VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS

This event marks VIB’s step as the first bank to implement the Temenos Core Banking solution on cloud in Vietnam.

Accordingly, VIB will implement the latest core banking version R23 from Temenos on the AWS cloud and VIB's private cloud platforms, marking it the first bank to deploy the Temenos Core banking system on a cloud computing platform in Vietnam. The project is a collaboration with ITSS, a technology solutions and IT services company from Switzerland.

VIB - the first bank to implement Temenos' Core Banking solution on the cloud in Vietnam

Tran Nhat Minh, deputy CEO cum CIO of VIB, shared the vision behind the adoption. "With strategic positioning to become a leading retail bank in Vietnam, VIB is always at the forefront of investing in technology initiatives, digitalisation, and building an advanced and robust technology platform. The banking industry in Vietnam is undergoing significant transformation, driven by an increase in customer demand for digital experiences and the constant advancement of technology. Particularly, the migration of core banking systems to the cloud has emerged as a game-changing factor, promising flexibility, innovation, and enhanced customer experiences. This core banking modernisation project on cloud reaffirms VIB's commitment to continuously improve services quality and operational efficiency, while creating a strong foundation to serve customers in a prominent digital era."

The deployment ensures compliance, safety, and continuous system operation, marking an important step towards the comprehensive restructuring and innovation of VIB's digital platform, aligned with its 3 drivers "Mobile first - Cloud first - AI first".

With "Cloud first," VIB pioneers the deployment of the Temenos Core Banking solution on cloud using native services. This ensures automatic and rapid on-demand infrastructure scalability and superior seamless service delivery to users, mitigating the impact of service disruption, while optimising development and operational costs.

With "Mobile first", Mobile Banking is one of the key factors, and deploying Temenos Core Banking on the cloud provides robust APIs, high operational performance, and flexibility, enabling VIB to maintain 24/7 services, enhancing the best customer experience and ensuring seamless access to banking services via mobile banking.

With "AI first", VIB has been and continues to focus on leveraging AI and machine learning to provide predictive analytics and suitable financial solutions. The deployment of Temenos Core Banking aims to ensure the enhancement of input data quality through tight automated system controls, which is a crucial input supporting the "AI first" key factor.

Ramki Ramakrishnan, managing director of Temenos, at APAC remarked, “We are delighted to welcome VIB as the first bank in Vietnam to embrace Temenos Core Banking on the cloud, further solidifying our market-leading position. Temenos serves as the trusted banking platform for large banks globally, including leading Vietnamese banks, spanning retail, corporate, wealth, and private banking sectors. Vietnam’s banking sector has experienced significant growth over the last decade and is home to some of the largest and most innovative banks in Southeast Asia, and VIB is leading the way. With VIB’s forefront position in cloud-powered banking, we are excited to be working with them as their strategic partner to support their future growth.”

Modernisation to accommodate rapid growth and long-term digital transformation strategy

In its strategic transformation phase (2017-2026), VIB has witnessed impressive growth, positioning the bank as one of the top retail banks in Vietnam. To date, VIB is the most retail oriented banks in Vietnam with a retail loan proportion of over 85 per cent of its loan portfolio. Over the past seven years, the bank has achieved compounded growth of its credit portfolio at 32 per cent due to strategic business changes and successful penetration and expansion in the individual customer segment.

With the aim of becoming the most innovative bank in Vietnam, VIB is implementing long-term digital strategies, with digital banking witnessing significant growth alongside high penetration and digital conversion rates. From 2017 to 2023, digital transaction CARG was 100 per cent, with over 94 per cent of retail transactions conducted through digital channels, serving millions of active customers every month.

The implementation of Temenos Core Banking on AWS Cloud marks VIB's latest advancement in its digital transformation journey, contributing to the establishment of robust infrastructure that serves as the foundation for the adoption and development of cutting-edge technology products. It also optimises customer experience, aligns with growth plans, and accommodates future increases in customer numbers, products, and transactions through digital banking channels.

Eric Yeo, Vietnam country manager of AWS, added, “Cloud revolution provides capabilities to optimise operation, improve security, reduce operational costs for technology infrastructure, and minimise downtime during peak traffic. We are proud to collaborate with VIB and Temenos on this journey in helping to shape the banking industry in Vietnam. This technology platform will help the bank meet and exceed its rapid business growth in the future.”

Expanding the ecosystem of innovative technology solutions with a customer-centric approach

With a diverse product ecosystem and integration of cutting-edge technologies such as AI and Augmented Reality (AR), and superior convenience and speed, VIB has asserted its position as one of the leading banks in delivering innovative digital products with a customer-centric approach. The digital strategy has earned VIB recognition from both domestic and international organisations for its high-tech and trend-leading products.

The utilisation of Temenos Core Banking solution with its loud-native and cloud-Agnostic features in this project allows VIB the freedom to operate across public clouds such as AWS and VIB's private clouds; provides the agility, scalability, and resilience necessary to meet the dynamic needs of modern customers; and fosters an environment of continuous innovation and improvement for VIB. The new system will also expedite VIB's ability to upgrade, expand, and introduce new digital products and services to the market quickly and significantly save time. Additionally, with high-performance and flexibility, VIB can maintain 24/7 services and better customer experience. Customers will benefit from maximum security when using VIB's services, as the AWS Cloud holds over 140 security compliance certifications.

Manju HC, director of ITSS Global, said, “We are pleased to be putting our more than two decades of digital core banking transformation expertise to work, allowing VIB to innovate faster using cloud capabilities to grow their business while meeting sustainability commitments. What sets ITSS apart is our accelerators, hands-on experience within global markets, and how we keep the end-user experience in mind while driving digital transformations. ITSS’s Temenos services and cloud technology expertise paves the way for VIB to deliver mission-driven products and services that delight customers.”

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