Maybank’s new vision and aspirations

PETALING JAYA: MALAYAN BANKING BHD (Maybank) has reframed its vision and aspirations to accelerate its journey of change and strategic transformation across the group.

President and chief executive officer Datuk Seri Abdul Wahid Omar said the bank had reframed its strategic aspirations according to its new vision which was to be the regional financial services leader and mission to humanise financial services from the heart of Asean.

“We also reorganised our operations structure to enhance service and product delivery, pioneering new ways of providing financial solutions across our key markets,” Wahid told StarBiz in an email reply.

In support of the new vision and realisation of the strategic objectives for the group, Maybank has realigned its organisation structure into a new “House of Maybank”.

The new structure realigns the group’s operations into three business pillars – global wholesale banking serving the corporate commercial and non-retail banking segments; community financial services focusing on retail financial services to the small and medium enterprises and consumer portfolios; and insurance and Takaful.

Wahid said the new structure encouraged greater cross-border cooperation and strategising which would result in more innovative cross-selling and bundling of products and services.

Key to the reorganisation is to leverage on the shared distribution model where the branches will function as points of sales for all group products and services, and to penetrate the corporate customer base for wholesale banking products not only in Malaysia (where the impetus for growth will be sourced from the private and public investment under the 10th Malaysia Plan), but in the region and beyond.

“It takes us forward in terms of greater efficiency, savings and sales while reaffirming the vision of our pioneers to contribute to the economic prosperity of the nation and its people,” Wahid said.

The new structure is a natural progression of Maybank’s performance improvement programme LEAP30 launched in 2008, under which the bank had begun to realign its operations, re-engineer organisational processes and build a high-performance talent pool as a foundation for future sustainable growth.

The programme has made a positive impact on the group.

Wahid said early results for the financial year ended June 30 (FY10) saw over 100% increase in sales performances at branches participating in the initiatives, increased product penetration in the bank’s corporate client product portfolio as well as cost savings and avoidance of over RM140mil in procurement and reprioritisation of information technology projects.

“Actual financial benefits amounted to RM444mil and created a funding engine for the entire transformation programme,” he said.

LEAP30 focused on three strategic thrusts, with the first aiming to secure Maybank’s position as the country’s financial services leader.

The second strategy sees the bank strengthening its regional presence by enhancing operational quality in the seven out of 10 Asean countries it operates, while continuing to look for opportunities in other growth markets in the region.

In the third strategic thrust, Maybank is to become a talent and execution-focused company.

Focus will now also be on expanding the group’s footprint leveraging on its three home markets – Malaysia, Singapore and Indonesia – and capturing new markets.

Wahid said individual sectors were now driving their own transformation initiatives to accelerate group-wide performance by capturing synergies, efficiencies and energy across the business.

“Change-management skills will be embedded within the business to get the entire bank engaged in the transformation journey,” he added.

A banking analyst from a local stockbroking firm said the transformation programme put Maybank in a better position to compete regionally as it enhanced the bank’s operations, processes and business model.

“The initiatives have resulted in costs savings and operational synergies,” she said.

Maybank achieved a record net profit after tax and minority interest of RM3.82bil in FY10 from RM691.1mil in FY09 on the back of higher revenue across all key business segments.

Besides its record profit, Maybank also crossed the regional milestone of US$100bil in assets and US$1bil in after-tax profit.

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