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How Maybank is Leading Digital Transformation in Banking Sector

Maybank, changing the face of traditional banking

Malayan Banking Berhad (“Maybank Group” or “the Group”) is the largest financial services and banking group in Malaysia. The Group serves its 22 million customers through a robust portfolio of financial products and services, including consumer and corporate banking, treasury activities, insurance, and asset management. These contributed to the Group’s annual revenue of MYR 51 billion in 2020. For the same year, Maybank Group had an operating income of MYR 6.48 billion and was the winner of the world’s best consumer digital bank in Malaysia and Indonesia.

Despite topping local and international market charts with notable digital milestones like QRPay and Maybank Trade, the Group’s M25 plan persists on digitalisation as a key-value driver. The strategy is similar to its Digital Bank of Choice strategy set in 2020. With customers spoilt for choice in today’s market, it is a challenge to reach that pinnacle of customer experience and preserve customer relationships at the same time, especially if a brand doesn’t fully invest in digital roadmaps and collaborations.

“We must always have the user behaviour in mind when we are creating new digital services and/or products. Digital banking providers who provide the best user experience and can solve customers’ problems will continue to be relevant,” said Datuk John Chong, Group CEO of Maybank Community Financial Services.

In this article, you will see Maybank in its journey to improve service delivery capabilities in the era of hyper-digitisation and competition.

Improving the digital banking experience

Maybank takes inspiration from the rapid rise of digital banking and fintech startups in its pursuit to continue enhancing customer experience. The bank’s mission is to provide customers with simple and convenient access to its financial services using ubiquitous digital solutions.

In 2018, the Group revamped the Maybank2U mobile application and website to offer a seamless transacting experience. The mobile application, which now features enhanced payment capabilities and customer personalisation, boasts over 12 million mobile downloads with an impressive 7 million active users (excluding website users) in 2020. New upgrades have allowed customers to generate dynamic PayNow QR codes for on-demand transfers. The mobile app also features a display of remittance options for more transparent overseas fund transfers. Apart from that, other Maybank2U experience-enhancing functions include Scan & Pay, a personal debit and credit spending tracker, and a customisable savings planner.

As the Group recognised the growing importance of digital products and services, it launched MAE (Maybank Anytime, Everyone) by Maybank2U in 2020. This complimentary mobile banking and e-wallet application seamlessly integrate online banking with one’s lifestyle needs. MAE not only allows customers to have full access to their savings accounts, pay bills and transfer funds. It also offers newer fintech solutions such as expenses monitoring, in-app virtual debit cards and ‘Tabung’, an individual and group-goal based saving feature.

Maybank Group received numerous feedbacks from customers with negative experiences from self-service options, such as chatbots and FAQs. Looking to offer a better solution, the Group implemented E-CLEVA, an integrated live video chat solution. With this new capability, insurance claims teams could provide real-time assisted claims support for motor and fire insurances, allowing the bank to process claims digitally and within 15 minutes.

Building operational efficiency with digitalisation

As customers stay at home during the movement control order, Maybank Group saw a significant surge in the number of digital transactions and users on its platforms — zakat payments before the festive period, for example, has increased by 227% year-on-year (Y-o-Y). At the same time, QRPay saw a transaction volume growth of over 650% Y-o-Y. With active mobile users expanding by 34%, Maybank Group had to deploy cutting-edge technologies to maintain its business outcomes at a rapid speed.

The Group placed a heavy focus on automating its back offices, namely to streamline back-end processes by implementing machine learning for processing credit applications, branch operations, remittances and trade services. It reinvented the technology stack to support every layer of banking operation by adopting technologies like robotic process automation (RPA), ICR/OCR (Intelligent or Optical Character Recognition) and application integration for certain ‘open’ operations.

Other digitalising efforts include migrating transactions from branches onto the online payments platform and implementing Artificial Intelligence (AI) in Anomalous Parts Detection for vehicle claims submission. The Group also launched a fully digital Know Your Customer (KYC) capability, enabling a customer to onboard through app-integrated video calls.

Maybank Group measures the success of all digital initiatives through two (2) measures — straight-through processing (STP) rates and customer turnaround times. These measures allow the bank to track and analyse the efficiency of its services, enabling more productive service delivery capabilities across various operations.

Enabling convenient, safe and secure transactions

The rise of digital banking is analogous to a double edge sword — on one end, you have greater convenience at your fingertips. But on the other side, digital vulnerabilities and frauds can now affect us more than ever. Maybank Group mitigates these risks by internalising a robust cybersecurity infrastructure that covers internal governance, human knowledge and network capabilities.

The Group employs a best-of-breed Security Information and Event Management (SIEM) technology that enables continuous real-time monitoring of any internal or external cyberattacks. Coupled with its Regional Security Operations Centre, which centrally manages the operational level of system security, the bank’s security specialists can quickly and continuously detect and respond to malicious activities using the Splunk Enterprise Security platform.

Driven by the surge of digital transactions, Maybank announced in April 2021 that it is discontinuing the SMS TAC (transaction authorisation code) for approving online transactions on both its apps. The bank intends to protect its customers with improved online banking security. Customers will switch to Secure2U as the preferred authorisation method for most transactions, excluding Financial Process Exchange (FPX) and Direct Personnel Expense (DPE). This alternative feature adds an extra layer of protection. Transactions can only be approved within 50 seconds on a registered device using Secure Verification (one-tap authentication) or Secure TAC (a six-digit TAC number generated on the mobile app).

This new ability creates a safer and more conducive way for customers to transact. At the same time, Maybank Group can build a digital ecosystem that enables safe and secure transactions continuously, fostering digital trust with its users.

Accelerating growth through key partnerships

As non-banking institutions with digital banking licenses flood the market, Maybank Group ensures business competitiveness by engaging in strategic partnerships to introduce new products while enhancing existing offerings. The bank focuses on creating close C-level collaborations with technology disruptors to foster customer stickiness by integrating lifestyle propositions with financial services.

At a time where customers are increasingly adopting digital products in their lifestyle, Maybank Group joined hands with the ride-hailing company, Grab, to drive the acceptance and ubiquity of cashless payments further. By integrating the two payment systems, customers of Maybank and Grab can choose between using their GrabPay or Maybank QRPay mobile wallets at the merchants they support. Direct cash top-ups on the GrabPay mobile wallet via Maybank2U enrich the online experience between these two digital apps.

The partnership with Grab doesn’t stop there. Maybank Group unveiled a new dual-faced credit card that enables customers to seamlessly collect GrabRewards points that they can then use to redeem vouchers and other rewards. Aiming to serve younger consumers further, the Group also teamed up with an e-commerce powerhouse, Shopee, to offer a lifestyle and e-commerce credit card. Similarly, users obtain rewards – Shopee Coins which they can spend on future online or offline purchases.

The Group also partnered with various property leaders including, UDA Holdings, Tropicana Corp. and i-City to offer “HouzeKEY”, an alternative home financing solution for first-time home buyers. Another partnership with Permodalan Nasional Berhad (PNB) saw the launch of ASNB e-channels on the bank’s platform. The collaboration enables cross-system transactions and the viewing of account balances via Maybank ATMs or the Maybank2U app.

The bank of the future

Maybank is poised to conquer the fast-growing digital banking space with its wide range of digital products and services, seamlessly integrated into a customer’s everyday life. The Group continues to defend and grow key customer markets in the era of digitalisation without losing sight of its core principle; humanising banking.

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