KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 49 48 SUSTAINABLE ECONOMIC GROWTH SUSTAINABLE ECONOMIC GROWTH WHY IT MATTERS Kenanga acknowledges the importance of reinforcing our digital competitiveness to sustain our growth and long-term viability, especially amid the rapidly evolving financial landscape. We aim to enhance internal operational efficiency through digitalisation and create a seamless and unified digital experience through a suite of products. Leveraging technology to enhance business operations and customer experiences, encompassing the adoption of advanced digital tools to improve efficiency, offer innovative financial products and remain competitive in a tech-driven market. Key Risks: As digitalisation accelerates, the risk of data breaches and oversight gaps grows. Rapid technological advances may outpace governance frameworks, while outdated systems increase costs and require frequent upgrades. Key Opportunities: Digitalisation enhances efficiency, redirect resource use, and expands financial inclusion through digital platforms. Strategic fintech collaborations drive innovation, ensuring sustainable growth and resilience. Key Activities: • Kenanga Digital Sdn Bhd launched KDi GO, a SuperApp that seamlessly integrates a comprehensive suite of financial and wealth management solutions into one powerful ecosystem. • Kenanga Digital Investing, which leverages fully automated AI-driven robo-advisors designed to simplify the saving and investment process achieved a total AUM of over RM400 million, serving approximately 33,000 clients. • A total of 12,087 new users signed up on Rakuten Trade, bringing the total customer base to more than 288,250 with a total of over RM143 billion worth of stocks transacted since its inception in 2017. • Launched iRemisier, replacing the old Remisier Portal. This serves as the foundation for Kenanga Group’s Data Lake, acting as a central repository for various Lines of Business within the Group. • Project iLeap is a transformative initiative aimed at modernising our operations and enhancing efficiency through digitalisation. Since 2020, a total of 77 workflows have been digitised, with an additional 8 (eight) new workflows digitised while we enhanced 12 existing workflows across various departments in 2024, including processes within Group Operations, Group Finance, Group Equity Business, Group Treasury, Group Human Resources, and Group Digital, Technology, and Transformation. DIGITALISATION WHY IT MATTERS Cybersecurity is becoming increasingly important as organisations transition to a future driven by digital innovation. At Kenanga, we aim to mitigate cyber risks by actively monitoring developments in the cyber landscape while strengthening cybersecurity measures across our operations. Implementing measures and protocols to safeguard sensitive data and ensure secure operations in a rapidly evolving digital environment. Key Risks: Cyberattacks can lead to system downtime, disrupting operations and damaging client trust. Data breaches may expose sensitive information, compromising service continuity and customer confidence. Furthermore, non-compliance with data protection regulations can result in heavy fines and legal repercussions. Key Opportunities: Implementing strong cybersecurity frameworks enhances resilience, builds stakeholder trust, and positions the organisation as a key player in providing secure digital services, driving competitive advantage. Key Activities: • Launched the three (3)-year Project Zero Trust, which aims to enhance security across the Group’s network infrastructure. Key features include secure, seamless access to private applications, protection against internet threats, universal firewall enforcement, malware monitoring, and data loss prevention. • Updated the Cyber Security Policy to include a section on requirements for cloud security. • Enhanced the Cyber Incident Response Plan documentation by adding a scenario playbook for common cyber incidents. • Participated in the industry regulatory audit by the Securities Commission Malaysia, with findings and remedial action plans deliberated upon by the Board. • Conducted cybersecurity training and mock-phishing exercises for employees, where we achieved a success rate of 94.2% in identifying phishing emails through our employee phishing simulator. CYBER SECURITY WHY IT MATTERS We attribute the success of Kenanga, a Malaysian brand that has grown from strength to strength over the past five decades, to our strong client relationships. Having served over 500,000 clients, we reaffirm our ongoing commitment to delivering excellence through our products and services by prioritising our clients in everything we do. Delivering a superior client experience to retain customer loyalty and trust, through initiatives such as providing seamless, efficient and customer-centric financial services that meet evolving client needs. Key Risks: Client trust is foundational to our brand, and it can be compromised by data breaches, biased practices, or a lack of access to accurate information. Misleading communication or failure to adhere to marketing standards can damage our reputation, leading to client dissatisfaction and increased attrition risk. Key Opportunities: Transparency, ethical practices, and accurate information build trust and loyalty in our brand. Aligning financial solutions with societal needs and ensuring compliance strengthens our reputation. Inclusive digital platforms enhance accessibility for a seamless client experience. Key Activities: • Established internal procedures that guide the creation and distribution of promotional and marketing materials. • Continued to enhance financial-related scam awareness efforts through corporate websites and social media platforms. • Launched a video campaign centered around scam awareness, where employees and members of the public were invited to participate by generating creative content during our 8th Fraud Awareness Week event. CLIENT EXPERIENCE Refer to pages 41 to 56 of our Sustainability Report 2024 for more information on our approach and progress on Sustainable Economic Growth.
RkJQdWJsaXNoZXIy NDgzMzc=