The best banks of the past 12 months from the Asia-Pacific region.
Afghanistan, Afghanistan International Bank
This year sees the continuation of an impressive run of wins by Afghanistan International Bank (AIB) for the Bank of the Year award in Afghanistan. Despite the difficult conditions in which the bank operates, it continues to innovate and provide modern banking services to international standards.
AIB has received a huge boost in the past year with the International Finance Corporation (IFC) increasing its share in the bank by 7.5%, to hold 15% by October 2017. The IFC’s stated aim at the time was to build a partnership with the bank to improve rates of financial inclusion in the country, and in doing this it gave the bank an international seal of approval.
With the backing of the IFC, AIB has successfully positioned itself as a correspondent bank for European banks, and set itself up as US dollar clearer. This has been significant for the bank at a time of de-risking, which has seen a number of banks exiting partnerships.
Taking on the complications that come with operating in Afghanistan, AIB has bulked up its financial crime compliance screening. Using Accuity’s Firco Compliance Link, AIB can provide an overview of accounts, transactions and trade. This partnership has been crucial in international institutions recognising the bank’s compliance standards.
Over the past year, AIB has also been ensuring homegrown businesses are given the opportunity to thrive. Through working with the Afghan Credit Guarantee Foundation, the bank has been able to provide assistance to family-operated businesses and help them to grow into a new generation of small and medium-sized enterprises.
Anthony Barned, CEO of AIB, says: “We’re delighted to have won this award for the seventh consecutive year. Banking in Afghanistan has its own distinctive challenges, and we are proud of the essential service we are able to provide to our customers and to the country.”
Bringing its operations up to date while providing the best possible assistance for its domestic business customers helped Dhaka Bank to secure its place as the winner of the Bank of the Year award in Bangladesh.
Dhaka Bank carried out extensive updates to its IT and operating systems over the past year. The bank replaced its full back-office system by implementing the latest version of Oracle’s Flexcube system.
Syed Mahbubur Rahman, managing director and CEO at Dhaka Bank, says: “Dhaka Bank always aspires to render world-class services to its customers through continuous innovation in every step of the value chain, either through technological changes or re-engineering processes. This in turn leads to achieving excellence in banking.”
Serving Bangladesh’s small and medium-sized enterprises (SMEs) has been a focus for the bank, and one that saw the creation of tailored products. More than half of Dhaka Bank’s SME customers were first-time borrowers following a focused approach of bringing in new customers, even if they did not hold accounts with the bank. Its overall SME portfolio increased by 24% in 2017.
The bank also launched BillsToCash, a financing solution backed by the buyer, marking a first for this type of loan in the country. The Bangladesh dairy industry was also boosted with the creation of the Dairy Loan. This cluster of loan products was developed to assist those operating in remote rural areas, who are in greatest need of support.
Female entrepreneurs were given an added boost too, with the introduction of the Oditiya loan. The bank’s overall support saw 10 female-owned SMEs receive support in 2017, bringing the total up to 81 female entrepreneurs taking a share of more than Tk413m ($4.93m) in loan facilities.
In the face of changes in Brunei’s economy, Baiduri Bank has shown how adapting to new circumstances can bring success. This spirit of innovation has seen the bank scoop the award for Bank of the Year in Brunei.
With the bank facing a decline in its core business from the drop in oil and gas prices, Baiduri Bank took over the commercial and retail portfolios of HSBC’s Brunei branch after the UK-based bank decided to exit the market. To ensure the smooth onboarding of these new business units, Baiduri worked to increase headcount and improve customer service, its systems and facilities.
In improving its systems, the bank has been able to reduce core batch times by 50%, while also improving its disaster recovery. Back-up replication is carried out immediately, and full database back-up can be completed in 20 minutes, compared with the previous five hours. The system has also been future-proofed with additional capacity to handle any increases over the coming five years.
The arrival of the former HSBC customers has given the bank a range of new cross-selling opportunities, and has seen 29,000 new credit and debit cards being issued. The cards issued by Baiduri come with a range of features, including contactless payments and interest-free payment period, for Visa Infinite and Visa Platinum customers.
Both new and existing customers have benefited from improvements to Baiduri’s online banking offering. Customers are now able to apply for personal internet banking through the website and mobile app using their debit, credit or prepaid cards. In the eight months from its launch in April 2017 there were almost 3000 online registrations performed.
Cambodia, Cambodian Public Bank
The success of Cambodian Public Bank (Campu Bank) can be put down to the bank’s continued focus on providing the highest possible service for its customers.
