Six Month Report - December 2011
GROUP STRATEGY & TRANSFORMATION
In 2008, Maybank embarked on a strategic transformation journey to become a leading financial services provider in ASEAN by 2015.
Over the past 3 years, the Maybank transformation programme has achieved significant results – starting with the building of programme governance and project execution capabilities and a centralised Transformation Office. With the creation of the House of Maybank in 2010, a host of transformation initiatives were embedded into the relevant pillars and sectors, each with clear individual accountability.
Maybank has implemented capabilities such as the effective management and tracking of key milestones, a Project Quality Assurance framework, and centralised reporting of progress to the Transformation Steering Committee. This resulted in the institutionalisation of a robust project management discipline across the Group. Critical path analysis and inter-dependency management has increased the visibility of key issues, thereby enhancing the effectiveness of the Bank’s transformation initiatives.
The partnership between the Transformation Office and the business pillars has become more effective through interlocks, collaboration and clear alignment of goals. This has allowed the Bank to converge on its shared aspirations, thereby accelerating the Group’s move to a high-performance culture.
These efforts have laid a strong foundation for the next phase of Maybank’s transformation that will be focused on regional business expansion, the development of an innovative high-performance culture, and the building of a sustainable IT platform and processes.
In tandem with the strategic thrust of CFS to move to a customer segment-driven model, the Business Banking and Small-Medium Enterprise (SME) segments underwent significant changes in FY2011. The customer models in both segments were refined to enhance the quality and relevance of its products and service delivery to customers. As a result, Maybank’s customer relationships were strengthened, sales improved, and risk management capabilities enhanced.
On the consumer banking front, Maybank continued the roll-out of the Hip and Cool concept to branches in urban areas. Hip and Cool concept branches can now be found in Klang Valley, Ipoh, Melaka, Johor, Kuantan and Kuching.
With the aspirations for Community Financial Services in mind, Maybank will continue to serve all customer segments by offering products and services that are fairly priced and relevant both segment-wise and geographically, delivered through multiple distribution channels of unmatched convenience and accessibility.
To optimise Maybank’s platform for regional business expansion, the GWB sector established its regional governance structure in July 2011, emplacing key wholesale banking heads and personnel in all countries where Maybank has presence including Malaysia, Singapore, Indonesia, Greater China and the Philippines.
In addition, the Global Markets division successfully rolled out its regional Treasury Risk Management System in Shanghai enabling Maybank to expand its market capabilities across the region with improved efficiency and better risk management.
On the Transaction Banking front, Maybank’s overseas clients are provided access to Trade Connex, the Bank’s electronic trade finance platform. We also launched eCustody, an Internet-based service that enables Maybank’s corporate clients around the world to manage their custody accounts online.
These initiatives enable us to operate better regionally, supporting our clients’ cross border growth.
FY2011 saw the rollout of Etiqa’s roadmap for achieving the status as Malaysia’s national champion in insurance, takaful and asset management by 2015. The roadmap defines 4 areas of focus, namely strengthening Etiqa’s leadership position, regional expansion of Etiqa’s footprint, humanising customer experience, and achieving RM 1 billion profit before tax by 2015.
During the year, Etiqa continued to strengthen both its life and general core systems to enable seamless information retrieval, automated processes, improved productivity and improved turnaround time, ultimately resulting in improved service delivery to its customers and business partners.
With the rollout of its roadmap and ongoing strategic initiatives, Etiqa is well poised for further expansion of its presence regionally.
The IT Transformation Programme’s objective is to provide key differentiation from Maybank’s competitors through the improvement of service channels, product design capabilities and business support.
FY2011 saw the implementation of 3 major systems. Firstly, the Islamic Foreign Currency Loan system was implemented to enable the expansion of Maybank’s Islamic Banking business regionally. In addition, a new Customer Relationship Management system was also launched for the GWB in Malaysia, enabling improved end-to-end customer management by Maybank’s relationship managers. Finally, the Master Foreign Currency Account system was implemented to reduce fund transfer costs and currency conversion losses.
The Programme also started the Branch Front End and Cash Management Systems, which will improve customer experience. Both the systems will be implemented in Malaysia and Singapore in 2012.
The IT Transformation Programme will further boost collaboration, data sharing and knowledge management between countries, forming a strong backbone for Maybank’s regional expansion plans and supporting the next phase of transformation.
Maybank’s service quality transformation framework is supported by 4 key pillars, namely People, Process, Product and Metrics.
Service transformation efforts for FY2011 concentrated on customer service workshops for business pillars and support units, the enhancement of branch personnel’s product knowledge, and the improving customer waiting times in branches. All service transformation efforts are led by Maybank’s Senior Management team through a mentorship programme at the region.
Through Maybank’s continuous service transformation efforts, the Bank is confident that an effective, efficient, consistent, warm and humanised experience will become the standard for Maybank regionally as we embark on the next phase of our transformation journey.