Opportunities Opportunities Our Approach • Aligning our sustainable finance initiatives with Maqasid Shariah to promote the welfare of the community and preserve the environment through responsible financing and investments. • Maintaining a robust financial position and strong profitability – by maintaining a healthy net income margin and upholding high asset quality standards, amongst other financial strategies – to ensure the sustainability of our business and support our efforts in sustainable finance. • Expanding our portfolio of Shariah-ESG products and solutions, to support businesses adopting sustainable technologies such as rooftop solar panels, solar farms and more. • Intensifying our efforts to drive Shariah-compliant financing for hybrid and electric vehicles (HEV). • Offering Shariah-ESG funds, which cover global and local equities, money markets, sukuk and unit trust funds, to our customers. Our Approach • Continually striving to enhance the digital banking experience we offer through new platforms, including BIMB Mobile and BIMB Web in 2024. • Streamlining transaction processes to deliver greater convenience to our customers. • Leveraging data analytics and AI to develop hyper-personalised products and customer experiences, including through our Next Best Product initiative. • Providing our customers with a range of channels to provide feedback, facilitating our continued improvement. Risks • Under performance of ESG assets and funds could harm our reputation and sustainability-linked performance. • Adopting sustainable investments and offering green portfolios may lead to significant regulatory and transition costs. Risks • Failure to keep up with new trends in customer experience could lead to erosion of market share to new players, including digital banks. • Issues related to new platforms could result in weakened customer trust, also leading to customer attrition. • AI comes with significant risks related to data privacy and use, which need to be carefully considered. Sustainable and Responsible Finance SRF Customer Experience CE Why It Is Important By providing our customers with products and solutions that integrate Shariah and ESG values, we widen our addressable market and safeguard our reputation as a sustainable and future-ready organisation, while unlocking our capacity to be a catalyst for change in our communities and nation. Why It Is Important By delivering excellent customer experiences, we can secure our position as a preferred financial institution within an increasingly competitive landscape, building a strong bedrock for our continuing growth and value creation journey. • Introducing sustainable products and solutions that drive long-term value for business continuity, communities and natural environments. • Enhancing our reputation as a future-ready financial player and a leader in sustainable finance. • Introducing innovative products and solutions to strengthen our proposition and drive gains in market share and revenue. • Personalising products and solutions for our customers to drive increased revenue, build trust and drive retention. Link to: Link to: Capitals FC NT SR SP VB CE Strategic Focus Areas CU GR Our Key Stakeholders Capitals FC NT SR CC D Strategic Focus Areas CU Our Key Stakeholders UNSDGs: UNSDGs: 51 w w w . b a n k i s l a m. c o m 01 02 03 04 MD&A – STRATEGIC REVIEW 05 06 07 08 09
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