Campu Bank celebrated a milestone in 2017 as it reached 25 years of operation. To mark this the bank launched the My Neighbour, My Customer campaign, as part of its long-term corporate social responsibility and financial inclusion plans. The campaign saw staff from the bank’s 30 branches visit their neighbours to explain the bank’s products, mobile and internet banking services, and educate them on the importance of keeping proper business accounts.
On the digital front, the bank modified its mobile app with greater enhancements to bring it level with the services available through online banking, including matching transaction processing hours. New features available for the app included fund transfers, overseas remittance and pre-paid product top-ups.
Datuk Phan, CEO at Campu Bank, says: “Our success is attributed to the dynamic leadership of founder and chairman Tan Sri Dato’ Sri Teh Hong Piow in setting clear strategies and best practices to build a successful bank with an unbroken track record of profitability since its inception in 1992.”
Over the past year, the bank has sought new ways to provide increased services to its customers and in doing so has boosted its own revenue streams. Campu Bank teamed up with AIA (Cambodia) Life Insurance to offer life and health insurance products.
The bank also pushed towards operating in a more environmentally friendly way, moving from using paper towards greater digitisation. Electricity consumption has also been reduced by replacing old and inefficient hardware.
China, China Construction Bank
In a country with a banking sector as highly competitive as China’s, the success of China Construction Bank (CCB) in this year’s Bank of the Year awards is a marked victory. Following the lead of the Chinese government, the bank has shifted its strategy towards innovation-driven development. This saw it expand its product suite, resulting in its transaction business revenues reaching Rmb13.9bn ($2bn), and debt securities underwriting for non-financial enterprises reaching Rmb400bn.
To give the bank an edge in its home market, CCB boosted its fintech strategy with the initiation of its new generation core system. The goal was to grow its customer base and create new revenue opportunities by implementing new software and system improvements.
The bank’s success also comes down to its focus on providing services that will benefit its customers. Following the lead of China’s national housing policy, CCB has improved its mortgage loans and rental services. To position itself as a bank to assist with the financing of property, CCB has signed agreements with 300 local authorities to be recognised as a trusted partner. At the end of 2017, the bank had extended individual housing loans of Rmb4210bn, the highest such figure within the global banking industry. The total also represented a 17.5% increase in lending by the bank.
CCB has also taken a strong stance on its corporate social responsibility dedication towards poverty alleviation. By the end of 2017, the bank had donated Rmb149bn towards the most underserved areas in China, with the specific aim of boosting education and providing assistance for new mothers.
Hong Kong, Standard Chartered Bank Hong Kong
As China looks outwards through its Belt and Road Initiative, Hong Kong has found itself ideally positioned between the mainland and the rest of Asia to provide a stepping stone between the two when it comes to financial services. Understanding this link, Standard Chartered Bank Hong Kong moved to capitalise, and in doing so scooped the Bank of the Year for Hong Kong prize.
Standard Chartered has leveraged its long history of working in multiple countries across Asia, with an on-the-ground presence and an understanding of the regulatory and legal frameworks present across these markets.
This focus does not mean that the bank has stopped innovating at home. The past year has seen the bank move forward with its fintech plans, as it became the first bank in Hong Kong to offer Alipay top-up services. The bank also partnered with payments platforms Octopus and O!ePay.
Mary Huen, chief executive of Standard Chartered Bank Hong Kong, says: “With almost 160 years of history in Hong Kong, we are a truly local bank offering global solutions, via both the traditional and digital channels, for our clients to grow their businesses and wealth.”
Standard Chartered Bank Hong Kong has also looked to the future of banking by making strides in distributed ledger technology (DLT). The bank has teamed up with the Hong Kong Monetary Authority’s fintech facilitation office to be the lead bank in the DLT trade finance working group. Ant Financial has also recognised the bank’s position on innovation and named it as a core partner bank for its blockchain cross-border remittance service, offering payments through AlipayHK and GCash in the Philippines.
As well as partnering with third parties, Standard Chartered Bank Hong Kong is looking to take steps into the digital space itself having applied for a virtual banking licence, in order to give customers greater choice when banking.
Covering a country as geographically large and demographically diverse as India presents a set of challenges unique to the country. But by ensuring that even the most remote and financially challenged consumers have access to banking has helped HDFC Bank to capture the title of Bank of the Year in India for 2018.
The bank has made real progress in the past year in bringing banking services to the more remote parts of the country. Opening 72 new branches over the past fiscal year, and establishing 375 new ATMs in the year to June 2018, the bank is working to tackle the issues of the underbanked and underserved communities in rural India. Indeed, 35 of these new branches are located in areas where the local population previously had no access to formal banking services.
