Hong Leong Bank sees 64% of customers going digital

  • Sixty percent to 70% of total RM220 million capex for digital efforts
  • Managing cash difficult for merchants, looking to deploy all-in-one terminal

 

Hong Leong Bank Bhd Personal Financial Services MD Charles Sik (left) with Hong Leong Bank Bhd group MD and CEO Domenic Fuda

HONG Leong Bank Bhd (HLB) revealed at the HLB Digital Day that 64.4% of its customers were utilising digital and mobile platforms for banking transactions as at the end of 2018, an increase of more than 20% from last year.

Speaking to the media, Charles Sik, managing director of Personal Financial Services said: “It is those 40 and above that surprises us. They are starting to adopt digital payments a lot faster.”

The bank also said that between 60% to 70% of its total capital expenditure (capex) of US$53 million (RM220 million) for the fiscal year ending June 30, 2020 (FY20) will be allocated for its digital efforts and enhancements.

Group managing director and chief executive officer Domenic Fuda, said that the bank’s growth target remains the same from last year at about 20% to 25%.

“The focus to deliver simple, seamless and straightforward solutions to customers has seen the adoption of Internet and mobile banking and other digital solutions, driving significant growth in cashless transactions across HLB’s customer base.”

Speaking at a media session themed Bye-Bye Cash! No Cash No Problem: Cashless is Convenience, Sik spoke about the benefits of going cashless for merchants.

“Just managing cash itself is a lot of work for small merchants,” he said, explaining that some merchants bank in funds on a daily basis and have unpredictable business volumes.

Based on the latest data from Bank Negara Malaysia, Sik said there is cash of RM103 billion in the market currently. “Eighty-five percent of that volume comes from two notes - RM50 and RM100,” he said, adding that his focus is promoting going cashless to merchants receiving these notes frequently.

“We are looking to deploy our all-in-one terminal later on that accepts all kinds of payments from e-wallets to cards to even QR codes,” added Sik.

The bank is piloting a collaboration with WeEat, a WeChat mini programme for F&B solutions in Malaysia where customers can order, pay and eat/enjoy their meals seamlessly, avoiding queues and long lines for order and payment.

WeEat has been launched in DC Mall, Damansara City with selected vendors and, should the pilot prove successful, there are plans to introduce it to more vendors nationwide.

To encourage greater understanding of its digital offerings, Hong Leong Bank will showcase the various promotions in Personal Financial Services and SME segments for Digital Day 2019 campaign that will run from July 7, 2019 onwards.

These include Cashless Promos across Credit Card and Debit Card products; Deals both online and ion the branches at the Bank; special promotions for SMEs that include Digital Business Solutions, guidance and support in establishing Official WeChat accounts, and All-In-One Merchant Terminals.

 
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