CIMB has undergone a digital transformation over the past five years, which was focused on three client segments – SMEs, affluent and retail customers – and helped the Malaysian bank cement its credentials as the preferred bank of choice.
Small and medium-sized enterprises (“SMEs”) are the backbone of the Malaysian economy as they form the largest segment of businesses in Malaysia. Collectively, this segment account for roughly 97% of all businesses in the country, generating close to 40% of the country’s GDP and employ over seven million people to-date. As a responsible financial intermediary, CIMB remains committed to serve its customers within this segment, whilst at the same time stimulating the nation’s business segment through its innovative solutions and propositions.
CIMB is a market leader in developing best-in-class digital tools aimed at accelerating the growth of SMEs to help them realise their long-term aspirations.
Nevertheless, equitable access to funding remains a critical requirement for SMEs. To support this, CIMB offers a digital loan application process, a strategic move that enhances workplace efficiency and helps businesses conduct their banking activities seamlessly, limiting their time spent for physical transactions. Known as Amazing Customer Experience (“ACE”), this commercial lending platform and mobile productivity tool was developed for the Bank’s Relationship Managers (“RMs”) to expedite manual data entry tasks and reduce the end-to-end turnaround time for loan approvals.
ACE also helps CIMB reduce its operating expenditure. For instance, these digital initiatives contributed to noticeable improvements in the SME YoY cost-to-income ratio from 41% to 32%, and for commercial clients, 33% to 29%. The loan approval and disbursement timeline reduced significantly from three weeks to under seven days, leading to increased customer satisfaction. Additionally, the productivity of CIMB relationship managers increased by over 50%.
SME-retail-wealth success
In line with CIMB’s Forward23+ strategic plan, the Group is steadfast in championing customer centricity and be a catalyst for change in the way business operations are conducted daily in an effort to be agile and able to adapt to the evolving technological and financial climate.
CIMB continues to lead on other fronts with its customer-centric innovation, transforming customer journeys not just across SME banking, but also for the retail and wealth affluent segments. The credit goes to CIMB’s Transforming Customer Journey (“TCJ”) department, established with the core purpose of catalysing the Bank’s transformation initiatives and elevating its users’ banking experience.
TCJ’s success was recognised by The Digital Banker in its 2023 Global Retail Banking Innovation Awards, where CIMB won the award for Outstanding Digital Innovation in SME Banking – ASEAN. In addition, CIMB was also honoured by The Digital Banker with awards for Best Credit Card for Affluent Clients (USD 70,000 AUM and above), Wealth Hub of the Year, Outstanding Retail Sales Across Digital Channels, and Best Savings Account.
Enhancing retail experience
Digital acquisition for retail products is a core focus of CIMB as it aims to maximise its omnichannel approach to meet its clients’ growing needs, offering a seamless, integrated banking experience. CIMB focuses on technology and digital enablement in developing products and services, with the aim of increasing its share of new-to-bank and new[1]to-product clientele, while lowering the overall acquisition cost and boosting revenue growth.
CIMB’s ongoing investments into data and digital capabilities has also enabled it to provide customers with value add insights and solutions. By leveraging CIMB’s core digital strengths such as its precise online-to-offline follow up modelling tool to service customers through different channels, CIMB is able to use information and data for personalisation, suiting the various banking and lifestyle needs of its customers. As a result, CIMB’s revenue contribution from onsite personalisation reflected a 300% jump in 2023, while its digital sourcing revenue has soared at a compound annual growth rate of 52% since its inception.
A prime example of CIMB’s best-in-class product offerings is the CIMB Travel Mastercard Credit Card series, which was unveiled in October 2022. These cards have been designed to meet the needs of modern travellers, offering unique perks such as a one-to-one air mile or hotel points conversion rate for every one ringgit spend, exclusive access to Plaza Premium First Lounges, in-flight Wi-Fi cashback schemes, end-to-end travel insurance, as well as other hotel benefits. This distinct value proposition gained rapid popularity, as a result of its wide array of benefits and superior privileges, with over 50,000 Travel Credit Cards customers being acquired since the launch of this series, nearly a quarter of which were new-to-bank clients and 60% new-to-card clients.
CIMB’s wealth proposition is also exceptional, offering a diverse range of products and funds tailored to the ever-changing needs of today’s emerging and affluent individuals. The Bank recognises that affluent customers have become more inclined to moving their banking activities online, and remains committed to delivering the right solutions, along with comprehensive coverage and advisory services to its customers – all with a digital focus.
By recognising the strengths of complementing its digital services with a human touch, CIMB continues to reaffirm its strengths across all three of its major client segments, entrenching its position as a leader in the Malaysian banking industry and setting a firm for future success.
Image: Air Elegant / shutterstock.com
