This year marked a significant transformation for Bank Islam as we embarked on a major restructuring with the primary objective of better serving our customers. This strategic move has resulted in the creation of two core divisions – Group Retail Banking and Group Institutional Banking – designed to deliver a more responsive and personalised service to our valued customers. Group Retail Banking In 2023, Group Retail Banking has restructured the retail banking business model in order to create a more effective structure that place customers as the focal point in delivering products and services to achieve business sustainability and LEAP25. The reorganisation involves the following categories: i. Product Unit – Focus on business development and devising innovative products or programmes with competitive advantage and enhanced value proposition. ii. Customer Unit – Centralisation of the Distribution Channel to Retail Banking Distribution to manage all distribution channels to achieve robust distribution strategy. iii. Centralisation of Management Information System (MIS) and Compliance unit from each of the divisions parked under Strategy and Centralised Services for holistic control and monitoring. The reorganisation has allowed us to revisit the overall customers’ segmentation strategy such as Mass Affluent, Affluent and High-Net-Worth Individuals (HNWI) and migrate customers into higher product holding with deepened customer wallet share. We also strive to improve Customer Experience (CX) through more effective distribution channels across all client segments. Notably, we were recognised as the Best Islamic Banking at the World Islamic Tourism Award 2023. Bank Islam’s Group Retail Banking Division capitalised on its robust distribution network and strategic partnerships with Package Employers to achieve profitability and growth in Personal Financing, House and Fixed Assets, and Vehicle Financing. Innovations such as the Financing Assistant (FAST) initiative streamlined financing processes, enhancing customer onboarding and service excellence. Our focus on value creation was evident through initiatives like the Real Estate Agents Onboarding Programme, expanding our reach and improving lead generation. Meanwhile, the rebranding of our Wealth Management Division aligned with market demands, ensuring our commitment to customer investment needs despite economic challenges. Economic fluctuations influenced savings behaviours, prompting us to engage customers through targeted campaigns and collaborations within the Deposits and Cards sector. In SME Banking, strategic support for SMEs, particularly with alignment to the Halal Economy agenda, showcased our dedication to their recovery and growth. 77 1 2 3 4 5 6 7 8 9 www.bankislam.com MANAGEMENT DISCUSSION AND ANALYSIS – BUSINESS REVIEW Business Review
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