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CORPORATE AND BUSINESS STRATEGY :
A STUDY ON MAYBANK
In this assignment we were aasigned to make a review on the corporate strategy of MAYBANK which are including the mission, vision, activities and any any elements that included in the corporate and business of the company.
1.0 Vision
To be a Regional Financial Services Leader
2.0 Mission
Humanizing Financial Services from the Heart of ASEAN
3.0 Strategic Objectives:
To make us a regional financial services leader by 2015, we have adopted five strategic objectives that will make us:
3.1. Undisputed No. 1 Retail Financial Services Provider in Malaysia
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.
3.2. Leading ASEAN Wholesale Bank and eventually to expand into the Middle East, China and India
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: Improving domestic and regional market position for corporate and non-retail deposits v Building a regional investment bank v Increasing contributions to revenue from non-domestic markets and increasing the fee to income ratio contribution We also intend eventually to expand into the Middle East, China and India.
3.3. Sustainable Champion for Insurance and Takaful
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.
3.4. Truly Regional Organisation
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.
3.5. Leading Islamic Bank in ASEAN
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.
4.0 Key Business Entities
Malayan Banking Berhad is the holding company and listed entity for the Maybank Group with branches in Malaysia, Singapore and other international financial centres such as London, New York, Hong Kong and Bahrain.
Maybank’s key overseas units subsidiaries are PT Bank Internasional Indonesia Tbk (BII), Maybank Philippines Inc, Maybank (PNG) Ltd in Papua New Guinea and Maybank International (L) Ltd in the offshore centre of Labuan.
The major operating subsidiaries are Maybank Investment Bank Berhad, Maybank Islamic Berhad and Etiqa Insurance Berhad. Maybank has associate companies in Pakistan (through 20%-owned MCB Bank) and in Vietnam (through 20%-owned An Binh Bank).
Maybank Investment Bank Berhad
A wholly-owned subsidiary and the investment banking division of Maybank. It offers a complete range of investment solutions from corporate finance to debt capital markets, equity markets to research and strategic advisory.
Kim Eng Holdings Ltd
A wholly-owned subsidiary of Maybank. Kim Eng is a regional securities powerhouse with successful franchises across Asian financial markets. It is the leading securities firm in Thailand and in the Philippines.
A wholly-owned subsidiary of Maybank. Kim Eng is a regional securities powerhouse with successful franchises across Asian financial markets. It is the leading securities firm in Thailand and in the Philippines.
Maybank Islamic Berhad
Maybank Group’s wholly-owned, full-fledged licensed Islamic bank.Maybank Islamic is the largest provider of Islamic financial services in the Asia Pacific region and ranked 17th among the world’s Islamic financial institutions in terms of Shariah-compliant assets.
Maybank Group’s wholly-owned, full-fledged licensed Islamic bank.Maybank Islamic is the largest provider of Islamic financial services in the Asia Pacific region and ranked 17th among the world’s Islamic financial institutions in terms of Shariah-compliant assets.
Bank Internasional Indonesia Tbk
A 97%-owned subsidiary of Maybank. It is 8th largest commercial bank by assets and is listed on the Jakarta Stock Exchange (Ticker: BNII) The bank provides a full range of financial services for SME/Commercial, Consumer and Corporate Banking customers.
A 97%-owned subsidiary of Maybank. It is 8th largest commercial bank by assets and is listed on the Jakarta Stock Exchange (Ticker: BNII) The bank provides a full range of financial services for SME/Commercial, Consumer and Corporate Banking customers.
Etiqa
Etiqa is the brand for Maybank Group’s insurance business which offers all types and classes of Life and General conventional insurance as well as Family and General Takaful plans via a robust agency force of over 21,900 agents complemented by a wide bancassurance and bancatakaful network.
Etiqa is the brand for Maybank Group’s insurance business which offers all types and classes of Life and General conventional insurance as well as Family and General Takaful plans via a robust agency force of over 21,900 agents complemented by a wide bancassurance and bancatakaful network.
Key Associate Companies
MCB Bank Ltd
A 20% owned associate company of Maybank. It is one of the leading banks in Pakistan with total assets of over Rs.500 billion, a customer base of over 4 million and a nationwide network of over 1,000 branches and over 450 ATMs. MCB Bank was the recipient of The Strongest Bank award for 2010 by Asian Banker for being Pakistan’s best-performing financial institution.
A 20% owned associate company of Maybank. It is one of the leading banks in Pakistan with total assets of over Rs.500 billion, a customer base of over 4 million and a nationwide network of over 1,000 branches and over 450 ATMs. MCB Bank was the recipient of The Strongest Bank award for 2010 by Asian Banker for being Pakistan’s best-performing financial institution.
