Cake Digital Bank, Vietnam’s trailblazing digital-only bank, has announced a significant milestone: it is the first digital-only bank in Vietnam to achieve profitability, reaching this landmark just 3.5 years after its inception.
This achievement highlights Cake’s transformative impact on Vietnam’s financial landscape as it caters to the needs of tech-savvy, young, and underserved consumers.
Launched in 2021, Cake reached breakeven in June 2024, followed by profitability by Q4 of the same year—a critical achievement for digital financial institutions. The bank’s financial performance has been impressive, with revenue per user tripling from US$4 in 2023 to US$12 in 2024.
Its client base also grew significantly, from three million in its first two years to nearly five million by the end of 2024.
A key driver of this growth is Cake’s robust credit operations, with an average of 400,000 credit applications processed monthly—a noteworthy achievement for a digital-only bank in Vietnam.
Cake’s CEO, Nguyen Huu Quang, said: “Achieving profitability reflects our unwavering commitment to innovation, customer-centric services, and sustainable growth. This milestone underscores our dedication to advancing financial inclusion and delivering exceptional digital banking experiences.”
Cake’s success stems from its ability to address the diverse banking needs of Gen Z and young Millennials. With approximately 77% of Vietnamese adults holding bank accounts (according to The State Bank of Vietnam), Cake’s user-friendly and accessible services have filled a gap for underserved demographics.
Positioning itself as a one-stop shop for financial services, Cake offers a wide array of products tailored to consumer needs. Its ‘Easy as Cake’ philosophy ensures seamless processes, including quick account setup and instant money transfers.
Strategic partnerships across industries such as ride-hailing, telecommunications, and entertainment further enhance its value proposition.
As a result, Cake’s payment transaction volume surged to US$4.7 billion in 2024, doubling the US$2.2 billion recorded in 2023. The bank also boasts an 80% customer retention rate based on transaction frequency and a 95% rate based on financial engagement, demonstrating high customer satisfaction and loyalty.
Cake’s profitability is underpinned by its integration of AI-driven solutions. By analysing consumer behaviour, the bank provides personalised offerings tailored to different demographics. AI also enhances operational efficiency, reduces costs, and improves profit margins, all while delivering a superior user experience.
As Cake continues to innovate and expand, it aims to position itself among the top 5% of the world’s most profitable digital banks, reinforcing its commitment to sustainable growth and reshaping Vietnam’s banking industry.
