Case Study: Techcombank Auto-Earning #20
Techcombank's Auto-Earning is a unique feature that Techcombank offers to customers. Let's explore its success and recommend potential enhancements.
Background
Techcombank, a leading bank in Vietnam, launched its Auto-Earning feature in January 2024. This feature allows customers to earn interest on their idle cash balances in primary accounts at a competitive rate of 2.5%/year, enhancing customer satisfaction and increasing CASA ratio.
How It Works
Activation: Customers activate Auto-Earning on the Techcombank Mobile app.
Fund Allocation: The account balance is automatically divided into:
Demand Deposits for immediate access.
Interest-Bearing Products like Bao Loc Certificates of Deposit for higher yields.
Daily Profit Calculation: Profits are calculated daily based on the account balance at the end of the day. The higher the balance, the higher the yield.
Profit Distribution:
Demand Deposits: Profits credited monthly.
Certificate Deposits: Profits reinvested daily into the balance for compounding growth.
Goal
This case study examines the Auto-Earning feature to identify gaps and propose solutions for improvement.
Product Overview
Business Highlights
Customer Growth: 13.4+ million customers (as of December 31, 2023), 2.3x growth from 2022 with 2.6 million new adopters.
Strong CASA Ratio: CASA ratio of 39.9% (2023), ranked Top 2 in Vietnam.
Robust Financial Performance:
Total Operating Income: VND 40,061 billion in 2023.
Profit Before Tax: VND 22,888 billion in 2023.
Market Leadership: Ranked Top 1 in credit and debit card payment volume in Vietnam (2023).
Source: Techcombank.
Auto-Earning Stats
1.3M+ Activated Users (9K+ Daily) from Q1-Q3 2024.
VND 19,500B+ Account Balance (35% growth) during Q1-Q3 2024.
Source: Techcombank.
Market Landscape
Market Size & Growth
The Digital Banks market in Vietnam is projected to grow by 7.46% (2025-2029), resulting in a market volume of US$1.56 billion in 2029.
Source: Statista
The Digital Payments market in Vietnam is projected to grow by 18.94% (2025-2029), resulting in a market volume of US$203.10 billion in 2029.
Source: Statista
Techcombank and MB Bank are the highest Casa ratios in Vietnam in 2022 and 2023.
Source: Vietnambiz
Direct Competitors
Personas
Persona 1: Nguyen Anh Tuan
Demographics:
Age: 28
Sex: male
Occupation: Product Owner
Location: Tam Ky, Quang Nam, Vietnam
Bio: Tuan is a tech-savvy worker who uses digital banking apps to manage his finances. He activated Auto-Earning to grow his savings but finds some aspects unclear.
Goals:
To earn more from his idle money.
To easily track daily updates on his interest earnings.
Frustrations:
Lack of Transparency: He finds it hard to track how much interest he earns daily.
Worries About Security: He’s unsure how Techcombank ensures the safety of his money.
Quote: “I want to know exactly how much I’m earning every day, but I feel unsure about my account.”
Persona 2: Tran Hoang Anh
Demographics:
Age: 20
Sex: male
Occupation: University Student
Location: Tam Ky, Quang Nam, Vietnam
Bio: Hoang Anh is a student managing a tight budget. He’s interested in saving money but feels excluded from Auto-Earning due to the minimum balance requirement.
Goals:
To save and grow his small savings.
To access Auto-Earning with a lower minimum balance.
Frustrations:
The current 5 million VND minimum balance makes Auto-Earning inaccessible for him.
Quote: “As a student, I wish the feature worked for smaller balances too.”
Persona 3: Le Thi Mai
Demographics:
Age: 35
Sex: female
Occupation: Freelance Writer
Location: Tam Ky, Quang Nam, Vietnam
Bio: Mai has an irregular income and relies on banking features to help manage her money. She’s cautious about where she places her savings.
Goals:
To grow her savings safely.
To feel confident that her money is secure.
Frustrations:
Mai is worried about how her savings are protected within Auto-Earning.
Quote: “I want to use this feature, but I need to know how my money is kept safe.”
Persona 4: Vu Quoc Bao
Demographics:
Age: 29
Sex: male
Occupation: Software Engineer
Location: Tam Ky, Quang Nam, Vietnam
Bio: Bao is a tech enthusiast who loves trying out innovative banking features. However, he often finds banking processes confusing and time-consuming.
Goals:
To easily understand how Auto-Earning works.
To make the most out of his idle money.
Frustrations:
Bao struggles to understand how Auto-Earning allocates his funds and generates profits.
Quote: “It shouldn’t take so long to understand how this feature works.”
Persona 5: Pham Hong Lan
Demographics:
Age: 32
Sex: female
Occupation: Stay-at-home Mom
Location: Tam Ky, Quang Nam, Vietnam
Bio: Lan manages her family’s budget and wants her savings to grow without adding extra work.
Goals:
To track her earnings without hassle.
To feel reassured about her savings’ performance.
Frustrations:
Lan finds it frustrating that she can’t see clear, real-time updates on her earnings.
Quote: “I want an easy way to track my savings without worrying if it’s growing.”
Problem Statement
Techcombank Auto-Earning struggles with user adoption due to unclear daily earnings tracking, high activation thresholds, security concerns, and a lack of simple explanations on how the feature works.
Key pain points
Transparency: Users can’t easily track daily interest or see transaction details.
Accessibility: High minimum balance (5M VND) excludes low-income users like students.
Security: Users worry about how their funds are protected.
Complexity: Misunderstanding of how the feature works discourages use.
User Confidence: Some users fear losing access to funds or missing key features.
Recommend Solutions
Solution 1: Auto-Earning Daily Histories
Feature Overview
Provide a detailed transaction history of daily earnings. Users can easily view how much interest their balance has generated each day through their banking app.
Value for Customer
Improves transparency and builds trust by clearly showing daily earnings and interest rates.
Outcomes
Increased user satisfaction and retention.
Fosters trust and reduces confusion about earnings.
Challenges
Requires robust system tracking and real-time reporting features.
Solution 2: Multiple Tiers for Minimum Balance
Feature Overview
Introduce flexible tiers for activating the Auto-Earning feature. Allow customers, such as students or low-income individuals, to activate the feature with smaller balances (e.g., 1M VND, 2M VND) instead of the current 5M VND threshold.
Value for Customer
Makes the feature accessible to a broader audience, including those with lower income or savings, increasing customer satisfaction and inclusivity.
Outcomes
Increased user satisfaction and retention.
Fosters trust and reduces confusion about earnings.
Challenges
Requires robust system tracking and real-time reporting features.
Solution 3: Simulate How Money Is Allocated and Earned
Feature Overview
Offer an interactive simulator in the app to show how users’ funds are allocated and how much they can earn over specific timeframes.
Value for Customer
Enhances understanding of how Auto-Earning works and provides clarity on the feature’s benefits.
Outcomes
Reduces misunderstandings.
Builds confidence in using the feature.
Challenges
Requires a user-friendly design and system calculations to offer real-time accuracy.
Prioritized Solutions
RICE Score = (Reach * Impact * Confidence) / Effort
Reach: Percentage of user growth compared to the current number of users in the first quarter.
Impact: Percentage of growth in the auto-earning amount compared to the current value in the first quarter.
Confidence: Your certainty of success, expressed as a percentage.
Effort: Time required to implement the feature (in months).
Multiple Tiers for Minimum Balance has the highest RICE score and should be prioritized first.
Success Metrics
Go-to-market Strategy
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