TNEX
DIGITAL REPORT 2021
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TNEX TRAILBLAZES NEW DIGITAL BANKING SECTOR
IN ASSOCIATION WITH
Enjoy your life
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TNEX TRAILBLAZES NEW DIGITAL BANKING SECTOR
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Bryan Carroll, CEO TNEX, explains how Vietnam’s first digital bank will connect 40 million ‘unbanked’ consumers with numerable small merchants
I
t speaks volumes about Bryan Carroll’s desire to break from banking convention that the first people he recruited for the
launch of TNEX – Vietnam’s first digital-only bank – were not financial or technology experts, but a psychologist and sociologist. By truly understanding customers’ needs, behaviours and emotions, 04
he feels that TNEX is in a unique position in the market to deliver services, products and features that better match their lifestyle needs and aspirations. TNEX has a clear mission “to provide inclusive, secure, free and innovative financial and lifestyle solutions for every individual and small and microenterprise in both urban and rural areas.” A quick click on the feature-rich TNEX website, which floats through “space”, endorses this against-the-grain approach and seems appropriate for a company which wants to take digital banking into a new “universe”. TNEX targets two customer cohorts; lower income consumers and micro merchants, both of which are primarily under/unbanked. The TNEX-Consumer app allows customers access to offers and products that match their daily lifestyle and financial needs e.g.
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“TNEX came out of inclusion. We believe that every person in Vietnam has the right to banking, to support their lifestyle, and every merchant has a right to leverage digital commerce to grow their business” — Bryan Carroll, CEO TNEX
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06 payments, savings, buying food, chatting,
with its customers, even going as far
entertainment etc. These are
as the design of its own set of emojis
delivered via an online marketplace or
to better reflect customer emo-
ecosystem which is supported by the
tions; payments are gamified – ‘fired’ by
fully digital bank. TNEX-Merchant app
rockets.
allows merchants to post real-time, targeted offers to TNEX consumers. It is clear that every aspect of customer
The consumer app has ‘Planets’ which customers can visit to browse and purchase products such as clothing, food,
experience is critical to TNEX. For exam-
education and travel. These products
ple, when designing its consumer app,
are placed on the planets by merchants
it did not approach a traditional
through the TNEX Merchant App.
development partner. They engaged
The whole ecosystem is fueled by ‘TNEX
with a successful gaming company out
Energy’, a loyalty currency which incen-
of Ho Chi Minh City. Every small detail
tivises a vibrant flow of interactions
has been co-designed face-to-face
and commerce between consumers
and merchants. TNEX QR provides a closed-loop payment scheme, removing the current cost to consumers and merchants when making and receiving digital payments. The TNEX proposition principally targets 58 million under/unbanked consumers and the plethora of four million small merchants across the Asian country. The target is to have 3 million customers and 200,000 merchants by 2023. “The idea came to me while I was eating at a street stall and I saw consumers and merchants, but they
“ Our CX team is the largest and data science, the second largest. Our smallest is operations, the second smallest is IT. We inverted the pyramid and have no end of the day.” — Bryan Carroll, CEO TNEX
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weren’t connected digitally,” he said. “It was this interaction or ecosystem of the unbanked meeting the unbanked that got me thinking. “Our objective, fundamentally, came out of inclusion. We believe that every person in Vietnam has the right to banking, to support their lifestyle, and every merchant has a right to leverage digital commerce to grow their business.” While sponsored by Maritime Bank (MSB), TNEX is a stand-alone entity, given MSB’s focus on more affluent consumers and large SMEs and Corporate segments. www.t ne x . com . v n
TNEX
DI GITAL- S AVVY V IETNAM
June 2023 and to pay back the investment by February 2024. Of course we
• 140 million active phone subscriptions
would like to hit profitability sooner but
• 61 million internet users
Our operating costs are low and control-
• 70% internet penetration
lable and we can scale easily. Right now
• The average consumer on digital media six hours and 30 minutes every day
we have 108 staff known as ‘TNEXers’,
• The government is in the process of testing 5G 08
“Our goal is to be to be profitable by
I believe that these dates are prudent.
growing to 131 by July 2021.” The current version of the platform delivers two top-line propositions, B2C and B2B . With regards to B2C and reverting to the central theme of connecting retailers and customers, Carroll states that “most micro-merchants know how to succeed in the physical business world but not the digital one”. “TNEX gives them the tools, knowledge and real-time data to remove most of the barriers which are preventing micro-merchants from joining in the Vietnamese Digital Revolution.” For free, TNEX gives every merchant a website, cash management capabilities, qualified, targeted campaign management and inventory management. TNEX-QR allows them to make and accept digital payments. They can even chat in real-time (TNEX Chat) with their current and potential customers.
