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RCBC Credit Cards Group offers enhanced digital cash loan facility for offering personalised service

As financial institutions explore ways to integrate new technologies into their processes, it is essential to prioritise consumers and keep them at the centre of all banking operations.

Banks must introduce credit solutions tailored to individual requirements to build and maintain a positive relationship with clients. Simultaneously, they must understand each customer’s financial status to improve risk assessment and management.

Personalised credit solutions appeal to consumers seeking individualised financial choices, lowering default risks by aligning with borrowers’ repayment capacity. These solutions also help navigate regulatory frameworks and the customer data enables institutions to make well-informed decisions when creating and refining credit offerings.

Enhanced services

The Philippines-based RCBC Credit Cards Group of the Rizal Commercial Banking Corporation (RCBC) offers credit cards with an enhanced digital cash loan facility for personalised services. With a fully digitalised process, the bank enables real-time approval and disbursal of loan proceeds within one day.

Through the digitalisation of the loan application form, cardholders receiving targeted messages can easily apply for a loan via their mobile phone or web browser. The programme sends a unique link to the cardholder’s registered mobile number and email address.

The message includes information on the available limit for cash conversion, affordable monthly amortisation and low interest rates. The allowable loan amount and applicable interest rates specific to the cardholder’s account are also specified to aid decision-making.

Since the process is digital, cardholders are exempt from paperwork and complex approval procedures typically associated with traditional cash loan products.

Faster approvals

The RCBC Credit Cards Group uses a data-driven and model-based approach to identify cardholders qualified for a digital cash loan. The predetermined loanable amount is based on the cardholders’ available limit. Despite this, the digital cash loans maintain customisation, allowing cardholders to select the loan term and amount. The cardholder can opt for a partial or complete disbursement of this loan. Conversely, personalised offers are tailored to the cardholders’ risk profile, payment behaviour and lifestyle.

These solutions have been designed with optimal security without compromising customer information. From January to September 2023, RCBC Credit Cards’ digital cash loans grew by 75% compared to the previous year.

RCBC Credit Cards Group has been highly commended in the Best Credit Card Initiative category at the Annual Retail Banker International Asia Trailblazer Awards 2024.

Maybank Singapore has launched solutions that facilitate a seamless experience in cross-border banking

New innovations are enhancing the efficiency of the cross-border payment process. This type of financing enables businesses to engage in global trade by offering a funding source that empowers them to compete internationally and conduct operations beyond domestic borders.

Cross-border payments can be made via bank transfers, credit card and alternative payment methods such as e-wallets and mobile payments. They are currently the most prevalent ways of transferring funds across borders.

Diverse services

Maybank Singapore has introduced innovative solutions to facilitate seamless cross-border activities between Malaysia and Singapore, and across Association of Southeast Asian Nations (ASEAN) countries.

One such solution is the option for Malaysians intending to work or study in Singapore to open an SGD savings account online and pay for their relocation expenses before their move.

In addition, Maybank’s cross-border ATM services ensure its customers do not have to worry about running low on cash during their travels. This service allows hassle-free cash withdrawals from Maybank ATMs in Malaysia, Singapore, Brunei, Cambodia, Indonesia and the Philippines, without any service fees.

Maybank Singapore is the centre of excellence for wealth management within the Maybank Group. It offers an extensive range of wealth management solutions, including Islamic wealth management, to support the growth needs of mass affluent, affluent and high-net-worth (HNW) clients.

The bank offers Singaporean investors eyeing overseas properties in countries such as those in the UK, Australia and Malaysia, the option to secure an overseas home loan.

Additionally, for Malaysian properties, customers have the flexibility to opt for financing through Maybank Malaysia. For business entities, Maybank Singapore also provides corporate account opening facilities, business advisory services and comprehensive business solutions to meet all international payments and currency conversion needs.

Client-first outlook

As of August 2023, Maybank has made strides in its Malaysia-Singapore corridor services as it provides both retail and corporate customers the convenience of instant online cross-border funds transfer services across the causeway.

The service allows individuals to transfer funds to any Malaysian bank account for a nominal fee of S$2 ($1.5). Total fund transfers to Malaysia have subsequently increased by 26% year-on-year.

