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Core Banking Market in Vietnam, Marketing Strategies and Competitive Landscape

Vietnam’s banking sector is undergoing rapid digital transformation, creating new opportunities for core banking solution providers. Both established “legacy” core banking vendors and newer neo-core fintech players are competing to modernize the technology foundations of Vietnam’s traditional banks and emergent digital-only banks. This report provides a comprehensive market overview, analyzes marketing channels and customer acquisition strategies in this B2B fintech space, compares key local and foreign core banking vendors (with market share and positioning), and examines the decision drivers of Vietnamese banks. Insights are tailored for a neo-core platform planning its first entry into Southeast Asia, highlighting how to effectively market core banking solutions in Vietnam’s context.

Vietnam Core Banking Market Overview

Vietnam has a diverse mix of large state-owned commercial banks, joint-stock (private) banks, foreign bank branches, and now a new wave of digital banks. Nearly all Vietnamese banks have implemented modern core banking systems over the past two decades (CORE banking of commercial banks in Vietnam). This was driven by needs to handle high transaction growth and improve competitiveness post WTO integration. Banks’ top strategic priorities include regulatory compliance, improving asset quality, customer centricity, digital convergence, and fending off competition (CORE banking of commercial banks in Vietnam). However, many incumbents historically ran on obsolete core platforms that lacked automation, had siloed customer data, and were costly to maintain (CORE banking of commercial banks in Vietnam). In recent years, pressure to upgrade core systems has intensified as banks seek real-time, 24/7 digital banking capabilities. In a 2023 survey, an “overwhelming 94%” of bank executives in Vietnam said slow digital transformation had caused them to lose new customers (10x Banking announces APAC expansion plans). This urgency, combined with Vietnam’s young, tech-savvy population (over 70% under 35) and ~90% smartphone adoption, has set the stage for aggressive core banking modernization.

Crucially, Vietnam’s regulator (State Bank of Vietnam) is supporting digital banking innovation, encouraging cloud technology adoption and open banking APIs. For example, Vietnam International Bank (VIB) recently became the first bank in Vietnam to run its core banking on the cloud (AWS), signaling regulatory openness to cloud cores (VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS) (VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS). At the same time, new digital-only banks have emerged – such as TNEX (by MSB) and Timo – which are essentially “greenfield” projects that often choose cloud-native core platforms from fintech vendors. Traditional banks are also launching digital spinoffs (e.g. HDBank’s new digital bank “Viet Future Bank (VietFutr)”, branded as Vikki, launched in 2024 using a modern core (HD Bank launches Vikki Digital Bank in Vietnam powered by Thought Machine’s Vault Core)). Overall, the market is dynamic: incumbent banks are upgrading core systems to enable omnichannel services and personalized products, while challenger banks demand lean, fast-to-deploy core solutions. This creates a competitive landscape for both established core banking providers and neo-core entrants.

Key Vendors in the Vietnamese Core Banking Market

Vietnam’s core banking market is served by a mix of local and international vendors, though foreign providers dominate in technology ownership. Table 1 summarizes the key solution providers (legacy and neo-core), their origins, notable Vietnamese bank clients, and market presence:

Table 1. Key Core Banking Solution Providers in Vietnam – Vendor Overview and Presence

