Wednesday, 8 January 2025

BIDV drives retail banking growth through holistic transformation

5 min read

By Foo Boon Ping

Nguyen Thi Quynh Giao, head of retail banking at BIDV, explained how the bank is driving growth through a comprehensive transformation strategy, focusing on digital innovation, private and SME banking for Vietnam’s HNWIs and entrepreneurs, especially women, and regional expansion.

The Bank for Investment and Development of Vietnam (BIDV), Vietnam’s largest commercial bank with total assets of VND 2.6 quadrillion ($102 billion) as of 2023, continues to lead the country’s financial sector. However, as competition intensifies and customer demands evolve, BIDV recognised the need for transformation to sustain its growth trajectory.

Nguyen Thi Quynh Giao, senior executive vice president and head of retail banking at BIDV is leading a proactive strategy to modernise BIDV’s operations and strengthen its competitive edge.

Giao shared that BIDV’s retail loan portfolio has grown by about 24% in 2024, surpassing the industry average of 14%, while retail deposits rose by about 16%. Retail loans now account for about 48% of BIDV’s total loan book, and deposits contribute over 50% to its funding base.

Giao acknowledged that while loan growth remained robust, revenue pressure arose from falling loan interest rates, which declined from 6.2% to 6.9%. To offset margin compression, BIDV focused on fee income growth, driven by bancassurance partnerships and fund distribution initiatives. “We prioritised bancassurance and fund-based products and revenue from payment services to diversify revenue streams despite regulatory challenges,” Giao explained.

Central to this performance is BIDV’s holistic transformation strategy, launched in early 2023, comprising over 70 initiatives. These include its retail loan origination system (RLOS), which streamlines loan approvals and reduces turnaround times, and a card management system, currently in its first phase of implementation. “Our RLOS enhances efficiency and connects seamlessly with Credit Information Centre (CIC), improving service delivery for customers,” Giao added.

Alongside retail banking, BIDV has strengthened its private banking offerings for high-net-worth individuals (HNWIs) and expanded small and medium-sized enterprise (SME) services with targeted initiatives for women entrepreneurs, such as “Women in Wealth”. Additionally, BIDV has grown its presence regionally in Cambodia and Laos, positioning itself for long-term opportunities within ASEAN markets.

With its renewed brand identity, symbolised by the apricot flower, BIDV combines tradition with modernisation, aligning its operational improvements, customer engagement and digital transformation to sustain its position in Vietnam’s financial sector. Giao remarked, “We are transforming to deliver real value, balance growth and strengthen our position for the future.”

Holistic transformation
BIDV’s holistic transformation project, officially launched in early 2023, marks a significant effort to modernise its operations and customer engagement while strengthening its technological capabilities. Giao shared, “The transformation project is based on three key pillars—clients, products and technology—with more than 70 initiatives actively being implemented.”

One of the key aspects of the comprehensive retail transformation project is to change the sales and service model based on target segments, focusing on high-value segments to enhance sales productivity and operational efficiency.

By implementing this new service model, we are also building an exceptional customer experience throughout the entire customer journey and touchpoints—from product design and user interface to service policies, continuous experience measurement, and real-time feedback mechanisms.

A key initiative is BIDV’s new RLOS, a customised platform that integrates seamlessly with the Vietnam CIC and automates loan approvals through real-time application programming interface (API) connections. “Previously, our staff handled paperwork manually, submitted forms physically, and then re-entered data into the core system. Now, everything happens on one platform, reducing loan processing times and minimising errors,” Giao explained. This platform enables BIDV to efficiently manage both secured and unsecured loans across their entire lifecycle. As a result, the bank has achieved a significant reduction in loan turnaround time, with improved staff productivity and customer satisfaction.

Complementing the RLOS, is BIDV’s new card management system, designed to handle large transaction volumes while offering flexibility for new product development. Though currently in its first phase, Giao noted that the system supports innovative credit card solutions for retail customers and ensures faster time-to-market for tailored offerings.

BIDV takes the lead and partners with the National Digital Transformation Strategy by integrating digital citizen data and connecting with the Ministry of Public Security to apply these advancements to banking products, such as credit scoring for loans. The bank is also readying its open API infrastructure to spearhead the expansion of open banking applications by 2025.

To drive innovation further, BIDV established a digital factory, which Giao described as “a dedicated unit supporting the rapid development and deployment of digital solutions for retail banking”. The factory focuses on enhancing customer experience through agile product development, designing solutions such as mini customer relationship management (CRM) systems to improve targeted campaigns and personalised interactions. This approach has already delivered results: pilot branches using these solutions reported a four to fivefold increase in current and savings account (CASA) opening.

At the heart of BIDV’s transformation is its investment in data analytics and artificial intelligence (AI). The bank has created a dedicated data science team to improve customer segmentation and deliver personalised offerings. Giao explained, “We use data analytics to create detailed customer portraits, redesigning service models to meet the unique needs of each segment. Early pilot results are very encouraging, particularly in CASA and credit card uptake.”

