Alliance Bank to launch e-Know Your Customer solution


  • Banking
  • Saturday, 27 Jun 2020

Speaking at a virtual media briefing yesterday, Alliance Bank group CEO Joel Kornreich said the eKYC solution will be implemented across deposit, credit card and personal loan transactions

PETALING JAYA: Alliance Bank Malaysia Bhd will be launching its e-Know Your Customer (eKYC) solution in the next few months, that will enable the bank to be fully digital and mobile based.

Speaking at a virtual media briefing yesterday, Alliance Bank group CEO Joel Kornreich said the eKYC solution will be implemented across deposit, credit card and personal loan transactions.

“We will also be launching several digital products next month, such as small and medium enterprise (SME) digital loan, electronic trade solution and BizSmart mobile.

“During the financial year 2020 (FY20), Alliance launched the Branch-in-a-Tablet solution, where consumer current account savings account (Casa) can be set up in 15 minutes, while business Casa can be set up in one visit, one day.

“We successfully onboarded more than 90% of our customers and booked RM60mil worth of digital personal loans via this solution, ” he said.

On the automatic six-month moratorium for consumer and SME loan repayments that took effect on April 1, Kornreich noted that out of the eligible base of RM28.6bil, some 18% or RM5.15bil have opted out of the moratorium.

As there is no compounding and additional interest on deferred installments during moratorium, Alliance expects its day-one modification loss to be about RM60mil, of which the unwinding impact in FY21 will be RM35mil, while the net impact to net interest income in FY21 will amount to an estimated RM25mil.

Hence, Alliance will continue to proactively engage with customers to reschedule and restructure their facilities to minimise the day-one modification loss impact.

Apart from that, in a move to conserve capital to support future business expansion, the board of directors of Alliance will not recommend a second interim dividend.

As such, the total dividend declared for FY20 will be 6 sen per share, representing a dividend payout ratio of 21.9%.

Going forward, Alliance will continue to grow its SME and consumer banking segments, which increased by RM700mil for each segment in FY20, representing 8% and 2.8% year-on-year (y-o-y) growth, respectively.

Note that this was despite a 2.2% y-o-y slow down in overall gross loans in FY20.

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