This online service further enables Singaporeans and Malaysians residing in Singapore to make secure cross-border fund transfers to the DuitNow participating banks using the Maybank Overseas Transfer feature on the Maybank2u SG (Lite) app.

Maybank Singapore has been recognised as the winner of the Best Cross Border Innovation trophy at the Annual Retail Banker International Asia Trailblazer Awards 2024.

Maybank Cambodia has launched groundbreaking initiatives to lead community engagement and innovation in banking

Success in the financial services industry relies on strategic deployment, with leading institutions leveraging forward-looking strategies for challenges and opportunities. These strategies cover a spectrum of approaches, from innovative product launches and digital advancements to sustainability integration and community-focused endeavours.

Achieving this success requires aligning goals with a robust strategic plan, prioritising innovation, adaptability and a holistic understanding of the operational environment. This approach not only helps institutions weather industry shifts but also positions them as industry leaders.

Maybank’s story

Malaysia’s Maybank has consistently demonstrated the power of strategic thinking in its journey towards excellence. The bank’s success story is emblematic of how well-crafted strategies can not only drive growth but also position an institution as a trailblazer within its sector.

Established in 1960, Maybank has expanded its influence across the Association of Southeast Asian Nations (ASEAN) region. Since entering Cambodia in 1993, Maybank’s growth from a single branch to a locally incorporated bank in 2012 is attributed to its team’s collective efforts over 30 years.

In 2023, Maybank Cambodia led transformative initiatives in banking and community engagement. The lender’s key achievements include:

• Introducing Cambodia’s first dual-card system – Maybank 2 cards – with more than 2,000 cards issued since June 2023;
• Launching a portable retail hub called Maybank Pop Up to enhance customer convenience and engagement;
• Introducing real-time funds transfer for corporate and SME clients to enable swift transactions and align SMEs with retail customer benefits;
• Launching an integrated payment system for retail customers – Maybank2U – and facilitating more than 250,000 transactions exceeding $193m;
• Enhancing digital payment capabilities, enabling payments to 200 billers for the year.

Championing sustainability

Sustainability is a major focus in Maybank’s five-year plan (M25+). The bank has integrated sustainable practices into its operations, emphasising a commitment to environmental responsibility and ethical business practices.

Demonstrating its dedication, Maybank Cambodia has taken concrete steps including contributing $1.68m towards sustainable finance, positively impacting 6,174 households to enhance their livelihoods.

The bank actively monitors its carbon impact and has implemented changes in transportation and paper consumption. It has also launched the ESG Minimum Standard Specification Initiative and devoted 2,550 hours to community empowerment initiatives. To help small businesses in Cambodia, Maybank has teamed up with Credit Guarantee Corporation of Cambodia (CGCC), giving out more than $2.01m in business loans. Its SME Building Capacity & Capability Programme has helped 200 small businesses and financial advisers.

Maybank Cambodia has won the Best Retail Bank in Cambodia award at the Annual Retail Banker International Asia Trailblazer Awards 2024.

Krungsri Ayudhya Card collaborates with local businesses to launch a digital dining ecosystem U Eats

The global health crisis has highlighted the interconnectedness of communities and the need for businesses to contribute positively to society. In response to changing market dynamics, businesses are reevaluating operations and adopting strategic approaches such as branch transformation to enhance efficiency and meet evolving customer expectations.

Recognising this need as well as the importance of technological advancements and data intelligence in the digital landscape, financial institutions including Thailand’s Bank of Ayudhya (Krungsri) have shifted to digital channels that reduce reliance on physical branches.

Krungsri Ayudhya Card has responded to such market shifts by launching a digital dining ecosystem named U Eats. Through the U Eats initiative, the Thai bank has collaborated with local businesses to create a platform that facilitates convenient dining experiences for customers.

Financial impact

The financial impact of Krungsri’s U Eats platform has been significant, with a 25% growth in dining sales volume in 2023. In its first year, U Eats garnered more than 1.77 million clicks from 990,000 app users, reflecting high user engagement. The app’s penetration has reached 90% of total customers, surpassing the initial target set by the bank.