Operational efficiency has also improved bank-wide due to the integration of BIDV’s processes into a single digital operating platform, branded Bone, or One Bank. Giao shared, “Bone integrates all internal workflows, ensuring faster approvals, better transparency and reduced redundancies across departments.” Previously, fragmented systems required manual intervention and delayed decision-making. Today, staff can monitor pending tasks and submit approvals through one unified platform, enhancing efficiency across retail banking operations.

Giao acknowledged that BIDV’s rapid growth over the past decade placed immense pressure on its workforce, making transformation critical. “We faced increasing workloads and inefficiencies, but the holistic transformation alleviates these pressures through automation and optimised workflows,” she remarked.

BIDV’s strategic execution of its holistic transformation not only positions the bank as a technology-driven organisation in Vietnam but also ensures sustainable growth through customer-centric innovation, operational efficiency and enhanced workforce productivity.

BIDV also identified sustainable development as one of the strategies to focus on, integrating ESG factors into business development strategies. This includes developing green financial products and consulting and supporting businesses to apply ESG to create sustainable values for the community and the economy.

Expanding private banking and empowering women

BIDV leads Vietnam’s private banking sector as the first commercial bank to launch services for HNWIs with investible assets exceeding $1 million. Its private banking strategy and focus on SMEs reflect its commitment to addressing niche markets through tailored solutions. Giao underscored the strategic importance of private banking: “We are the first bank in Vietnam to build truly private banking capabilities. Our model is built around deposits first, then expanding to investments, tax advisory and estate planning”.

To ensure its offering meets international standards, BIDV established a strategic partnership with Edmond de Rothschild. This partnership equips BIDV with global expertise to deliver sophisticated solutions for HNWIs. The private banking proposition is anchored on personalised services, including health advisory, tax solutions and estate planning—critical areas for clients navigating complex financial decisions.

BIDV has also launched a unique initiative called “Women and Wealth”. This programme targets female HNWIs, offering a combination of financial planning, health and wellness services. Giao explained, “We organise Women and Wealth weeks at branches, where female VIP clients meet financial experts to discuss investment plans, asset allocation and health.” These events provide an inclusive and practical platform for women to explore wealth management in an environment tailored to their needs.

On the SME front, BIDV has made significant strides with entrepreneur loans, specifically tailored for individuals running businesses. Giao clarified BIDV’s strategy: “In BIDV, we classify SME business owners as individuals, not corporates. This approach allows us to design flexible, practical loan products that address their immediate capital needs”.

A key enabler for BIDV’s SME focus is its RLOS that supports the launch of innovative loan products. Giao highlighted the benefits: “With RLOS, our time-to-market has improved significantly, and staff can process loans end-to-end on a single platform. This has made us more agile and competitive”. The RLOS supports both secured and unsecured loans, ensuring entrepreneurs receive quick access to credit.

The bank’s efforts to expand SME outreach are further supported by its dual-channel approach. BIDV leverages its extensive branch network alongside digital platforms to serve entrepreneurs across urban and rural areas. Giao explained, “Technology bridges the gap for small business owners, ensuring they can access our financial solutions regardless of their location.”

However, challenges remain, particularly in optimising fee income. Giao acknowledged, “We are improving our fee income by focusing on bancassurance and investment products, but there is still room to grow digital sales and personalisation capabilities.” Bancassurance, a major contributor to BIDV’s fee income, faced regulatory changes in 2023 that required banks to adapt strategies around loan-linked insurance products.

BIDV’s targeted approach to private banking and SME initiatives aligns with its broader transformation goals. By offering customised solutions for female HNWIs and entrepreneurs, BIDV is addressing underserved market segments while strengthening its position in Vietnam’s retail banking landscape.

Regional expansion

BIDV has steadily expanded into neighbouring ASEAN markets, primarily Cambodia and Laos, to leverage cross-border growth opportunities. Giao emphasised that the bank’s regional strategy aims to “set up teams to focus on three markets—Vietnam, Cambodia and Laos—building strategies, tailored products and integrating IT teams into these markets. BIDV is the first bank to implement cross-border QR payment services, promoting retail payment activities between Vietnam and Laos, as well as Cambodia.

Vietnam remains BIDV’s core market, with a population of about 100 million. However, both Cambodia and Laos offer unique opportunities for growth despite their smaller market sizes. Cambodia has a population of about 18 million, while Laos is smaller at around eight million. “Yet, the rich individuals in Laos are very wealthy and this is where we see major opportunities to bring them into formal banking,” Giao remarked.

An important enabler of BIDV’s expansion is its strategic partnership with Hana Bank of Korea, which has been a key investor since 2020. This partnership brings expertise, financial strength and regional insights that BIDV leverages to enhance its growth in foreign markets. Giao explained, “Hana Bank’s support allows us to build competitive solutions while navigating regulatory challenges. Their experience in regional markets adds significant value to our strategy.”

