Hong Leong Islamic Bank MD/CEO, Raja Teh Maimunah Raja Abdul Aziz delivered a 1-hr talk at NICE2014, organised by MOSTI, on how banking has evolved from the day trading began thousands of years ago, to how digital banking will be at the forefront of all customer engagements.

1. Digital Innovation
a look of tomorrow
Raja Teh Maimunah
Chief Executive Officer
Hong Leong Islamic Bank
Chief Operating Officer
Digital Innovation & Transactional Banking | Hong Leong Bank

2. Everything evolves with time…

3. The evolution of trade, money & banking
The modern banking era traced back to the early
Italian Renaissance period
Monte de Paschi (founded in 1472)
is the world’s oldest bank still in
existence, and has now also adopted
digital banking
Trading & banking date back to the ancient days of
Assyria & Babylonia – circa 2000BC

4. Milestones in the modern banking era
Methodologies & Institutionalization
<17th Century 18th Century 19th Century
Bank Debts
Birth of regulations and
first central bank -
Amsterdam
Goldsmiths and
promissory notes in
London, which gradually
became bank notes.
Standardized printed notes
with signatures
Clearing facilities, security
investments, cheques and
draft protections
First overdraft facility
introduced by The Bank of
Scotland
Fully printed notes which
didn’t require signatures
Rapid growth due to
Industrial Revolution
NYSE
Rosthschild & Baring saw
their merchant banks
dominate the banking world
Globalization, Technology & Self-Serve
20th Century 21st Century
US Federal Reserve
Charge Card (1928)
IMF & World Bank (1944).
Credit Card (1958)
ATM machines (1960s)
Home Banking – using keyboard,
TV and telephone (1981)
E-banking and SMS banking
(1990s)
Non-FIs enter the financial
community (2001)
Global growth in Islamic
Banking
iPhone (2007) = mobile
banking applications
Merchant payments through
mobile-generated QR codes
Mobile money transfers
Cardless ATM withdrawals

5. Needless to say, digital banking adoption has a lot to do with
the global growth in internet speed, accessibility and devices
‘96 ‘98 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12
INTERNET
POPULATION 100m 1b
INTERNET
SPEED
(Mbps)
1.5 5 10 50 100 200
YEAR
SMARTPHONE
USERS 100m 500m
>500
Malaysia:
39%
tablet
penetration
On average,
2 smartphones
for every 9
people on earth
Malaysia:
140%
mobile phone
penetration
Malaysia’s
Penetration:
63%
smartphone
39%
tablet
Malaysia:
63%
smartphone
penetration
>2.6b
>1b

6. It’s all with two things in mind – CONVENIENCE & PRODUCTIVITY
Transferring Money Receiving Money
20mins-1hr 5mins 10mins 5-10mins 1-3 days 1min 5mins 20mins-1hr
1min 2mins
with mobile / digital banking…

7. Banks’ digital brands – a different business approach vs. its conventional peers

8. What we’re doing at

9. Overall
Strategy
digitization
digital products
marketing &
social media
partnerships
& merchants
Enabling and expanding Connect’s online banking capabilities across
various digital platforms, with emphasis on innovation in mobility.
Development of online banking products to replicate offline banking
offerings. Some online products will have enhanced benefits.
Continuous communication through advertising to educate consumers on
Connect and its services, as well as promotions and acquisition campaigns
to increase adoption.
Value Creation via expansion of reach, increased usability and ecosystem
enrichment

10. Tailored - User interface is customized and responsive to devices for better user experience.
Holistic – usable across all operating systems and browsers.

11. Peer-to-peer Mobile Money
Transfer function that allows HLB
Connect users to send money to a
phone number, no sharing of
account details necessary.
Merchant payment function where
customers can pay for their
purchases using their Connect
Mobile app.
Connect Mobile app users can
generate their own collection code
on their mobile phones to
withdraw cash from ATMs without
using their ATM cards

12. Watch the video on YouTube.
Search “Pex Hong Leong Bank”

13. What does the future hold?
* Pwc research : Retail Banking 2020: Evolution or Revolution
Develop
customer-centric
business models,
including social
banking &
commerce
Optimising
distribution
Simplifying
frameworks &
operating models
Enabling
innovation &
fulfilling the
capability
requirements to
foster it
Proactively
managing risks,
regulation &
capital

14. terima kasih
thank you