OCB accelerates digital transformation to improve asset quality.

In the first six months of 2024,OCB implemented key digital transformation strategies, creating a foundation for future growth, especially with the launch of the OCB OMNI 4.0 digital banking version. In addition, the bank also focused on improving asset quality and reserve buffers in the context of high non-performing loans across the entire banking sector. Promoting digital transformation and improving payment efficiency: The State Bank of Vietnam (SBV) reported that in the first six months of 2024, cashless payment activities and banking digital transformation continued to achieve positive results, with key payment systems operating smoothly and securely. To date, over 87% of adults have payment accounts at banks, and many banks have processed over 95% of their transactions through digital channels. Compared to the same period in 2023, the number of transactions through the interbank electronic payment system increased by 2.83% in quantity and 26.94% in value. As a pioneering bank in the digital transformation process, OCB always prioritizes investment in technology systems. In May 2024, the bank officially introduced the OCB OMNI 4.0 version, optimally meeting consumer needs for speed and convenience, thereby setting a new industry standard in Vietnam . Featuring one-touch QR payment, the application allows seamless transactions at thousands of different service points, from e-commerce to tourism . The application also boasts modern and convenient digital banking services, such as opening and managing accounts, money transfers, bill payments, card services, deposits, loans, and many other superior features.

OCB launches OCB OMNI 4.0, optimally meeting consumer needs for speed and convenience.

Besides OCB OMNI, OCB's digital banking product for young people, Liobank, introduced in early 2023, is also one of the few products that has been well-received and highly appreciated by the Gen Z market due to its convenient technological experience. Customers can use Shake to Pay, shaking their phone to transfer money. This feature uses short-range NFC technology combined with Contact Matching to provide a fast, fun, and novel transfer experience for tech-savvy young users. The reciprocal money transfer feature is also very well-suited to young people's preferences because customers can transfer money back to the sender without knowing the account number, transfer money to Liobank users in their phone's contact list, and name folders to manage utility bills conveniently. In particular, customers will receive instant cashback of up to 10% and can actively choose their cashback category for the month. As of June 2024, Liobank had processed nearly 10 million transactions with an impressive growth rate of 200% compared to 2023. “Currently, Liobank is one of the few applications on the market that can provide 100% online loans. In particular, this application makes it easier for people with above-average incomes to borrow from banks and obtain credit cards with limits ranging from low to high. All operations, registration procedures, and completion processes on Liobank are fully digitized and automated; customers do not need to visit any branch to use banking services,” an OCB representative added. In addition, the OCB Propay digital payment solution also saves businesses 80% of their time, encouraging customers to use digital solutions. Specifically, the application of modern Open API technology enables OCB ProPay to specifically connect all individual enterprise management software, including the OCB OMNI digital banking platform, synchronizing them on a single platform. This accelerates information processing efficiency and ensures high accuracy of information regarding personnel, partners, finances, etc. This strong digital transformation has helped OCB attract a large number of customers shifting from traditional to digital channels, improving payment efficiency and laying a solid foundation for sustainable development. Statistical data shows that in the first six months of 2024 compared to the same period, OCB OMNI saw a 76% increase in transaction volume, a 52% increase in non-term deposits (Casa), and a 53% increase in time deposits (Esaving). For the card business segment, card transaction volume increased by 27%, and net revenue increased by 32%. Credit growth is a bright spot, poised for a breakthrough in the second half of the year. In recent times, despite the weak capital absorption capacity of the economy , banks, notably OCB, have made significant efforts and implemented numerous solutions to increase businesses' access to capital and boost credit growth. According to financial reports, OCB's credit growth as of June 30, 2024, reached 6.3%, higher than the industry average. By gradually shifting its customer structure, improving competitiveness, developing the small and medium-sized enterprise (SME) segment, and offering practical financial programs and solutions, including preferential fixed interest rates, and supporting business development, credit to SME customers increased by nearly 18%. In addition to interest rate and exchange rate support, OCB is also focusing on digital transformation of financial products and services to enhance convenience and shorten transaction times for corporate customers.

OCB launches a series of programs for SMEs.

As of the end of Q2/2024, the bank's TT1 deposits decreased slightly compared to the end of 2023 due to the bank's proactive balancing of capital sources, thereby optimizing the cost of capital. Total net income increased by 2.4% year-on-year, reaching 4,559 billion VND. Core business activities maintained stable growth thanks to the "sweet fruits" of the digital transformation strategy. According to the report, in the first six months of the year, increased provisions and operating expenses resulted in the bank's total profit reaching 2,113 billion VND, a decrease of 17.5% compared to the same period in 2023. Sharing on this issue, OCB's leadership stated: “Businesses and individuals are still facing many difficulties, leading to high levels of non-performing loans across the banking system. Therefore, to increase the buffer and ensure the bank's operations in the face of unpredictable market conditions, OCB has increased its provisions. In addition, we are focusing on expanding our network, developing human resources, and improving our technology system. This may affect the bank's profits in the current period, but it will be a long-term foundation for the bank's sustainable development.” It is known that by the end of 2023, OCB had opened 10 new branches/transaction offices. In 2024, with the approval of the State Bank of Vietnam (SBV), the bank plans to open 17 new branches/transaction offices, bringing the total number of transaction points to 176 in 48 provinces and cities nationwide. The bank's workforce increased by 12% in the first six months, and employee welfare costs and income also improved, increasing by 15%. As of June 30, 2024, the bank's total assets remained approximately the same as at the beginning of the year, at VND 238,884 billion. The non-performing loan ratio, capital adequacy ratio regulations, and liquidity are well controlled, ensuring compliance with SBV regulations. 2024 is considered a crucial year in OCB's 2021-2025 development strategy. Therefore, in the remaining months of the year, the bank will focus on developing the mid- and high-end individual customer segment with tailored products to suit specific needs. Maximizing resources and operational processes, prioritizing business support, and accelerating transaction processing speed are key priorities. In addition, new and effective policies are being implemented to improve credit quality, accelerate bad debt resolution, and promote digital transformation. “In the first six months of the year, due to both objective and subjective factors from the market, along with proactively implementing policies to support customers and increasing investment in technology and personnel, OCB's Q2 and cumulative six-month results did not meet expectations. However, with the goal of stable, transparent, and sustainable growth, a clear strategy, and a specific action plan, I expect the bank to achieve better results in the last six months of the year,” said Mr. Pham Hong Hai, General Director of OCB. Source: https://baodautu.vn/ocb-day-manh-chuyen-doi-so-nang-cao-chat-luong-tai-san-d222440.html