I.

Digital-only banking all over the world

1. Overview of digital banking in the world
1.1. Definition
Experts from United Overseas Bank Singapore (UOB) define digital banking as the
application of banking operations in the digital era and denote consumer engagement with
several industrial gadgets. technology and the urge to use these digital channels for financial
services.
Digital banking, according to specialists from the Development Bank of Singapore (DBS), is
the process of automating banking procedures to reduce the need for human interaction and
assist banks save a considerable amount of money. irreversible. In addition, according to
Sharma (2017), there is another definition as follows, digital banking is fundamentally the
application of technology to deliver banking goods and services.
In other words, the phrase "digital banking" refers to financial organizations or services that
employ digital technology to offer clients financial goods and services. Digital banks
frequently combine and digitize all of the services and operations provided by direct
transaction branches or banks. As a result, customers won't face limitations on the kind of
service they can use to complete transactions. Simultaneously, services are getting more
varied, assistance is quick, and procedures are getting easier.
1.2. The origin of digital banking
When it comes to technological developments in the banking sector, the first thing to mention
is the birth of the ATM - short for Automated Teller Machine - in 1967, with Barclays (UK)
as the leading bank, first installed an ATM in front of its branch in London. The first online
banking model appeared in 1983 in the US, then spread to France and the UK, offering a
simple interface and providing basic banking services such as money transfer, account
inquiries, banking services and paying family bills (electricity, water).
History of Industrial Revolutions (Source: Summary)
1.4. The fundamental role of digital-only banking
+ The renovation significance of banking sector
Assist banks in cutting operational expenses:

Digital banking services assist banks in avoiding dealing directly with clients, which minimizes the
number of steps that need to be repeated for every transaction.

Boost worker productivity and transaction speed:

Compared to traditional bank branch procedures, transactions on digital banking systems

happen more quickly. Because these responsibilities have been digitalized on the digital banking
system, the staff is also relieved of paperwork, administrative procedures, and difficult
operational processes at the same time.

Reduce staff at the transaction counter and automate the process:

Since most banking services can be completed by customers without visiting a branch, the bank
may cut back on staff and minimize mistakes that may occur from human procedures.

Banks are able to offer simple goods and extensive services:

Customers can benefit from a variety of services offered by digital banks, including connections
to securities, insurance, and other financial firms, as well as attractive terms.

Digital banking makes banks more competitive by enabling them to grow in size and
breadth of operations:
Digital banking has emerged as a significant trend in the period of Industrial Revolution 4.0,
helping to raise competitiveness, enhance service quality, and increase the scope of financial
operations. Digital technology also makes it easier for banks to reach a wider range of clients,
including individuals who were previously hard to reach by traditional banks and those who live in
distant or low-income locations.

+ Advantages for clients

Simple and quick transactions: Customers may conduct all transactions with great
precision and speed at any time and from any location by using electronic devices that are
linked to the Internet. All transactions will be automated and executed swiftly, including bill
payments, money transfers, all transaction confirmations will be given to the receiver
instantly.

Preserve time and energy: Because users of digital banking services don't need to visit
transaction offices or bank branches, they can save time and effort. Consumers may use their
handheld electronic devices to conduct transactions at any location. All transactions, mainly
payments and transfers, are processed quickly and automatically using automation.

Cost savings: In order to stimulate and improve the customer experience, banks typically use
discounted or free policies for various popular services such as money transfers, ATM
withdrawals, and account maintenance. Additionally, some banks provide exclusive deals for
online payments.

Safe data security: One-time authentication codes (OTPs) are a well-liked and practical
security feature that is one of the many levels of protection integrated into digital banks.
Furthermore, online financial transactions made through Internet banking are further subject
to additional security measures like tokens. Customers are informed of all account changes
right away, guaranteeing the protection of their data.

+ Advantages for economics

The World Bank (2017) states that the use of digital banking is a tool to support financial
inclusion and plays a significant role in efficiently enhancing access to financial services. Digital
banking not only offers chances to enhance the financial industry's operations and service
quality, but it also advances the economy as a whole in the following ways:

Minimize the quantity of money in circulation inside the economy: By using digital banking,
one may cut expenses associated with printing and cash management while also lessening the
need to issue and distribute currency. Authorities can also get help from digital banks in precisely
figuring out how much currency is in circulation in the market.

Establish financial institution connection: Digital banking facilitates the establishment of

financial institution connectivity while also aiding in the optimization of the country's financial
system. Enhancing administration and cooperation between various financial institutions might
be facilitated by this link.

Aids in providing the State with comprehensive and detailed information on timely and full
payment of taxes: The tax payment procedure is made easier by the digital banking system,
which also helps the State obtain timely and comprehensive information. swiftly. Transactions
are recorded on the system, making it easy to look up and review information.

Acting as a bridge to help a nation integrate with the global economy: Digital banking not
only helps a nation do this, but it also plays a crucial role in establishing connections with
developed nations, enticing them to adopt the digital banking model and benefit from the
advancement of international financial systems.

1.5. Digital Banking Models according to IBM

Based on the bank's operating principles and goals, IBM classifies the Digital Banking into 4
forms:
Model A – Digital Bank Branch: Traditional full-service banks are constantly trying to attract
the young Gen Y generation. These banks build a new brand with a value proposition and
The product is designed for young customers.
Model B – Digital Bank Channel. Different from model A digital banks, model B institutions
build a banking institution focused on improved user experience. These companies often use
the bank's back office and existing banking licenses to resell insured products with an
enhanced user interface.
Model C – Digital Bank Subsidiary. This model combines a differentiated digital user
experience with a comprehensive business model. Model C digital banks establish an entirely
separate organization, with more flexible and modular backend systems to provide a better
consumer experience.
Model D – Digital Native Bank. These banks build their entire value proposition around
digital technologies. Customers of these banks will primarily interact with the bank through
digital channels.

