Digital transformation has been embedded into the DNA of banks across the globe as a prerequisite for long-term, sustainable growth. Adding to its broad set of cutting-edge banking services, digitally-led Military Commercial Joint Stock Bank (MB) has just embarked on a new journey with its new Digital Innovation Lab.
The global banking and financial industries are collaborating in unprecedented technological competition. The perks of digital transformation are already witnessed in many nations' financial institutions. Bank deposits have grown dramatically through digital approaches rather than traditional, brick-and-mortar branches, according to a real-world example from renowned Bank of America in the US.
In Vietnam, digital transformation in banking and finance landscape has seen a significant shift in the last five years.
According to a recent study conducted by McKinsey & Company, as around 70 per cent of Vietnamese consumers are multichannel users with mixed needs, banks have the opportunity to rethink their customers’ entire journeys to provide more seamless end-to-end touchpoints.
The new Innovation Lab, which launched on November 4, 2021, was a significant step forward in MB's digitalisation path to become a leading, forward-thinking commercial bank in Vietnam.
The lab, one of Vietnam's most professional, comprehensive, and up-to-date digital creative spaces, is also home to four of MB's major creative “factories”.
Rekindling ideas since March 2019, MB's Digital Creative Space consists of four specialised, trailblazing “factories”: Retail tribe factory – developing unique technologies for particular customers; SME tribe factory – generating tech-led banking services for corporate clients; BAAS factory – focusing on virtual connections; and Beyond banking factory – specialising in advancing MB's digital ecosystem.
Besides completing digital platforms such as App MBBank and BIZ MBBank, MB also implemented community support projects such as Foreign Trade University (FTU)-MB Digital Hub to give students the opportunity to experience the products and services in MB's digital banking ecosystem. The creative space also offers an opportunity for students to change their traditional approach to knowledge through case studies and practical content.
MB also recognises the potential for the digital transformation to have a positive impact on the whole community and humanitarian work.
As part of its participation in Vietnam’s National Digital Transformation Program 2020-2025, MBBank has been shifting charity work from the traditional to digital sphere through iNhandao, a government-level digital humanitarian platform in coordination with the Vietnam Red Cross and Vietnam’s Post Office. This platform connects people who want to do charity. Agility is an important factor in MB's digital transformation and looking at the projects that have been implemented by the bank, customers and users can fully count on it.
The Innovation Lab opens up a digital creative environment integrating MB's cutting-edge activities and services.
While its banking products are celebrated, MB's digital creative space is also regarded as the "golden standard" for the industry, with an openness conducive to creative thought, balanced with quieter areas to boost concentration.
At the Innovation Lab, this form of mindfulness and flexibility is essential for maintaining excellent connections while ensuring the workload and pace does not overwhelm staff, and ultimately promoting well-being.
Vu Thanh Trung, member of the Board of Management cum director of the Digital Banking Division at MB told VIR, "The key for our success is our unquenchable thirst for success. In the coming years, one of MB's strategic pillars is to evolve into a leading digitally-based business. In order to achieve this ambitious goal, the Innovation Lab is established to execute two tasks: building MB as a technology great, and becoming the trailblazer in financial services in Vietnam.”