Alliance Bank Malaysia unveiled its enhanced strategy plan today which will drive the Bank’s growth over the next four years by targeting new market segments and business verticals, regional expansion, championing sustainability as well as driving synergies and value creation through digital innovations and partnerships.
“We are building upon the successes the Bank has achieved so far with the strategy focused on business owners, SMEs as well as the communities they operate in and this strategy was anchored in a challenger bank mindset with a community-centric approach. During that time, we developed many innovative, relevant and effective solutions including those in the digital sphere which were market-leading and helped us build inroads into our chosen market segment,” said Kellee Kam, Group Chief Executive Officer of Alliance Bank, who took over the helm of the Bank on 1 September 2022.
The Bank has built an organisational DNA that is defined by its agility in meeting dynamic market changes while maintaining high standards of service to customers. This is a formula that Kam said has been proven to bring results as evidenced by the Bank taking SME market share from the bigger players of the industry even through challenging times.
“We will apply this same challenger mindset to the refreshed areas of focus under our new transformation strategy, Acceler8, which are aligned to other high-growth areas in our market, in order to drive the Bank’s next phase of growth,” he said.
Acceler8 will guide the Bank’s growth through to FY2027 and focus on providing fast, convenient and personalised solutions that are relevant to customers even as their needs grow and evolve.
With this strategy, the Bank aims to launch itself into the top quartile in the industry for return on equity, cost-to-income ratio below 45% and loans growth above the industry average. The Bank also seeks to achieve excellence in non-financial metrics such as customer service, employee satisfaction and sustainability.
Kam said that the Bank will expand its consumer banking focus to target the emerging affluent customer segment including over 2.1 million young professionals in Malaysia. “We aim to broaden our consumer product offerings to serve the HENRY segment (High Earners Not Rich Yet) as well as high-net-worth individuals. The HENRYs have growing financial needs which we will be well-positioned to support, being a partner to achieve their life goals and aspirations,” he said, adding that overall, the Bank is looking at supporting the needs of businesses and individuals at every stage of their lifecycle.
The Bank will also be expanding its reach into other business verticals such as the education, renewable energy and healthcare sectors, providing a comprehensive suite of offerings from the Bank’s business, corporate, Islamic and consumer banking functions. Additionally, business presence in fast-growing states and secondary cities will be amplified to position the Bank to capture the growth opportunities of these economic corridors.
The Bank will continue to champion ESG adoption among the community, to make a positive impact to society, the economy and the planet. “Our approach to this is defined by the 3As namely advocacy, advice and answers; where we create awareness, encourage and enable consumers and businesses to adopt ESG practices,” Kam said, adding that the Bank offers unique and innovative ESG solutions to its customers through strategic partnerships which it will continue to build and expand.
Another pillar of growth for the Bank is its Islamic Banking business as Islamic finance continues to be the fastest-growing segment in our market. Kam said that Alliance Bank has already started building unique propositions to cater to the needs of those in this segment such as the Halal in
One proposition and sustainable financing. Halal in One is the Bank’s one-stop solution that provides businesses with Halal certification advisory, Shariah-compliant financing and Halal market access for SMEs to grow their businesses.
In addition, the Bank will continue building strategic partnerships to efficiently widen its product offering and distribution, creating more value for its customers.
To further embrace the community bank spirit, Kam said that the Bank will be heightening customer activities within the neighbourhoods where the Bank’s branches are located. More engagement activities such as open houses and community events will be launched, focusing on forging meaningful connections with the community and making the Bank’s branches a focal point in those neighbourhoods.
“To be successful in the long run, we must proactively take a look at the market we operate in and how well we are positioned. Against an evolving backdrop of an economy in recovery, we remain positive in fulfilling our growth ambitions under Acceler8 through our planned transformations in technology, branding, culture, sustainability, customer service and other key areas of our business.” Kam added.
