At the Forbes Vietnam's Business Forum 2023, MB's chairman Luu Trung Thai unveiled the bank's strategic pivot towards digital dominance, forecasting that digital platforms will contribute half of the bank's revenue over the coming four years.
|Luu Trung Thai, chairman of the Board of Directors at MB |
On August 17, the Forbes Vietnam's Business Forum 2023 unfolded in the heart of Ho Chi Minh City, shining a spotlight on the theme of Innovating Growth Models. The discourse around digital transformation in traditional sectors took centre stage.
Leading the charge was Luu Trung Thai, chairman of the Board of Directors at MB. He delved deeply into how the confluence of IT and traditional banking has reshaped the trajectory of his institution.
Highlighting MB’s forward-thinking approach, Thai shared, "The digital metamorphosis in the banking sector isn't a fleeting trend; it’s an imperative evolution. For MB, the narrative is shifting from being a conventional bank to evolving as a formidable digital enterprise."
A glimpse into MB’s strategic blueprints showcases its ambition. Thai envisions that digital platforms will contribute a considerable 50 per cent of the bank's revenue stream over the ensuing four years, a sharp uptick from the current 20 per cent.
Considering MB's sprawling customer base of over 23 million, and its staggering digital transaction rate that eclipses 95 per cent, this seems well within the realm of possibility.
Yet, the bank's approach to this transformation is both strategic and pragmatic.
"The cornerstone of our investment strategy is rooted in innovation, always starting with small-scale trials. We pivot to more substantial investments only after meticulous evaluation and successful trial outcomes," Thai added.
The dividends of such a strategic focus are palpable. Even as MB's headcount and branch locations remained relatively stable, profits have swelled by a noteworthy 18-25 per cent over the past half-decade.
"This is a testament to our surging labour productivity, catalysed by our digital initiatives," the bank’s chairman underscored.
While reimagining the customer experience, MB's digital arsenal – comprising App MBBank, BIZ MBBank, and the avant-garde MB SmartBank – has enabled seamless and efficient banking, eradicating the need for tedious conventional processes.
Capping off a day of insights, Forbes Vietnam lauded MB as one of the top 50 publicly listed companies in Vietnam for 2023.
A spokesperson from Forbes Vietnam commented, "MB’s stellar trajectory, especially as a private joint-stock commercial bank, has secured its revered spot on our list for an impressive ninth year running."
Forbes’ Business Forum 2023’s dialogue encompassed a spectrum of topics, from disruptive tech trends to groundbreaking business strategies, all set against the backdrop of a fluid global business landscape.
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