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Our Transformation Journey
In FY2009, the Group embarked on a transformation programme named LEAP30 (Lead, Execute, Achieve, Progress) involving 30 initiatives designed to secure our leading position in the Malaysian financial services industry and to expand our regional presence by 2015. To transform the Group, we introduced both strategic and tactical initiatives to stimulate sales; strengthen client relationship management; improve our processes and internal systems; enhance our talent pool; and raise customer service standards. In FY2010, with the re-alignment of the organisation into three business pillars, the 30 initiatives launched under LEAP30 were embedded into the relevant pillars and sectors to continue to drive these initiatives. The previous LEAP30 Transformation Office was renamed Transformation Office and became part of Enterprise Transformation Services (ETS), a larger unit providing support in transforming the bank. |
In FY2011, starting in July 2010, the Group reframed its transformation programme so as to further strengthen our leadership of Malaysia’s financial services industry and to drive our regional expansion. To make us a regional financial services leader by 2015, we have adopted five strategic objectives that will make us:
In Malaysia, we aim to maintain our No.1 ranking in terms of overall market share across all our core retail financing products, including mortgages, automobile financing, credit cards, unit trust financing, and individual deposits.
We intend to reinforce our leadership position in touch points and distribution network as a key community destination and focal point. Our Customer Value Proposition centres around convenience and serving the needs of the community, including individuals, small and medium enterprises (SME) and commercial customers; and we are committed to the values of a One Stop Shop, Needs Based Selling and World Class Services.
We will leverage on a shared distribution model across all parts of the Group network, and will customise and differentiate our product offerings by segment to meet the needs of our four different types of customers: High Net Worth, Affluent, Mass and SME. The Group will also capitalise on technology to achieve high performance in processing times and customer service. Innovation will further drive the Group’s differentiation in the market.
We plan to become the leading ASEAN wholesale bank by building domestic leadership while aggressively pursuing regional expansion. This will involve enhancing our corporate relationship model. Strategic initiatives will include:
We also intend eventually to expand into the Middle East, China and India.
We seek to be the domestic insurance champion and an emerging regional player by 2015 through the growth of our life, general insurance and takaful business, carried under the Etiqa brand. The objective is to build a sustainable and profitable business. For general insurance and takaful, the Group will keep pace with industry growth while maintaining a healthy portfolio mix and supporting a better combined ratio compared to the market.
To achieve organic growth in life/family business, we are aggressively growing the assets under management (AUM) of our life/family funds through product innovation. This will drive the build-up of surpluses attributable to shareholders. On the asset management front, the strategy of our asset management subsidiary is to build a leading asset management brand by providing strong investment management support for Etiqa funds, wholesale funds and institutional mandates as well as by leveraging on Maybank’s extensive distribution network.
Our aspiration is to become a truly regional organisation with approximately 40% of loans and pre-tax profit derived from international operations by 2015. This will be driven by our key markets of Indonesia and Singapore. At the same time, we are developing a presence in the Philippines, Cambodia, Vietnam and China by building scale and scope in these growth markets.
Our target is to have one-third of our domestic financing backed by Islamic financial assets by 2015. To achieve this, our Islamic banking operations will take full advantage of Maybank’s huge domestic branch network as well as its electronic banking platforms and the various distribution outlets of our strategic partners. We also aim to grow our Islamic business in markets like Indonesia and Singapore as part of our focus on the ASEAN region.
Our Islamic banking operations, meanwhile, will focus on delivering innovative and globally accepted products and services that differentiate us from other Islamic financial institutions.
To realise the Group’s vision of becoming the Regional Financial Services Leader by 2015 and to support the Group’s five strategic objectives, in July 2010, the Group’s organisation structure was re-aligned into three business pillars which allow for a more coordinated and effective business execution: Community Financial Services, Global Wholesale Banking and Insurance and Takaful.
The CFS business pillar was created to extend the former consumer banking business to also serve SME and Commercial/Business Banking customers from all our branches in Malaysia. This will better enable us to entrench our customer value proposition, which centres around convenience and serving the needs of the community. This sector’s transformation has four main thrusts:
The year saw a transformation of all branches to One-Stop-Shops, providing a comprehensive range of financial services within a single touch point. The branch transformation enables SME customers to be served by the entire branch network in Malaysia of 386 branches, instead of only 39 business centres previously. This allows us to engage with, retain and deliver better service experience to our customers. Other changes at the branch saw the beginnings of the ‘Hip and Cool’ approach to increase our urban clientele.