“TNEX helps merchants to grow their
advanced technology, data science,
business online with effective real-time
robots and automation which will ensure
targeted offers, using our ML and AI
products and costs to serve are, on aver-
capabilities. These may be offers to
age, 97% cheaper than traditional banks.
previous customers, anyone who is
“Most banks are trying to optimise ana-
within a kilometer of the store or to any-
logue processes and existing business
body who is likely to be interested,
models, whereas we are concentrating
based on insights provided by TNEX
on a new business model for a largely
deep analytics capabilities.”
underserved segment, leveraging a
TNEX is committed to providing ‘free
digital-only experience. Key to our suc-
everyday banking’ and a branch-less
cess is that we have zero technical debt.
and personalised, data-driven experi-
All our technology is new and is the most
ence. Carroll believes that TNEX is using
advanced digital technology available,” 09
E X E C U T I V E P R O FILE :
Bryan Carroll Title: CEO
Company: TNEX
Location: Vietnam
As well as being CEO of Vietnam’s first Digital Only SME and Consumer lifestyle banking platform – TNEX, Bryan sits on the board of two fintech firms: Xtremepush, based in Ireland, and adprov.io, based in the US. Bryan is a highly experienced practitioner in the areas of Digital Banking, Data Science, Digital Marketing, Information Security and Technology Architecture. Before joining MSB he held senior roles with many Banks, Fintechs and Venture Capital companies across Europe, Middle East, Asia and North America, including Rabobank International, Alfa-Bank Russia, Bank of Ireland, Royal Bank of Scotland and National Bank of Abu Dhabi. www.t ne x . com . v n
Mambu - the only true SaaS cloud banking platform.
When MSB chose Mambu to launch their digital-only bank TNEX, we worked closely together to bring their vision to life. Driven by customer behaviour, TNEX was built to support the lifestyle, needs and dreams of Vietnam’s dynamic and digitally adept population. Li TNEX, we believe that no single vendor Like can innovate on every front as well as a healthy ecosystem of vendors that each focus on their area of expertise. Mambu’s platform enabled TNEX to adopt a composable architecture, picking out best-for-purpose tools and services and avoiding vendor lock-in. On Mambu, TNEX was able to roll out a suite of innovative financial offerings within weeks, rather than the months or years that it would have taken using traditional core banking technology or a custom in-house platform. To find out how Mambu can help your business take a digital leap get in touch helloapac@mambu.com. helloapac@mambu.
mambu.com
Mambu - the only true SaaS cloud banking platform.
Mambu: the engine of TNEX’s digital-only bank When MSB chose Mambu to launch their digital-only bank TNEX, we worked closely together to bring their vision to life. Driven by customer behaviour, TNEX was built to support the lifestyle, needs and dreams of Vietnam’s dynamic and digitally adept population.
Myles Bertrand, MD of Mambu APAC, and Bryan Carroll, CEO of TNEX, describe how Li TNEX, we believe that no single vendor Like can innovate on every front as well as a healthy the partnership could yield a transformative ecosystem of vendors that each focus on their area of expertise. Mambu’s platform enabled banking experience
TNEX to adopt a composable architecture, picking out best-for-purpose tools and services and avoiding vendor lock-in.