Frank (OCBC) Simple Hello Bank Fidor Bank

Model Digital bank brand Digital bank Digital bank Digital native
 channel subsidiary bank

Products, sales In-house capability In-house In-house In-house

and marketing capability capability capability

Channels Often share with or In-house In-house In-house

re-skin parent capability capability capability
bank’s channels

Back office Leverage the back Leverage the In-house In-house

office of parent bank back office of capability capability
parent bank

Bank charter Need to use charter Need to use Need to use In-house
of parent bank charter of parent charter of parent capability
bank bank
Digital-Only Banking Models according to IBM (2015)
(Source: IBM November 2015 the Financial Brand)
2. Analysis of digital banks all over the world
2.1. Overview of digital banking upward tendencies all over the world
Numerous international organizations' assessments indicate that developed nations—those
with advanced technological, educational, and living standards—are leading the way in
digital banking. In particular, these nations also have highly developed mobile applications,
which are particularly well-liked by consumers. But the technical edge of today is no longer
exclusive to industrialized nations; rather, it benefits the entire world today. Consequently,
digital banking has proliferated in emerging nations, gradually fostering an ecosystem of
digital transformation inside the banking industry as well as throughout numerous other
sectors. Some common digital banks in the world include Barclays, Nutmeg, Atom (UK),
DSB Bank, UOB (Singapore), JP Morgan Chase (Japan), Siam Bank, Krung Thai Bank
(Thailand), and a number of significant global banks such as Scotiabank, CitiBank, Standard
Chartered Bank, Wells Fargo, OCBC, etc. It can be said that most large banks in the world
have succeeded in converting into digital banks in recent decades. In addition to traditional
banks, there are also new organizations appearing, such as fintech companies operating in the
banking sector, and the mutual model between fintech companies and traditional banks is
becoming more and more popular. The impacts of digital banking around the world include
transforming business models, supporting transactions with customers, changing management
and operation methods, and changing research and product development directions. However,
not all banks are successful in digital transformation, especially newly established banks as
technology startups. Among them, Hello Bank of BNP Paribas (France), UBS (Switzerland),
etc. do not attract enough users because of new utilities and quite high service fees.

According to data from BDO company, C-level positions of more than 300 large companies
operating in the financial sector are currently implementing groundbreaking digital
transformation plans. Out of every 10 businesses, 2 are clearly aware that digital
transformation is a top priority in their business strategy. Many large banks in the world have
successfully carried out digital transformations with clear growth in revenue and profits.
After 3 years, the revenue of 61% of companies had a growth rate of over 10%, while 32% of
companies maintained a growth rate of 1–9%. Profits earned after 3 years: 61% of companies
have growth of over 10%, and 32% of companies have growth of 1-9%. Because of that great
efficiency, more than 65% of companies now expect to increase their investment budget for
digital transformation.

Evaluation Criteria Banks

Business Model Change My Bank (Alibaba); Webank (Tencent).

Customer Transaction Bank of America (America); Wells Fargo (America); BBVA

Assistance (Spain); Credit Suisse, Skandiabanden (Sweden); Webank
(Tencent); HSBC (London); DSB, UOB (Singapore); NAB
(Australia).

Administration and Wells Fargo; ICIC; IP Morgan; Bank of America; OCBC,

operations HSBC, MUFI (Singapore); NAB; Santander.

Some banks have implemented the digital banking paradigm with success.
(Source: Summary)

The trend of global digital transformation is becoming more apparent, and organizations all
around the world are seeing a major shift in the way they think. Digital transformation is not
only a well-known idea but also a necessary trend to accomplish progress and survival,
particularly in the wake of the COVID-19 epidemic. The Asia-Pacific region's Microsoft
research indicates that the GDP contribution of digital transformation grew from 25% in 2019
to 30% in 2021. According to McKinsey's prediction, the digital transformation is expected to
contribute around 25% of the GDP in the US, 35% in Brazil, and 36% in European nations by
2025. A McKinsey poll conducted in 2022 among 2,260 enterprises in India and Southeast
Asia predicted that over 70% of businesses will switch to digital sales in the following three
years. By 2025, it's anticipated that income from digital platforms would make up around
69% of total sales, with conventional channels contributing just 31%.

The banking industry is rapidly undergoing a digital transition. The world has progressed
from the initial traditional banking paradigm to digital banking, which involves digitizing
client journeys and procedures, open banking, and beyond (banking as a service), as well as
decentralized finance, which makes use of Blockchain technology. As the next generation of
the internet, which combines the real and physical worlds, Metaverse banks, often referred to
as "digital universe banks," are now emerging throughout the globe.

2.2. Digital-only bank in Europe and North-America

According to AT. Kearney's 2013 research, mobile banking has contributed to a steadily
rising client base, prompting banks to pay more attention. The study included digital banking
in Eastern Europe, Western Europe, Southern Europe, and North America. Concentrate on
expanding the mobile banking platform. In the digital age, banks have innovated their
business models by enhancing the role of their branches through better digital customer
consulting abilities, applying technology with greater flexibility, and implementing
organizational change through the formation of integrated business and technology centers,
which have sped up the development of new products and services. In a similar vein, a 2017
research by Deloitte revealed that indicators represented the degree of digitization of
European banks.

Hình 1.1: Benchmarked markets can be divided into 4 groups in terms of digital
banking maturity.
(Source: Deloitte, 2018. EMEA Digital Banking Maturity 2018)

2.3. Digital-only bank in Asia

2.3.1 China
China has undoubtedly made progress in the financial technology sector over the last ten
years, especially when compared to many other nations. With the rise of mobile payments
and QR Codes, cash has all but vanished. One common instance of how technology is
incorporated into everyday life in China is the phenomenon of "beggars" requesting money
through the scanning of QR Codes.
China Construction Bank has successfully implemented entirely automated banking, with
customers being served by Xiao Long Robot (Xiao Long). These ATMs allow you to
establish new accounts and exchange money internationally. According to the bank, 90% of
the cash and non-cash transaction demands of a typical bank branch have been satisfied by
the deployment of robots, saving money, time, and effort.
AiBank, a partnership between China's CITIC Bank and technology firm Baidu, is the
country's first virtual bank. It offers loans to small enterprises in rural regions and financial
solutions for younger clients. deep and isolated places. China has the resources and
conditions to rapidly advance in the direction of digitalization through the practical
application of technology and processes, utilizing reliable technological platforms including
mobile Internet, big data, the Internet of Things, cloud computing, blockchain, and artificial
intelligence.

2.3.2 India

Over the past ten years, Indian banks have advanced significantly and have kept up with
global trends. Indian digital banking not only offers flexible goods and services but also
produces several benefits in the connection between clients and banks, extending to partners
or end users. India evolved toward the 4.0 Industrial Revolution (Industry 4.0) and
enthusiastically embraced the global digital transformation trend between 2018 and 2020,
fostering digital payments in the West Asian area. By 2021, adopting digital banking has
shown to be a practical and efficient way to do business in India.
With over 1.8 million customers, the Indian digital bank started turning a profit after just 18
months of existence. DBS is one of India's rapidly expanding digital banks. Leading Asian
banking organization DBS, with its headquarters located in Singapore, has made significant
progress and won several accolades, including the "World's Best Digital Bank 2018" title
from Euromoney. The introduction of the first digital bank in India through the Mobile
Banking channel alone, with a service delivery mechanism that eliminates the need for
paperwork, signatures, branches, and customer assistance using artificial intelligence (AI), is
a unique characteristic of DBS Digital Bank.

