Digital banks struggle to turn profitable, however Cake Bank has managed to break the mold. It is the first digital bank in Vietnam to achieve profitability and is becoming an example for digital customer experience.

With over five million customers, Cake Bank’s success highlights the growing demand for seamless and efficient financial services. It leverages technology and a customer-centric approach to make banking simple and accessible.

Cake Bank’s rapid growth signals a shift in Vietnam’s financial ecosystem, proving that digital banking can be both sustainable and profitable. As the sector continues to evolve, its journey offers valuable insights for other digital banks in Southeast Asia looking to navigate a competitive market.

The recipe for success: Cake Bank’s meteoric rise

Cake Bank’s rapid growth can be attributed to three key factors:

1. Massive market reach: With over five million customers (up from 4.1 million in 2023), Cake Bank is becoming a household name.

2. Revenue powerhouse: The bank tripled its revenue per user to US $12 by offering a variety of financial products, including credit cards, instant loans, and micro-investing options.

3. Technology-first approach: AI has helped Cake Bank reduce costs while improving the customer experience.

6 steps to open a Cake Bank account

Cake Bank's account opening takes approximately two minutes with no physical documentation required.

Effortless banking: Deposits & cards made simple

Whether it’s booking a deposit in seconds or getting a debit or credit card without the usual paperwork, Cake Bank ensures that customers never have to deal with tedious processes.

• Quick deposits: Choose an amount, pick a tenure, method of receiving interest and boom—your fixed deposit is set up.  

• Card issuance: Get a virtual or physical card effortlessly, with easy spending controls and rewards.  

The game-changer: Cake Bank’s ride-hailing integration

Cake Bank’s strategic partnership with Be, Vietnam’s third-largest ride-hailing platform, is a well-calculated move that positions it for rapid and cost-efficient growth.

• Embedded financial access – By integrating seamlessly within Be’s ecosystem, Cake  Bank removes friction in banking adoption, allowing customers to access financial services effortlessly through an app they already trust and use frequently.

• Increased engagement & transactions – The synergy between ride-hailing and digital banking drives higher transaction volumes organically, fostering greater user engagement without requiring additional incentives.

• Cost-effective expansion – Instead of relying on expensive customer acquisition strategies, Cake Bank efficiently scales by leveraging Be’s existing user base, optimizing costs while maximizing reach.

This integration not only strengthens Cake Bank’s market presence but also exemplifies the effectiveness of embedded finance in driving digital banking adoption.  

What this means for customers & transactions:

• Instant access to financial services within an app they already use.  

• Seamless transactions, reducing friction in daily banking.  

This partnership isn’t just driving user adoption—it’s also fuelling higher transaction volumes and making Cake Bank an integral part of everyday financial life.

Cake Bank’s profitability playbook:

Cake Bank's strong growth shows a smart and successful strategy:

• Revenue growth – A sevenfold increase in operating income in 2024 highlights Cake Bank’s ability to scale rapidly while maintaining strong unit economics.

• Profitability on the rise – EBITDA quadrupling indicates improved operational efficiency and a shift toward sustainable profitability.

• Diverse revenue streams – Loan products, savings, and BNPL have emerged as core revenue drivers, reinforcing Cake Bank’s long-term financial resilience.

While most digital banks take years to even approach profitability, Cake Bank has already crossed the threshold in just three years.

The digital bank dilemma: Profit vs. risk

Digital banks thrive on unsecured lending—quick loans without traditional collateral. While this makes borrowing easier, it also increases the chances of non-performing loans (NPLs).

Digital banks must navigate:

1. Riskier borrower segments (Small merchants, first-time borrowers).

2. Lack of traditional credit history, making risk assessment more challenging.

3. Compliance with Vietnam’s banking laws adds complexity.

But Cake Bank has an edge—it leverages AI-driven risk assessment to make data-backed lending decisions, reducing default rates while keeping approvals quick.

7 lessons to learn from Cake Bank

Cake Bank’s success offers valuable lessons for digital banks worldwide:  

1. Profitability first: Cake Bank proves digital banks can be profitable with diverse revenue streams like credit cards, micro-loans, and BNPL.

2. Smart partnerships drive growth: Integrating with Be’s ride-hailing ecosystem fuelled rapid adoption and increased transactions. Strategic alliances matter.

3. Seamless onboarding wins: A 2-minute KYC process with zero paperwork boosts conversions. Frictionless banking is a must.

4. AI-powered risk management: Leveraging AI for credit scoring reduces risk while expanding financial access. Data-driven decisions = better lending.

5. Efficiency = Higher profits: Cake Bank quadrupled EBITDA by focusing on cost optimization and tech-driven operations.

6. Financial inclusion as a differentiator: Digital banks can serve customer segments that traditional banks overlook, building loyalty and scale.

7. Compliance is non-negotiable: Adhering to regulations ensures long-term credibility and operational stability.  

source link: https://cake.vn/