Vendor (Origin) Core Platform Notable Vietnam Clients Market Share / Presence Competitive Positioning
Temenos (Switzerland) Temenos T24 Transact (Core) Techcombank, Sacombank, MB Bank, OCB, SeABank, SHB, etc. ~37.5% of Vietnamese banks (market leader) (CORE banking of commercial banks in Vietnam) Global leader; proven Tier-1 core system. Strong local track record and partner network. Open API, microservice architecture for digital banking (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade).
Oracle FSS (USA) Flexcube ACB, LienViet PostBank, OceanBank, TPBank, VietCapital Bank, VRB, etc. (Oracle FS signs new core banking client in Vietnam, Kien Long Bank) ~25% share by number of banks (CORE banking of commercial banks in Vietnam) Well-established in Vietnam; many mid-tier banks use Flexcube. Emphasizes broad functionality and Oracle ecosystem integration.
FIS / SunGard (USA) Systematics; Ambit (formerly SunGard) HDBank (previous core), SaigonBank, others (via SunGard Ambit Core) ~6% share (CORE banking of commercial banks in Vietnam) (SunGard now part of FIS) Provided legacy core solutions (Ambit Core etc.) to a few banks. Presence now mostly via FIS’s broader portfolio.
Fiserv (USA) Signature; (and ex-OSI core) ACB (formerly used OSI’s core, now Fiserv), possibly others ~9.4% share (CORE banking of commercial banks in Vietnam) Gained foothold via acquisition of Open Solutions (OSI) used by some banks. Not a major new contender recently for core deals.
Silverlake (Malaysia) Silverlake Integrated Banking (SIBS) Vietcombank, BIDV, Maritime Bank Minority share (a few large banks) (CORE banking of commercial banks in Vietnam) Regional core banking provider. Used in some large VN banks (especially state-owned) historically; known for retail and cards capabilities.
Infosys Finacle (India) Finacle Core Banking Eximbank (reported), possibly Standard Chartered Vietnam (for retail) Very limited adoption (1–2 banks) (CORE banking of commercial banks in Vietnam) Leading core platform in Asia globally, but minimal Vietnam presence so far. Focused on digital capabilities; often delivered via partners like IBM.
TCS (India) BaNCS ANZ Vietnam (now Shinhan) – legacy deployment; Southern Bank (legacy) Niche (used in a couple of banks historically) Comprehensive core suite; had some deployments in foreign JV banks. Competes on flexibility and multi-entity support.
Hyundai IT (Korea) Hyundai iPCAS Agribank (Vietnam’s largest state-owned rural bank) ([PDF] Agribank case study: - Compass Plus Technologies) ~6.3% share (CORE banking of commercial banks in Vietnam) Provided via ODA project financing. Handles high volume branch transactions. Localized for Vietnam by Hyundai; essentially a one-bank case.
Polaris / Intellect (India) Intellect Core (formerly Polaris) SHB (old core, now replacing) (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade) Niche (1–2 banks used) Deployed in a small number of mid-tier banks for specific modules. Facing replacement by newer systems in VN (e.g. SHB moved to Temenos).
Unisys (USA) Unisys Core (e.g. EBS) Possibly VietABank or foreign bank branch (minor presence) Niche (legacy usage) Legacy core technology; not actively marketing in Vietnam now.
Neo-core Entrants:
Mambu (Germany) SaaS Cloud Core (API-first) TNEX digital bank (MSB’s spinoff) ([Vietnam’s first digital-only bank TNEX Mambu](https://mambu.com/en/customer/tnex#:~:text=Having%20selected%20Mambu%E2%80%99s%20API,native%20technology)) ([Vietnam’s first digital-only bank TNEX Mambu](https://mambu.com/en/customer/tnex#:~:text=At%20the%20beginning%20of%202020%2C,in)); Timo digital bank ([Timo
Thought Machine (UK) Vault (Cloud-Native Core) HDBank (core transformation + powering “Vikki” digital bank) (HD Bank announces strategic collaboration with Thought Machine to transform banking in Vietnam) (HD Bank launches Vikki Digital Bank in Vietnam powered by Thought Machine’s Vault Core) New entrant – first deal in 2022 with top-10 bank Modern core built on smart contracts and microservices. Selected by HDBank for flexibility and always-on capability – filling a gap for real-time services in Vietnam (HD Bank launches Vikki Digital Bank in Vietnam powered by Thought Machine’s Vault Core). Strong appeal to large banks pursuing multi-year digital overhaul.
10x Banking (UK) 10x SuperCore (Cloud-Native) (No clients in Vietnam yet; entering region) New entrant – announced APAC expansion (2023) (10x Banking announces APAC expansion plans) Ultra-scalable cloud core from Barclays’ ex-CEO’s fintech. Known for powering Chase UK and Westpac. Emphasizes agility, “meta-core” architecture and low cost-to-serve. Eyeing high-growth APAC markets like Vietnam where few banks focus on core modernization (only 8% do, per 10x study) (10x Banking announces APAC expansion plans).
Vilja (Sweden) Vilja Core (Composable Core) (No live VN bank yet; 2025 entry via partners) New entrant – building pipeline via local partnerships Nordic cloud-native core specialist, now targeting Vietnam’s mid-tier and digital banks. Established an ASEAN dev center and partnered with FPT, Gimasys, etc. (Sweden’s Vilja makes its foray into Vietnam to support digital banking) to localize and sell. Positions on compliance readiness (open API, cloud security) and quick product building for digital banking.

Local Vendors: Notably, Vietnam does not have any dominant home-grown core banking software provider in wide use. Most banks rely on international solutions or in-house builds for core systems. Large domestic IT firms like FPT IS and CMC mainly act as integrators/resellers rather than offering their own core platforms. Some banks have developed custom core modules internally (e.g. some state banks historically built or heavily customized their core), but this trend is declining due to the complexity and cost. Instead, local tech firms form partnerships with foreign vendors to implement or co-develop solutions. For instance, FPT IS and other Vietnamese partners have teamed up with Vilja to support its core banking projects (Sweden’s Vilja makes its foray into Vietnam to support digital banking). Such alliances indicate that even “local” solutions in Vietnam’s core banking market are usually delivered via foreign technology combined with local services.

Overall, international vendors dominate Vietnam’s core banking installations – Temenos and Oracle alone account for roughly half of all bank cores (CORE banking of commercial banks in Vietnam) – but new cloud-based entrants are gaining attention, especially for digital banking initiatives. The competitive landscape is thus two-fold: legacy vendors with large footprints and long histories in Vietnam, versus new fintech-core providers offering fresh technology and new commercial models. Each employs distinct marketing and customer acquisition strategies, discussed next.

Marketing Channels and Strategies for Core Banking Providers

Marketing enterprise core banking solutions in Vietnam requires a B2B-focused, relationship-driven approach, supported by industry thought leadership and strategic partnerships. Key marketing channels and strategies include:

  • Industry Conferences & Events: Banking technology vendors frequently engage Vietnamese banks through conferences, forums, and seminars. Many host dedicated events: for example, Temenos holds an annual Banking Forum or Regional Forum in Vietnam (bringing together hundreds of banking professionals) (Temenos Regional Forum 2023: ASEAN) to showcase innovations and client success stories. Such events allow vendors to network directly with bank executives, demo new capabilities (e.g. digital core, cloud deployment), and strengthen brand credibility. Participation in third-party conferences is also common – e.g. the annual ICT in Banking forum (co-organized with the SBV) often features core solution showcases. New entrants leverage events as well: in March 2025, Vilja hosted a high-profile “Swedish–Vietnamese Digital Banking Reception” in Hanoi alongside the Swedish Ambassador (Sweden’s Vilja makes its foray into Vietnam to support digital banking), gathering local banks and fintechs to introduce Vilja’s core platform. This mix of conferences, executive roundtables, and even diplomatic events helps vendors educate the market and build relationships in a culturally resonant way.

