CIMB targets niche approach across Asean markets
KUALA LUMPUR (July 23): CIMB Group Holdings Bhd (CIMB), which operates across ten markets in Asean, is sharpening its regional strategy by strengthening client support, expanding cross-border banking services and accelerating digital transformation to help businesses manage geopolitical risks and global supply chain shifts.
To drive this effort, its group CEO Novan Amirudin said the bank is committed to building scale in high-growth markets such as the Philippines, Vietnam, Indonesia and Thailand by tailoring strategies that meet local needs and opportunities.
He said CIMB is taking a disciplined, market-by-market approach by aiming to be a strong niche player instead of pursuing a 'universal player'.
'We are driven by our core purpose and value, and our core purpose is all about advancing customers and society.
'We will operate in all these different jurisdictions based on how we can contribute to customers and societies in that particular market.
'If we cannot play a meaningful role, then we need to find a different angle for us to play a meaningful role.
'We are always meticulously understanding where we can play our role and be dynamic,' he said during the bank's Asean Media Day earlier this week at its headquarters.
He cited Malaysia as an example of a market where CIMB serves all customer segments including unbanked communities through its Touch 'n Go platform.
In contrast, he said Thailand presents a different dynamic. Although GDP growth has been slower in that region, CIMB Thai continues to support Thai corporates expanding into other Asean markets like Malaysia and Singapore.
For CIMB Thai, he said the bank's focus is on enabling outbound investment and facilitating cross-border capital flows. The goal, he said, is to improve returns by remaining a niche player rather than competing with larger banks.
Meanwhile, for Philippines, CIMB grew its customer base to eight million, with six million of them acquired through strategic partnerships with e-commerce platforms.
He said these partnerships helped the bank reach underserved segments faster than traditional methods would allow and the group is now adopting the same model in Malaysia and Indonesia to grow its reach.
Novan added that the bank had started its digital journey in Vietnam and the Philippines about six years ago with one to two per cent of capital allocated to develop digital banks in those markets.
'In Vietnam and Philippines, we learn exactly how to operate and to expand digitally, whether is it digital internal processes, digital ways of reaching out to customers. And we are then implementing it as we digitise the entire CIMB group,' he said.
Novan stressed that CIMB is not afraid to pivot its strategy when the market or competition shifts, and is always on the lookout for where it can add value by tailoring strategies for each market rather than using a one-size-fits-all approach.
This focus on returns is part of the group's Forward30 strategy where capital is reallocated to areas with stronger growth potential.
For example, Novan pointed to Islamic banking in Indonesia and digital opportunities in Malaysia.
He said the combination of CIMB's eight million digital users through its CIMB Octo app and 30 million Touch 'n Go users in Malaysia presents untapped potential.
'That is one area that we can look to harness between the bank and the wallet, for example, that we haven't even started. There's a lot more upside in various pockets but we have to focus on the areas where we can win, where we can serve our customers and society better – that is what we are doing,' he said. asean CIMB Financing niche
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