VIB drives Digital Banking Innovation with Temenos’ latest version of Banking Platform powered by AWS

Ho Chi Minh City, February 23, 2024 - Vietnam International Bank (VIB) is delighted to announce the implementation of Temenos core banking solution on Cloud, in collaboration with Amazon Web Services (AWS) and ITSS. This event marks VIB’s significance as the first bank to implement 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 as 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

Mr. Tran Nhat Minh, Deputy CEO cum CIO of VIB, shared the vision behind the adoption: "With the strategic positioning to become a leading retail bank in Vietnam, VIB is always at the forefront of investing in technology initiatives, digitalization, and building an advanced and robust technology platform. The banking industry in Vietnam is undergoing significant transformation, driven by 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 modernization project on the 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".

In this project, VIB will deploy the latest version of Temenos Core Banking on AWS cloud and VIB private cloud. 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 Temenos Core Banking solution on the Cloud, using cloud native services. This ensures automatic and rapid on-demand infrastructure scalability, superior seamless service delivery to users, mitigating the impact of service disruption, optimizing development and operational costs.

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

With "AI first," VIB has been and continues to focus on leveraging Artificial Intelligence (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, APAC, Temenos, 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 in this vital market. 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.” 

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

In its strategic transformation phase (2017-2026), VIB witnesses impressive growth, positioning the Bank as one of the leading retail banks in Vietnam. To date, VIB is the most retail oriented banks in Vietnam with retail loan proportion of over 85% loan portfolio. Over the past seven years, the bank achieved compounded growth in credit portfolio at 32% 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%, with over 94% of Retail transactions conducted through digital channels, serving millions of active customers every month.

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

Mr Eric Yeo, Vietnam Country Manager, AWS added: “Cloud revolution provide capabilities to optimize operation, improve security, reduce operation cost for technology infrastructure and minimize 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 bank meet and exceed the rapidly business growth in 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), 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 also earns VIB recognition from both domestic and international organizations for its high-tech and trend-leading products.

The utilization of Temenos Core Banking solution with its Cloud-native and Cloud-Agnostic features in this project allows VIB the freedom to operate across public clouds such as AWS and VIB private cloud; provides the agility, scalability, and resilience necessary to meet the dynamic needs of modern customers; and fostering 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.

Mr Manju HC, Director, 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 their customers.”