2.3.4. DBS Singapore Bank

With its headquarters in Singapore and operations in 18 markets, DBS is one of Asia's top
financial groups. When DBS first opened for business as a local bank in Singapore, it was
frequently criticized by clients. But since 2014, DBS has made great strides in becoming a
digital bank and has won several accolades, including the title of "World's Best Digital Bank
2018" according to a poll by Euromoney.

For DBS, digital banking entails automating procedures and services to reduce the need for
human interaction, in addition to using technology to interact with consumers. The flagship
achievement of DBS Digital Bank is the introduction of the nation's first digital bank via the
Mobile Banking channel, which eliminates the need for paperwork, signatures, branches, or
assistance in the service delivery process. Artificial intelligence-based customer assistance.

2.3.5. Krung Thai Bank - Thailand

Krung Thai Bank is among the Thai banks that is progressively implementing technology to
carry out the digitalization of banking. Over the course of three years, from 2015 to 2017,
Krung Thai Bank underwent a shift from a traditional banking model to a digital banking one.
The primary systems that have been implemented include the branch transaction system,
Internet banking, mobile banking, card management, and integrated management system
multi-channel. The following steps have been followed in the transformation process: The
bank had both an independent card management system and an integrated multi-channel
management system (Omni-Channel) in place in 2015. Next, the Omni-Channel system is
connected with the card management system. The bank added mobile and online banking
functionality to the Omni-Channel system in 2016. The bank finally completed the
integration of the branch teller system with the Omni-Channel system in 2017.

3. Evaluation
It is evident from the study above that digital banks in Asia and North America, as well as
those in Europe, have altered the retail banking market. Compared to traditional banks, these
digital banks are able to adjust and alter more swiftly in reaction to shifting customer
preferences and environmental effects. Fintech investments worldwide are still growing in
spite of challenges on funding and value. A recent study by Hines & Lodge (2022) found that
75% of financial institutions worldwide view fintech and digital banking in general -
especially banks that solely do business online - as a threat.
Meanwhile, another 58% of businesses feel that the rise in popularity and expansion of digital
banking has made it harder to acquire market share and keep consumers. This is a big
obstacle for conventional banks. Investment in and usage of digital banking will undoubtedly
continue to rise quickly in the future, particularly in the wake of the COVID-19 epidemic.
The rising adoption of digital payment platforms has increased the need of minimizing
physical touch in financial transactions. Thus, in order to fully capitalize on technology,
population expansion, and service consumption patterns, the global financial and banking
industry must innovate by fully digitizing products and services. The field of finance is
becoming more and more popular.

II. The development of digital-only banks in Vietnam

1. Overview
1.1. The situation of digital transformation and the development of digital
banks in Vietnam
Digital banking plays an essential role in the country's digital transformation
process. In recent years, most banks in Vietnam have made serious investments in
expanding digital banking services to better serve customer needs.
 In Vietnam, the government has issued the National Digital Transformation
Program for 2025, with a vision to 2030. The State Bank of Vietnam has also issued
the industry's digital transformation plan for 2025, with a vision to 2030. This is an
opportunity for banks to innovate their business models, improve financial services,
adapt to the context, and provide customers with a variety of products and services
that meet their needs and engage with them.

At a seminar on "Financial Innovation: Innovation for Sustainable Growth"

(Finovate Innovation Day: When Innovation Meets Sustainability) organized by the
National Innovation Center and JobHopin, Nguyen Quoc Hung, Vice Chairman and
Secretary General of the Vietnam Bankers Association, said that there are currently
96 Vietnamese banks and financial institutions that have built or are building digital
transformation strategies; 92% of banks have developed internet and mobile banking
applications.

According to statistics from the first 6 months of 2023, non-cash payment

transactions increased by 55% in terms of quantity; via the internet by 76% in terms
of quantity and 1.79% in terms of value; via mobile channels increased by 65% and
77% respectively; and via QR code increased by 152% and 301% respectively
compared to the same period in 2022. Meanwhile, transactions performed via ATMs
decreased by 4% in terms of quantity and 6% in terms of value.

1.2. The development situation of digital-only banking in Vietnam

Most Vietnamese banks have already implemented or are implementing

digital transformation plans, establishing separate digital banking departments to
focus on research and implementation of digital transformation. For example, Nam A
Bank (Nam A Bank) has launched a digital transaction space integrating a modern
device ecosystem, applying AI with the emergence of OPBA Robot and VTM OPBA
digital branch; OCB Commercial Joint Stock Bank (OCB) has built the OCB OMNI
channel. Accordingly, digital transaction channels are connected and unified to
provide customers with a seamless experience when they switch between channels,
allowing customers to use products and services without having to go to a branch.
 In line with the development trend of Industry 4.0, Vietnamese banks have
implemented and achieved some success in digitalization and the application of
modern technology in financial and banking activities, such as: Digital banking/Digital
Lab; Timo Bank; ATM + LiveBank.

In addition, many banks are starting to implement digital banking at the

process and communication channel level, with only a few banks transitioning to
digitalization at the data platform level. In terms of process, some banks have
completed the automatic transaction system, applying a portion of Big Data such as:
BIDV Commercial Joint Stock Bank (BIDV), Vietcombank Commercial Joint Stock
Bank (Vietcombank), Techcombank Commercial Joint Stock Bank (Techcombank),
Tien Phong Commercial Joint Stock Bank (TPBank). In terms of communication,
some banks have applied AI, machine learning and introduced 24/7 automated
advisory services through conversations on the bank's website or social media.

Digital bank Launch time Feature

Timo Plus – Viet 9/2020 Free of all fees, including maintenance fees,
Capital Bank ATM withdrawal fees, and especially foreign
exchange conversion fees. Receive your Timo
Plus ATM card at home.

OCTO by CIMB 12/2018 Both international and Vietnamese customers

can make transactions 24/7.

The interest rate for savings accounts is also

very attractive, at 7-7.7% per year.

Savy - TPBank 2019 TPBank is pushing Savy to become the leading

provider of savings services in Vietnam.
 Customers can start saving with just 30,000
VND with the Savy Save-up package and earn
an interest rate of 7.7% per year with the Super
Savy package.

