In mid-March, the Board of Directors of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) approved a plan to contribute capital to establish a life insurance company, initiating a proposal endorsed by shareholders at the bank’s 2025 AGM.
The trend of banks expanding and integrating diverse financial services into comprehensive ecosystems is becoming more pronounced
Under the approved plan, the life insurer is expected to have charter capital of $80 million and operate in core life insurance, health insurance, universal life products, and related business lines.
VPBank and its related parties may hold up to 100 per cent ownership, depending on the cooperation structure and legal requirements. In addition to the life insurance venture, shareholders at the 2025 meeting also approved plans for the bank to invest in or acquire a fund management company to complete its ecosystem.
According to Bui Hai Quan, vice chairman of VPBank, life insurance and fund management are the two missing pieces in the bank’s ecosystem. Life insurance, in particular, is closely tied to long-term customer relationships.
“Establishing our own life insurance company will allow VPBank to be more proactive in its business model, customer selection, and expansion of partnerships with strategic investors,” he said.
Across the market, only a limited number of banks currently own both life and non-life insurance arms, including MB, BIDV, and Techcombank.
MB owns Military Insurance Corporation and MB Ageas Life Insurance Co., Ltd. BIDV operates in non-life insurance through BIC and in life insurance via BIDV MetLife.
Meanwhile, Techcombank has recently expanded its financial ecosystem by setting up dedicated insurance units, TCLife and TCGIns. Notably, Techcombank Life Insurance, established in July 2025, has initial charter capital of $52 million.
In the securities segment, the trend of banks taking controlling stakes in brokerage firms remains strong.
At the outset of 2026, TPBank increased its ownership in Tien Phong Securities JSC to 51 per cent, turning the firm into a subsidiary after years as a shareholder.
To complete the deal, TPBank spent approximately $144 million in a private placement, significantly boosting TPS’s financial capacity.
Meanwhile, Tran Hoai Nam, standing deputy CEO of southern lender HDBank, recently revealed plans to prepare an initial public offering and list shares of HD Securities in 2026.
Other banks such as Sacombank, SeABank, and MSB are also planning deeper involvement in the securities sector.
In mid-2025, PGBank approved a plan to contribute capital and acquire shares to participate in brokerage, underwriting, and fund management activities.
Another emerging piece attracting interest from financial institutions is cryptocurrency exchanges, alongside plans to establish subsidiary banks at the Vietnam International Financial Centre.
Vietnam Prosperity Crypto Asset Exchange JSC, backed by entities within VPBank’s ecosystem, including VPBank Securities JSC and LynkiD JSC, is in the final stages of increasing its capital to $400 million.
According to experts from credit rating agency S&I Ratings, the trend of banks expanding and integrating multiple financial services within a single ecosystem is becoming increasingly evident.
Bringing together services such as securities, insurance, and consumer finance within one ecosystem enhances cross-selling opportunities, improves customer experience, and diversifies revenue streams.
This enables banks to optimise profits, retain income within the system, and strengthen their competitive position.
Entering 2026, S&I Ratings forecasts that total pre-tax profit across the banking sector could grow by around 16 per cent, maintaining double-digit expansion but at a slower pace than the previous year.
Net interest margins (NIM) are likely to continue edging down to around 3 per cent by the end of 2026, with increasing divergence among banks.
Institutions with high current account savings account ratios, funding cost advantages, and strong risk management capabilities are expected to stabilise NIM sooner, thanks to greater resilience to interest rate fluctuations.
By contrast, banks heavily reliant on market funding with higher capital costs may continue to face prolonged pressure on margins. Non-interest income is expected to play a supporting role amid low NIM and moderate credit growth.
