CHALLENGES/RISKS Mitigation Actions Challenges Results Market Dynamics and Competitive Pressures ✓ Market players are increasingly reducing profit rates to expand their market share. ✓ Fintech companies are providing quicker, more cost-effective services, putting pressure to innovate and improve digital offerings. ✓ Diversified customer base to mass market and mass affluent segment. ✓ Enhanced product offerings with revised profit rates for Home and Personal Financing to stay competitive, along with an increased financing limit for PF. ✓ Enhanced competitiveness and visibility in the financing market. ✓ Personal Financing disbursement increased by 22.5% and Home Financing disbursement increased by 9.3% y-o-y growth. Digital Infrastructure to Meet Competitive Demands ✓ Digital tools are increasingly needed for customer acquisition efforts. ✓ Enhancement of Financing Application System (FAST) to improve Turn-around Time (TAT) and efficiency. ✓ Introduced Wealth integrated System Enabler (WiSE) for sales performance and monitoring tools. ✓ Augmented market outreach via Chatbot and Leads Management System (LMS). ✓ Other digital platform has been established such as BIMB Mobile, BIMB Web, Financing Chatbot and SMEXpert. ✓ Improved internal digital tools for widening the customer base and maximising lead generation capabilities. Innovating Products and Services ✓ Customers are looking for more diversified Shariah-compliant solutions. ✓ Launched Gold Investment Account in October 2024 to provide diversified savings options. ✓ Fortified the overall Wealth Management platform under the concept of the six pillars of Islamic wealth management. ✓ Strengthened Bank Islam’s value proposition for HNWIs seeking Shariah-compliant wealth management solutions. OPPORTUNITIES Strategy Opportunities Financial Inclusion and Portfolio Diversification ✓ Establish partnerships with corporate bodies, universities, developers, travel agencies, and associations to spread awareness of financing options. High Net Worth Individuals ✓ Introduce new Shariah-compliant wealth management offerings, such as capital market solutions and bancassurance products tailored to the affluent segment. Digital and Cashless Opportunities ✓ Continue to promote cashless initiatives at various associations, corporate bodies, universities and schools. AI and Big Data ✓ Explore opportunities to innovate and enhance banking services using big data and AI to offer personalised banking experiences and predictive financial solutions. OUTLOOK AND PROSPECTS In 2025, Group Retail Banking will focus on growth, profitability, and strengthening its position as one of the leading Islamic banks in Malaysia through digital expansion, competitive financing, SME-focused programs, and intensified fee-based income. By emphasising customer-centric innovation and service excellence, we will enhance distribution channels, optimise customer journeys, and leverage technology to deliver seamless, accessible, and innovative financial solutions. 99 w w w . b a n k i s l a m. c o m 01 02 03 04 MD&A – BUSINESS REVIEW 05 06 07 08 09
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