Maybank Corporate Level And Business Strategy Analysis

Maybank

Maybank is the Malaysia’s largest bank. It is also among those banks that are the largest in the South East region of Asia. The total assets of Maybank exceed 183 billion USD. In the year 2014, Maybank gained a net profit of 1.92 billion USD. Maybank holds position 103 in the list of top 1000 banks of the world that was released in July 2014. In the list of Forbes Global that was released in May 2015, Maybank took position 371 among 2000 listed leading companies. According to Bloomberg Markets, Maybank is among the top 20 world’s strongest banks. This bank has over 2400 branches that operate in 20 countries. The number of employees in Maybank is about 47000, and the approximated number of customers served by Maybank is over 22 million.

Planning and strategic management

The program of transformation at Maybank started in the year 2010 where the bank aimed at strengthening its financial services in Malaysia and also to boost its plans for expansion in the region. The bank’s ultimate goal was to lead in providing financial services in the region by the year 2015. To achieve its goal, Maybank set various strategies that could enable it to control, coordinate and align resources with the mission in Asia, which was to humanize financial services in the region.

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Strategic objectives of Maybank that were set include the following; the first one is to become the undisputed leader in providing financial services in Malaysia. The bank is aiming to maintain its top ranking in various aspects such as credit cards, overall market share, individual deposits and unit trust financing. The second strategic objective is to be a leading wholesale bank in the ASEAN region and finally expand to China, India and the Middle East. The bank is aiming to be a leading wholesale bank in the region of South East Asian Nations, where it will be involved in exchanging its cooperate relationship model. The third strategic objective of the bank is to be a regional organization where 40% of the pre-tax profit will be obtained from international operations by the year 2015. The key markets of the bank in both Indonesia and Singapore will drive this strategic objective. The last strategic objective of the bank is to lead globally in Islamic finance. The target of the bank is to have one-third of its domestic financing supported by assets from Islamic finance by the year 2015.

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Corporate level strategy of Maybank

The corporate strategy of the bank is centered on building the bank as a leading institution in providing financial services that are humanizing across Asia. This strategy is unique, and it differentiates Maybank from its competitors by the following ways; the first one is to strengthen the bank’s regional brand as a group that is leading in providing financial services in Asia with a global banking proposition that is completely regional. The second way is to drive the bank towards Islamic banking globally. The third way is to generate goodwill and trust among the bank’s external stakeholders through sparking off the passion and commitment of all its members. The fourth way is to achieve a top mind position in Malaysia, where more powerful customer service skills are demonstrated across the group. Finally, to build network’s coverage that is cost-optimal and unparalleled and being at each community’s heart that Maybank serves.

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Business strategy of Maybank

There is tremendous pressure on the bank in Asia. Maybank had to use appropriate strategies to attract customers by building a relationship that is valued and also understanding the needs of customers. Maybank understands that nowadays, the banking system has become a business that is relationship driven in all places of the world. The key to success for a bank is to maintain the relationship that exists between a bank and the consumers. This is the reason that made Maybank shift its competitiveness from focusing on the selling of products to concentrate on building relationships with customers.

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The aim of Maybank was to increase customer understanding and also improve the experience of each customer. The customer interaction with the bank increased the loyalty, profitability and customer retention. Maybank launched a project in 2007 that could facilitate communication between customers and the bank. After launching this project, the bank got the ability to communicate with the customers at convenient times. This project had increased the satisfaction of customers as well as increasing business growth. Since Maybank launched the program of group transformation in 2008, it has led to the bank achieving a lot of traction, including the learning of the highest profit in the year 2010.  Maybank is still in the mode of transformation until the year 2015, when the bank expects to achieve its goals. The critical enabler for Maybank’s success is the appropriate management of features of the human capital. The bank believes that this critical enabler will enable it to realize the aspirations of 2015.

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Evidence, that managers at Maybank, might have made any significant decision error over the last decade

Over the last decade, Maybank has been focusing on the competitive strategy of product selling rather than maintaining consumer relationship. This strategy was not successful since other competitors could lower the prices of goods thereby attracting customers. This led to the bank struggling to win the customer’s trust while making minimal profits over time.

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When the transformation program was launched in the year 2008, several changes occurred in Maybank. The bank started to focus on building the relationship with customers that led to increased loyalty, profitability and customer retention. Various projects were started that have contributed to the success of Maybank. The following projects constitute the transformation program; the first one is community financial services (CFS). The main objectives of the transformation of CFS include implementation of the new business model and providing a concept of branchless banking which is new. CFS has resulted in the increased rate of loan approval in Maybank

Another project is the global banking that has facilitated the global risk management system. The third project is the Maybank Kim Eng, which has played an important role in business equities, resulting to be ranked in position 5 as per the market shares in various countries.  Another program is insurance and takaful which has provided Maybank with wide network coverage and a strong portfolio of customers. Islamic banking is another program that has facilitated leadership in deposits and financing domestically. Service quality has improved customer services both internally and externally.

Other programs such as IT transformation program, risk management of group credit, strategic cost management program and group human capital have all facilitated the success of Maybank since the launch of the transformation program. These programs have shown that over the decade the managers of Maybank failed to employ them leading to the limited success of the bank.

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