Ensuring that the bank is providing on-the-ground services does not mean it has neglected its digital offering. The bank has launched an open application programming interface platform that will allow different parts of the business to easily access the same information, regardless of location.
With the growth of mobile and digital payments among its user base, HDFC has also been taking steps to ensure payments can be made across multiple channels.
Streamlining its processes within its branches, HDFC has implemented a digital application platform (DAP) that pulls together various processes to streamline the provision on banking services to customers, including loans, overdrafts and credit card applications. The bank now sees 95% of all applications for these services conducted through its DAP.
Aditya Puri, managing director at HDFC Bank, says: “I accept this award with humility on behalf of all my colleagues at the bank, without whom this would not have been possible. I’d also take the opportunity to thank all our customers and stakeholders who’ve [retained] their faith in us. We view this as an added responsibility towards them.”
Over the past year, Bank OCBC NISP has provided a range of services that give its customers a greater level of autonomy over how they run their banking services.
Through the creation of its ONe Mobile app, the bank boasts that it has brought ‘branch-in-your-pocket’ banking to its customers. While ONe Mobile has a range of standard functions such as making transfers and payments, it goes a step further in providing specialised services such as wealth management and tax reporting statements. The app’s security features are also extensive, giving customers the control to block and unblock their ATM cards. Customers can also withdraw funds from ATM machines using QR codes within the app, the first time this service has been made available in Indonesia.
OCBC gave its customers even more choice over how they make their funds work for them with the development of the Tanda 360 Plus savings product. Users are able to hold 12 different currencies in the account simultaneously, a product that is of huge benefit to customers who regularly use foreign exchange facilities. Holding the funds in one place removes the need to open multiple bank accounts, and significantly reduces the errors that can arise from moving funds and recording transaction details.
To be able to offer such an innovative product, the bank had to bring in a number of new processes to ensure a low risk of error. OCBC implemented double checking in branches for correct currency matching. The details of transactions across currencies are provided in a single e-statement to give an easy overview to customers. Customers wishing to set up an account are able to do so at any time through the bank’s app.
Japan, Mitsubishi UFJ Financial Group
Holding a solid place in your home market gives a strong starting point to explore expansion into other countries. Mitsubishi UFJ Financial Group’s (MUFG's) ambitious plans for the future of the business to take it beyond its traditional parameters gave the bank the edge to win the Bank of the Year award for Japan.
Recognising that the Japanese economy will likely continue to have a low growth and low interest rates, the bank devised a three-year business plan to expand its horizons to bring in new services and expand its reach into new territories.
Most notable in these developments was the bank’s decision to put strategic investment into Bank Danamon Indonesia. In December 2017, MUFG entered into a share purchase agreement to take the majority stake in Danamon.
Recognising the high growth potential of Indonesia, MUFG will now be able to operate as a partner bank and integrate its own customer, service, network and operational expertise. It will also allow MUFG to diversify its portfolio, giving exposure to the local retail business and small and medium-sized enterprises, an expansion from its core business of wholesale and corporate banking.
The bank’s focus is also on how it can adapt to digital to keep pace with the changing demands of its customers. MUFG has teamed up with Akamai Technologies to develop a blockchain technology that will enable the bank to manage the increased flow of transaction volumes and expected rise in micropayments. Through testing out the functionality, the bank was able to process transactions in less than two seconds, and handle 1 million transactions each second. With further development, it is expected this will increase to 10 million transactions per second.
Over the past year, ForteBank has been able to take a step forward in international banking, having seen its Moody’s and Standard & Poor’s ratings move from ‘stable’ to ‘positive’. With this in mind, as well as the bank’s commitment to digital development, it was able to take this year’s Bank of the Year award for Kazakhstan.
ForteBank has worked to combine the merger of three banks into its present format. This has meant overhauling its internal technology platforms to create a cohesive experience across all parts of the bank.
Embracing innovation, the bank has forged ahead with providing alternative banking methods for its customers. Self-service outlets have been introduced in branches. Telesales have also been initiated, with 25% of unsecured retail loans being issued through telesales within a month of the service’s launch in April 2018.
The bank has been active in improving the foreign exchange experience with the implementation of ForteX. In the 12 months since the introduction of the service, ForteBank has seen 67% of all non-cash currency conversion transactions being made through ForteX. Thanks to the new system, transactions can be processed more quickly, resulting in a 62% increase in transaction volume over its first year.
Consumer banking was brought up to date with the arrival of FortePay. Consumers can now make cash transfers using only the telephone number of the recipient. They also have the option of how to withdraw the funds, whether through payments into their bank account, by card or through withdrawal from an ATM.
Customers have also benefited from the arrival of ForteTravel, which enables the online purchase of travel tickets or accommodation.