  • Strategic Partnerships and Alliances: Given the relational nature of B2B sales in Vietnam, core banking providers often partner with local IT companies, consultancies, and global tech firms to gain market access. Forming a local partnership can lend credibility and on-the-ground support. For example, Vilja’s market entry strategy was to launch with multiple local partners – including FPT Information System (Vietnam’s leading IT integrator), Gimasys, FiinGroup, and Nam Viet Corp – as well as an open banking fintech (Brankas) (Vilja launches strategic local partnerships in Vietnam - Vilja). These alliances provide Vilja with local market knowledge, integration support, and a channel to reach bank clients. Similarly, many established vendors work with local system integrators: Temenos and Oracle have certified partners in Vietnam who implement their core solutions and assist with localization (e.g. ITSS from Switzerland partnered with VIB on its Temenos-on-AWS project (VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS) (VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS)). Core banking providers also align with global technology partners as part of marketing – cloud providers especially. Co-marketing with Amazon Web Services or Microsoft is now common, highlighting cloud readiness. A recent example is AWS collaborating in press releases and events for VIB’s core migration (VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS), reinforcing the message that Vendor X + Cloud Y can safely transform a Vietnamese bank. Partnerships with management consultancies (Deloitte, PwC, etc.) also help vendors get onto banks’ RFP shortlists via consultants’ recommendations.

  • Content Marketing and Thought Leadership: Core banking decisions are high-stakes for banks, so vendors deploy extensive content marketing to build thought leadership. Whitepapers, case studies, webinars, and research reports are tailored to address banks’ pain points. For instance, 10x Banking commissioned a global study on digital transformation, which included Vietnam, to generate insights and urgency around core modernization (10x Banking announces APAC expansion plans) (10x Banking announces APAC expansion plans). They found less than 8% of APAC banks were focusing on core systems and publicized that 94% of surveyed Vietnamese bankers felt slow tech upgrades cost them customers (10x Banking announces APAC expansion plans). By publishing these findings and an industry report, 10x creates a narrative that modern core technology is the key to winning new customers – subtly marketing their solution as the remedy. Other vendors maintain blogs and resource centers in both English and local language, discussing topics like open banking APIs, real-time processing, cloud security compliance, etc., to educate bank IT teams. Webinars are another channel: during COVID-19 especially, vendors held virtual panel discussions (often featuring a client from another country) to reach Vietnamese bankers online. For example, Temenos ran webinars on “Journey to Cloud and SaaS – Motivations for ASEAN banks” (TRF 2023 ASEAN: Panel Discussion - Journey to Cloud and SaaS), implicitly promoting its cloud core via educational content. This thought leadership approach helps build trust and brand recall over the long B2B sales cycle.

  • Targeted Digital Marketing: While mass advertising is rare in this niche, vendors do use targeted digital channels. LinkedIn is heavily utilized – many firms run sponsored posts targeting Vietnamese bank CXOs or share success stories (e.g. posts celebrating a new core go-live or an award from IDC). Vendors like Mambu and Thought Machine also localize their websites and SEO content for Vietnam (for instance, featuring Vietnamese client case studies like TNEX or HD Bank on their homepage). Some run email newsletters or account-based marketing campaigns aimed at specific banks’ leadership, sharing relevant insights. Local media PR is another tactic: press releases about core banking deals are sent to Vietnamese financial newspapers (e.g. Vietnam Investment Review, banking journals). These often get published as articles, amplifying the vendor’s message in an “official” source. For example, multiple outlets covered SHB’s selection of Temenos for a digital upgrade, including quotes on how Temenos’s open platform will help SHB become Vietnam’s leading digital bank (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade) (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade). Such media coverage both advertises the vendor’s win and provides social proof to other bank executives reading about a peer’s decision.

  • Direct Sales & Relationship Management: Despite all the marketing collateral, core banking sales ultimately rely on direct engagement with bank decision-makers. Vendors typically maintain a regional sales team (often based in Singapore or Vietnam) that builds relationships over months or years. These sales leads arrange demos, respond to RFPs, and coordinate proof-of-concept (POC) projects. In Vietnam, building trust is crucial – vendors often engage at the C-suite level through many meetings and maybe even informal networking (dinners, etc. facilitated by partners or industry associations). An example strategy is to pilot a limited solution for the bank (say a digital bank sandbox or a specific module) to prove value before a full core replacement commitment. Customer reference visits are another powerful tool: Vietnamese bank executives may be taken to visit a successful core banking implementation in another country or hear directly from a peer bank’s experience. Established vendors leverage their existing Vietnamese clients as references; new vendors leverage success stories from similar emerging markets. For instance, a neo-core vendor might connect a prospective bank with a reference from an Indonesian or Philippine bank that used their platform to launch a digital bank, highlighting parallel market conditions. This peer validation can be more persuasive than any brochure. Additionally, local support assurances are part of the sales pitch – vendors will emphasize their Vietnam-dedicated support teams or training of local IT staff, to mitigate concerns about relying on a foreign tech provider.

In summary, core banking solution marketing in Vietnam is multi-channel and trust-oriented. It blends high-level branding and thought leadership (to shape industry perception) with ground-level relationship building and partnerships (to navigate the local business culture and execution needs). Importantly, the approach can vary when targeting a large traditional bank versus a newer digital bank venture – as discussed in the next section on B2B vs B2C marketing differences.

B2B vs. B2C Marketing Approaches in this Space

Core banking solution providers operate in a B2B context, selling technology to banks (enterprise customers). Thus, their marketing strategies differ fundamentally from the B2C marketing that banks themselves use to attract retail consumers. It’s important to distinguish these approaches, especially since neo-core vendors often need to understand both – they market B2B to banks, but must appreciate banks’ own B2C priorities to align their value proposition.

B2B Marketing (Core Banking Providers → Banks): This is characterized by narrow targeting, high-touch engagement, and emphasis on expertise and ROI. Vendors marketing to banks focus on a small audience of key decision-makers (typically the bank’s CIO/CTO, COO, CEO, and Board for big decisions). Communication is therefore more personalized and information-rich rather than broad and promotional. Key traits of B2B marketing here:

  • Technical & Business Content: Messaging revolves around how the core platform improves the bank’s operations – e.g. “reduce IT costs by X%, enable Y new products per year, ensure regulatory compliance”. Whitepapers, RFP documents, and proposals include detailed specifications, integration plans, and case studies. The tone is relatively formal and metrics-driven. For example, a vendor might demonstrate how their core can handle a certain TPS (transactions per second) or how it improved another bank’s customer acquisition by 20% after enabling faster product launches. This rational evidence is crucial for bank committees evaluating vendors.

