Vietnam’s financial services industry trends to Generative AI

According to Eric Yeo, country general manager at AWS, FSI is at the forefront of innovation, often leading the way even in highly regulated sectors. The Vietnamese economy is growing rapidly, driven by digital transformation that is benefiting all industries, not just financial services. For example, IDC estimates that in 2024, companies in Vietnam will spend $803 million on public cloud services, and this momentum can be further accelerated by offering tailored solutions.

Another positive aspect is Vietnam's strong entrepreneurial spirit. Many people are eager to learn about GenAI and explore new technologies. For instance, some startups in Vietnam have been nominated for global accelerator programmes, reflecting this entrepreneurial drive. This strong spirit is crucial for driving the adoption of GenAI and cloud technologies.

He cited a McKinsey report as saying that the global banking industry is expected to create substantial value through GenAI, estimated between $200 billion and $340 billion annually. Vietnam is following this trend, with the FSI emerging as one of the highest spenders on GenAI, underscoring its potential to significantly boost the country’s economic growth.

At the AWS Cloud Day Vietnam held in Hanoi in late September, the future of FSI was once again discussed by leading service and solution providers, banks and experts.

According to Augustine Wong, chief information officer of VPBank, the world is discussing this shift, and the younger generation is particularly focused on it. They expect instant gratification, a concept prevalent in Western culture. As they enter the digital age, they will expect services that meet their needs at any given time. Previously, people had to search on Google, assess, and compare options manually. With GenAI, this process is streamlined and automated.

“GenAI transforms the landscape by providing immediate, game-changing solutions. This does not mean that staff will no longer be needed. Instead, their roles will evolve to address questions and tasks that were previously unconsidered. As we learn from these interactions, Gen AI becomes more effective in assisting future queries,” he explained.

Augustine Wong, chief information officer of VPBank

“Change will come rapidly. In the FSI sector, with increasing investment in Vietnam, the demand and expectations will rise significantly. Reflecting on my experiences growing up in Singapore, it’s clear that adaptation is essential for survival. My advice is to proceed with caution: start slowly, assess thoroughly, and then accelerate,” he added.

Similarly, Daniel Stacey, chief product officer at Singapore-headquartered TymeX, a global digital banking group with a strong focus on emerging markets, added industry adoption is starting to pick up. “We observe that in Europe, many digital banks are leading the way. This is often because they benefit from being newer and not burdened by outdated technology stacks and huge legacy data. Starting with a younger tech stack allows these banks to move faster in their adoption.”

“I am confident that the talent we are hiring in Vietnam, with their extensive experience from large banks, is teaching us valuable lessons. They understand the industry and the products very well, which is beneficial for us moving forward. Thus, I believe Vietnam is aligned with global and regional trends,” he said.

With more than seven years in Vietnam, TymeX is a product and technology development centre with a team of more than 400 employees from many countries, developing technology and digital banking products.

Daniel Stacey, chief product officer at Singapore-headquartered TymeX

In this trend, players in the FSI sector in Vietnam are utilising GenAI to drive transformation and growth.

Augustine Wong said that GenAI is transforming the FSI in a strategic way. “GenAI offers an effective solution by providing a quick search mechanism across our entire product and service catalog, allowing us to tailor recommendations precisely to each customer’s needs.”

“At VPBank, we have been implementing AI solutions, particularly focusing on chatbots powered by GenAI for our retail customers. This has been crucial for our 24/7 customer service operations. Previously, our agents were inundated with calls around the clock, handling a variety of issues ranging from product inquiries to system outages. Often, they had to call customers back, which negatively impacted the customer experience,” Augustine Wong said.

“With the integration of GenAI, such as Claude 3.0 using Amazon Bedrock, we’ve significantly improved our response times and the quality of service. The system enables rapid and accurate responses to customer inquiries, enhancing the overall customer experience. This improvement has led to more efficient and satisfying interactions, eliminating the need for callbacks and thus improving customer satisfaction,” he added.

He elaborated that the bank is also exploring AI applications in other areas, such as collections. It is testing various large language models to find the best fit for its collections processes. GenAI can assist in engaging with customers who are on their payments, offering tailored solutions like restructuring payment plans or adjusting interest rates. This helps to maintain a positive relationship with customers.

“We have been working with many companies to explore different models and approaches. Our strategy is not to limit ourselves to a single large language model but to select the best tool for each specific purpose. We collaborate with these partners on a transactional basis and ensure that our data remains secure within our environment. By closely working with these providers, we can enhance our capabilities and train our teams effectively,” he noted.

According to Eric Yeo, in his work with customers across various sizes and industries on GenAI, he hasseen that adoption in FSI is particularly swift. And at the AWS Cloud Day Vietnam, he saw five cases where GenAI is being used effectively. Techcombank Securities, for instance, is using it to analyse stocks, providing better analysis for investors. TymeX is leveraging Amazon Q Developer to improve developer productivity by 40 per cent, cutting development time from 5 hours to 30 minutes.

Eric Yeo, country general manager, AWS, Vietnam

TymeX is adopting an AI-first culture that influences how it builds products, how its developers work, and how it engages with its customers. For example, the group uses AI to enhance recommendations for lending products, determine loan approvals, and manage repayment cycle.

Internally, TymeX has developed a custom chatbot, powered by Amazon Bedrock, to assist its employees. This tool facilitates daily tasks such as sharing documents, writing code, and performing testing, all through an AI-enhanced interface.

“GenAI is the next significant advancement in our technology strategy, similar to the impact of cloud technology in previous years,” Stacey said. “We are pleased to be supported by AWS, our main partner in these initiatives. One example of how we’re integrating GenAI is through AI-driven chat interfaces in our mobile banking apps. These interfaces provide a user experience similar to popular social media platforms, ensuring that our customers find interactions with our apps as intuitive and engaging as those on apps like TikTok.”

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