Launched in 2015, Timo is considered the pioneer and leading digital bank in Vietnam. How has the birth of digital banking changed Vietnam’s financial market?

As a country that entered the digital banking market very early with the introduction of Timo digital bank in 2015, Vietnam is approaching the golden period of digital banking development. The popularity of smart payment methods has created a premise for traditional banks in Vietnam to conduct digital transformation.

Furthermore, the Covid-19 pandemic changed consumer habits and accelerated non-cash payments, thereby promoting the development of digital services. In that process, digital banks have made a great contribution by offering completely new experiences in financial management.

The fee-free banking services provided by digital banks, with Timo as the pioneer, have helped reduce barriers by simplifying transaction procedures, facilitating the integration and management of convenient payment methods, and accelerating transaction processing. To achieve this goal, one of the most important things we need to do is change habits and behaviors and expand the accessibility of basic banking services for customers. This implies that digital banks will have to develop and implement the latest technologies to serve a large customer base at a low cost.

How would you evaluate Vietnamese consumers’ acceptance of digital banking? Especially given their concerns over the safety and security of digital banking, how can digital banks build consumer trust?

Customers in Vietnam are very open and adaptable to new experiences brought by technologies, including in the field of digital banking and finance. However, the biggest barrier for digital banks is how to build customer trust, to convince them to choose to use their products and services specifically. I think that sign-up promotions or rewards are not the main factor or the most effective strategy to attract customers and to sustainably win in the marketplace. For financial institutions and banks, especially digital banks like Timo, the best way to conquer customers is to become a trustworthy business and partner.

“Trust” is the decisive factor for customers in choosing one bank over another and confidently using its digital banking and financial services. Acknowledging this fact, Timo exists in daily life in the most honest way, connecting directly and intimately with customers, both on the online platform and at each customer touchpoint. We want to ensure that Timo Hangouts is always a comfortable and pleasant place for customers to come whenever they need direct support and service.

What are the opportunities in the Vietnamese market for Timo in particular and digital banks in general?

With fundamental factors such as a dynamic and tech-savvy young population, a fairly open economic mechanism, and a strong rise in the middle class, Vietnam is considered a “promised land” for digital banks. I think the development opportunities for the digital banking and finance sector in Vietnam are huge, especially if we can provide a more personalized service experience for everybody, including the under- and unbanked.

The continuous appearance of new competitors in the field of digital banks creates extremely fierce competition while also creating a driving force for upgrading the digital ecosystem. Technology in general and fintech in particular require continuous research, upgrades, and improvements. The more companies that join the game, the greater the possibility of creating technological breakthroughs. Furthermore, having more competitors will help digital banks boost customer reach and market orientation in a more effective way. Strong competitive pressure has increased the role and importance of customers, pushing digital banks to focus more on meeting satisfaction levels and enhancing trust so that customers can confidently use digital financial products and services.

After nearly ten years of operations, what are Timo’s next steps and goals in the near future?

More than just a bank, we aspire to become a companion for our customers on their journey towards managing their finances and creating a richer, freer, and more exciting life. For us, the company’s growth is not merely measured or determined by the number of customers registering and using Timo. In addition, we want our customers to trust, enjoy, and choose Timo. The financial products that Timo provides will help customers resolve difficulties and have effective spending, saving, and investment plans. Timo’s non-financial products will bring customers an exciting and fresh experience and lifestyle.

The financial market as well as the digital banking sector has changed rapidly over the past five years. No one can predict or be certain about what will happen in the next five to ten years. However, if you care deeply about your customers and dare to be proactive, dare to think, and dare to develop differently, I believe that any business, not just Timo, will achieve success in their journey to win the hearts of customers.