  • Relationship and Reputation Focus: Purchasing a core system is a long-term decision (10+ year impact), so banks look for trusted partners. B2B marketing highlights the vendor’s track record and reliability. Established providers like Temenos or Oracle leverage their large install base (“X of the top 5 banks in Vietnam run on our core” is a strong message) (Oracle FS signs new core banking client in Vietnam, Kien Long Bank). Newer providers build credibility by showcasing prominent global clients (e.g. 10x cites its success with JPMorgan’s Chase UK to signal stability). Marketing in this realm often involves reference selling – connecting potential clients with existing ones – and thought leadership to convey, “We understand banking as deeply as you do.” The decision process can take months of due diligence, during which the vendor’s consistency and expertise (in demos, answers, etc.) essentially markets their reliability.

  • Channels: As noted, conferences, private meetings, industry press, and direct sales are key channels. You won’t see a core banking vendor airing TV commercials or billboard ads targeting the general public in Vietnam – that would be wasted effort in B2C space. Instead, they might sponsor a closed-door executive summit or produce a Vietnamese-language thought piece in a banking journal. Digital channels like LinkedIn are used but in a targeted manner (e.g. sponsoring content on the LinkedIn feeds of people who list roles at Vietnamese banks). The scale is smaller but the impact per contact is larger in B2B.

In contrast, B2C Marketing (Banks → Consumers), particularly for digital banking services, is broad-based and emotion/brand-driven. For instance, a digital bank like Timo or Cake markets to millions of end-users, using consumer-friendly messaging about convenience, rewards, and lifestyle. Key features of B2C in banking:

  • Mass Reach & Brand Building: Banks run TV commercials, social media campaigns, influencer partnerships, and promotions to build brand awareness among the public. For example, Timo has set up physical “hangout” lounges in popular retail outlets (McDonald’s, 7-Eleven) where young consumers can sign up for an account on the spot (Timo | Mambu). This is a very different tactic than anything a core vendor would do – it’s about acquiring thousands of customers quickly through convenience and cool branding.

  • Simplicity of Message: While a core vendor might talk about microservices and API architectures to a bank, the bank’s B2C marketing will be simplified to “Open an account in 5 minutes from your phone” or “0% fees, 5% cashback on purchases.” The focus is on customer benefits, not technical details. Digital banks will emphasize user experience, trust, and financial well-being in their marketing to consumers, often leveraging storytelling or aspirational themes.

  • Channels: B2C banking marketing uses social media (Facebook, Zalo, TikTok in Vietnam), online ads, billboards, PR stunts, referral programs, etc. For instance, new digital bank Cake by VPBank ran online referral campaigns and partnered with a ride-hailing app (Be) to rapidly grow its user base. These are high-volume, automated marketing tactics – a stark contrast to the individualized sales pitches of B2B.

Why does this matter to core solution providers? Because while core providers don’t do B2C marketing themselves, their B2B pitch must connect to B2C outcomes that banks care about. In other words, a vendor should market its platform in terms of how it will enable the bank’s own marketing and growth. For example, vendors often highlight that their core system allows banks to launch new products in weeks instead of months, enabling a faster response to consumer trends (a competitive edge in B2C). Temenos explicitly markets how its open APIs and microservices help banks deliver “personalized and AI-supported customer journeys” across mobile and internet channels (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade) – essentially linking the core technology to a superior customer (B2C) experience. Similarly, 10x Banking’s materials talk about improving agility so banks can address the “huge deficit of accessible customers” in regions like Southeast Asia (10x Banking announces APAC expansion plans) (10x Banking announces APAC expansion plans).

In summary, B2B marketing in core banking is about selling a partnership and capability, often quite technical and trust-based, whereas B2C marketing by banks is about selling an experience or lifestyle to end-users. A successful core banking provider needs to excel at the former, while understanding the latter. Neo-core vendors in particular often differentiate themselves by showing they understand digital banks’ B2C needs better than the old guard. For instance, Mambu’s case study on TNEX highlights how its cloud core let TNEX focus on “solving real-life customer problems” instead of infrastructure (Vietnam’s first digital-only bank TNEX | Mambu) (Vietnam’s first digital-only bank TNEX | Mambu) – a subtle jab at legacy cores, framed in terms of end-customer value. By speaking the language of both technology and customer-centric outcomes, core vendors strengthen their B2B appeal in this space.

Competitive Positioning and Market Dynamics

The competitive landscape for core banking solutions in Vietnam can be viewed in two segments: incumbent “legacy” vendors vs. new “neo-core” vendors, each with different positioning, and the banks segmented by size/maturity which they target. Market dynamics are shaped by both groups jostling for upcoming core projects, often with distinct value propositions:

  • Incumbent Vendors (Temenos, Oracle, etc.) – Positioning: The long-standing providers emphasize their proven track record, comprehensive functionality, and existing local user community. Their selling point to conservative bank boards is often, “We are a safe choice – many of your peers run our system successfully.” For example, Temenos can claim a leadership position with ~12 Vietnamese banks already on T24 (CORE banking of commercial banks in Vietnam), backing its proposals with local case studies (e.g. Techcombank’s multi-year growth on Temenos, or Sacombank’s nationwide deployment). This installs confidence that the vendor understands Vietnamese regulations (like VND currency handling, SBV reporting standards) and has local support resources in place. Technically, these vendors also position on breadth and depth: their core systems have a wide range of modules (retail, corporate, payments, trade finance, etc.) and decades of product maturity. This is attractive to large banks that want an all-in-one solution. Many legacy vendors now also underscore their modernization: e.g. Temenos and Oracle both highlight new cloud or SaaS offerings and flexible API layers to shake off the “old legacy” image. Oracle’s marketing for Flexcube in Vietnam, for instance, pitches it as enabling a “modern and friendly digital bank” transformation (Oracle FS signs new core banking client in Vietnam, Kien Long Bank) (Oracle FS signs new core banking client in Vietnam, Kien Long Bank), not just a back-end processor. In short, the big players position as stable yet innovative enough, leveraging their scale. They often cater their approach by bank tier: Tier-1 banks (like Vietcombank or state banks) might even get offers for a bespoke solution or private cloud setup, whereas mid-tier banks get a more standardized package.