With a focus on four key components – a dining voucher e-marketplace, personalised promotions, strategic partnerships and innovative solutions – Krungsri aimed to engage users and establish new revenue streams in the post-pandemic era.

The bank achieved this by partnering with more than 70 leading dining brands, a move that not only created a new revenue model based on commissions and merchant discount rates but also strengthened its Krungsri Consumer Creditcard (KSC) offering.

Beyond revenue generation, U Eats has played a crucial role in reducing operating costs by automating API data integration and leveraging new partnerships to share marketing promotion costs. As a result, KSC has witnessed a reduction in the cost per sales volume, dropping from about 4% to 2.8%.

Enhancing experiences

Among other developments, Krungsri’s introduction of a new digital payment gateway in smart API payments marked a milestone in the Thai credit card market.

The bank has also enabled data integration with local partners such as Wongnai and Buzzebee to collect valuable insights into user preferences at the product stock-keeping unit (SKU) level. This has enhanced the bank’s ability to tailor offerings to customer needs.

In addition, the bank has demonstrated its commitment to environmental, social and governance (ESG) principles by forming strategic partnerships with environmentally conscious dining brands. By strategically innovating, fostering partnerships and maintaining a customer-centric approach, Krungsri is constantly evolving its offerings to meet market demands, solidifying its position in digital banking.

Krungsri Ayudhya Card’s multiple wins at the Annual Retail Banker International Asia Trailblazer Awards 2024 include: Best Advance in Loyalty/Rewards Programme; Best Fintech Partnership and Best Revenue Sharing Initiative.

Thailand’s Kasikornbank has launched several initiatives that have reshaped the traditional banking landscape

Banks have the opportunity to build stronger relationships with customers by offering innovative financial innovations that not only enable them to grow their investments and enhance savings but also appeal to the environmentally-conscious.

To achieve these objectives as well as explore additional sources of revenue, several financial institutions are modernising their operations by automating their business processes. The growing adoption of artificial intelligence (AI) is a good indicator of how this technology is enabling businesses and individual customers track and reduce their carbon footprint.

This evolution in the banking industry aligns with customer values, giving way to a future where economic growth goes hand in hand with environmental stewardship.

Supporting ESG

Sustainable banking means taking into account environmental, social and governance (ESG) considerations when making investment decisions. The launch of Kasikornbank’s Go Green project in February 2022 was part of the Thai bank’s endeavours to introduce a comprehensive green ecosystem and encourage collaborative action in saving the planet.

As part of the initiative, the bank has partnered with electric vehicle companies to offer low-interest loans. To further its ESG aspirations, the corporate venture arm of Thailand’s Kasikornbank – Beacon VC – has launched the Beacon Impact Fund, which invests in ESG-focused startups. The fund set a target of THB400m Baht for total investment in 2023.

Technology-driven innovations

To help offline and online merchants to manage payments in a more cashless way, Kasikornbank has launched the K SHOP banking application.

The app allows merchants manage their purchases regardless of their location. In 2023, K SHOP had a total of 2 million merchant points.

In addition, the integration of Bigfin, a digital asset investment analysis platform, with Binance, a leading cryptocurrency exchange platform, has helped the bank enhance efficiency in portfolio management for retail investors worldwide. As of 2023, the platform has connected to leading crypto platforms, with plans to help 3 million digital asset investors in Thailand manage their portfolios without friction.

Kasikornbank’s technology arm – Kasikorn Business-Technology Group (KBTG) – launched the AI-powered chatbot called ‘Kookid by K-GPT’ in 2023. This virtual assistant was developed with an understanding of the local context in terms of language, financial literacy and behaviours. This has allowed KBTG to address individual banking needs in a personalised, culturally sensitive manner. Additionally, KBTG has also launched the THB3.5bn KXVC fund to invest in AI, Web3 and deep-tech startups across the Asia-Pacific region.

Kasikornbank has been recognised as the winner of the Best Retail Bank in Thailand and highly commended in the Excellence in Mobile Banking category at the Annual Retail Banker International Asia Trailblazer Awards 2024.

General Card Services has elevated its credit card portfolio through strategic foresight and adaptability to market dynamics

Thailand’s credit card market has undergone significant transformations recently, driven by technological advancements, evolving consumer preferences and external factors like the Covid-19 pandemic. Financial institutions are now grappling with the challenge of meeting consumers’ demands for diverse features and innovations in credit cards.

