• The impact of digitalisation on financial services is widespread and extensive. • Customers want faster, easier, and personalised services, while also caring about data privacy and security. • Digital business models are increasingly ecosystem-driven, which creates new risks and complexities. • Financial industry needs to embrace the benefits of digitalisation while managing associated risks that could harm the system, customers, and confidence in the industry. • The rise of cashless and cardless society through increased use of ewallet, QR transactions, cardless withdrawal etc. Trends Impacting Our Business BIMB must: • Enable an environment that is conducive to innovation by prioritising and supporting greater use of technology • Improve product offerings and delivery channels to support a vibrant digital financial services landscape • Relook at further rationalising brick and mortar products/ channels offerings. • Adopt practices that will enable us to be agile and quickly respond to customers’ changing demands • Shift from product-centric to customer-centric when identifying and crafting our solutions • Improve customer proposition through exploration of new digital business models • Leverage on FinTech for access to new technologies, sustainable revenue streams and quicker time to market Risks: • Transformational risks could threaten system-wide stability, consumer outcomes, and confidence in the financial sector. • The rise of Artificial Intelligence (AI) also means conscious effort needs to be put into redefining the workforce roles for a robust future-proof business. • The emergence of new technologies and partnerships also bring about new risks related to cybersecurity, data security, and regulatory compliance that we need to be on top of. Opportunities: • BIMB to safely introduce new financial innovations into the market at different stages of the innovation cycle. • The issuance of the digital banking licenses by BNM puts us in the right time and place to accelerate and put forth new digital offerings • Continuously support the Bank’s growth potential in strategies for digital initiatives • Regularly refine our skillsets to ensure we are updated with the evolving digital landscape. • Prioritise our IT/Digital investments through the development and implementation of IT Blueprint that identifies key initiatives that would move the dial in growing the business Internal stakeholders will need to: • Enhance system-wide cybersecurity oversight and capabilities. • Regularly update and adjust our policies on digital business models to ensure effective risk management. • Back new and improved legislative and regulatory reforms that will facilitate the end-to-end digitisation of business processes. • Amend second point: Regularly review policies to ensure alignment and relevancy with new technological developments to ensure risks are effectively managed • Actively seek for opportunities to upskill and reskill to meet the future workforce demands • Adopt a growth mindset to see challenges as new opportunities for potential new digital business models How It Impacts Our Business Key Risks & Opportunities Our Approach How It Impacts Stakeholders LINK TO Trend 2 ADVANCING DIGITALISATION OF THE FINANCIAL SECTOR Capitals Material Matters Stakeholders Integrated Report 2022 42 STRATEGIC REVIEW Operating Environment
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