  • Neo-core Vendors (10x, Thought Machine, Mambu, etc.) – Positioning: The newer entrants differentiate themselves by agility, flexibility, and cost-effectiveness. Their narrative often casts them as the challengers to “expensive, monolithic legacy cores.” They highlight features like cloud-native architecture, real-time processing, microservices, open APIs, and easy scalability. For example, Thought Machine’s Vault platform is built around smart contracts which allow unparalleled product design flexibility – a key selling point to banks aiming to offer novel products quickly. When HD Bank chose Vault, the bank noted the platform’s “unique flexibility and control” enabling it to design innovative services at scale (HD Bank announces strategic collaboration with Thought Machine to transform banking in Vietnam) (HD Bank announces strategic collaboration with Thought Machine to transform banking in Vietnam). Neo-core providers also tend to offer subscription pricing (SaaS) or usage-based models, which can lower upfront costs for the bank. This is attractive for smaller banks or digital offshoots that don’t want the large CapEx of a traditional core license. Moreover, these entrants often target specific niches to get a foothold: Mambu, for instance, zeroed in on digital banks and finance startups in Vietnam (winning TNEX and Timo) before attempting to persuade larger incumbents. Their positioning is “we enable speed” – TNEX was able to launch Vietnam’s first digital-only bank entirely in the cloud, avoiding both an in-house build and a traditional core purchase, by selecting Mambu (Vietnam’s first digital-only bank TNEX | Mambu) (Vietnam’s first digital-only bank TNEX | Mambu). This success story is now a part of Mambu’s competitive positioning to win other ASEAN neobank projects. Neo-core vendors also align with broader market trends like financial inclusion and open banking – for example, 10x emphasizes how a modern core can help Vietnamese banks tap the underbanked 70% of the population by quickly rolling out inclusive digital services (10x Banking announces APAC expansion plans) (10x Banking announces APAC expansion plans). Such messaging resonates with banks that have mandates to grow outreach or meet digital transformation KPIs set by regulators/shareholders. In essence, new vendors position as enablers of transformation – the choice for banks that want to leapfrog competitors with technology (versus legacy vendors positioning as the dependable choice to keep up with the pack).

  • Local vs Foreign Angle: While virtually all core platforms in play are foreign-developed, the local dimension comes via service and customization. Vendors know that to compete in Vietnam, they must check the “local presence” box. Thus, part of competitive positioning is proving commitment to the Vietnamese market. Oracle and Temenos have had offices or at least long-term partnerships in Vietnam for years – a comfort factor. New players like Vilja are explicitly announcing localization efforts (local support center in KL plus Vietnamese partnerships) (Vilja launches strategic local partnerships in Vietnam - Vilja) (Vilja launches strategic local partnerships in Vietnam - Vilja). Banks often ask about post-implementation support: Will there be Vietnamese-speaking support? How fast can issues be resolved? Vendors compete on this by training local partners/certified engineers and, in some cases, establishing a direct support center in Vietnam. A vendor that can claim a larger local ecosystem (more IT firms trained on their system, more local certified developers) has an edge in competitive bids – it reduces perceived vendor lock-in risk.

  • Market Share and Shifting Dynamics: According to data from the mid-2010s, Temenos held the largest share of Vietnamese core banking systems (~37.5%), followed by Oracle (~25%), then Fiserv (~9%) and others like SunGard/FIS and Hyundai IT around 6% each (CORE banking of commercial banks in Vietnam). Those figures reflected the first generation of core modernization in Vietnam (when many banks installed these systems). The current trend shows market share in flux as older systems reach replacement cycles and new projects arise. For example, SHB (Saigon-Hanoi Bank) replaced its legacy Polaris core with Temenos in 2022 to pursue a digital-first strategy (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade) (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade). Kienlong Bank in 2022 picked Oracle Flexcube over competitors (Oracle FS signs new core banking client in Vietnam, Kien Long Bank) (Oracle FS signs new core banking client in Vietnam, Kien Long Bank) – Oracle could leverage its existing user base of 8+ Vietnamese banks as proof of local suitability (Oracle FS signs new core banking client in Vietnam, Kien Long Bank). Meanwhile, state-owned banks like Agribank and BIDV that had decades-old systems are potential opportunities in coming years; these large deals will pit top legacy vendors and perhaps big-tech solutions against each other.

The neo-core segment has started to claim its first few wins, which can lead to momentum. Thought Machine’s partnership with HDBank was a landmark – a top-10 bank choosing a startup-born core over the likes of Temenos was almost unthinkable a few years prior. That case will be watched by others: if it succeeds (HDBank’s “Vikki” digital bank launch in 2024 is a positive early sign, with 15k users and $15m transactions in a few months (HD Bank launches Vikki Digital Bank in Vietnam powered by Thought Machine’s Vault Core) (HD Bank launches Vikki Digital Bank in Vietnam powered by Thought Machine’s Vault Core)), more mid-large banks may consider neo-core options. Also, Vietnam is likely to see new digital banking licenses or spin-offs as the central bank encourages innovation. Neo-core vendors clearly dominate that sub-market – every digital-only banking project so far (Timo, TNEX, Cake, etc.) has used a modern cloud core (Mambu, in those cases). Incumbent vendors are responding by offering “bank-in-a-box” or SaaS versions of their core for fast digital launches, trying not to cede the space entirely to newcomers. For example, Temenos introduced a SaaS model and could pitch that to any new digital bank consortium in Vietnam, leveraging its brand but with a cloud twist.

