HLB to invest up to RM200mil in capex


  • Banking
  • Tuesday, 07 Jul 2020

KUALA LUMPUR: Hong Leong Bank Bhd (HLB) will invest about RM150mil to RM200mil in capital expenditure (capex) for the current financial year ending June 30,2021 (FY21).

“A large sum of about 60% to 65% will go towards digital initiatives, whether it is for the tools to enhance customer experience, cyber security or compliance and so on.

“The capex this year will be about the same as the previous year, ” group managing director and chief executive officer Domenic Fuda said after the launch of HLB Digital Day.

“A lot of our capex was spent on third-party suppliers a few years ago. A fair amount of capex now is spent on capabilities that are built in-house. It is now spent to build our own capabilities rather than just relying on third parties, ” Fuda added.

“We saw great usage of digital channels during the movement control order period. We hope our campaign will see this kind of momentum as we move into the rest of the calendar year. As we resume our normal lives, digital and cashless society is becoming the new normal.”

The HLB Digital Day is to encourage more customers to embrace the digital lifestyle.

HLB’s official Digital Day, which will be today, will see it having seven one-day-only mega deals in the credit card, fixed deposit, personal loans and small and medium enterprises segments.

HLB said it had seen another significant increase in downloads and usage of its digital banking platforms.

“The capex this year will be about the same as the previous year, ” group managing director and chief executive officer Domenic Fuda (pic) said after the launch of HLB Digital Day.“The capex this year will be about the same as the previous year, ” group managing director and chief executive officer Domenic Fuda (pic) said after the launch of HLB Digital Day.

As of May 2020, almost 80% of customers are regularly using HLB Connect, its mobile banking app, it said.

“When we developed our banking apps, we have ensured that it will only consume a small amount of data and a person does not need to have huge bandwidth speed too, ” Fuda said.

It noted that customers aged above 50 recorded the biggest usage increase, at 42% from the previous year.

HLB also said that mobile banking transactions recorded an impressive spike across the board, with an 80% increase in total transaction amount and 75% growth in the number of transactions conducted.

HLB also said it saw a 13-fold increase in the total amount/transactional value of e-wallet top-ups over between March and May, compared with the same period last year.

HLB managing director of personal financial services Charles Sik said the bank has been recording an increasing amount of digital transactions every year.

“It was a record year last year for the digital day. People are signing up and using our app more and we are optimistic that this year will be a better year, based on the number of people who are active on the app and who have signed up, ” Sik said.

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Hong Leong Bank , HLB , Dominic Fuda , digital day , Capex ,

   

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