.

In the front office, robo-advisors support financial data and account actions
integration with AI-powered software agents. These agents can interact with
customer chatting platforms using advanced language processing.

6. Benefits and Challenges of Robo-Advisors

6.1. Benefits of Robo-Advisors

Robo-advisor capabilities benefit financial institutions. They allow expansion in
wealth management while leaving agents to keep their focus on banking sales.
Thanks to cost savings by the automated customer profiling and the management
of the customer lifecycle, robo-advisors can target the retail customer or non-
professional’s segments, regardless of the customer’s actual wealth. The costs of
this type of service would be sufficiently low to support low-income customers.
The charge is between 15 and 35 basis points of assets under management in case
investment robo-advisors do the job. For example, in comparison, in the UK,
Santander’s branch-based investment advice fees are 2.5% of assets invested, with
a minimum GBP 500 and a maximum of GBP 150,000.

Robo-advisors enable a great customer journey for customers that prefer digital
interactions and the “do-it-yourself” approach. They offer contextualized products
and experiences, supplying targeted financial advice and reducing the cost for
customers.

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With hybrid robo-advisors, personal interactions can bring benefits to a long-term

relationship. Over time, with a human advisor, it is possible to develop trust and
understanding between a customer and financial advisor/broker/agent. On the other
side, robo-advisors can prepare a banking plan addressing multiple goals, including
retirement, protection needs, and estate planning. Robo-advisors assure privacy,
which some customers may feel more comfortable interacting with, given the
sensitivity in discussing financial matters.

Robo-advisors can improve the customer experience through a wide range of

choices in terms of services and customization capabilities based on better use of
the data through advanced analytics, for example, through:

• Offering contextualized, targeted products and experiences.

• Supplying better and consistent financial advice.

• Reducing costs for customers.

6.2. Challenges of Robo-Advisors

There are challenges with robo-advisors due to the need to respect regulations:

• The European Data Protection Framework (and Regulation [EU] 2016/679, of 27

April 2016, on the protection of natural persons about the processing of personal
data and on free movement of such data—GDPR).

• Several European and national regulations on the financial market and wealth
management (for example, MiFID II, Regulation 285/2013 of Banca d’Italia).

• CCPA— California Customer Privacy Act, in the USA.

To use natural language processing in customer front ends, legal requirements on

customer information and consent must be adapted to fit this purpose.

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With robo-advisors, there is a lack of transparency or knowledge by the customer

about how their data is used. Comprehensive data privacy statements tend to
produce information fatigue among customers quickly. The degree of details
introduced by the GDPR and the “jurisdiction” of its language to avoid the risk of
penalties reduce clarity and understanding for the customer, thus going against the
first purpose.

7. Current status of Robo Advisor and Development potential of Robo

Advisor

7.1. Current status of Robo Advisor:

In 2017, there were 13.1 million users of robot advisors for asset management.
That number has increased fivefold to 70.5 million this year. In addition, the
number of users in 2020 increased at a rate of 54% compared to 2019. In 2023, the
number of Robo-Advisor users is forecast to reach 147 million people. Among
them, 20% of Millennials feel comfortable investing with a robo-advisor. This
compares to just 1/10 Gen X'ers and 1/30 Baby Boomers.

In the world's largest economy - the US, Robo Advisor has strong growth. Robo
Advisor's market share is continuously expanding. According to Inside Bitcoins,
the Advisor Robot will manage over $1 trillion in 2020, a 40% increase from last
year. For comparison, Vietnam's GDP in 2020 according to the IMF is at $340
billion. It is forecast that the value of the Robo-Advisor portfolio will reach $1.5
trillion by 2023.

Competition between major financial institutions such as Vanguard, Charles

Schwab and very bright startups like Betterment, Wealth front and Acorns is
increasingly fierce. Leading to scientific and technical advances, especially
Machine Learning, is being promoted rapidly.

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In the Asia-Pacific region, China is worth $700 billion less in assets managed by
advisor Robot than the US. In the old continent, the UK is the leading country with
the presence of Nutmeg, Moneyfarm. Robo Advisor's total asset management
value in the UK reaches $24 billion. Next came Germany and Canada with 13 and
8 billion USD respectively.

7.2. Development potential of Robo Advisor

The growth potential of Robo Advisor is immense. However, the growth of Robo
Advisor in recent years has not been commensurate with its potential.

At the top of the Robot Advisor challenge is people. Robots are currently unable to
provide services that human advisors can. Despite the name Robot advisor, it
doesn't "advise" anyone. All it does is automate the process of a predefined
algorithm. Human advisors can think long term. At the same time, it is also
possible to create an overall personal financial plan for customers.

Currently, AI technology is gradually helping Robo Advisor conquer this

challenge. However, AI technology is still in its infancy and takes a long time to
develop. The idea that we have machines capable of long-term financial planning
and forecasting sounds absurd. Like the idea that 100 years ago we could put a
man on the moon. Therefore, AI can't do it right now, but it's unlikely that AI can't
do it in the future.