Another dynamic is complementary competition: core vendors often collaborate or compete with digital banking front-end providers (like Backbase, EdgeVerve, etc.) in deals. While not core systems themselves, these front-end platforms sometimes bundle with core projects. A neo-core vendor might partner with a front-end solution to offer a full package to a new bank. This is more of a product strategy dynamic, but it influences marketing – vendors may jointly market a turnkey digital bank solution (core + mobile app + card system), appealing to banks that want one-stop solutions.

Finally, competitive positioning is influenced by how each vendor addresses key concerns of Vietnamese banks: cost, risk, and regulatory compliance. Legacy vendors often highlight that “no one gets fired for buying [established vendor]”, implying lower risk, and they emphasize robust local compliance modules (e.g. built-in SBV reports, VND handling quirks). Neo-core vendors counter by offering trial periods, phased implementations, and showcasing superior TCO (Total Cost of Ownership). For instance, a cloud core might show cost benefits over 5 years versus an on-prem system (no hardware or DB license costs, pay per use). We see competition also in performance and scalability claims, as Vietnam’s banks have large customer bases – vendors will assure they can handle millions of accounts and high transaction loads (often via benchmarks or existing large clients in other countries).

In summary, the Vietnamese core banking market is highly competitive with clear leaders but also ripe openings for challengers. Established foreign vendors leverage their historical success and broad solutions, while new entrants leverage cutting-edge technology and new economic models. The market is in a state of renewal: as banks aim for digital transformation, many are willing to reconsider their core provider, making vendor agility and value delivery more important than sheer legacy presence. This creates a landscape where a UK neo-core platform like 10x, despite being new to the region, can compete if it plays to its strengths and addresses local needs head-on.

Customer Behavior and Purchasing Decision Drivers in Vietnamese Banks

When Vietnamese banks evaluate core banking solutions, several key factors and behaviors drive their decision-making. Understanding these drivers is crucial for any provider entering the market:

  • Regulatory and Compliance Fit: Banks give high priority to whether a core system can meet local regulatory requirements out-of-the-box. The State Bank of Vietnam has specific reporting formats, account treatment (e.g. for state-subsidized loans, priority sectors), and lately, mandates around open API frameworks and data localization. Vendors that demonstrate familiarity with SBV regulations and have modules for VND currency peculiarities, tax calculations, etc., gain an edge. For instance, a system that already supports Vietnam’s national ID eKYC guidelines or local payment networks (NAPAS) will be viewed favorably. This is why having existing Vietnamese clients is so powerful – it implies the solution has been vetted for compliance. New entrants often mitigate this by partnering with local firms to adapt their software to local rules (as Vilja is doing for open API compliance) (Vilja launches strategic local partnerships in Vietnam - Vilja) (Vilja launches strategic local partnerships in Vietnam - Vilja). Additionally, regulatory risk aversion means banks tend to trust vendors with a long-term presence; they worry less about continuity if the vendor is known to regulators. It’s notable that even the central bank (SBV) chose Temenos T24 for its internal systems (CORE banking of commercial banks in Vietnam), likely due to confidence in that vendor’s compliance track record.

  • Strategic Alignment (Digital Transformation Goals): Vietnamese banks differ in their strategic vision – some prioritize aggressive digital growth, others are more conservative. Their core selection aligns with this. A bank with a bold digital strategy (e.g. aiming to be “number one in digital banking by 2025” like SHB) will look for a core that enables rapid product development, omni-channel support, and advanced analytics integration (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade) (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade). This was evident in SHB’s choice of Temenos for its open architecture and API-rich platform to support personalized customer journeys (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade) (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade). Banks aiming to launch digital subsidiaries (like HD Bank) will consider very modern cores, as we saw with Thought Machine. In contrast, a bank whose immediate goal is to consolidate and improve reliability (perhaps some smaller or rural banks) might value a tried-and-true system with strong branch functionality and uptime over fancy digital features. In Vietnam’s market, however, even the traditionally cautious banks are feeling pressure to digitize due to competition and a young customer base. Thus, an overarching driver is the desire for a core system that can future-proof the bank – supporting not just current needs but also new business models (like embedded finance, partnerships with fintechs). Banks often explicitly ask vendors how their roadmap aligns with emerging trends (e.g. “How will your platform help us connect with e-wallets or fintech APIs?”). A vendor that can articulate this alignment – say, providing sandbox environments for fintech collaboration or having existing open banking implementations – will influence the decision.

  • Total Cost of Ownership (TCO) and ROI: Cost is a significant consideration, but Vietnamese banks evaluate it in a nuanced way. Initial license price matters, especially for mid-sized banks with limited IT budgets, but they also consider long-term costs of maintenance, hardware, and upgrades. Many banks have learned from earlier core projects that the cheapest upfront option can become expensive to maintain if not scalable or if vendor support is lacking. Conversely, a higher initial investment can pay off if it reduces manual work or allows quicker rollout of revenue-generating products. Banks will expect a clear ROI projection from vendors. For example, a vendor might show that by using their more automated core, the bank can reduce manual processes and cut operating costs by X%, or that new products launched via a flexible core could add Y billion VND in revenue in 3 years. Local banks often seek financing or phased payment plans for core projects; historically some core implementations were funded by ODA loans or multi-year budgets. Neo-core vendors that offer subscription models (OpEx vs CapEx) have an attractive pitch here – “pay as you grow” resonates with banks that want to avoid a heavy one-time hit. However, banks will scrutinize those subscription costs at scale; they’ll do the math for 5-10 years. If a SaaS core becomes too costly at large volume, that’s a concern. Therefore, the scalability of cost (not just technology) is a driver. Vietnamese banks are growth-oriented – they want to be sure the core platform can economically support doubling or tripling of customers. In proposals, vendors often include benchmarks: e.g., cost per account per year on their platform versus industry average. A lower figure can sway the decision if credibility is established.