General Card Services (GCS), a subsidiary of Thailand’s Bank of Ayudhya (Krungsri), has strategically invested in promoting card usage among higher-income segments.

Operated by GCS, the Central The 1 (C-T1) credit card is a co-branded card from Krungsri and the Central Group that was launched as a part of GCS’s broader strategic plan initiated in Q4 2022. This initiative has significantly contributed to GCS’ growth in 2023 as the market returned to normalcy and expanded.

Consistent growth

As of August 2023, the C-T1 credit card is one of Thailand’s most extensive co-brand portfolio, excelling in card base, spending volume and portfolio asset size.

Since 2022, C-T1 has been on an upward growth trajectory, consistently achieving double-digit growth across key performance indicators. Breaking its records set in 2021, C-T1 reached the highest net earning assets of THB25.3bn ($791m) with a substantial 13% year-over-year growth.

The annual total usage volume surged to THB96.6bn ($3.0bn), reflecting a 27% year-over-year growth.

GCS has strategically refocused on its entry-level product, REDZ, which now constitutes approximately 92% of the total card base and captures about 97% of new acquisitions.

Strategic initiatives

The revamped product, branded as C-T1 REDZ (Limited), is a targeted initiative with two main objectives. Firstly, it aims to increase penetration into the younger demographic, positioning it higher than most credit card portfolios.

By introducing C-T1 REDZ (Limited), GCS seeks to drive incremental acquisitions, attract younger individuals entering the workforce and rejuvenate the bank’s overall portfolio. To align with the preferences of this demographic, GCS has introduced new features to C-T1 REDZ (Limited) to include merchant tenants within shopping centres owned by local retail property developer Central Pattana.

GCS has also developed several marketing strategies to increase awareness, incorporating branding exercises, communication efforts and public relations activities. Notably, the bank has appointed Thai superstar Kao Supassra Thanachat as its official brand ambassador to enhance reach and engagement.

GCS also developed a new digital payment solution through QR codes in 2023. This initiative aims to make the C-T1 credit card a preferred payment choice, allowing cardholders to make payments through mobile apps using QR technology linked to the card. The success of the C-T1 card underscores a blend of strategic foresight, adaptability to market dynamics and innovative approaches.

General Card Services has been recognised as the winner of the Best Credit Card Initiative award at the Annual Retail Banker International Asia Trailblazer Awards 2024.

BDO Unibank’s blue bond has financed water and wastewater management projects, ensuring a positive climate impact

The growing significance of sustainability in finance stems from the pressing environmental and social issues the world faces today. Climate change, resource depletion and social inequality pose significant threats to the global economy and prioritising sustainability allows financial institutions to address these challenges and contribute to a more sustainable and equitable future.

Moreover, investing in sustainable initiatives not only aligns with consumer and investor preferences for greener, socially responsible options but also generates positive financial returns. Today, governments, financial institutions and private investors are increasingly offering financial support in the form of grants, loans and investments to drive the transition towards a more sustainable world while benefiting investors.

Sustainable instruments

In 2022, the Philippines-based BDO Unibank issued the first blue bond in the Philippines and Southeast East amounting to $100m through an investment from the IFC.

BDO Unibank’s blue bond has financed water and wastewater management projects including wastewater treatment, bulk water and operations management and bulk water distribution facilities, ensuring a positive climate impact.

With the Philippines experiencing a critical water shortage, the bond has financed projects that aim to provide solutions to a systematic issue, ensure the availability of water resources and prevent ocean pollution for future generations.

Additionally, water management in the country has further improved through the introduction of technologies that have helped reduce non-revenue water (NRW) levels and develop sustainable water supply infrastructure, rainwater harvesting and surface water utilisation.
All these efforts have helped increase clean water supply while avoiding groundwater extraction in the country.

Better facilities

Proceeds from BDO Unibank’s blue bond have enabled the installation of a new wastewater treatment plant in Tarlac, a large and densely populated province near the Bangut and Tarlac rivers in the Philippines. This has allowed for the expansion of wastewater management services to an additional 121 businesses and 23 hospitals in the province. By-products from the wastewater treatment plant are also being reused to streamline other plant processes.

