ALIGNED STAKEHOLDERS UNSDGs • Expanding our physical infrastructure improves accessibility and connectivity, which may affect short-term financial resources. • However, we believe this strategic investment strengthens our relationships with stakeholders and contributes to long-term financial sustainability. • We prioritise social impact over short-term financial gains by investing both Human and Financial Capital to manage our programmes efficiently. • Our goal is to build trust and foster long-term relationships with the underbanked segment, which can enhance our reputation and contribute to the broader economy by facilitating financial inclusion for these individuals. • Expand our digital banking platform and internal resources to deliver more inclusive and cost-effective financial solutions to our customers, including: • Digital initiatives: Virtual Account Opening (VAO), Financing Assistance (FAST), Leads Management System (LMS), Financing Chatbot, and Wealth Integrated System Enabler (WiSE). • Internal resources: Telesales Sales Response Team (SRT) and Ar-Rahnu outlets embedded into branches. • Deploy social finance funds and philanthropic capital, through Sadaqa House, to include unbanked and underserved segments within an inclusive Islamic economic ecosystem. • Support cottage industry players through Hal-Cube by providing premises and equipment for halal production that meet relevant authority standards. • Collaborate with INCEIF University to promote the ESG-i Assessment Framework for iTEKAD MSMEs, which guides local businesses to align with Maqasid Shariah objectives and ethical investment standards. EM CU LC CU GR • Maintain regular engagement with our investors and shareholders to manage expectations around our financial decisions. • Concentrate on our business units to develop new business models and improve our product and service offerings. • We invest our Financial Capital by offering quality financial products, enhancing our digital offerings, and acquiring the right talent, thereby creating long-term value for stakeholders. • As digital transformation initiatives may involve significant upfront costs, they can impact short-term profits and margins without delivering immediate returns. GR IV • Investing in talent development demands a substantial upfront financial commitment, redirecting resources from immediate operational needs. • This strategic choice sacrifices short-term financial flexibility in favour of long-term growth in our Human and Intellectual Capitals. • Provide access to digital learning platforms, including Coursera and the United Nations Global Compact (UNGC) Learning Academy, to support self-driven learning. • Enhance and structure Bank Islam Live Well Programmes with a focus on emotional, mental and spiritual wellness to empower our staff in building resilience and managing their emotional and mental well-being. • Leverage a wide range of Human Resource Development Corporation (HRDC)-certified training providers to maximise levy contributions while enhancing training content and delivery through their expertise. EM • Investing in training, Agile Centre of Excellence (CoE), Innovation Labs, and technology upgrades may initially strain our finances, but it offers long-term benefits in cost savings and revenue growth. • Even so, this investment may necessitate further infrastructure development and impact existing systems, affecting Manufactured Capital in the short-term. • Implement the agile methodology through an Agile Centre of Excellence (CoE) to enhance efficiency. • Establish Innovation Labs and CoEs to promote cost savings, cultivate an innovation culture and bridge the gaps between technology and business. • Prioritise technology resilience, platform development, and customised training programmes. EM CU LC • While investing in energy-efficient technologies requires initial expenditures, it can result in significant energy savings and lower operational costs over time. • Implement energy efficiency solutions to reduce energy consumption in our offices and branches. • Encourage employees to take an active role in managing waste within the workplace. EM CU LC ACTIONS TO ENHANCE OUTCOMES CAPITAL TRADE-OFFS …VALUE FOR OUR STAKEHOLDERS Our Value Creation Business Model Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 34
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