The other big problem plaguing robo-advisors is trust. Most people don't like to
entrust their lives to a machine. Fortunately, psychology is completely changeable.
Not overnight, of course. But with the long and wide year and Robo Advisor
proving its effectiveness, investors will gradually trust it.

8. Application of Robo-advisors in VN
* MB securities

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✓ Robo Advisor – Certified Robo Advisory System

Based on proven stock search quantitative models in the world and in the Vietnam
market, the Robo Advisor system identifies suitable stocks for short-term trading
purposes. MBS will continue to develop new stock search models to fulfill a
variety of investment requirements. The final Buy/Sell decision is based on the risk
appetite of the investor.

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* Techcom Securities

Techcom Securities (TCBS) has released the full version of TCWealth, an online
financial counseling tool that is regarded as Vietnam's first Robo Advisor.

Robo Advisor is one of the most notable examples of Fintech technology, which
has revolutionized the way we save, accumulate, and invest by providing
completely new experiences. Users can use Robo Advisor at any time with simply
a device connected to the network and high security and privacy features, as it was
designed and built as an automated financial advisory tool.

Techcom Securities is the first business in Vietnam to build a Robo Advisor using
the TCWealth technology. TCWealth will outline the cash flow in detail with each
financial plan, providing an overview of each individual based on some initial
fundamental information such as monthly income, time to invest, and risk
tolerance. As a result, users' cumulative investment journeys will be far more
accessible and manageable. These plans can be saved, shared with friends and
family, or customized to meet different financial goals.

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To put it another way, TCWealth will assist users in answering critical questions
about their financial path, such as:

+ How much of my income should I invest/accumulate?

+ How should I invest to attain a specific financial objective (such as buying a

house, sending children to study abroad, retiring early, etc.) and how long will it
take?

* Finhay

Finhay, a Vietnamese fintech firm, has launched a new robo-advisor service that
allows consumers to invest in leading mutual funds in Vietnam with as little as
50,000 VND (US$2.6).

Finhay is a portal that connects millennials with mutual funds. It gives users access
to micro-investment opportunities and allows mutual funds to tap into this rapidly
rising demographic. Finhay offers a variety of portfolio options to users that are
designed to suit various investment profiles and objectives. They can check their
portfolio performance on their smartphone at any time and from anywhere via the
web interface.

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The company believes that by introducing the robo-advisor, millennials with little
finances would be able to invest in mutual funds effortlessly and conveniently in
only a few minutes.

But being one of the first robo-advisors in the Vietnamese market also means that
the company needs to move fast to capture the market. Finhay estimates it could
generate at least 650 million VND (US$30,000) per month in the next 36 months.

The company will initially focus on the Vietnamese market where it hopes to
become a market leader. Then it plans to expand across Southeast Asia and
Australia.

D. Conclusion
Banking 5.0 is an essential business model to make the future. Banking 5.0 can
bring many benefits, including supporting the organization’s activities and daily
administrative tasks to perform complex decision- making, getting more focused
strategic decisions and actions. There are barriers to the digitization of the banking
processes. These challenges are in their legacy systems, procedures, processes,
abilities, and talents availability.
The future of banking will be a complete immersion in the digital world. It will
require acting on the entire business model. The revolution of banking 5.0 will
result in a much more agile and effective business model that will meet customers’
needs and capitalize on the evolving commercial opportunities in a much more
effective, efficient, economical, and ethical way to the present and past times.
In conclusion, the future is challenging for banking. There will be more
opportunities to capture demand and evolve banking service portfolios, delivering
higher value to the customers. Crucial will be to set up a suitable business model
within the ecosystem.

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REFERENCES
1. Book: Banking 5.0 - How Fintech Will Change Traditional Banks in the ‘New
Normal’ Post Pandemic

2. How do Millennial Z generation in Vietnam consume and shop?

“https://vtv.vn/kinh-te/the-he-millenialz-tai-viet-nam-tieu-dung-va-mua-sam-nhu-
the-nao-20210129161808754.htm”

3. Generation Z: A new wave in the Vietnamese labor market (2020),

“https://cafef.vn/the-he-z-lan-song-moi-tren-thi-truong-lao-dong-viet-nam-
20200928110923787.chn”

4. Fintech Singapore, Vietnam Welcomes First Robo-Advisor Platform,

Fintechnews.sg October, 2017.

5. Millennials vs. Gen Z: How Are They Different?

“https://www.salesforce.com/blog/how-millennials-and-gen-z-are-different/ “

6. PV, Techcom Securities introduces TCWealth - the first Robo Advisor in

Vietnam, Vietnam legal electronic newspaper, May, 2017.

7. Jake F. et.al Robo-Advisor, Investopedia, March, 2021.

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