For instance, the steam produced is being reused in the physicochemical treatment plant and the ash is used to make pavers, bricks and fence posts. Meanwhile, further investments have been made in installing thermal oxidation/incineration technology at the plant, which results in energy and heat recovery from the thermal oxidation of wastewater solids.

The heat recovered from this is used as an additional source of energy to power the plant’s lamp posts and light fixtures.

BDO Unibank has been recognised as the winner of the Best Advance in Responsible Finance award at the Annual Retail Banker International Asia Trailblazer Awards 2024.

Bank Rakyat Indonesia has introduced services that help manage transactions and financial assets more efficiently

As the world rapidly embraces modernisation, a financial institution’s success hinges on effective fund transfers and cash management solutions, with transaction banking solutions key to achieving success in a dynamic environment.

These solutions play a crucial role in facilitating seamless and secure financial transactions, meeting the expectations of businesses and individuals for quick, reliable and convenient banking services.

Structured strategies

Bank Rakyat Indonesia (BRI) serves clients across a wide spectrum of business segments, ranging from micro and small and medium-sized enterprises (MSMEs) to larger corporate and institutional customers.

To strengthen its value proposition, the bank is consistently evolving through innovation and digital transformation. In addition, the bank has developed a market strategy that involves transitioning into a hybrid model that seamlessly integrates its digital and traditional paper-based services.

Through well-devised strategies, BRI aims to help clients become more proficient in managing financial transactions and financial assets. This will allow the clients to operate their business in a more efficient and reliable manner using the BRI products and services.

Optimising funding

As part of its funding strategy, BRI tries to increase the funding from low-cost sources. Current and savings accounts often offer lower interest rates compared with other funding options such as time deposits or bond issuances, making them economical sources of capital for the bank.

BRI undertakes a comprehensive approach to grow its low-cost funding sources across both wholesale and retail segments. The implementation of this strategy involves optimising processes across the entire value chain through strategic partnerships and enhancing transactional services through digital channels such as BRI’s cash management tool through Qlola by BRI.

QLola by BRI is an integrated corporate solution platform that will make it easier for customers to access various BRI products and services with just one login.

According to a BRI internal analytics study, accounts linked with cash management tools have at least twice the average balance and number of transactions in comparison with accounts without such tools. The higher balance and transaction volume in turn create higher interest income and fee-based income for the bank.

In 2023, account opening became a critical component in BRI’s client engagement cycle. The online integration process to open an account (Giro BRI) and linked registration of online cash management tools (Qlola by BRI) has enabled better accessibility and engagement for customers. This is expected to help induce more transactions from the clients, making BRI their main operating bank.

The ongoing development of the Giro BRI current account has resulted in positive results including a 30% year-on-year increase in current account balances, a 17% growth in the number of accounts and a 37% rise in transaction value on cash management.

Bank Rakyat Indonesia has won the Best Current Account Offering award at the Annual Retail Banker International Asia Trailblazer Awards 2024. It has also been highly commended for Excellence in Mass Affluent Banking.

Ayudhya Capital Services has seen impressive success on its marketing campaigns aimed at Thailand’s younger demographic

Content marketing and well-crafted marketing campaigns have become vital tools for businesses aiming to stand out in today’s digital world as they help companies not only grab attention but also build lasting connections with their audiences.

In a dynamic landscape where the beliefs and attitudes of the younger generations in Thailand are rapidly evolving, Ayudhya Capital Services, a subsidiary of Bank of Ayudhya (Krungsri), has demonstrated a remarkable ability to adapt and thrive. The catalyst behind this success is the bank’s strategic approach to marketing, particularly through targeted campaigns that resonate with the ambitions of younger consumers.

Recognising the shifting preferences and lifestyle choices of the younger generation, Ayudhya Capital Services has introduced the First Choice credit card, carefully designed to align seamlessly with the dynamic lifestyles of Thailand’s youth.

Forward-thinking initiatives

The bank’s First Generation campaign, in particular, uses artificial intelligence (AI) to envision what humans might look like in the next decade, helping anticipate potential trends and shifts in customer preferences.