Through this collaboration, BIDV is introducing modern banking systems into Cambodia and Laos. The bank’s new RLOS and card management system that have been deployed domestically, are now being rolled out overseas. These systems are designed to reduce loan processing times, improve operational efficiency and provide clients with faster and more seamless banking services.

One of BIDV’s regional priorities is to attract affluent individuals and entrepreneurs in Cambodia and Laos by offering tailored wealth management solutions. Giao noted, “In Laos, wealthy individuals tend to keep cash at home. We want to encourage them to trust banking channels for investment and wealth growth.”

The bank’s private banking services, launched in collaboration with Edmond de Rothschild, provide an edge in these markets. With a focus on advisory services, estate planning and personalised financial solutions, BIDV’s offering fills a gap in the underserved wealth management market.

Giao further explained, “Our wealth management initiatives are designed to provide a holistic financial plan, including tax advisory, estate planning and health consultations.” By educating clients on the benefits of structured wealth management, BIDV is addressing cultural preferences that have traditionally relied on informal financial practices.

BIDV’s cross-border growth faces challenges, particularly regulatory hurdles and client trust. Giao acknowledged these complexities: “The policies for overseas remittances in Laos remain restrictive. We are working to navigate these policies while encouraging clients to bank with us”.

Additionally, cultural differences and unfamiliarity with modern banking systems require BIDV to focus on customer education and relationship-building. The bank aims to invest in training programmes and on-the-ground teams to build trust and improve client familiarity with its services.

Giao stressed the importance of a customised approach: “In Cambodia and Laos, we focus on educating clients and introducing products that meet their needs. Trust is key to winning their business”.

BIDV’s regional expansion not only supports its growth ambitions but also helps diversify risk in the competitive Vietnamese banking market. The bank’s holistic modernisation, combined with partnerships like Hana Bank, put it in good stead for Cambodia and Laos.

Giao concluded, “We have a unique advantage with our advanced systems, regional experience and strong partnerships. This allows us to optimise opportunities in these markets where others have yet to establish a significant presence.”

Transforming and rebranding

BIDV’s recent rebranding reflects its commitment to aligning tradition with modernisation as part of its broader holistic transformation strategy. Giao highlighted the significance of the new logo, which incorporates the apricot flower, an enduring symbol of prosperity and renewal in Vietnamese culture. She shared, “Our brand name story comes from a very old apricot flower on the mountain of Yen Tu province—it is more than 700 years old and still exists.”

The apricot flower holds deep cultural meaning, symbolising wealth, luck and resilience, which BIDV aims to reflect through its transformation initiatives. Giao explained, “We are transforming ourselves with a very positive direction, and our new image is modern, lively and energetic.”

BIDV’s rebranding is more than a visual overhaul—it represents a shift in its approach to engaging customers across physical and digital channels. The modernised brand identity supports BIDV’s focus on becoming more agile, technology-driven and customer-centric.

Giao underscored the connection between the bank’s new image and its transformation goals: “The holistic transformation impacts not just technology and finance but also corporate and operational areas within our bank”. BIDV has synchronised its refreshed visual identity with improvements across technology systems, service offerings and operational efficiency.

This alignment ensures that customers experience BIDV’s new identity through tangible benefits such as faster loan approvals via the RLOS, improved card issuance processes and personalised services driven by AI-powered data analytics.

The rebrand plays a key role in supporting BIDV’s regional expansion into Cambodia and Laos. By projecting an image of innovation and reliability, BIDV aims to build trust among new customer bases in these markets. Giao shared that regional clients appreciate brands that combine cultural familiarity with modern capabilities: “When we enter markets like Laos and Cambodia, our brand must show strength and adaptability while being locally relevant”.

BIDV’s new logo and messaging reflect this balance, emphasising its Vietnamese roots while positioning itself as a modern ASEAN financial institution. A successful rebrand requires internal alignment, and BIDV has actively engaged its employees and stakeholders to adopt and reflect the bank’s transformation goals. Giao explained that BIDV’s rebrand is closely tied to its broader corporate culture shift, focusing on collaboration, innovation and customer-first principles.

The bank has implemented training programmes to ensure frontline staff embody the values represented by the rebrand. This internal alignment ensures that the customer experience reflects BIDV’s modernised identity.

A brand for the future

BIDV’s rebranding, symbolised by the apricot flower, encapsulates its vision of growth, resilience and adaptability. By aligning its visual identity with its holistic transformation initiatives, BIDV is reinforcing its position as a modern, customer-focused institution ready to lead Vietnam’s financial sector into the future.

As Giao concluded: “We are renewing our brand to reflect our transformation, ensuring that BIDV remains relevant, trusted and competitive in the market.”



Keywords: Holistic Transformation, Digital Innovation, Women Entrepreneurs, Regional Expansion, Esg, Data Analytics, High-net-worth Individuals
Institution: Bank For Investment And Development Of Vietnam (BIDV), Hana Bank, Edmond De Rothschild
Country: Vietnam, Cambodia, Laos
Region: Southeast Asia
People: Nguyen Thi Quynh Giao
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