AnBinh Bank
A 20% owned associate company of Maybank. It offers a full range of commercial banking products and services and is strong in the small and medium enterprises (SME) sector. Its consumer banking market share is also growing with the introduction of innovative mortgage, automobile financing and personal loan products and services.
A 20% owned associate company of Maybank. It offers a full range of commercial banking products and services and is strong in the small and medium enterprises (SME) sector. Its consumer banking market share is also growing with the introduction of innovative mortgage, automobile financing and personal loan products and services.
5.0 STRATEGY
Maybank has reframed its vision and aspirations to accelerate its journey of change to bring strategic transformation across the Group as it sets its sights on expanding its regional businesses leveraging on its three home markets – Malaysia, Singapore and Indonesia. The move underscores the importance of continuously improving profitability, market value and returns on capital.We move boldly into the future focused on our vision and mission to be a regional financial services leader through humanising financial services from the heart of ASEAN.
5.1 The New House of Maybank
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.
5.1.1. Community Financial Services (CFS)
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 centresaround convenience and serving the needs of the community. This sector’s transformation has four main thrusts:
· Reposition as a Community Financial Services provider focusing on convenience and serving the needs of individuals, SMEs and commercial customers
· Move to a segment-driven model for customisation and differentiation in products, services, pricing, channels and process mix
· Industrialise and drive innovation to further differentiate ourselves in the market
· Embed credit into the business to speed up turnaround time and achieve customer fulfilment without compromising on asset quality
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.
5.1.2.Global Wholesale Banking (GWB)
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.
5.1.3.Insurance and Takaful
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:
· Building a productive agency force in Conventional and Takaful insurance
· Driving Maybank business through product innovation (Savings, Investment & Protection)
· Building a profitable portfolio for Group and Health insurance
· Strengthening branches, third party business, direct, enterprise and corporate distribution channels
· Growing third party assets under management
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.
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.
5.1.4.International Expansion
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.
5.1.5.Islamic 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 MaybankSyariah Indonesia (MSI).
5.1.6.Enterprise Transformational Services
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.
5.1.7.ITTranformationProgramme (ITTP )
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.
5.1.8. Service Quality
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.
5.1.9.Re-igniting Innovation
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.
5.2. Investment Cases
5.2.1. Leading financial services group in Malaysia
Full suite of business i.e. Commercial Banking,
Investment Banking and Insurance with leading position
in most business segments.
Investment Banking and Insurance with leading position
in most business segments.
5.2.2. Emerging regional financial services leader
Regional financial services group with a vision of achieving leadership position by 2015 via presence in growth markets.
5.2.3. Resilient economy in three home markets
Malaysia and Indonesia proved to be resilient even during global economic crisis and times of uncertainty in the markets.
5.2.4. Beneficiary of
government economic development initiatives
government economic development initiatives
Poised to take advantage of the Economic Transformation Programme in Malaysia.
5.2.5. Transformation programme spurring strong performance
Business transformation programme introduced in 2008 with new organisation structure is showing results.
Business transformation programme introduced in 2008 with new organisation structure is showing results.
5.2.6. High dividend payout androbust capitalisation
Maintains high dividend payout ratio with robust capitalisation through Dividend Reinvestment Plan.
Maintains high dividend payout ratio with robust capitalisation through Dividend Reinvestment Plan.
Corporate Responsibilty
Maybank has become an institution where sustainable development is seen as an advantage and an opportunity for growth. Maybank’s definition of Sustainability adopts the principles from the world’s leading sustainable institutions.
Maybank’s Sustainability framework helps to improve financial and non-financial performance in meeting business goals. Through our engagement with stakeholders, we strengthen our involvement in environmental and social Sustainability internally and externally. The success of this framework is reflected in our strong brand value, customer base, market share and sustainable relationships with our stakeholders.
Corporate Responsibility
Maybank’s Corporate Responsibility (CR) initiatives are integrated into the Group’s business model. Maybank is committed to being a responsible corporate citizen, delivering a sustainable future for the ASEAN region. This is consistent with our vision to become a leading regional company and our mission of humanising financial services from the heart of ASEAN.
In achieving this goal, we anchor our CR activities in four key pillars of Community, Environment, Workplace and Marketplace. Maybank lives and breathes its Core Values of Teamwork, Integrity, Growth, Excellence & Efficiency and Relationship building. This is better known as ‘TIGER’
For Maybank, Sustainability means conducting our business in a way that enhances our performance both today and over the long-term, contributing to the socioeconomic development of the countries in which we operate. We continue to conserve the environment, enrich the livelihood of the community, care for the development and wellbeing of our employees and contribute to good governance. Eventually, we believe that building a Sustainable CR framework that fully integrates with our business model will drive shareholder value and brand affinity.
