Vietnam’s Cake Digital Bank Achieves Profitability in Just 3.5 Years

KUALA LUMPUR, Dec 10 (Bernama) -- Cake Digital Bank, Vietnam's pioneering digital bank, has achieved a remarkable milestone, becoming the first digital-only bank in Vietnam to attain profitability merely 3.5 years after its inception, underscoring its profound impact on Vietnam's financial sector.

“Cake Digital Bank's significant profitability milestone reflects our unwavering commitment to innovation, customer-centric services, and sustainable growth. Our team's dedication and customers' trust have been pivotal in reaching this landmark.

“As we look ahead, we remain steadfast in advancing financial inclusion and delivering exceptional digital banking experiences for all,” said its Chief Executive Officer, Nguyen Huu Quang in a statement.

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Launched in 2021, Cake has demonstrated efficiency and scalability, achieving breakeven in June this year, and by the fourth quarter of this year, the company announced profitability, distinguishing itself as Vietnam's first digital-only bank to achieve such a distinction.

This remarkable success is fuelled by outstanding business performance, with revenue per user reaching US$12 in 2024, a substantial threefold increase from the US$4 per user recorded in 2023, while the client base expanded from three million in the first two years to 4.1 million by the end of 2023 and reached nearly five million in 2024. (US$1=RM4.42)

Additionally, Cake's robust pipeline of credit operations is evident, with an average of 400,000 credit applications processed monthly, an impressive number for a digital-only bank in Vietnam.

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In alignment with its strategic roadmap, Cake aims to position itself within the top five per cent of the world's most profitable digital banks, emphasising its commitment to sustainable growth within the competitive fintech landscape.

Cake has achieved a remarkable profitability milestone primarily by meeting the diverse banking needs of its target demographic, particularly the tech-savvy Gen Z and young Millennials.

As Vietnam’s pioneering digital-only bank, Cake is well-designed to provide an accessible and straightforward banking experience for everyone and encourage financial inclusion, offering a comprehensive range of financial products tailored to all banking needs.

Leveraging cutting-edge technology, Cake creates perfect financial experiences with artificial intelligence (AI)-driven solutions, whereby its innovative use of AI has earned industry accolades such as the “Technology Bank of the Year” and the “Best AI Technology Implementation”.

-- BERNAMA