“I think one of the most important aspects On Mambu, TNEX was able to roll out a suite of Mambu is that we want to be different. of innovative financial offerings within weeks, than the months or years that it would We want to make sure we bring rather a very have taken using traditional core banking technology or a custom in-house platform. customer-centric view of what we do and To find out how Mambu can help your how we tackle things,” states Myles Bertrand, business take a digital leap get in touch hello@mambu. hello@mambu.com. Managing Director of Mambu APAC. Providing the financial sector with an innovative SaaS (software as a service) banking platform, one of its closest customers in the region has been TNEX, one of Vietnam’s first digital-only bank offerings. “One of the key points is that it’s not just about technology. Fundamentally, it’s about culture and there’s no point in building phenomenal company values within your organisation if your partners don’t mirror them. Mambu’s product is all about putting the customer first, but, more importantly to me, it’s there for us when we need it. Mambu cares. Mambu goes the extra mile,” explains Bryan Carroll, CEO of TNEX.
Incorporating elements of behavioural psychology, user experience, Big Data, artificial intelligence (AI) and more, Mambu demonstrates very clearly that embracing digital isn’t restricted simply to technology, mambu.com but rather involves investing in a new way of operating as a business. “We use this analogy that we’re an engine and that our customer gets to build whatever car they want around us,” says Bertrand. However the solution is not only configurable but also iterative: if the client decides to pivot from their original idea, Mambu facilitates this while still remaining the immutable ‘engine’ of the project.
Culture and technology are, for Mambu, inextricably linked. Always receptive to feedback from its customers and the wider market, the company strives to stay abreast of trends and keep its development in line with them. Carroll relates that this open attitude has been particularly useful for helping TNEX navigate different regulatory environments and carry out its ‘first principles’ approach to design. “Mambu does what it says on the tin, and the team genuinely cares about my challenges and is willing to work with me.”
Concluding, Bertrand reiterates that, as TNEX continues to develop what it hopes to be one of Asia’s best banking experiences, Mambu will ensure it plays a vital part. “The fact that we can support someone like Bryan, who basically wants to do something really different and be a game changer, is super exciting for my team and for us as a business.”
www.mambu.com
TNEX
“ I fundamentally believe that banking can be a force for good. Our business model is created on lifetime value not quick profit” — Bryan Carroll, CEO TNEX
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he said. “The profile of our team reflects our proposition. The TNEX Customer Experience team (CX) is the largest and Data Science, the second largest. Our smallest is Operations, and the second smallest is IT. We have inverted the traditional bank staffing pyramid of being heavy in the back-office and light in the front-office. “Customers want a personalised, almost humanised experience”, he adds. “Banking needs to evolve to meet this challenge; to become embedded in peoples’ everyday lives, rather than passively co-existing without lifestyle context. Data Science, AI and ML are a big part of this evolution, allowing us to personalise our services. But Data Science brings value throughout our bank. It allows us to better protect our customers, gain their trust and service their needs at key moments.” He believes Vietnam is ready for digital banking and foresees few barriers, given the penetration of mobile phones, the high expense of running physical branches and the rising cost of managing cash. “The Vietnamese regulator (SBV) is very progressive and is actively pushing www.t ne x . com . v n
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TNEX
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“ At this time the vast majority of traditional banks don’t want my customers as they cannot profitably serve their needs with their current technology debt and traditional operating models.”
the digital agenda in a society where 80% of its citizens prefer to use cash,” he said. Carroll extended a “big thank you” to several key partners, including Mambu, AWS, TopeBox and iConnect101. “All of our partners have been amazing. Thanks to the foundations that the Mambu core has given us we could integrate very quickly with all of our partners. Our success has undoubtedly been made possible by working hand-in-hand
— Bryan Carroll, CEO TNEX
with these partners. They really understood what we are trying to do, bought into our mission and values; they really cared about our success.
15 “TNEX is a fully open API’ed platform.
customers as they cannot profitably
Over the last few weeks, we have been
serve their needs with their current
progressing discussions with partners
technology debt and traditional oper-
about allowing them to leverage our
ating models.
capabilities and to further develop
“Most traditional banks are at the early
their business models. The conversa-
stages of digital transformation. It is an
tions on our B2B product-set, Banking
expensive and complex process, so I
as a Service, Ecosystem as a Service,
think we have about two years head-
Payments As A Service and Data
start on the competition.”
Science are really getting exciting.” For now, as a trailblazer, Carroll doesn’t see any rivals emerging soon. “I really don’t see competitors biting at our heels just now. We are the first to do it. At this time, the vast majority of traditional banks don’t want my www.t ne x . com . v n
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