Alliance Bank to continuously explore strategic partnerships to expand digital payment eco-system
KUALA LUMPUR: Alliance Bank Malaysia Bhd will continuously explore strategic partnerships to expand the digital payment eco-system as part of its Acceler8 strategy.
Group chief consumer banking officer Gan Pan Li said the bank has collaborated with fintech players, digital wallet providers and technology firms that align with its vision of delivering secure and seamless payment solutions.
'Our goal remains on increasing accessibility, strengthening security and introducing innovative features that enhance customer experience,' she told SunBiz.
Gan pointed out that in June 2024, Alliance Bank teamed up with MyTaman, a leading smart community app, to offer virtual credit cards (VCC) to more than 150,000 MyTaman users, enabling seamless payments for maintenance fees, rentals and subscriptions.
The following month, the bank collaborated with MetaFin, Malaysia's first do-it-yourself digital platform for insurance and personal financial services, to introduce a Visa virtual credit card, providing users with a secure and convenient digital payment experience within the MetaFin Digital App.
'These initiatives demonstrate our ongoing efforts to enhance our digital offerings and drive innovation in payment solutions, always looking for a space where the VCC can help address lifestyle requirements for consumers,' said Gan.
In January this year, Alliance Bank partnered with Samsung and Google to provide Alliance Bank Visa credit card holders with greater convenience in mobile payments. This partnership allows Alliance Bank cardholders to add their Alliance Bank Visa credit cards to their Samsung Pay or Google Pay wallets.
Google Pay can be used by Alliance Bank cardholders whether they are shopping online, browsing in-store, or using public transport by simply tapping and paying through their device.
Gan said Alliance Bank set a target of onboarding over 10,000 users on Samsung Pay and Google Pay by March, but it is too early to provide comprehensive adoption statistics.
This aligns with the growing shift towards contactless payments in Malaysia, where more than nine in 10 Visa face-to-face transactions are now made using contactless methods, she added.
'We anticipate strong adoption among our digitally savvy customers, driven by the convenience and security these platforms offer. Additionally, we have observed an increasing reliance on contactless payments, particularly in retail, public transport and e-commerce transactions.
'Engagement-driven campaigns, such as limited-time offers and rewards, have further encouraged usage, reinforcing the trend toward seamless and secure digital payments,' Gan said.
While the current focus is on integrating with Samsung Pay and Google Pay, Alliance Bank recognises the importance of offering diverse payment options to meet varying customer preferences.
'We are exploring future integration with Apple Pay to ensure our customers can seamlessly transact across all major mobile platforms. Very soon, we will be integrating our VCC with an EV charging app, which enables customers to make quick and hassle-free payments for EV charging,' said Gan.
She added that Alliance Bank is always looking for ways to enhance its VCC for different segments of the market, such as e-vehicle charging apps and pickleball court bookings
'Customer trust and security remain a core priority in our digital strategy, and we will continue to develop new capabilities for the VCC that we will take to market. New features will be announced as part of our go-to-market initiatives,' she said.
Asked how Alliance Bank sees this impacting the bank's future customer acquisition and engagement strategies, Gan said by collaborating with brands and platforms that align with these audiences, the bank aims to enhance engagement and drive adoption of its digital banking solutions.
'One such initiative is an upcoming pickleball championship in collaboration with Pickle Social Club and Courtsite, which will serve as a unique avenue to connect with our target customers and solidify our digital-first approach,' Gan said.
Elaborating on how Alliance Bank is positioning itself against competitors in Malaysia's rapidly evolving digital banking space, Gan said the bank differentiates itself in Malaysia's rapidly evolving digital banking landscape through a balanced approach to innovation and customer-centric banking.
'In line with the bank's Accele8 strategy, we focus on delivering faster, better, and more personalised solutions that cater to the evolving needs of our customers.
'We continue to enhance the features of our digital products for ease of use while prioritising security features, and we continuously improve our self-service touchpoints to provide a seamless and accessible banking experience as part of our low-touch service offerings.
'Aside from just digital-based transactions, we also offer services at branches to cater to communities for those who prefer high-touch service offerings, and, by combining innovative digital solutions with meaningful customer engagement, we position ourselves as 'The Bank For Life', a trusted financial partner that grows with our customers and supports them at every stage of their financial journey,' she explained.
On Alliance Bank's targets for digital payment transactions and VCC adoption in 2025, Gan said the bank has historically seen a good pickup in digital transactions where a majority of its transactions are via digital channels.
'We believe this sort of trajectory will continue to build up with increasing adoption as the VCC and digital payments become a norm for consumers.
'We feel that the pace of digital transactions will closely align with regulatory initiatives in terms of digital adoption.
'The VCC complements the efforts of regulators in bringing about awareness of scam and fraud prevention through enhanced security measures such as dynamic card numbers, tokenisation and real-time transaction monitoring.
'These features help mitigate risks associated with unauthorised transactions, phishing attempts, and identity theft, concerns that have been on the rise with the growing reliance on digital payments.
'At the same time, we continue to expand the VCC's usability across various sectors, including e-commerce, travel, mobility, and everyday lifestyle transactions, ensuring seamless and secure payment experiences.
'Looking ahead, we remain committed to strengthening our digital ecosystem by aligning with regulatory frameworks and introducing innovative payment solutions that cater to evolving consumer needs,' Gan said.
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