Insight - Banks on digitalisation push


Enjoy RM5 cashback with a minimum spend of RM25 when you pay with Touch ‘n Go eWallet at McDonald’s restaurants, including drive-through as well as McDelivery service. One cashback per user during the campaign period which runs till Dec 31.

IN line with the accelerated drive towards digital adoption, banks are investing and building new capabilities to be more productive.

With enhancements and improved useability as well as reliability, they also hope to improve on customer-experience.

The pandemic has made CIMB Group Holdings Bhd pivot towards more targeted strategies as in the case of Touch ‘n Go eWallet where CIMB saw healthy numbers in essential services and online transactions.

Through active recalibration, CIMB was able to capture usage and demand, and drive the Touch ‘n Go e-Wallet as a payment mode of choice.

Since then, CIMB has exceeded its growth targets in user and merchant acquisitions, while in the Philippines, CIMB has steadily grown its deposits by providing seamless and full access to its products.

“We are in the process of mapping out our next generation platforms to ensure that our platforms are future proof, and able to support our customers and organisation in the post-Covid financial services landscape and beyond, ’’ said CIMB.

The digitally active base of Alliance Bank Malaysia Bhd has almost doubled over the past three years due to its strong focus on introducing new digital solutions, improvements to its mobile apps and successful awareness campaigns.

“Today, we are opening 70% of our business accounts digitally, ’’ said Alliance Bank Malaysia, referring to its branch-in-a-tablet initiative that allows individuals to open a savings account as well as activate their automated teller machine accounts online and mobile banking access in 15 minutes.

With a fast and simple digital application for small ticket loans, Alliance Bank Malaysia also enables individuals to instantly open a savings account, apply for a credit card or personal loan from anywhere.

Currently, almost 30% of trade transactions are performed on its Alliance BizSmart e-Trade platform, that allows business owners to access and monitor their accounts, as well as submit and check submission status of their trade financing applications on-the-go.At Bank Islam, digitalisation is expected to enable the core infrastructure to support the six pillars of its sustainable plan.

“We are beginning our journey towards becoming an Islamic digital bank within the next decade through continued investment in digitalisation, ’’ said Bank Islam CEO Mohamad Muazzam Mohamad.

Its digital transformation plan focuses on the creation of digital banking, enriching of its digital channels and monetising data analytics.

Digitalisation at Bank islam will involve:

> Enhancement or replacement of core banking system and other various legacy systems;

> Development of an IT Blueprint phase two to align the implementation of technology;> Establishment of a robust platform for cybersecurity resilience;

> Enhancement in the internal services of the bank – MS teams for online video conferencing, virtual learning, townhalls and webinars; network line upgrade at the headquarters, data centre and business recovery sites to cater for increasing bandwidth.

> A new division – the centre for digital experience (CDX) – focusses on products that align with the objectives set out in Bank Negara’s exposure draft on the licensing framework for digital banks, to address market gaps in the under-served and un-served segments.

Standard Chartered Malaysia is adopting a cloud-first strategy that utilises shared infrastructure to accelerate its digital transformation for all new software developments and major enhancements.

“Our core banking and trading systems as well as new digital ventures such as virtual banking and banking as-a-service, are targeted to be cloud-based by 2025 under our multi-cloud approach, ’’ said Standard Chartered Malaysia managing director and CEO Abrar A. Anwar.(pic below)

Digital payments at Standard Chartered Malaysia have grown by 87% year-on-year, covering financial process exchange (FPX), direct debt, JomPay and Giro.

FPX is a payment gateway that allows for real-time online payment.

Enabling real-time payments and high volume transactions has been a core area of investment at Standard Chartered Malaysia.

This is especially with the government’s key focus for all agencies in the public sector to provide cashless transaction facilities as the main option by 2022.

Standard Chartered Malaysia is exploring potential partnerships with start-ups especially fintechs, which use technology to deliver financial services through software, like online payments and mobile payment apps.

“We also work like a fintech to offer the same convenience and speed in the market by grouping our teams in journeys aiming to solve a client problem, ’’ said Abrar.

OCBC Bank Malaysia has embarked on a digital transformation journey to redefine the way it onboards customers, and rethink the way banking products speak to its customers.

One of its major initiatives is “Frank by OCBC” that targets the digitally savvy and engages the mobile generation in a manner that is aligned with their lifestyle.

Under “Frank by OCBC, ” customers will enjoy the fixed deposit rates they normally see in traditional banking but without the usual penalties and restrictions.

OCBC Bank Malaysia will be leveraging on digital onboarding to scale customer acquisitions, and will play an active role in developing and promoting PayNet’s retail payments platform to support the open payments ecosystem in Malaysia.

OCBC Bank Malaysia has been investing heavily in its digital wealth proposition, leveraging on the expertise of OCBC Singapore and Bank of Singapore.

Digital wealth tools will be introduced to customers of OCBC Bank Malaysia to allow them to manage their portfolio conveniently and securely, all within an app.

Banks with their large client base locally and abroad, will be a major contributor to the country’s digital transformation.

From young to old, customers will be experiencing more of their innovations, as these customers too become part of the new digital era.

Yap Leng Kuen is a former StarBiz editor. The views expressed here are the writer’s own.

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