HOCHIMINH CITY, Vietnam, Dec. 12, 2024 (GLOBE NEWSWIRE) — In just three and a half years, Cake Digital Bank has navigated the challenges of Vietnam’s fast-evolving banking sector and achieved a major milestone: profitability. This achievement places Cake among a select group of digital banks worldwide, proving that a commitment to innovation, technology, and a customer-centric approach can drive remarkable growth and success in a highly competitive market.
Cake Digital Bank’s growth has been impressive. In 2024, revenue per user reached US$12, a threefold increase from US$4 in 2023. Customer acquisition surged by over 60%, from 3 million in its first 2 years to nearly 5 million in 2024, reflecting the bank’s growing market appeal. Cake processes an average of 400,000 credit applications each month—an impressive feat for a digital-only bank in Vietnam. Payment transactions have more than doubled, reaching US$4.7 billion in 2024, up from US$2.2 billion in 2023. The increase in transaction volume underscores Cake’s expanding market share and the trust customers place in its services.
June 2024 marked a pivotal moment for Cake, as it achieved breakeven and became the first digital-only bank in Vietnam to announce profitability in Q4 2024. This milestone positions Cake among the few digital banks globally to achieve profitability in under four years. The bank’s customer retention is notably strong, with 80% retention on a transactional level and 95% on a financial level, giving Cake a clear competitive advantage.
What drives Cake’s rapid success? A key factor is its innovative use of artificial intelligence (AI). Cake integrates AI across all areas of its operations to enhance customer experience and operational efficiency. The bank’s in-house AI solutions provide customers with quick and easy access to its services, creating a smooth, efficient experience. These innovations transform how customers manage their finances, making banking faster, more intuitive, and tailored to individual needs.
In addition to its focus on AI, Cake is committed to providing a seamless banking experience for all users. The bank has made accessibility a core principle, ensuring that financial services are easy to use and accessible to a broad range of customers, regardless of their background or technical expertise. This approach is in line with Cake’s vision of promoting financial inclusion and driving broader access to essential financial services.
As digital banking continues to grow, Cake’s use of AI drives both customer satisfaction and operational efficiency. By personalizing services based on customer preferences, Cake boosts user engagement while reducing costs, contributing to its strong profit margins. Cake’s technological advancements were recognized with the “Technology Bank of the Year” award in October 2024 and “Best AI Technology Implementation” in July 2024.
Cake’s mission is simple: to make digital financial services accessible to all Vietnamese. At the heart of this effort is AI, which powers a seamless and intuitive banking experience for its customers. CEO Nguyen Huu Quang stressed that the bank’s continued focus on advancing its AI capabilities will be crucial in expanding financial access across Vietnamese market.
Having achieved profitability, Cake is poised for continued growth and is positioned to become a model for digital-only banks. With its focus on innovation, and commitment to accessible banking and financial inclusion, Cake is set to play a pivotal role in shaping the future of Vietnam’s financial and banking sectors.
