Bank Islam Brunei Darussalam brochure - October 2016

How digitalisation is transforming the

Bank Islam Brunei DarussalamÂ

in association with

How digitalisation is transforming the

Bank Islam Brunei Darussalam Written by Wedaeli Chibelushi Produced by Mariana Lee

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Business Review Asia speaks to Gyorgy Ladics, COO of Bank Islam Brunei Darussalam (BIBD) about how the bank is embracing digital engagement.

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Digital engagement” can seem like a buzzword, but to the Bank Islam Brunei Darussalam (BIBD) this two-word concept is reinventing its operations. To find out more, we spoke to Gyorgy Ladics, BIBD’s Chief Operations Officer.

Ladics has held several demanding roles, such as Chief Technology Officer at Barclays and Head of Operations and Technology at Citibank. Whilst working in the financial sector, Ladics has voyaged around the likes of Central Europe, Russia, UAE, Egypt, India, Pakistan and Singapore. Currently, Ladics is using the knowledge gained from these experiences to help execute BIBD’s digital engagement initiative.

Ladics begins with the basics. “BIBD has a fullyfledged banking licence. It’s Brunei’s largest bank and leading full service Islamic financial institution.” he tells us. “In addition to consumer and corporate businesses we also have a quite significant treasury & global markets and merchant banking business lines”.

With an asset base of B$ 7.5 billion BIBD remains the largest bank in Brunei Darussalam and plays an important role in supporting the country’s long term development plan, known as Brunei vision 2035.

When did digitalisation become a focus for BIBD? According to Ladics, BIBD started a transformation journey five or six years ago. “BIBD was pretty much a bank that provided services through branches (so called traditional banking) where the customers interact with the branch.

‘With an asset base of B$ 7.5 billion BIBD remains the largest bank in Brunei Darussalam and plays an important role in supporting the country’s long term development plan’ –D r. Gyorgy Ladics,

Chief Operating Officer

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When you need to make a transaction you come to the branch, or you can go to ATMs.” BIBD recognised that something was missing – it was limiting itself. “In a small market like Brunei, we had significant competitors, there’s all the big global or regional names with strong well-known brands, international best practices, and strong technology so we need to ensure that BIBD is up to the challenge,” Ladics explains.

BIBD set a strategy to become the bank of choice, earn customer trust, provide signature services and use “technology as a differentiator” – a strategy which enables sustained and healthy growth as well as market leading position. “The goal is to be the bank of choice

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“The goal is to be the bank of choice and digital initiatives are key enablers for that” – Dr. Gyorgy Ladics, COO

Calls received more than

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and digital initiatives “We’re now present on Thousand are key enablers for our customer’s phones. annually that. We are really focusing We started mobile banking in on the changing behavior 2012 and it has gained a very rapid and needs of our customers”. adoption which by now has reached Ladics informs us that BIBD is well a 70-75 percent penetration of mobile on its way to reaching that goal. The usage in our customer base. We have bank has changed the way it looks, the introduced digital merchant platforms way it serves customers and the way so you can use your phone while paying its services are accessed. Rebranding, a merchant,” Ladics commented. branch redesign and refurbishments, BIBD also introduced an enterprise smart branch initiative, establishment loyalty and rewards program in of a robust contact center and moving November 2013. BIBD customers towards digital are all key contributors could use their Hadia Points for bill to success. We ask Ladics to expand. payments and top-up services. A wide

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Guided by its “digital engagement roadmap,” the bank introduced a mobile advertising platform the following month. The interface featured interactive content and push messaging. April 2014 saw the introduction of virtual pre-paid credit cards, for online shopping use quicker transfers. Throughout this period, the number of people logging onto BIBD’s mobile banking app steadily increased. Ladics tells us that BIBD customers interact at least 18 times in a month via digital channels and 70 to 75 percent of the customer base uses digital regularly. “I think this is a great story!” Ladics enthuses. “This sort of penetration and the popularity of digital services speak for themselves.

Despite being so passionate about

BiBD Mobile transactions more than

2.5 Million annually

“We started mobile banking in 2012 and it has gained a very rapid adoption which by now has reached a 70-75 percent penetration of mobile usage in our customer base” – Dr. Gyorgy Ladics, COO

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its “digital evolution” (as Ladics calls it), BIBD is keen to maintain its physical branches and presence. “It’s important to keep the branches upgraded and service customers seamlessly, irrespective whether digital or face to face.” affirms Ladics.

Card transactions BIBD has transformed, refurbished and more than “digitally enabled” its branches to a “serviceoriented, functional, contemporary style”. The Million refurbished branches are now more spacious, annually modern and (one might say) fashionable. However, looks aren’t everything. BIBD’s branches have benefitted from digital engagement too; new digital banking platform, re-engineered business services allow consumers to experience “express banking”.

Using shopping carts adopted from ecommerce, they can purchase products and services while in the bank. The focus is indeed on human interaction, demonstration and explanation of products and services. Ladics explains: “You don’t come and fill forms. In the age of digital transformation, we also went in the direction of a smart branch, for which we got an award from the Asian Banking Magazine.

There’s no need to fill out any forms. When you come to see the customer representative (either to open an account or for additional services), the process is like an ecommerce tour with product briefs where you can pick and choose your services.”

In order to enable self-service and support customer digital engagement, BIBD has built a call center which later was transformed to

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a contact center to further boost customer interaction. “For the generation of WhatsApp/ WeChat/Line”, the centre enables consumers to instant message or call contact centre agents with any issues they may have. BIBD boasts a “secure, authenticated digital conversation” via its Mobile Application.

Ladics summarises: “We’re opening up all the channels, both face-to-face and digital. We are well aware of the cyber threats in the industry and we have to protect ourselves and our customers from any potential dangers.

Our IT infrastructure and data centre is upgraded to protect our data and protect our customer’s information”.

By putting customer first and valuing its customers, BIBD manages to stay abreast of the competition. According to Ladics, BIBD successfully retains customers and has hardly lost any customers to competitors. In his own words, BIBD is “opening the door to new prospects while retaining its existing customer base”.

Ladics added: “Throughout the past few years, we become more and more aware that customers are choosing banks and service providers based on service levels, and also simplicity and easiness to access or obtain services plays a key role”.

Finally, Ladics tells us that BIBD not only values its customers, it prizes its partners too.

Hadiah Points distributed more than

250 Million annually

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“We believe that digital banking on the payments, deposits as well as on the lending side will definitely grow and be significant. Also we might see that digital banking services will be seamlessly integrated or packaged into the offering of other bigger digital players” – Dr. Gyorgy Ladics, COO

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BiBD Online transactions

200

He names Silverlake Also we might see that Thousand Digital Economy and digital banking services annually the entire Silverlake will be seamlessly integrated Group as key backers who or packaged into the offering of are “truly driving the innovation and other bigger digital players (social digital banking services”. Ladics also media, digital chat providers, Telco, mentions EMC, RSA and IBM – they eCommerce giants etc...)” he says. operate BIBD’s data centre and help BIBD’s digital journey continues; the bank cope with the increase it is far from completion. Building a in processing requirements. seamless omni channel customer Ladics rounds off with his thoughts experience, forming strategic alliances on the future. “We believe that digital with FinTech and other market players banking on the payments, deposits are coming on the horizon. as well as on the lending side will definitely grow and be significant.

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