Cake – VPBank 9/2018 – Yolo Free ATM withdrawals

1/2021 - Cake Three types of service fees, management and

account maintenance, are free of charge.

OCB OMNI 2018 Set up one-time billing and automatic payment.

June 15, 2020 launched OCB
OMNI 2.0 version. Multiple interfaces are supported for one
account.

Save money online with an interest rate that is

0.3% higher than at the counter.

Operating 24/7, including public holidays.

Livebank - 2017
TPBank Convenient video calling support for customers.

Open an account quickly and have various

ViettelPay 29/06/2018
services.

TNEX - MSB 11/12/2020 Cho phép khách hàng thanh toán qua QR code
Bank các dịch vụ ăn uống, mua sắm với các bên liên
kết.

Dễ dàng trong việc đăng ký tài khoản.

Table 1.1: Digital banks in Vietnam

In terms of convenience, banks have been able to provide groups of services from
basic utilities to payment, savings, investment, shopping and entertainment, and
other premium utilities.
 Digital bank Information utility Payment Savings, Group of Other utility groups
group utility investment entertainment
group and loan and shopping
utility group facilities

Timo Plus + Card + Pay bills + Savings + Shopping + Book a car

+ Electronic wallet + Consumer + Food delivery
+ Deposits loans + Top up your phone
+ Money transfer

OCTO CIMB + Card + Pay bills + Savings + Shopping + Book a car

+ Electronic wallet + Consumer + Food delivery
+ Deposits loans + Top up your phone
+ Money transfer

Savy + Savings
packages

Cake + Top up your phone

+ Pay bills

OCB OMNI + Money transfer + Pay bills + Savings +Entertainment + Insurance

+ Card + Consumer , travel
loans + Shopping
+ Invest in
bonds

VCB DigiBank + Money transfer + Pay bills + Securities + Shopping + Top up your phone
+ Card + Savings
+ Deposits

TP Live-bank + Account + Pay bills + Savings + Top up your phone

+ Money transfer + Borrow
+ Card capital
+ Electronic wallet
+ Deposit/withdraw
money

ViettelPay + Money transfer + Pay bills + Savings + Shopping +

+ Borrow + Telecommunications
capital Entertainment, + Insurance
travel + Collection

MB + Money transfer + Pay bills + Borrow + Top up your phone

capital
+Invest in
 bonds
+ Deposits
Table 1.2. The utilities of digital banks

Source: Vietnam digital banking report, 2021

In addition, TNEX allows for quick money transfers, payment of

electricity, water, and telecommunications bills. Users can also manage their
spending, register for, and manage their payment accounts and domestic
debit cards right on the app, and interact with a TNEX user community. Cake,
on the other hand, is a newer bank that replaced Yolo, so its features are still
limited and need time to be perfected (Le & Ho, 2021).

Digital-only banks have been working hard to enhance their services in terms
of variety. However, due to capacity issues, regulatory restrictions, and the fact that
Vietnam is still developing its digital ecosystem, our nation still lags behind the rest of
the world in many areas. Vietnam only satisfies 5 out of 9 service categories that are
being applied globally, claims Banking Magazine.
Particularly, Vietnam's digital-only banks and the country's digital banking
system as a whole are still lacking in the ability to offer a wide range of credit
services on a digital platform, diversify account opening methods like using ID cards,
digital signatures, video recording, etc., make significant investments in security and
personal financial management services, and do not operate without the assistance
of bank branches.

In terms of technical level, banks are implementing digital banking at the

process and communication levels. At the process level, some banks have
completed automatic transaction systems, digitized based on big data: Tien Phong
Commercial Joint Stock Bank (TPBank), Vietnam Technological Commercial Joint
Stock Bank (Techcombank), Vietnam Investment and Development Commercial
Joint Stock Bank. (BIDV), Vietnam Foreign Trade Commercial Joint Stock Bank
(Vietcombank)... At the communication level, banks apply machine learning, artificial
intelligence and provide 24/7 automatic consulting services such as Chatbot. For
example, TPBank applies facial recognition technology on Livebank, customers do
not need to bring any identification documents, just stand in front of the machine and
confirm their fingerprint to be able to perform transactions. This technology uses
Depth Camera with the Liveness check function and uses AI to analyze facial data
accurately. Or AI chatbots of banks such as Vietcombank, Techcombank, MBBank...
operate automatically, supporting customers 24/7. Or Nam A Bank brings artificial
intelligence (OPBA robot) into customer service. OPBA robot advises all questions
according to customer needs, and can also recognize faces using the Face ID
feature. In addition, banks also apply other technologies such as eKYC; biometric
authentication; card encryption; chip card payment with and without contact.

2. Evaluate the trend of digital banking development in Vietnam

2.1. The opportunities in the process of developing digital banking in Vietnam

In terms of prospects, Dr. Luu Ngoc Hiep believes that digital banking in
Vietnam is full of potential and can develop strongly in the near future due to the
combination of many factors, including infrastructure, population structure, banking
service usage habits, and the determination of the regulatory authorities.

Firstly, in terms of infrastructure: In recent years, the Internet -

telecommunications infrastructure of Vietnam has been strongly developed. To date,
5G has been deployed for testing, 4G has covered nearly 100% of the population,
and fiber optic networks have reached 100% of communes and wards. In addition,
the infrastructure for digital payment has also developed strongly: Vietnam currently
has about 30 million people using the Internet banking system every day; The growth
rate of transactions on Mobile banking in Vietnam has reached 200%; The value of
transactions with the mobile phone channel alone reaches about 300 billion
dong/day. Data infrastructure in general is quite ready and is being implemented to
integrate national databases.
Vietnam has a high rate of smartphone and internet usage, creating favorable
conditions for the development of digital economic integration in general and digital
banking in particular, with over 63% of the population owning a smartphone and over
70% of the population using the internet.

Secondly, in terms of population structure: Vietnam has over 97 million

people, a young population structure, with the labor force aged 15 and over
accounting for nearly 70% - this is considered to be a market with great potential for
the development of digital banking because the younger generation is the driving
force behind revenue growth for the digital banking sector. They have a good
understanding of and are quick to adopt technology, and they represent different
shopping patterns.

