NCB's CEO: We choose the right direction

In the aftermath of the dual crisis, National Citizen Commercial Joint Stock Bank (NCB) has achieved notable and commendable achievements by adopting a thorough transformation aligned with a new strategy.

Mr. Ta Kieu Hung, CEO of NCB

On the occasion of the bank's 29th anniversary, Mr. Ta Kieu Hung, CEO of NCB, shared about the bank's comprehensive transformation journey.

Sir, over two years ago, NCB was recognized as one of the "tiny" institutions in the system and was making efforts to restructure. However, the image of NCB has undergone a significant transformation.

The previous two years have signified several significant milestones for NCB after a phase of internal stability and the establishment of a basis for a new developmental trajectory. We are finalizing the necessary procedures to augment charter capital from VND 5,601 billion to approximately VND 11,800 billion, with an anticipated completion of the capital increase in the fourth quarter of 2024. The plan indicates that NCB would persist in augmenting its capital, with projections suggesting Vietnam NCB's charter capital will exceed VND 29,000 billion by 2028.

NCB inaugurated a new headquarters in a prominent location in Hanoi and restructured its network, enhancing amenities throughout the system. Consequently, we anticipate providing novel experiences for clients and favorable working circumstances for employees.

The paramount milestone is that NCB has collaborated with a premier strategic consulting partner to formulate the bank's new strategy, which has been rigorously executed with all available resources since the commencement of 2024.

To date, NCB has significantly invested in digital transformation to enhance customer experience and foster robust community trust, evidenced by numerous prestigious awards and favorable growth metrics, particularly in total assets, customer acquisition, capital mobilization, and service operations amidst various market challenges and restructuring efforts.

Does the bank possess fresh objectives outside the well-established restructuring narrative recognized by the market?

Bank restructuring is an endeavor that needs resolve, tenacity, and considerable work. The previous year was a period of significant advancement in our reorganization efforts. With the assistance of prominent consulting companies globally and in Vietnam specializing in bank restructuring, NCB has formulated a Bank Restructuring Plan with a vision extending to 2030. As of now, NCB is the first credit institution in Vietnam to undergo evaluation by the State Bank for feedback and receive approval from the relevant authorities.

NCB is investing heavily in digital transformation to improve customer experience

We have commenced urgent and significant implementation in accordance with the roadmap since the second quarter, with the objective of completing the Bank Restructuring Plan by 2029, therefore positioning NCB as one of the most esteemed, robust, and efficient banks.

Nonetheless, the narrative of prioritizing the resolution of backlogs and thoroughly addressing current issues does not imply that we cease our development and innovation efforts. As previously stated, NCB is actively executing the new strategy concurrently, with unwavering commitment from the whole organization and substantial expenditure of resources. We select the appropriate course to establish a bank that offers financial services and solutions favored in the market. This phase is termed a "journey to attain new standards to enhance societal development."

Could you provide more detailed information on NCB's new strategy, sir?

NCB has adopted a banking development strategy with a long-term vision to enhance the banking sector through innovative thinking and creativity, leading the advancement of products and services on an advanced technology platform, with the objective of becoming a socially responsible bank that contributes to the sustainable development of the community it serves.

Over the next five years, NCB will create technologically-driven asset management solutions aimed at the mass customer category, anticipating a significant increase in demand for systematic and long-term financial investments in this demographic. This industry presents several problems due to its nascent nature and the various constraints hindering mass participation and long-term professional investment. NCB aims to deliver new products leveraging technology to offer consumers financial management solutions like to those in the worldwide market, ensuring a straightforward and contemporary experience.

In the aftermath of the Covid pandemic and economic crisis, the economy, particularly the banking sector, has several challenges; yet, NCB opts to intensify its efforts significantly. What is the reason behind that?

The Covid-19 pandemic and the economic crisis have significantly affected the financial system, and NCB is no exception.

As a small financial institution, we encounter several problems. Even at the most tumultuous circumstances, we are lucky to possess the unity and resolve of the whole system, characterized by the commitment to transform obstacles into possibilities. Opportunities for holistic change, opportunities for evolution into a higher iteration, opportunities for those who opt to navigate the constricted passage to attain distinct success.

What the market perceives as a disadvantage, we interpret as an opportunity. Although many refer to us as a “small” bank, I prefer the expression “small but mighty” to inspire our team. The tiny size facilitates our ability to morph and adapt flexibly while also establishing an accurate long-term vision. NCB can implement innovative ideas, models, and technologies more rapidly, efficiently, succinctly, and easily. Simultaneously, we opt to "stand on the shoulders of giants" by collaborating with esteemed partners globally and regionally, such as GCP, E&Y, KPMG, CMC Telecom, LUMIQ, and Zoho Corporation, to use their expertise and technology in our "journey to rise."

We have got substantial help and guidance from management authorities during the implementation phase of Bank Restructuring. This is a crucial basis for NCB to pursue financial transparency with confidence.

So, could you tell us which stage of the journey NCB is at?

Our vessel has initiated the flywheel and ascended into orbit with the agreement of the entire system. NCB has effectively mobilized resources, such as capital, infrastructure, technological solutions, operational capacity, human resources, goods, and services, to fulfill the requirements of complete digital transformation and to establish a new NCB in alignment with the defined plan.

In the previous year, NCB entered into a cooperation agreement to implement a range of solutions, such as Cloud Computing Solutions, a Data Lake Platform on Google Cloud, a Customer Relationship Management (CRM) platform, an Artificial Intelligence and Machine Learning (AI/ML) platform, and a Decision Engine project, in collaboration with premier technology partners and KPMG Tax and Consulting Company Limited, to enhance the internal control system in accordance with NCB's development strategy for the forthcoming five years.

The participation of several senior professionals, including skilled and experienced domestic and international specialists, will assist NCB in executing the transformation plan. We are rapidly preparing to introduce the new brand identity and mobile application with a novel UI and distinctive features next year.