Cake Digital Bank, Vietnam’s first digital-only bank, has reached a significant milestone by becoming the country’s first digital bank to achieve profitability within just 3.5 years of operation. This accomplishment highlights its innovative approach to redefining banking for tech-savvy, young, and underserved consumers.
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Exceptional growth and financial success
Launched in 2021, Cake has demonstrated remarkable growth and scalability. By June 2024, the bank broke even, and by Q4, it announced profitability. Revenue per user soared to $12 in 2024, tripling the $4 recorded in 2023, while its client base grew from 3 million in its first two years to nearly 5 million by the end of 2024. Cake processes approximately 400,000 credit applications monthly, underscoring its operational efficiency and market appeal.
Leveraging AI for customer-centric innovation
A key factor in Cake’s success is its strategic use of AI-driven solutions. By analyzing consumer needs, Cake offers personalized financial products that enhance user experiences and streamline operations. This integration of AI has also reduced operational costs, improving profit margins. These innovations have earned Cake prestigious industry accolades, including “Technology Bank of the Year” and “Best AI Technology Implementation.”
Leading the charge in financial inclusion
As Vietnam’s banking sector evolves, Cake remains committed to driving financial inclusion. Its accessible and straightforward services, such as instant account setup and seamless money transfers, cater to the growing demand for convenient banking solutions. By the end of 2024, Cake’s payment transactions doubled to $4.7 billion, with customer retention rates exceeding 95%.
With its forward-thinking strategies and commitment to sustainability, Cake Digital Bank is poised to become one of the world’s top-performing digital banks, transforming Vietnam’s financial landscape.