Kyrgyzstan, Kyrgyz Investment and Credit Bank
Over the past year, Kyrgyz Investment and Credit Bank (KICB) has undergone a raft of changes that have seen the lender completely overhaul its internal operating systems and refocus its strategy towards its customers.
In order to put its customers at the front and centre of its business, the bank has created the new role of relationship managers by retraining its existing members of staff. With the help of external consultants, KICB has brought together the previously separate credit and deposit operations departments. Customers now have one point of contact within the bank to give them easier access to the services they need. It has also helped the bank to increase its cross-selling opportunities.
This refocusing towards the customer was also seen in KICB’s move to overhaul its IT systems. As well as upgrading its existing Oracle platform, the bank introduced a customer relationship management system at the start of 2017. This gives a full overview of a customer’s activities, and identifies areas where the customer could benefit from additional support or a new product.
Developing new business lines also means looking at how the bank can continue doing some of its more traditional business in a changing environment. Following the imposition of strict regulations, US banks closed correspondent banking operations in Kyrgyzstan. However, KICB has worked to find a way to recommence activities with US financial institutions. Working with law firm Baker McKenzie, a white paper was created outlining the legislative and compliance rules that the bank operates within. The hope is this will be enough for the bank to win back its US partners.
Investing in the bank in order to bring about greater returns in the future was the strategy of Banque Franco-Lao (BFL) over the past year, and this helped it to take the title of Bank of the Year for Laos.
The bank recognised that while updating its core banking systems would come at signification short-term costs, the possibility for increased business and efficiencies in the future would make the investment worthwhile.
Overhauling the systems allowed the bank to offer e-banking as standard to all of its customers for the first time. Alongside this, the bank improved its customer support team with the implementation of a ticketing system. When a customer raises an issue, the support team can issue a ticket against the department, such as the cards team. It can then be tracked to show updates and the customer can be contacted accordingly.
Through these developments, BFL has created an impressive plan for further innovation, including bill payments though its mobile app. The bank’s goal was to bring about a cohesive omnichannel experience, regardless of whether the customer was reaching out in branch, through its online platform or via social media.
Arnaud Caulier, CEO at BFL, says: “The bank’s operations are constantly evolving, and driven by customer-centric teams who are empowered to make decisions. It is a value-led bank that has a responsible approach to economic development, in terms of value creation and promoting business development.”
Furthermore, the bank has developed systems tailored towards small and medium-sized enterprises, from setting up its Banking on Women Initiative to supporting female entrepreneurs, through to extending branch opening hours to evenings and weekends.
The past year has seen ICBC (Macau) evolve its existing e-commerce and mobile technology to create an even more integrated service for its customers. And with the bank’s added position for cross-border business with mainland China, ICBC (Macau) scooped the award for Bank of the Year in Macau.
This combination of cross-border business and technology has enabled ICBC (Macau) to develop a number of new services. The bank promoted the use of private banking products by working with branches located in mainland China. It also developed an asset management sector, offering tailored financial and non-financial services to its clients.
Jiang Yi Sheng, chairman of ICBC (Macau), says: “Under the support of ICBC Group, the bank has focused on building a new-generation smart bank system, and made a number of achievements in product innovation, customer service, business management, risk prevention and control, and internationalised and diversified developments.”
For consumers, the bank added further functionality to its existing ICBC Mall (Macau) platform. Operating as an e-commerce platform with an online to offline model, the bank expanded the product in 2018 to permit a cross-border channel. This enables goods to be sent directly from sellers in Macau to customers in mainland China, and resolve the issue of sending products outside of Macau, which had been impacting local e-commerce. During 2017, the ICBC Mall (Macau) saw a total of Rmb20m ($2.88m) in transactions.
With local customers in mind, the bank launched an insurance function on its mobile app in 2017. The overall functionality of the app was also upgraded to create a more personalised experience. Additionally, it was the first bank in Macau to integrate WeChat payment services.
Maybank clinched the Bank of the Year in Malaysia award thanks to its fresh thinking on how to provide the best quality of service to previously underserved consumers. Recognising a gap in the market to provide services to Islamic banking customers, it launched HouzKEY, an innovative rent-to-own product that is the first of its kind in Malaysia.
With a growing demand for affordable homes in the country, Maybank created this alternative solution, which allows for home ownership through a leasing scheme that does not require a deposit.
Customers have a flat rate rental payment for five years, and at the end of that time have the option to purchase the property at a price agreed at the start of the contract, continue to rent with a 2% annual rent increase, or to terminate the contract with no obligation. The scheme is sharia compliant, being based on the ijarah principle of leasing.
