BANKING ON DIGITAL:Evolution & Innovation in Financial Services

Raja Teh MaimunahChief Executive OfficerHong Leong Islamic Bank

Chief Operating OfficerDigital Innovation & Transactional BankingHong Leong Bank

Business Model Transformation

Businesses have, for more than a decade, moved their business functions online.

So has banking, for 20 years now…

20 years of Online Banking Milestones

Bank of Scotland launches “Homelink”, the 1st ‘online

banking’ platform - transfer and pay bills via phone and

television connection

1983 1994 2001 2005 2007 2011

“400 million people (25% of global internet population) are

banking online.”

Comscore

2013

Facebook develops its own financial services –remittances & e-money

Apple launches the iPhone, triggering a monumental shift

in mobile banking applications

FFIEC announces new regulations and calls for

banks to conduct risk-based assessments for improved

security measures to authenticate remote account

access

Eight US banks achieve

1M online users

Online banking is built into the Microsoft Money

personal finance software

Top 5 Mobile Payment Markets by Volume in 2015*

82 billion bill payments

55 billion bank card acceptance

27 billion e-commerce over mobile phones

23 billion point-of-sale payments

55 billion person-to-person transactions

How Technology & Innovation have changed Banking

Local banks have branded their online platforms for identity building

The Near Future – a Customer Journey at Hong Leong Bank

awareness information advicebecoming a customer

service & transaction share

Cycle

PRESENCE PERSONALIZATION INTERACTIVE SIMPLICITYUBIQUITIOUS &CONVENIENCE

FEEDBACK

Tra

dit

ion

al

On

lin

e

… MOBILITY: Mobile devices now play a

fundamental role in various parts of the engagement cycle

What was once a dependency on

desktops and wired internet, customers can

now do the same and more through…

PEx - Payment Express – Mobile Money TransferWhat we are doing at Hong Leong

OverallStrategy

digitization

digital products

partnerships& merchants

marketing &social media

Enabling and expanding Connect’s online banking capabilities across various digital platforms, with emphasis on innovation in mobility.

Development of online banking products to replicate offline banking offerings. Some online products will have enhanced benefits.

Continuous communication through advertising to educate consumers on Connect and its services, as well as promotions and acquisition campaigns

to increase adoption.

Value Creation via expansion of reach, increased usability and ecosystem enrichment

Thank You