Thirdly, about banking habits: According to statistics, Vietnam currently has nearly
70% of people who have not yet been able to access financial services, and do not have a
bank account. There are up to 26% of cash transactions, while the rate of Internet penetration
among Vietnamese people is up to 66%. This shows that there is still a lot of "room" for
digital banking services to develop. It must also be recognized that the COVID-19 pandemic
has changed people's habits of using cash. Digital transformation and cashless payments have
seen a sudden growth in recent times. Vietnamese people are increasingly sympathetic to
cashless payments. Survey data from last year shows that 85% of banking service users tend
to use digital banking services more than they did 18 months ago.

Fourthly, the direction and determination of the regulatory authorities: The

government has issued many decisions and plans to help accelerate the digital transformation
of banks, such as: Decision No. 1813/QĐ-TTg dated October 28, 2021 on the approval of the
Plan for the development of non-cash payment in Vietnam in the period 2021-2025; Directive
No. 02/CT-NHNN on the promotion of digital transformation and ensuring information
security and safety in banking operations; Decision No. 810/QĐ-NHNN issued on
May 11, 2021 approving the Plan for digital transformation of the banking industry
until 2025, with a vision to 2030, in which it sets specific goals: At least 50% of
banking transactions allow customers to complete entirely in the digital environment;
At least 50% of adult citizens use electronic payment services; At least 70% of the
number of customer transactions are conducted through digital channels…
 3. The challenges in the process of developing digital banking in
Vietnam

In addition to the favorable conditions, the development of digital banking in

Vietnam still faces many difficulties and challenges:

Firstly, the legal framework for digital banking activities in Vietnam is still
incomplete, not keeping up with the development of technology and market demand.
This causes many difficulties for banks in implementing digital banking products and
services. For example, the digital payment segment is currently developing very
rapidly with technological advances, but legal regulations have not kept pace,
making commercial banks (CMBs) reluctant to apply new technologies and services
outside the permitted framework. This leads to CMBs being unable to meet customer
needs and losing out on development opportunities.

Secondly, cases of fraud related to digital payment activities have recently

become increasingly sophisticated and complex. The ability to prevent fraud against
digital banking transactions has always been a concern of commercial banks
(CMBs), but it still cannot create peace of mind for customers. Most recently, Group-
IB (Singapore), a cybersecurity firm, discovered a phishing campaign impersonating
27 Vietnamese financial institutions. According to this, criminal groups used text
messages, Telegram, WhatsApp, and Facebook to impersonate banks and financial
companies to lure victims to fraudulent websites. Afterwards, customers were robbed
of their passwords and money was withdrawn from their accounts.

Thirdly, the technological race in the banking industry with digital banking
projects also contributes to creating many risks in terms of security in general and
user information security in particular. The ability to secure financial information in a
digital environment is still limited in Vietnam.

Fourthly, user awareness when they are not aware of the risks involved in
online banking transactions, take light of personal information security; students,
workers ... rent information, creating conditions for criminals to create ghost
accounts, making it difficult to investigate; transactions, fraudulent tactics are
becoming increasingly sophisticated, difficult to detect..

Fifthly, Vietnamese people still have the habit of using cash for payments.
The habit of cashless payments is currently only popular in central provinces and
cities - where there are good technological infrastructure conditions, while in remote
areas, cashless payments are still in the planning stage.