Datuk Abdul Farid Alias, president and CEO at Maybank, says: “The bedrock of our success is predicated on our mission of ‘humanising financial services’, which drives us to innovate and offer financial solutions that enrich the lives of our customers and the communities we serve across our global network.”
The bank has also embraced mobile with its new edition of the Maybank2u app. To improve the customer experience it was relaunched with a new look to make it more accessible and faster to use. It is also the first banking app in Malaysia to have integrated three biometric security features, removing the need for SMS approval of transactions made within the app. Cashless payments are now available for customers using the Maybank QRPay option.
In recent years, Mongolia has seen a sharp increase in the number of people with smartphones, creating a huge change in this emerging market. The way in which Golomt Bank has stepped up to these challenges is what saw the bank secure this year’s Bank of the Year award for Mongolia.
Recognising that consumers are now looking to run their banking operations through their phones, Golomt launched Social Pay. A sophisticated mobile payments solution, customers can transfer funds with just the phone number, e-mail address, Twitter or Facebook account details of the recipient. More remarkably, they can even do this with just the recipient’s current location. The app also supports QR code payments. Users are also able to send an invoice for payment.
Social Pay has also proved successful as users are given the option to become a Golomt Bank customer. Social Pay can also be used to pay bills, pay for e-commerce purchases and top-up mobile phones. Within a year of its launch, the bank had performed 300,000 transactions with a total value of Tg13bn ($5m).
Customers preferring more traditional payments methods have the choice of new cards. The Gan card has been designed for frequent travellers through collaboration with UnionPay. The existing Zes Visa card has grown in strength thanks to an education campaign by the bank on the benefits of using a credit card. As a result of this, by the end of 2017 the Zes card accounted for 62% of the entire Mongolian credit card market. Both cards can be applied for online, and non-Golomt Bank customers are able to apply.
In a country undergoing huge change and the implementation of a new regulatory system from the Central Bank of Myanmar, KBZ Bank showed that it was flexible enough to meet the demands of these changes, while still providing exceptional client services.
The bank overhauled its management to meet the new requirements, including providing all members of staff with a job description and creating a performance management programme to assist career progression among its workforce.
In order to ensure customers are receiving the best quality of service, the bank introduced net promoter scores. These help staff to better understand customer satisfaction and identify areas open for improvement. On a local level, each branch is able to access their own productivity scores generated by the number of customers served each hour. Using the big data available to them, the bank can benchmark the results of different branches and members of staff.
One of the greatest challenges the bank has faced is around financial inclusion, with just 10% of Myanmar’s population holding a bank account. Recognising the mobile-first potential of the customer base, KBZ launched a digital wallet to enable users to send cashless payments and withdraw funds through authorised agents.
The mobile app was modified to create a more pleasant experience for customers, beyond the solely functional. With the introduction of the Remit2U functionality, users are now able to send funds through their app. Customers can also obtain the funds that have been sent without the need for their bank card by using a code provided by the sender and an additional code received via text message from the bank. This code can then be used to withdraw funds from an ATM.
Taking a proactive step in providing assistance for a customer base and developing the domestic economy, in the face of real challenges from the country’s overall outlook, has been a hugely ambitious step for NMB Bank. However, these ambitious plans have been met with success, and picking up the Bank of the Year award for Nepal.
In recognition of the need for better banking services for the whole population to foster economic growth, NMB employed the assistance of consulting firm Si-Creva to provide guidance. The result was plans to target Nepal’s small and medium-sized enterprise (SME) segment, as well as the country’s entrepreneurs, with a programmes to support them along the value chain.
On the advice of Si-Creva, the bank is also establishing a programme to tackle the gender imbalance in financial inclusion. NMB is first bank in Nepal to create such a scheme, in recognition of the role women have to play in the continued growth and development of the country as a whole.
The bank’s own strong position has paid off as it became the first bank in Nepal to sign a mandate with the International Finance Corporation for a loan of $15m. The loan will be used to promote SMEs and boost tourism in the country.
Sunil KC, CEO at NMB Bank, says: “The most important elements in the bank’s success have been trust and respect earned from our stakeholders by demonstrating a high degree of corporate governance standards, ensuring our customers and people are at the core of our strategy with a high emphasis on value and a sustainable banking business model. [This] has been the key to our success.”
New Zealand, ANZ Bank New Zealand
Over the past year, ANZ New Zealand realised there were significant efficiencies to be made in how it ran its business banking division. The aim was to provide the best possible service to customers, regardless of their financial position, and encourage staff to assist customers by drawing on their own personal experience and expertise.