  • Technology & Integration Capabilities: Vietnamese banks rarely operate in isolation; they have to integrate core banking with many satellite systems (card processing, mobile banking apps, payment gateways, data warehouses, etc.). Thus, a core solution’s architecture and integration friendliness are key decision drivers. Banks will look at whether the system has open APIs, how it supports real-time data sync, and whether it uses modern architecture (e.g. microservices, containerization) that aligns with the bank’s IT strategy. Many banks in Vietnam now have an “omni-channel banking” goal – they want the core to feed consistent information to mobile apps, internet banking, ATMs, branch tellers in real-time. A system that can operate 24/7 with real-time posting (as opposed to batch updates at end of day) is hugely attractive, given the rise of digital transactions. For example, HD Bank’s CEO explicitly noted the need for “real-time, always-on” services to meet customers’ expectations as a reason for adopting a modern core (HD Bank launches Vikki Digital Bank in Vietnam powered by Thought Machine’s Vault Core). Additionally, if a bank has certain existing investments – say they use an Oracle database, or Microsoft Azure cloud – they might prefer a core that is proven on that stack. Or if they are a Java shop vs .NET shop, that can influence preference. Localization of technology is also practical: does the system support Vietnamese language in interfaces (for developers and operations)? Does it handle Vietnam’s naming conventions, address formats, etc.? These small integration details matter in daily operations and can be asked during evaluation. Vendors who have localized these aspects or can show flexibility (like support for local SMS gateways, integration to Vietnam’s interbank payment switch IBPS, etc.) score points.

  • Vendor Reputation and Support: Trust in the vendor itself – not just the product – is a major driver. Vietnamese banks will consider the vendor’s financial stability, global reputation, and commitment to Vietnam. Many remember cases of problematic implementations (there have been a few public core banking project failures or delays in Vietnam in the past), so they assess the vendor’s project management and execution capability. They will ask for an implementation plan, timeline, and often a guarantee or penalty clause for delays. Vendors who can demonstrate a strong local support structure alleviate concerns. For instance, having a local office or at least a dedicated account manager who speaks Vietnamese and can be on-site is a plus. During the decision process, banks often issue detailed RFPs and expect comprehensive proposals – how a vendor responds (thoroughness, understanding of requirements) significantly impacts perception. A quick, knowledgeable response suggests the vendor is reliable; evasive or generic answers raise red flags. Moreover, references are checked: a bank might privately reach out to another bank’s CIO to ask, “How has your experience with Vendor X been? Do they support you well? Any issues?” A positive reference can clinch the decision, whereas any hint that a vendor under-delivered elsewhere in Vietnam can kill a deal. This informal network effect is strong in Vietnam’s banking community.

  • Customer-Centric Features: As Vietnamese banks become more customer-focused, they also evaluate how a core system will directly enable better customer experiences (which ties back to B2C considerations). They look for capabilities like 360-degree customer view, flexibility to create personalized products, fast onboarding processes, and uptime for digital channels. For example, banks have noted that moving core to cloud can improve uptime and scalability, thus improving the customer experience by avoiding downtime (VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS). A core that can easily interface with CRM systems or comes with built-in analytics on customer behavior might get bonus points. Ultimately, bank executives care about growth and customer satisfaction metrics – they will favor a core solution that demonstrably helps them win and retain customers in Vietnam’s competitive market. This is why TNEX’s team explicitly rejected traditional cores; they wanted to focus on customer-facing innovation without being held back by infrastructure (Vietnam’s first digital-only bank TNEX | Mambu) (Vietnam’s first digital-only bank TNEX | Mambu). Vietnamese banks, especially the leading ones, share that mindset increasingly – technology is seen as a means to deliver superior service quality (a key competitive battleground).

  • Risk Management and Phased Approach: Despite the ambitions, Vietnamese banks are generally cautious about big bang core replacements due to the risk. Many will opt for a phased implementation or a modular approach (e.g. first implement the new core for a pilot segment like a digital sub-brand or a specific product line, then gradually migrate all portfolios). The willingness of a vendor to support a phased or parallel-run approach can influence selection. If one vendor insists on a risky all-at-once cutover whereas another is flexible to phase in modules, the bank may lean to the latter. Risk mitigation features (like robust data migration tools, rollback capabilities, strong training programs) are looked at. Some banks also prefer to see a proof of concept or sandbox demonstration with their own sample data as part of the evaluation – vendors who can accommodate that and show quick results gain confidence.

In essence, Vietnamese banks behave as value-maximizing but risk-aware buyers. They weigh the promise of new technology (digital capabilities, lower cost, better customer service) against the practical realities (regulatory compliance, proven success, support). The decision is typically made by a steering committee that includes business and IT heads, reflecting both business objectives and technical/logistical considerations. A winning vendor must satisfy both sides: the business side’s desire for innovation and ROI, and the IT side’s need for reliability and compliance. This dual expectation is why successful core banking marketing in Vietnam requires addressing each of the drivers above comprehensively. Providers entering this market should be prepared to demonstrate not only that their technology is cutting-edge, but that it is fit-for-Vietnam, comes with trusted support, and aligns with the strategic vision of Vietnamese banks to digitalize rapidly yet safely.