III. SWOT + so sánh

1. SWOT
1.1. Strength
● Costs saving
This is one of the biggest strengths of Timo Plus, helping customers save a significant
amount of money. With Timo Plus, customers can perform all banking transactions
without having to worry about fees.
- Free account opening and issuing of bank cards: Customers can enjoy
convenient and cost-saving financial services. Customers can now easily open
and issue bank cards for free at Timo Plus. Customers do not have to pay any
fees when opening and issuing bank cards. Customers can complete the
account opening and card issuance procedures online, right at home or
anywhere with an internet connection. It only takes a few minutes to complete
the account opening and card issuance procedures.
- No minimum balance requirement: In addition to free account opening and
bank card issuance, Timo Plus also does not require customers to maintain a
minimum balance. This helps customers save money, maximize the amount of
money in their account, and can withdraw all the money in their account to 0
VND.
- Free of all fees: Timo Plus offers free of all transaction fees, including money
transfers, withdrawals, card opening fees, maintenance fees, bill payment fees,
 etc. This is one of the biggest strengths of Timo Plus, helping customers save a
significant amount of money.
- Free ATM withdrawals: Timo, a digital bank, is offering a free ATM
withdrawal program at all ATMs nationwide of any bank. This means that
customers with a Timo card can withdraw cash freely anytime, anywhere,
completely free of charge, with no conditions attached. As a result, when
customers need cash, they can use their Timo card at any ATM in Vietnam.
Customer needs will be met quickly and promptly.
● Timo Plus interface: Modern, eye-catching, and easy to use
Timo Plus is a digital banking app designed with a modern, eye-
catching interface that provides customers with a comfortable and easy-to-use
experience.
The interface of Timo Plus is divided into clear sections, making it
easy for customers to find information and perform tasks. Specifically, the
default wallet, savings, and credit are separated into separate tabs, making it
easy for customers to track their balance and transaction history. The
operations on Timo Plus are also designed to be simple and easy to
understand. Customers only need to follow the instructions that appear to
successfully complete transactions such as money transfers, phone top-ups,
and bill payments.
Thanks to its modern, eye-catching, and easy-to-use interface, Timo
Plus has been trusted by a large number of customers. This app has
contributed to changing the way traditional banking transactions are made,
providing customers with more convenient and secure financial experiences.
● There are many incentives when using it
Timo Plus is a digital banking app that is trusted by many people for its
advantages such as free of all fees, user-friendly interface, and easy to use. In
addition, Timo Plus also collaborates with many different systems to bring
customers many packages of promotions and payment discounts.
Specifically, Timo Plus collaborates with shopping systems such as
Tiki, Shopee, Lazada, ... to provide discount codes up to 50% for customers
when paying with Timo cards. With food systems such as GrabFood, GoFood,
... Timo also offers promotions such as discounts, cashback, gift vouchers, ...
 In addition, Timo Plus also collaborates with service providers such as
electricity, water, tuition, ... to help customers pay bills quickly, conveniently
and save costs. Especially, on special occasions, Timo Plus also implements
special promotion programs, bringing customers wonderful experiences. With
these attractive promotions, Timo Plus has become the top choice for many
consumers.
● Optimal information security
On smart devices, Timo Plus provides modern security features such as
facial recognition or two-factor fingerprint authentication. This allows
customers to operate quickly and conveniently, while minimizing the risk of
unauthorized intrusion.
In addition, Timo Plus also has a smart OTP feature that allows
customers to not have to manually enter the OTP code as before. Instead, the
OTP code will be automatically stored and used for subsequent transactions.
This feature helps customers save time and effort, while also ensuring
information security more.
With optimal security features, Timo Plus is a worthwhile option for
customers looking for a safe and convenient digital banking app.
● “Goal Sale” feature - smart financial solution for every home
Timo Plus is a reputable and modern digital banking app that provides
many convenient features for customers, including the Goal sale feature. This
is a feature that helps customers plan and manage their spending and savings
effectively.
With Goal sale, customers can separate each amount of money in their
Timo Plus account, select a goal and the time to complete. After that, Goal
sale will automatically calculate the amount of money needed to save each
day, week, or month. At the same time, this feature will also automatically
transfer money from the Spend Account to the Goal Account to save.
Thanks to the Goal sale feature, customers can easily plan their
spending and savings in a scientific way. In addition, customers can also track
their savings progress easily, helping them stay motivated to achieve their
goals.
 In addition to the Goal sale feature, the savings interest rate at Timo
Plus is also very favorable. Currently, the savings interest rate at Timo Plus is
5.5%/year for a term of 18 months. This is a higher interest rate than many
other banks on the market.
● Comprehensive financial destination
Timo Plus is a reputable and modern digital banking app that provides
a variety of services and amenities to meet the needs of customers.
In terms of banking services, Timo Plus provides all basic features
such as transferring money, paying bills, and topping up phone credit. In
particular, Timo Plus is free of all service fees, helping customers save money.
In addition, Timo Plus also provides a variety of other services and amenities,
helping customers easily access financial services such as:
- Buying insurance: Timo Plus partners with reputable insurance
companies such as Manulife, Bao Viet,... to help customers easily buy
life insurance, health insurance, travel insurance,...
- Financial investment: Timo Plus partners with VinaCapital, helping
customers participate in financial investment in an easy and convenient
way.
- Banking loan: Timo Plus partners with Viet Capital Bank, helping
customers easily borrow money from banks with preferential interest
rates.
1.2. Weaknesses:
● The system is stable but needs improvement
One of the issues that users are not satisfied with Timo Plus is that the
system often crashes and cannot log in to the account. This is especially
common during holidays when the number of users is too large. During the
transaction process, the system also often crashes and has to be performed
again many times. This causes inconvenience for users, especially when
important transactions need to be performed. To improve this issue, Timo Plus
needs to upgrade the system to ensure stability, especially during holidays. In
addition, Timo Plus also needs to optimize the transaction processing speed,
helping users to perform transactions quickly and conveniently.
● Limited network of transaction points
 Timo Plus is a digital bank, so customers can only transact online or
via the Timo application. This causes inconvenience for customers who do not
have internet access or are not familiar with using technology.
1.3. Opportunities
● Vietnam's digital banking market is booming
According to a report by Statista, Vietnam's digital banking market is
expected to reach 15.2 billion USD by 2024, growing on average 32%/year in
the period 2020-2024. This is a potential market, creating great opportunities
for digital banks like Timo Plus to develop.
● Impact of the COVID-19 pandemic
The COVID-19 pandemic has accelerated digital transformation in all
sectors, including banking. People tend to use online banking services more to
limit direct contact.
1.4. Threats
● Challenging the legal framework
Digital banking is an inevitable trend in the financial banking industry
in the era of 4.0. However, in addition to opportunities, digital banks are also
facing many challenges, including the challenge of legal framework.
The legal framework in Vietnam still has many loopholes and does not
keep pace with the pace of technological development. Specifically, there are
still no specific and clear regulations on issues related to transactions on
digital banking, signature confirmation, or customer identification. This makes
it difficult for digital banks to provide appropriate services to meet the needs
of customers.
● Difficulties in securing customer information
In the digital age, digital banks are gradually becoming a popular
choice for many users. However, in addition to the convenience that digital
banks offer, customer information security is still a major challenge.
Many cases have occurred, such as impersonating customers, stealing
money from accounts through customer OTP codes, or being tricked into other
fake digital banks. This has caused significant damage to customers, affecting
the reputation of digital banks..
● The habit of not using cash is still popular among the majority of people
 Although the government has implemented many support policies, the
habit of using cash among people is still common, especially in rural and
remote areas. The main reason is that the level of literacy is still low and
people do not fully understand the benefits of cashless payments. In addition,
the payment infrastructure in rural and remote areas has not been invested in a
coordinated manner, making it difficult to use digital banking services.
To address this situation, it requires the coordinated efforts of
government agencies, financial institutions, and the people. The government
needs to continue to implement support policies and raise public awareness of
the benefits of cashless payments. Financial institutions need to improve
service quality, diversify products and payment facilities to meet the needs of
the people. People need to take the initiative to change their habit of using
cash and raise awareness of the benefits of cashless payments.
2. So sánh

Compare with Cake digital bank and VCB Digibank

2.1. Cake digital bank

Strengths

- It has the basic functions of a bank such as savings, money transfer, balance inquiry,
bill payment, and mobile top-up.
- The registration process is quick, saving time.
- Users will enjoy the following conveniences:
+ No card opening fee, management fee, maintenance fee, or service fee.
+ No fees for transferring money to other banks.
+ No charges for text messages.

Weaknesses

- The currency exchange fee charged by Cake is 3.3% per transaction, which is higher
compared to other banks (around 2.5%).
 - The transaction fees for international transactions make Cake less appealing to users
who frequently engage in foreign transactions.

2.2. VCB Digibank

Strengths

- Provides comprehensive services and convenient financial products for customers,

such as 24/7 money transfers, online savings, mobile top-up, QR Pay payments, etc.

- The registration process is quick and time-saving on both the application and
website.

- Users will enjoy the following benefits:

+ No service registration fees, no card opening linking fees.

+ No fees for transferring funds between customer accounts.
+ No fees when customers pay taxes from their specialized accounts at
the State Treasury at Vietcombank.
+ Customers can conduct transactions using various methods such as
OTP codes, facial recognition, or fingerprints.
+ High-security features: VCB Digibank employs advanced technologies
such as Smart OTP, allowing customers to perform transactions
quickly without manually entering OTP codes. VCB Digibank also
utilizes Push Authentication technology – customers receive a mobile
notification before successfully logging in on the web.

Weaknesses

- Currently does not support customer loan applications.