After assessing its existing operations, ANZ identified issues with a model that was high cost but did not provide additional support to its highest value customers. The bank reassessed how to best use its staff, deciding to focus its relationship managers on only its top 20% customers, with the remaining 80% having access to a business banking manager whenever they need.
Internal processes have been centralised so staff are able to spend more time supporting customers. The changes proved successful, as the bank saw a 30% increase in the acquisition of customers in 2018 to November, compared with the same period in 2017 prior to the changes being implemented.
David Hisco, CEO of ANZ New Zealand, says: “ANZ New Zealand is one of the country’s most successful companies because we’re relentlessly focused on simplifying banking for our customers, whether it is in helping them get into a home, start and expand a business, trade with the world, save for retirement or protect their families with insurance.”
On a consumer level, the bank improved its customer service with the launch of chatbot Jamie. The bot helps customers to find answers to simple questions, such as branch location and contact details. Customers can also verbally ask the question, and receive a spoken response. The aim is to increase Jamie’s knowledge over time to answer more complex banking questions.
Bringing banking to a market where thousands of people are still to open their first accounts is a huge challenge, but one that UBL has been undaunted in taking on. And after seeing remarkable success in bringing banking to whole communities for the first time, the bank was a worthy recipient of Bank of the Year award for Pakistan.
UBL has taken on an ambitious project of financial inclusion, and in 2017 acquired 450,000 new-to-bank customers. The result of this was current account deposits growing by 18% year on year, with an additional Rs60bn ($446m) over the year. Because of this increase, the bank saw a landmark Rs1trn in deposits for the first time.
With such huge numbers of customers coming on board, the bank has made significant investments to boost both its online and in branch banking services. Understanding the needs of customers in rural communities, 614 of the bank’s 1359 branches are in rural areas. In order to increase financial literacy the bank has held ‘Zarai Baithaks’ educational gatherings of farmers. The result has been 5000 new farming customers joining the bank over the past year.
The bank also has its eyes firmly on the future of banking, and in 2017 set up Pakistan’s first digital lab in collaboration with IBM. Within the lab, UBL is able to collaborate with fintechs and tech start-ups to create new services for customers.
UBL also entered into mobile banking with the release of its UBL Digital app, giving customers round-the-clock access to their accounts. Features include a built-in QR code payments system and biometric authentication with retina scans and facial recognition.
Philippines, Security Bank Corporation
The growth of its consumer banking business has been a main focus for Security Bank Corporation (SBC) over the past year, and one that has helped the bank to improve its financial results.
Over the past year the bank implemented a number of new products to support its consumer finance business. Salary Advance and Business Express Loan were released, with the former offering personal loans through text messaging and the latter offering small business loans. These innovations were behind the bank’s consumer loan portfolio growing by 49% over the year.
Further benefits were extended to current account customers with the bank offering free insurance to its All Access Account customers. This proved to be a successful move, as the bank saw the number of applications to open an account double in the final months of 2017.
The bank expanded its retail banking segment with the use of third-party channels over the year, with the release of the Dealer Channel for Auto Loans and Direct Sales Agent for Personal Loans.
Credit card customers were also given a boost, with the Click-Card Mastercard providing up to 5% cash back on all online purchases. The funds are credited instantly into the card account following the transaction. The bank bulked up security for e-commerce transactions with the use of a one-time password being sent to the buyer’s mobile at the time of purchase.
Alfonso L Salcedo Jr, president and chief executive officer of Security Bank Corporation, says: “Our success could be attributed to our commitment to become a better bank for our customers and to our adherence to executing excellence as we build our third business pillar – retail banking.”
DBS Bank pushed forward with its key strategy of innovation in 2017 in an impressive way, doing enough to take the title of Bank of the Year in Singapore. The lender demonstrated impressive agility in its response to new regulations within Singapore, and the ability to deliver products to market in a timely manner.
Responding to the announcement by the Monetary Authority of Singapore that banks would be allowed to operate digital platforms that could match buyers and sellers of goods and services, the bank sprang into action to create a marketplace.
This move made it the first bank in Singapore to respond to these changes with the launch of its DBS Car Marketplace in August 2017, just two months after the announcement. The marketplace provides a link between car sellers and buyers, as well as facilitating transactions including purchases, loans, insurance and car accessories. Customers can also book in-car services from vehicle inspection companies.
DBS quickly followed this with the launch of the Electricity Marketplace in March 2018 and the Property Marketplace in July 2018. Electricity Marketplace allows customers to look for better deals on their energy providers and apply online. Meanwhile, Property Marketplace lists properties for sale and rent, while also providing a home financial planner to let users check the affordability of a new home.