In a strategic move, Ayudhya Capital Services has also partnered with gender-fluid actor, model and singer Krit Ammuaydechkorn, known for portraying diverse characters throughout his career. The collaboration has not only added a unique touch to the campaign but also emphasised the bank’s commitment to promoting diversity and equality.

Two additional campaigns – ‘You Can Just Be You’ and ‘We Have Whatever You Need’ – have further reinforced the bank’s dedication to supporting the aspirations and dreams of the younger demographic. These initiatives have been crafted to resonate with the evolving values of the youth, creating a tailored and appealing narrative around the First Choice products and services.

Impressive outcomes

The results have been impressive. Ayudhya Capital Services has witnessed a surge in social media responses, accumulating an astounding 6.7 million views. Ad recall has experienced a notable lift of 3.8%, demonstrating the effectiveness of the campaigns in capturing and retaining the audience’s attention. Videos created for the campaigns saw a completion rate three times higher than the 2022 campaign, reaching 26%.

More significantly, the impact has extended to tangible business outcomes. The number of individuals clicking to apply for a First Choice card grew by 260% within the first two weeks of the campaigns. The subsequent month witnessed a remarkable 14% growth in credit card spending, showcasing the campaigns’ direct influence on consumer behaviour.

Ayudhya Capital Services (Krungsri) has won the Best Content Marketing Programme and Best Use of Influencer Marketing awards at the Annual Retail Banker International Asia Trailblazer Awards 2024.

Alliance Bank is offering seamless and secure transactions through digital cards and dynamic card numbers

Virtual credit cards (VCCs) are a modern and innovative financial solution, offering a range of benefits in the digital landscape. These digital cards operate within partner mobile apps, eliminating the need for physical cards. One significant advantage of VCCs is their role in creating a collaborative ecosystem.

Merchants can seamlessly integrate VCC services into their mobile apps, encouraging increased spending on their e-commerce platforms with greater security. This not only ensures secure transactions but also avoids compromising credit card details.

Dynamic solution

Malaysia-based Alliance Bank’s VCC is a unique open-banking solution integrated into partner mobile apps. VCC works similarly to physical credit cards but exists only in a virtual form. With this approach, the bank has eliminated the need for paper and plastic through VCC services such as QR payments and in-app transactions. These services are bundled into a secure software development kit (SDK) that can be easily added to the bank’s merchant partner mobile app.

This forward-thinking solution empowers merchants to provide credit services, which drives increased spending. It offers customers a secure and convenient payment method without concerns about compromising their credit card details.

Enhanced flexibility

Alliance Bank’s VCC customers enjoy the flexibility of using their cards across various participating merchant partners’ platforms, fostering collaboration within the ecosystem to offer diverse product and service offerings. Furthermore, the adoption of VCCs aligns with environmental, social, and governance (ESG) principles. By eliminating paper forms and plastic cards, this financial innovation contributes to a more sustainable and eco-friendly approach.

Growing numbers

Alliance Bank’s proactive approach to online credit card security, especially during the pandemic, has revealed an increased threat to customers’ credentials due to security breaches. The surge in online purchases during this period highlighted a significant gap in the current design of credit cards for online transactions.

In April 2023, Alliance Bank introduced the dynamic card number (DCN) feature, another first in Malaysia. This has added an extra layer of security and enabled customers to apply for a fully digital VCC, transact with a randomly generated dynamic card number for one-time or subscription payments and manage their cards on their mobile phones.

The bank’s digital customer experience streamlines VCC application and ensures near-instantaneous card approval and provisioning, enabling customers to apply for the VCC anytime, anywhere. This eliminates the need to wait for the bank to courier physical cards.

Since the launch of the bank’s VCC DCN feature, the number of fraud cases and losses has significantly reduced. As a result, Alliance Bank has witnessed an increase in customer receptivity towards VCC, with a 57% increase in average spending compared to physical credit card spending. Additionally, active VCC customers spend 45% more monthly than customers using traditional credit cards.

Alliance Bank has won the Best Open Banking Initiative and the Most Dynamic Third-Party Collaboration awards at the Annual Retail Banker International Asia Trailblazer Awards 2024.