- Introduces fewer promotional programs and payment discounts for customers
during holidays and festive occasions.
- Customers will incur fees when withdrawing cash from ATMs.
 2.3. Similarities

- The registration process is quick, easy to execute, without the need for
complex paperwork, and is time-efficient, especially suitable for young users.
- All have visually appealing interfaces, attracting customers and ensuring user-
friendliness.
- All help customers save costs such as account opening fees, withdrawal fees,
and transfer fees.
- In general, they meet the basic needs of customers, such as savings, money
transfers, bill payments, but the range of services is not overly extensive.
- All employ advanced technologies in securing customer account information,
such as Face ID facial recognition, two-layer fingerprint verification, or OTP
codes.

2.4. Differences

Table . Compare Timo Plus with Cake and VCB Digibank

CAKE VCB DIGIBANK TIMO PLUS

Interface The primary color is The interface on both The interface is

pink, providing a fresh the website and the designed with a
and dynamic sensation. application is modern and
Cake can be identified consistently and engaging aesthetic.
through the stylized aesthetically designed Specifically, default
images of ghosts, in a "dark mode" style wallets, savings, and
conveying a modern, - a trend prevalent in credit are clearly
playful, and creative contemporary design segmented for
spirit. With the intention (applied by social convenient customer
of dispelling rigid networks like tracking. When
stereotypes associated Facebook, Instagram, performing actions
with the financial YouTube, etc.). This such as money
 industry, Cake's "mascot" design choice not transfers, mobile
exudes a contemporary, only aligns with top-ups, or bill
mischievous, and current trends but also payments, customers
innovative character. contributes to energy can easily follow
efficiency, reducing step-by-step
battery consumption instructions
on devices and displayed on the
providing eye interface.
protection for
customers.

Features include
Security Security and safety for Developing and
facial recognition,
every transaction implementing various
state-of-the-art two-layer fingerprint

technologies for verification, and

security, such as Push OTP code
Authentication, two- authentication.
layer fingerprint
verification, and
facial recognition…

Exceptional Sending savings with a None “Goal save”

Features higher interest rate feature on Timo
compared to traditional
Plus
banks.

Register and Utilize National ID Card Utilize National ID Utilize National ID

open an and Citizen Identification Card and Citizen cards and Citizen ID
account Card, with the option to Identity Card, with cards, with the
substitute a passport. the option to option to substitute a
Mandatory utilization of substitute a passport. passport. Mandatory
a selfie photo for identity Selfie photos are not incorporation of
 verification. Registration mandatory for selfie photos for
can be completed through identity verification. identity verification.
the mobile application or Registration can be
Registration can be
at the bank branch. completed through
completed through
the mobile
the application,
application or at the
website, or at the
bank branches.
bank's branch.

Verify account Phone number Email and phone Email and phone
number number

Promotions - One can earn money Customers, upon No account opening

through Cake by registration, receive incentives.
introducing the Cake app an instant discount
Typically offers
along with their referral code of 100,000
promotions and
code, which is typically VND; 10 transactions
cashback during
their phone number. using Smart OTP per
holiday seasons and
week.
- There are usually festivals
incentives and cashback
offers during holidays
and festive occasions.

How to access Access using ID and Access using ID and Access using ID and
password, Face ID, password, Face ID, password, Face ID,
fingerprint recognition, fingerprint fingerprint
or phone number. recognition, or phone recognition.
number.

Only provides debit

Account types Provides both debit Provides debit
account services.
and credit accounts. accounts and credit
 accounts.

Payment Linked with MasterCard Linked with Visa, Linked with Visa
and Visa. Master and JCB and Napas

Utilities - Providing the - Provides a range of - Providing the

fundamental services of a banking services, services of a bank,
bank, with support for including support for including loan
unsecured personal loans. online tax payments assistance and
and loan repayments, insurance coverage.
- Cash withdrawals can
but does not currently
be made at ATMs - Withdrawal of
support loan
bearing the Master logo. funds at ATMs;
applications.
financial investment
- Enables cash and personal
withdrawals at ATMs financial
and offers financial management.
investment options.

Cost savings No card opening fee, No service Free account

management fee, registration fees, card opening, bank card
maintenance fee, service opening fees, or issuance fee,
fee, transfer fee, charges when withdrawal fee,
messaging fee. customers pay taxes transfer fee,
from their specialized maintenance fee.
accounts at the State
Treasury at
Vietcombank.

6 month 5.4% 3.2 % 6.0%

 savings
interest rate

Closing Closing an account at Closing an account

accounts the bank branch and at the bank branch
Closing an account at the
incurs a fee of 30,000 and incurs a fee of
bank branch.
VND. 20,000 VND.

Observations: Based on the analysis and comparison results, the author's team evaluates Timo

Plus as having several outstanding advantages compared to its two digital banking

competitors, such as:

- With its predecessor being the digital bank Timo, which has gained the trust of
the public and has been recognized as one of the top 8 reputable digital banks
in Asia.
- Offering mostly fee-free services for customers, including maintenance fees,
transfer fees, and ATM withdrawal fees, which are not available with VCB
Digibank.
- Providing various promotions and discounts for customers, such as referral
programs and discount packages for Timo Plus payments during holidays and
festivals.
- Featuring exceptional functionalities like the Goal Sale feature, helping
customers effectively plan and manage their expenses and personal finances.
With the Goal Sale feature on Timo Plus, customers can plan their
expenditure, calculate the amount they need to save, and quickly manage fund
transfers and individual goals, a feature not present in Vietcombank.
- Offering attractive savings interest rates, with a high-interest rate of 6.0% per
annum for a 6-month term, surpassing the other two digital banks.
 - Providing online loan support, a feature not yet offered by VCB Digibank for
its customers.