DBS also made a strong commitment to environmental issues by becoming the first bank in Singapore to issue a green bond. It was also the country’s first bank to be listed on the international FTSE4Good Global Index. The bank’s dedication to green issues runs deep, as it announced it would use 100% renewable energy in its Singapore operations by 2030.
Taking bold steps forward in banking can bring success, especially to those in a country with a tech-savvy and affluent consumer base. Seeing the opportunities to adopt new technology, Woori Bank took that initiative, and made changes that saw it win the Bank of the Year award for South Korea.
Recognising the trend for voice-activated technology, Woori Bank launched SORi, an AI-backed system that allows for banking transactions to be made through voice commands. The system converts the user’s voice to text to perform the transaction. Biometrics are then used to complete the payment, removing the need for authentication and the input of account numbers.
AI was further used for investors with the Woori Robo-Alpha service, which analyses customer data to suggest a customised portfolio and possible investment choices. It can also assess the customer’s existing portfolio and make suggestions for improvements through the bank’s messenger service, WiBee Talk, or via SMS.
Customers visiting the branches also have had the chance to experience the move towards robotics, as AI-equipped Pepper robots were placed in branches to give recommendations on products such as loans and insurance. Pepper can also be used by customers to ask for information such as the weather forecast and cinema times.
Tae-Seung Sohn, president and CEO of Woori Bank, says: “Amid challenging market conditions we were able to level up the bank’s fundamentals by continuously improving profitability in wealth management, capital markets and global business, etc, along with strong asset quality. I am confident that the bank’s fundamentals will further improve by enhancing non-banking businesses and diversifying revenue sources after converting to a holding company structure.”
Sri Lanka, National Development Bank
A successful year for National Development Bank (NDB) came off the back of the bank’s plans to overhaul its operations over the next few years. Through the Transformation 2020 plan, the bank highlighted 150 initiatives to undertake across the bank.
NDB sought to tap into the increasing spending power of the female population by identifying three segments –home-makers, the salaried female workforce and entrepreneurs – with the aim of becoming the bank of choice for financial and non-financial assistance across the three groups.
To boost cash collection, the bank launched Cash Recycle Machines, which allow for both cash deposits and withdrawals. The service has appealed to customers who can use the deposit services outside of branch opening hours.
Branchless banking was introduced as a novel way of reaching the unbanked for the first time. Bank officers would remotely connect to the bank’s systems to allow people to set up accounts and utilise banking services, with the benefit of assistance from a bank employee. Recognising that there was an underserved population in taxi drivers and vendors at fairs and markets, the bank promoted branchless banking as way to serve these potential clients.
This focus on customer service was further exemplified in the bank’s overhaul of its complaints procedure and the addition of a data analytics team to assess data on customer behaviour.
Dimantha Seneviratne, group chief executive officer of NDB, says: “Our relentless passion for exceptional customer service augmented by digital capabilities, and a committed team rallying around the one goal of taking NDB to great heights, have been the key enablers of our success.”
The past year has seen Taiwan’s E.Sun Commercial Bank seeking to cement its presence in international markets. Taking ambitions steps in expanding its horizons has pushed the bank to its Bank of the Year in Taiwan win.
In its aim to expand its reach overseas, E.Sun has leveraged an integrated platform that provides the same experience across its countries of operation, bringing greater coordination between the bank’s headquarters and its regional operations.
E.Sun moved stridently to adapt its banking strategy to work more with overseas customers on matters of foreign exchange. In the 18 months to June 2018, the bank’s foreign currency loan book increased by 23%, and now represents 17% of its overall loan portfolio. The move has also seen the bank deepening relationships with these international corporate clients.
The past year also saw the bank take its first steps in private banking. With the market dominated by the global banks, E.Sun sought to bring a service to high-net-worth individuals in Taiwan on taxation and family wealth planning.
Joseph NC Huang, CEO of E.Sun, says: “Beholding integrity, professionalism, a long-term commitment to human resource and sustainability, E.Sun’s vision is to become the best bank and the most respected company in Taiwan.”
Technology was also given a boost, as the bank implemented the E.Sun Enterprise Data Cloud to improve data analysis processing by allowing operations staff to provide the data needed for automated analysis. This has helped to increase operational efficiency and improve the design of products and services. The bank calculated that using the system for automated reports helped to save 4800 hours across all businesses over the year.
Thailand, Siam Commercial Bank
Siam Commercial Bank (SCB) created an ambitious plan to overhaul multiple areas of the bank’s operations under its Foundation Transformation plan. With the four sectors of people, process, product and technology to be improved, the bank got to work.