Implications for a New Entrant

For a neo-core banking platform making its first foray into Southeast Asia via Vietnam, the research above carries several important insights:

  • Localize Your Strategy and Build Credibility: However advanced the platform technology is, Vietnamese banks will ask: “Have you done this in markets like ours?” Establish credibility early by leveraging any relevant case studies (even if not in Vietnam – perhaps similar emerging markets or a project with similar scale). Publishing a Vietnamese market study, as 10x did in 2023 (10x Banking announces APAC expansion plans) (10x Banking announces APAC expansion plans), is a good step to show engagement with local issues. Next, securing a local partner or representative is vital. Align with a respected IT firm (like how Thought Machine partnered with consultancy Deloitte in some APAC deals, or Vilja with FPT) to handle onshore support and integration. This addresses the support and compliance comfort factors. Given Vietnam’s relationship-oriented business culture, having a local “face” for 10x (country manager or partnership) will greatly ease interactions. It’s also wise to engage with regulators and industry groups – for example, participating in SBV’s Fintech events or the Vietnam Banking Association’s seminars. Being visible in those circles will help it understand regulatory nuances and signal commitment to the country.

  • Emphasize What Sets You Apart (but in Local Terms): The platform should craft its marketing messages around the specific pain points Vietnamese banks have. For instance, banks are grappling with core systems that struggle to support 24/7 digital services; It can highlight its platform’s “always-on, real-time processing” which eliminates downtime windows – a critical advantage in a country where mobile banking usage peaks outside traditional hours. Banks also worry about scaling to millions of new users (with the rapid growth of cashless payments); It can use its experience with large deployments to promise “massive scalability without performance loss”. Essentially, match it’s strengths to the drivers: if agility is a strength, frame it as “launch new products tailored to Vietnam’s young consumers in weeks, not months” – linking agility to capturing market opportunities like the unbanked segment. If integration is strong, maybe tout how it’s open APIs could help a bank integrate with Vietnam’s booming e-wallet and fintech ecosystem easily, enabling embedded finance use cases. The key is to avoid generic global platitudes and speak to Vietnam-specific opportunities (e.g. the stat of 70% underbanked (10x Banking announces APAC expansion plans) and how it can help a bank profitably serve them via cloud economics).

  • Leverage Content and Success Stories: As a newcomer, it should double down on thought leadership marketing to educate banks on why a next-gen core is timely. Whitepapers or webinars on topics like “Core Banking 2.0 for the Digital Age in Vietnam” or “How Cloud Core Banking Drives Financial Inclusion” can spark conversations. Including analysis of Vietnamese consumer trends (e.g. high smartphone usage, multi-channel expectations (Vietnam’s Saigon-Hanoi Bank taps Temenos for digital upgrade)) and tying that to core tech requirements will position it as an expert, not just a vendor. Additionally, showcasing case studies from its global clients (in UK, Australia, etc.) in a way that draws parallels to Vietnam will be useful. Perhaps a case about enabling Chase UK to win younger customers – Vietnamese banks similarly want to win Gen Z, so illustrate how it helped deliver personalized banking that attracted young users. Where possible, secure testimonials or references that potential Vietnamese clients can speak with. Even one marquee pilot in Asia (maybe it can target a forward-thinking mid-size bank in Vietnam or a digital banking license applicant) can then serve as a springboard for broader adoption.

  • Focus on Partnerships and Ecosystem: Entering Vietnam, it should view partnerships not just as a marketing channel but as a competitive necessity. Partner with implementation specialists like KPMG or local fintech consultancies that often advise banks on core selection – ensuring they are familiar with its offering can get it onto RFP shortlists. Also consider cloud alliances: for example, demonstrating it on AWS or Google Cloud with local data center options, since banks like VIB are now comfortable with AWS (VIB drives digital banking innovation with Temenos’ latest version of banking platform powered by AWS). A joint AWS workshop for banks on cloud core banking could harness AWS’s reputation to bolster. Partnerships with fintech API providers (similar to how Vilja partnered with Brankas for open banking (Vilja launches strategic local partnerships in Vietnam - Vilja)) could also differentiate itself by showing it comes with an ecosystem of ready integrations (payments, credit scoring, etc.), reducing integration headaches for banks.

  • Address Risk and Support Concerns Proactively: Knowing banks are risk-averse, it should propose safe adoption paths – for instance, encourage a phased approach where the bank can run it in parallel for a new product line before full migration. Offering a detailed migration plan, local training for bank IT, and perhaps even performance guarantees will reassure banks that choosing a newer vendor is not riskier than a legacy one. If it can cite meeting stringent requirements for regulators in other markets, mention that to build confidence (even better, volunteer to engage with the bank’s risk and compliance teams early to answer questions). In proposals, explicitly outline how it will handle SBV reporting, data residency, business continuity, etc., to remove those doubts upfront.

  • Competitive Awareness: Finally, it should be prepared to encounter the incumbent competitors’ tactics. Legacy vendors might offer deep discounts to keep it out, or highlight any lack of local footprint as a weakness. Its counter must be the value of true transformation – i.e. quantify the benefits of moving to its platform versus sticking with a slightly cheaper upgrade of an old one. Often the selling point is that a bank could spend, say, 80% of the cost of a new core just upgrading their old system, and still not get the flexibility of a its solution. So why not make the leap? Additionally, emphasize the support from start to finish: even as a new player, it can shine by being more attentive and agile during pre-sales and implementation, compared to perhaps more bureaucratic large vendors. Early adopter clients will value the extra hand-holding and custom attention a firm can provide. This boutique approach can turn a potential weakness (new in market) into a perceived strength (they will go the extra mile for us).

In conclusion, Vietnam presents a promising yet challenging market for core banking platforms. Marketing strategies must be comprehensive – blending on-the-ground relationship building with persuasive evidence of capability. By leveraging the channels and insights outlined – from partnerships and thought leadership to tailoring messages around local drivers – a neo-core provider can position itself strongly. The prize is significant: Vietnamese banks are hungry for modern solutions as they race to digitalize, and those solution providers that earn their confidence stand to gain long-term, high-value clients in this burgeoning market.

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