RECOMMENDATIONS:
The development of new digital banking models is still relatively new, with the full
deployment of functions providing financial products and services and small-scale
operations. Timo Plus is one of the pioneering young digital-only banks in this field,
gradually developing modern and convenient banking products and services. However, to
effectively compete with other digital-only banks and traditional banks undergoing digital
transformation, Timo Plus needs to continue improving its operational efficiency, enhancing
the quality of its products and services, and better meeting customer needs and experiences.
(1) Activate international online payment methods
In the current globalized world, international trade transactions between countries are
increasing. Alongside changing consumer habits, where individuals not only tend to buy
online domestically but also internationally, online payment transactions and international
money transfers have become more common. As Timo Plus is currently a domestic payment
account, customers cannot transfer funds directly abroad through the Timo application.
Therefore, Timo Plus can activate online payment methods, including automatic payment
transfers for bills and real-time international payments. This ensures quick and convenient
transactions while maintaining the highest level of security for customers.
(2) Strengthening customer experience, focusing on the following factors:
- Meeting a comprehensive digital experience for customers by ensuring that digital banking
products and services are genuinely beneficial for them.
- Segmenting customers and establishing a functional system to predict user needs based on
their financial behavior. This approach aids in adjusting, improving, and developing existing
financial products, while also creating new product lines and services tailored to meet the
evolving needs of customers at various stages of their lives, extending to small businesses,
urban and rural customers, and even international tourists.
- Enhancing the experience of automated transaction processes by establishing connections
with relevant parties to facilitate easy access to customer data. This not only ensures smooth
transactions but also reduces documentation and paperwork, along with the time required to
use Timo Plus's digital banking services. For instance, by granting customers the right to
electronically register property mortgages when applying for online loans, or tax-related
documents, Timo Plus can access from the tax authorities without customers having to
provide them.
(3) Strengthening customer information security, and improving network security
With the development of technology, many bad guys also take advantage of it to have
sophisticated fraud tactics to embezzle property, so customers are very worried about the
level of information security when making transactions in the online environment. Network
security risks will harm customers' choice to use the financial services of digital banks. To
fortify and elevate security measures, in addition to current protocols, Timo Plus can
implement the following proactive solutions:
- Employing technological measures such as robust formatting and access authorization,
blocking phishing attempts (methods that impersonate banks or financial entities to deceive
users into sharing sensitive information), countering malware, monitoring abnormal
connection signals, and regularly upgrading security patches.
- Conducting regular training, awareness campaigns, and warnings to enhance the
understanding and vigilance of both employees and customers regarding potential security
threats.
- Establish policies and ensure compliance with procedures. In addition, during the product
development process, the security team participates from the design stage to analyze and find
security loopholes that can be exploited at each step of operation, each touchpoint of the
customer.
However, the most important thing to do is to balance the issue of security but still ensure an
easy, convenient, and quick customer experience.
(4) Encouraging Cashless Transactions: Strategies to Shift Consumer Behavior
To encourage a transition from cash usage to digital transactions, Timo Plus can employ
targeted promotional programs designed to incentivize customers. These initiatives may
include enticing offers such as cashback rewards, reductions in the percentage of the total
amount payable, and the accumulation of points with each payment to unlock redeemable
rewards.
In addition, Timo Plus also can promote propaganda and advertising to make customers see
the speed and safety of use. Fast for transactions at a distance, with high value, safe in
avoiding the risks of cash theft, and cash damage that cannot be used. At the same time,
promote to customers about accuracy and savings. Accurate in not having to round up the
small change, large amounts of money are paid on time with that amount and save in users
can receive many promotions from banks or sellers, often discounted when paying by card.
Practical implementation involves expanding collaborations with retail stores, supermarkets,
and popular e-commerce platforms to facilitate cashless payments through QR codes. Timo
Plus can proactively utilize and promote this approach on widely used social media platforms
like Facebook or TikTok. By crafting unique and impactful messages that resonate with
customers, and tapping into the right customer insights, Timo Plus can effectively address the
evolving needs of its user base and promote the adoption of cashless transactions through its
banking services.
5) Taking advantage of government incentives for strategic growth
In the ongoing pursuit of sustainable and all-encompassing digital banking development,
Vietnam has made significant strides, exemplified by the government's endorsement of the
sandbox framework for the "Mobile Money" model. This innovative model specifically
targets individuals in remote, rural, and island areas, demonstrating a commitment to
financial inclusion. Timo Plus, recognizing the potential of this government initiative, can
strategically capitalize on this opportunity to extend its reach to individuals who may still be
unfamiliar with the concept of opening bank accounts.
An effective approach for Timo Plus could involve forging partnerships with
telecommunications companies offering Mobile Money services. By leveraging these
partnerships, Timo Plus can seamlessly expand its customer base, tapping into the existing
user networks of these telecom collaborators. This not only aligns with the broader goals of
financial inclusion but also positions Timo Plus at the forefront of initiatives supported by the
government, ensuring its continued relevance and growth in the dynamic landscape of digital
banking in Vietnam.

INTRODUCTION
Vietnam is one of the nations propelling itself toward technological advancement across
various sectors. With the robust development of the Fourth Industrial Revolution, everything
seems to be transitioning from traditional to modern, and the financial sector is no exception.
Thanks to this transformation, digital banking has emerged as a sustainable development
trend for banks in Vietnam. The majority of Vietnamese banks have adopted digitalization
strategies and oriented themselves towards digital banking development. These banks
consider digital transformation crucial for their survival.
Against this backdrop, the genesis of digital-only banks in Vietnam is fueled by the ambition
to excel in this ever-evolving environment. Among these innovators, Timo Plus, established
in 2015, proudly stands as the trailblazing digital banking platform in Vietnam. Throughout
its journey, Timo Plus has not merely navigated challenges but has proactively seized
opportunities, cementing its leadership position in the dynamic digital banking sector. In
2019, Timo Plus embarked on a transformative journey, forging a strategic alliance with Ban
Viet Bank, a shared vision aimed at fostering innovation and mutual growth.

Building upon the foundational narrative, the article that follows will delve deeper, unfolding
across four key chapters:
Chapter 1: Overview of the global digital-only bank market;
Chapter 2: Overview of the digital-only bank market in Vietnam;
Chapter 3: Development status at Timo Plus digital-only bank;
Chapter 4: Recommendations to improve the operational efficiency of Timo Plus.
CONCLUSION
The analysis and evaluation of the development of the digital-only bank market worldwide
and in Vietnam underscore the transformative impact of technological advancements on the
financial landscape. Explored the global trends and specificities within the Vietnamese
context, it becomes evident that digital-only banks play a pivotal role in shaping the future of
banking.
The global overview has illuminated the rapid growth and evolving strategies of digital-only
banks, emphasizing their adaptability in meeting the changing needs of consumers in an
increasingly digitized world. Meanwhile, the examination of the Vietnamese digital-only
bank market, with a specific focus on Timo Plus, has provided valuable insights about
pioneering efforts in adapting to this digital paradigm. The continuous evolution of this
market demands proactive measures, innovative approaches, and strategic collaborations, as
witnessed in the case of Timo Plus partnering with Ban Viet Bank.
Moving forward, as the digital-only bank market continues to evolve, its impact on financial
inclusion, customer experience, and overall industry dynamics is poised to be transformative,
shaping the way we perceive and engage with banking services in the years to come.