In 2018, the bank launched the second stage of its SCB Easy lifestyle banking app, introducing greater levels of security, faster processing and a higher capacity to account for an expanding user base. The app seeks to go beyond providing just financial services, with privileges and discounts provided via the Easy Bonus feature. Customers can also use the app for cardless ATM withdrawals with the use of a six-digit PIN code requested within the app. Take-up of SCB Easy has been significant, with 6.5 million users recorded by the end of the first quarter 2018.
The bank also developed an innovative way of getting unbanked vendors in markets to digitise with the creation of the Chatuchak Guide app. Providing a guide to the vendors in the historic market, the app contains a detailed location map and shop information that consumers can browse before visiting. Following on from this success, the bank created a similar app named Rattanakosin Guide for Bangkok Old Town. Accessible for both locals and foreign tourists, the app includes promotions and details on the services available in the area.
Responding to the booming access to big data, the bank created the SCB Abacus to utilise artificial intelligence, machine learning and data science to extract business insights to help steer customers to the correct point of contact and give higher levels of customer service.
Working with developments introduced by the Turkmenistan government has helped Senagat Bank to establish a sophisticated banking network in the country, one which brings it up to international standards. It is with this in mind that the bank has been named this year’s Bank of the Year for Turkmenistan.
Senagat Bank has been integral in working with the government to implement the new payment system on public transportation. In conjunction with the Ministry of Motor Transport of Turkmenistan, an electronic payments platform was introduced in Ashgabat which completely removed the need for cash payments, simplifying the process between the passenger and driver.
These cards can be replenished automatically every 30 days, or by the individual when they choose through the post office, branches of Senagat Bank, or the bank’s ATMs. Customers without the necessary funds on their cards will still be able to complete several more journeys, with the debt owed being repaid once the card is topped up.
A benefit of these cards is the greater degree of data they will provide on the types of journeys customers are taking, which can in turn be used to modify bus timetables to best suit passenger needs.
Senagat Bank has sought to bring the bank, and the country, into the international financial space with the continued promotion of plastic payments cards. The bank’s own Altyn Asyr card is tied to the national payments system. The bank is also committed to the increased use of ATMs across the country, something that has been achieved with greater collaboration between both domestic and international financial institutions.
Working in an environment where many consumers still prefer to use traditional banking methods presents a set of challenges to a bank that is also trying to improve its systems. However, InFinBank managed to pull off this difficult juggling act of meeting customer needs while updating its back-office facilities.
InFinBank took the award for Bank of the Year Uzbekistan off the back of its large-scale project to completely overhaul its digital systems. Working in collaboration with SAP and Pegasystems, the bank has fully updated and automated credit workflow, managerial reports and customer relationship management systems. The development marks a first for banks in Uzbekistan.
Implementing automated flows has allowed the bank to significantly speed up the process of credit approval. The process of application for credit, document review, assessment and final credit approval are all carried out digitally.
Understanding the differing needs of the consumers in the country, the bank has taken steps to improve both digital and also branch-based services. The bank has an extensive branch network across the country to service its clients who would prefer to conduct their banking in person.
In the past 12 months, InFin has become the first bank to issue credit cards in Uzbekistan. Previously, the bank only issued debit cards, and the proliferation of payments cards across the country remains low. The introduction of cards has been one of the most popular products available from the bank over the past year.
InFin also has a strong presence in international banking, providing trade finance support for a number of European finance institutions. The bank has seen credit lines of more than $40m extended.
For Vietcombank, the past 12 months have been notable for the manner in which it has transformed the digitisation of its banking systems, and the experiences of its customers. The bank has taken on the challenge of shifting its focus towards retail banking and has yielded some impressive results.
Due to the complications of replacing the whole back office, the bank has devised a staged implementation timetable that it is currently working through. Trade finance is one of the businesses to have been improved, and the bank has become the first in Vietnam to adopt Swift’s gpi payments standards.
Vietcombank also updated its mobile banking app to bring it in line with consumer expectations. The app was first launched in 2012 and needed to be changed to integrate new services, including working alongside a number of partners to initiate easier transactions. The new app allows QR code technology, and is accepted in 10,000 stores and e-commerce sites.
The app has proven to be a huge success for the bank, attracting more than 1 million new users since the relaunch. This user base helped to generate almost 10% of the bank’s total fee revenue in 2017. The bank’s overall improvements to its customer banking platforms have helped to boost the revenues recorded, with the total income from cards and e-banking combined increasing by 36% year on year in 2017.
Nghiem Xuan Thanh, chairman of Vietcombank, says: “The bank’s success is down to customer satisfaction gained from comprehensive financial solutions and superior services quality; knowledgeable and skilful staff working with great dedication; and a management vision to formulate the right strategy and provide timely actions.”