During the year, we also extended our contact points via POS Malaysia offices and made inroads into rural areas through our mobile micro payment facility.
Refer to page 106 for Community Financial Services.
GWB was created to streamline corporate banking, transaction banking, global markets and investment banking under a single business pillar. This allows us to serve corporate customers through a Client Coverage Model, with a client relationship manager responsible for meeting all of the client’s various product needs regionwide.
The sector is now strengthening its regional network, with our regional expansion supporting that of our clients. A significant milestone was the acquisition of Kim Eng Holdings, which enables us to extend our investment banking operations by leveraging on Kim Eng’s regional platform to provide comprehensive services for our corporate customers across the region.
In November 2010, we restructured Trade Finance to improve our ability to service wholesale clients. Our transformation means focusing on business growth and improving customer experience by being prepared to explore trade business beyond the norm, and by providing competitive financing.
Refer to page 116 for Global Wholesale Banking
We operate Insurance and Takaful through several life and general as well as conventional and Islamic insurance companies under the Etiqa brand name. Our initiatives to expand product offerings and widen distribution through expanding the agency force aim to make Etiqa the country’s largest insurer. Our key focus is on:
During the year, new initiatives were launched to expand the agency business, including the recruitment of new agents, generating over RM350 million in new premiums. Meanwhile, to increase effectiveness in end-to-end processing and business efficiency, we are upgrading our IT infrastructure.
Refer to page 131 for Insurance and Takaful
Apart from operating businesses vertically within the pillars, we are also focusing on the growth of our International and Islamic banking offerings across these business pillars.
To support our international expansion, we launched regionalisation initiatives for both the consumer and corporate segments. To capture the growing market for cross-border payments, we introduced a money transfer service known as Maybank Money Express (MME). Then, for trade finance and cash management services, the Group’s Transaction Banking rolled out and expanded its web-based trade finance service, TradeConnex, to regional offices in ASEAN countries.
Refer to page 142 for International Banking
As the largest Islamic bank in Malaysia, Maybank Islamic seeks to grow domestically through better collaboration with the three business pillars and also plans to expand into the key markets of Indonesia, Brunei, Singapore, the Philippines and Hong Kong/China. During the year, Maybank Islamic worked to grow its retail and wholesale business in close partnership with Bank Internasional Indonesia (BII) and the newly established Maybank Syariah Indonesia (MSI).
Refer to page 137 for Islamic Banking
Operationally, our business pillars are supported by the Group’s Enterprise Transformational Services providing overall support for transformation initiatives, information technology and operations, with the aim of continually improving operational efficiencies. Two areas which underwent major changes during the year are Information Technology and Service Quality.
ITTP undertook a transformation initiative to replace the Bank’s legacy system. It rolled out a five-year strategic roadmap to be deployed across the region, aimed at improving service channels, product design capabilities and business support. The system is designed to be agile, leveraging on capabilities to out-execute the competition.
The regional capabilities of our technology transformation will boost collaboration, data sharing and knowledge management between countries as we pursue ASEAN expansion.
Refer to page 162 for IT Transformation Programme (ITTP)
Service Quality was also transformed, to improve both internal and external customer service. FY2011 saw a centralisation of service units, maximising the strengths of service teams across the Bank.
Efforts to improve levels of customer service at the branches continued. Soft skills and the image of front line staff improved, and Mystery Shopping scores pushed from 73% in May 2010 to 87% in February 2011.
We will continue to measure internal and external customer satisfaction and benchmark our performance against the market. To embed a quality service culture, we will measure the service performance of all Maybankers.
Refer to page 165 for Service Quality
To remain competitive and always ready for change, we are building a culture of innovation, which we are nurturing as a mindset and capability in all Maybankers.
Harnessing the experience and the creative talents of Maybankers, the President’s Innovative Idea Awards was reframed and relaunched, inviting active participation across sectors. The new framework ensures Maybankers continually rethink established processes, add value to our products and services, find solutions to challenges, and implement the best solutions.
More than 500 ideas have been submitted since January 2011, encompassing process, product, marketing and customer service enhancements. Winning ideas were immediately scheduled for implementation.
This phase of the transformation has seen an active involvement by all sectors, with Maybankers initiating and leading change efforts and taking team responsibility for delivering results. There was also a remarkable collaboration between sectors, maximising resources to deliver exceptional customer value, service and support.
Looking ahead, our transformation journey will continue, ensuring that we keep ahead of the market, delivering exceptional customer value and enriching the communities around us.
