HOCHIMINH CITY, Vietnam, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Cake Digital Bank, Vietnam's pioneering digital bank, announced it has achieved a remarkable milestone, becoming the first digital-only bank in Vietnam to attain profitability merely 3.5 years after its inception. This underscores Cake's profound impact on Vietnam's financial sector as it redefines banking for tech-savvy, young, and underserved consumers.
Cake Digital Bank's significant growth trajectory has been a key driver of its success
Launched in 2021, Cake has demonstrated efficiency and scalability, achieving breakeven in June 2024, a critical milestone for digital financial institutions. By Q4 of 2024, Cake announced profitability, distinguishing itself as the first digital-only bank in Vietnam to achieve such a distinction.
This remarkable success is fueled by outstanding business performance. The revenue per user reached US$12 in 2024, a substantial threefold increase from the US$4 per user recorded in 2023. The client base expanded from 3 million in the first 2 years to 4.1 million by the end of 2023 and reached nearly 5 million in 2024.
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.
In alignment with its strategic roadmap, Cake aims to position itself within the top 5% of the world's most profitable digital banks, emphasizing its commitment to sustainable growth within the competitive fintech landscape.
Cake’s CEO Nguyen Huu Quang stated: “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.”
Effectively address market demands and enhance AI application
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.
By 2024, about 77% of Vietnamese adults have bank accounts, reports The State Bank of Vietnam. The banking sector, once dominated by traditional banks, is now seeing new entrants targeting young and underserved customers.
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. The digital bank offers a comprehensive range of financial products tailored to all banking needs. Emphasizing convenience, their "Easy as Cake" slogan is reflected in processes like quick account setup, instant money transfers, etc, ensuring that banking is both effortless and instantaneous.