“eBiz with F@ST eCom in Bridging Digital”

Project Sponsor: Ms. Dang Tuyet Dung, Head of PFS

Project Leader: Mr. Au Duc Chung, Head of eChannels, PFS

Organization: Techcombank

Nominated by: Vietnam E-Commerce & Information Technology Agency

CONTENT

About Techcombank

The purpose of Project

Project Content

Conclusion

2

Who We AreWho We AreVietnam Technological and Commercial Joint

Stock Bank, more commonly known as

Techcombank, is one of the leading commercial

banks in Vietnam. Since our establishment in

1993, we have experienced strong year-on-year

growth and outstanding performance, consistently

achieving high annual increases in both total assets

and turnover.

What We DoWhat We DoWe serve around 55,716 enterprises and 2.8 million individual customers

through our three core business strategies: Personal Financial Service, Small and

Medium Enterprise Banking, and Transaction Banking. Through these strategies, we

are able to offer financial products and services which address the needs of different

and diverse categories of customer. We are confident that by continually improving on

all aspect of our product and service delivery, we will be able to achieve our ultimate

goal of becoming the Best bank in Vietnam.

The year 2012 saw us maintained our network while only place new branches and ATMs

where they can best serve our customers… We now have 316 branches and 1,247 ATMs

throughout the country.

Sustainable Growth – Maintain our Network Sustainable Growth – Maintain our Network

Major AWARDS in 2012

Best Trade Finance Bank in Vietnam 2012

Best Bank in Vietnam 2012

Best Domestic Bank in Vietnam 2012

Best Best FX Bank for Corporate & FIs in 2012

Best Bank in Vietnam 2012

“Best Bank in Vietnam 2010” awarded by Euromoney

Best Emerging Market Banks in Asia 2012

Best Cash Management in Vietnam 2012Best Trade Bank in Vietnam 2012 Best Retail Banking of the Year in Vietnam 2012

Best Cash Management in Vietnam 2012

Best Trade Bank in Vietnam 2012

Background and Purpose

9

Orientation

1. The orientation of Vietnam government.

The government has announced a long-term strategic development of information and

communication technology (ICT):

- Promoting e-government to become a strong country on administrative reform

- Encourage the development of enterprise e-commerce to the world economic integration

2. Techcombank defined.

- Market segmentation goals,

- Design and implementation of products and services of modern banking

- Service and convenient are competitive factors leading

The trend of the market potentialThe rate of user / user population

the Asia InternetThe rate of growth of the number of people using

the Internet in some Asian countries

The activity of online sales accounted for approximately 12%.

Paying cash still accounted for 93% high.

The age of internet users in Vietnam tends to rejuvenate the main

focus in the age group 15-50.

Purpose

11

A Multi-Channel, Multi-Product Environment requires a revamped Delivery Approach.

Seek to Minimize Distribution Costs, While Maximizing the Customer Experience

Techcombank today are under enormous pressure to both improve service quality and reduce costs

Services and convenient are competitive factors leading

The problems of Techcombank ?

Project Content

F @ st ECOM project developed electronic banking channels to provide individual customers and

Businesses a full range of products and services of the bank.

13

F@st ECOM: Scope and Scale

F@st e-Com is deployed from 5/2007, but from 2010 officially put into operation with the goal of developing

alternative channels to diversify the products and services and cost savings.

F@st ECOM: Scope and Scale

Public, billing, e-Com and invest service, tradition Banking transactions

VIP Customer

Bussiness Customers

Back office

Student

Workers

Public, billing, e-Com.

Billing

e-Com Service, Billing

Public, billing, e-Com and invest service,

Marketing & Educate Customer

Type Channels Cooperator Frequency

External Communication

Direct Sale team Hold event/ campaign Release news/flyer/poster.Send email/sms directly to customerMass mediaSocial network

seller Internal Education Center Merchant related departments (MKT, S&D..)Media agency

MonthlyOnce on project schedule

In-house education

Organize internal training course Sale- kit Presentation Release news on common channels (GAU/ intranet…)

Related departments (MKT, S&D…) Direct Sale team

MonthlyOnce on project schedule

PromotionPromotion for customer Give incentive for seller Sponsor for events related to e-commerce/ online transaction

Merchants Sale team E-com Organizations

As release a new serviceRemind annual

16

Achievements: Save Cost

-

1

1

2

2

3

Cost for eachtransaction from

Counter

Cost for eachtransaction from e-

Channels

Transaction Cost Saving

  2010 2012 2013

Total transactions on Counter (base on 2012)

12,600,000 14,400,000

16,800,000

% Rate transaction can be convert to e-Channels 3% 8% 15%

Total transactions can be convert to e-Channels

378,000

1,152,000

2,520,000

Cost for each transaction from Counter (base on 2012)

2

2

2

Cost for each transaction from e-Channels (base on 2012)

0.25

0.25

0.25

Total cost for all transactions on Counter

756,000

2,304,000

5,040,000

Total cost for all transactions on e-Channels

94,500

288,000

630,000

COST SAVING ($)

661,500

2,016,000

4,410,000

Transaction Cost (USD)

10/2013 4,410,000 (USD)

Achievement - 2013

ShoppingShopping

Air-TicketAir-Ticket

E-Payment Connections:

InsuranceInsurance

Prudential Life

Ace Life

Vietnam Airlines

Jetstar

25 international

airlines

TelecomTelecom

Mobile: Viettel,

MobiFone

Internet: ADSL

FPT

ElectricityElectricity

3 Electricity corporations

200 electricity sub-

branches

22 cities

6 payment gateway

3000 website

200,000 online shop

Top-upTop-up

All mobile prepaid

E-Wallet :

NganLuong, Bao

Kim, VTC, Vinagame

PublicCollection &

BillingeCommercePayment Gateway

Interactive windows (Pay now)

Direct connection(Pay later)

Internet BankingMobile Banking

ATM / POS

OTC

Interactive TV

Kio|skCall Center

IVR

Invidual Customer Bussiness Customer

Achievement - Connections

F@ST ECOM with Social Benefits

AviationRailwaysElectricity, WaterInsuranceMovie ticketsSupermarkets, ...Online Shoppingbusiness

Taxes, CustomsRegistration and Business Registration Change, Domain Name Registration, ...

SmartlinkBankNetOnepayVnPay...

Banking services viaInternet Banking, Mobile Banking, ...

20

NEXT STEP

Invest Technology Development HR

Busines Development

Products & Services Development

Marketing & Communication

F @ st ECOM development has proven to be the right direction,

profitable for the bank as well as enhance the image, the position

of the bank, and bring customer experience and new gadgets.

The success of the project, as well as the strong commitment of

the participating Techcombank has created a breakthrough with

the e-commerce market, when there is full chain (consumer-

banking-Merchants-government), to help Vietnam ecommerce

solid strides.

F @ st ECOM project has become a model of banking institutions

participating in e-commerce are trying to reference and

inheritance. This has contributed to the formation of common

standards in e-commerce connections, helping this sector grow

rapidly over.

21

CONCLUSION

22

Q & A