Hong Leong Bank Balances Innovation and Human Touch in Banking

Hong Leong Bank is a leader in the banking industry, known for its innovative approach to financial services. The bank's commitment to innovation is evident in its digital banking platform, which offers a wide range of services, including mobile banking and online banking.

With its focus on innovation, Hong Leong Bank has made significant strides in improving customer convenience and accessibility. The bank's mobile banking app, for example, allows customers to easily check their account balances, transfer funds, and pay bills on the go.

The bank's human touch is also evident in its customer service. Hong Leong Bank's customer service team is available 24/7 to assist customers with any questions or concerns they may have. This commitment to customer service is a key differentiator for the bank.

Business Services at Hong Leong Bank are designed to cater to the unique needs of corporate and commercial clients. They offer a range of banking services, including deposit and loan services.

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Their business current account is a popular option, providing clients with a secure and convenient way to manage their finances. Interest-bearing auto-sweep and fixed deposit options are also available.

HLB specializes in transaction banking, offering cash management, trade financing, and other services to help businesses streamline their operations and reduce costs.

Business Banking is a vital service for companies of all sizes. HLB offers a range of banking services that cater to the needs of corporate, commercial, and SME clients.

HLB provides deposit and loan services, including business current accounts, interest-bearing auto-sweeps, and fixed deposits. This allows businesses to manage their finances efficiently.

HLB also specializes in transaction banking, offering cash management, trade financing, and other services. These services can help businesses streamline their financial operations and reduce costs.

With a wide range of financing options available, businesses can access the funds they need to acquire assets, manage working capital, or participate in the debt capital market.

Hong Leong Bank has made a significant leap in efficiency by leveraging artificial intelligence (AI) for its collection operations. The bank's AI-driven collection agents have seen a 15 times surge in productivity.

The AI system has replaced the workload of more than 20 human agents, handling up to 16 simultaneous calls. This has led to an 86% reduction in associated costs.

The bank's Group Managing Director and CEO, Kevin Lam, expects ongoing investments in AI to cause a slight rise in the cost-income ratio for FY25, but it will level out at around 40% as the technology becomes more integrated.

Hong Leong Bank has a long history of strategic acquisitions that have helped shape its growth and expansion. In 1982, it was acquired by the MUI Group, a corporate group controlled by Malaysian business tycoon Tan Sri Dato Khoo Kay Peng.

The bank was renamed several times, first to Malayan United Bank Berhad in 1983, and then to MUI Bank Bhd. Under the MUI banner, the bank grew from 11 branches to 35 branches.

In 1994, the Hong Leong Group Malaysia acquired MUI Bank Berhad and renamed it Hong Leong Bank Berhad. This marked a significant milestone in the bank's history, and its growth has been remarkable ever since.

The bank's acquisition of EON Bank in 2011 created the country's fourth-largest bank, with an asset size of over RM140 billion and a total of 329 branches.

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Hong Leong Islamic Bank has launched the first-in-market digital restricted investment account, Portfolio Investment Account (PIA-i). This innovative account allows customers to invest in Shariah-compliant unit trusts funds on a digital platform.

The PIA-i is a collaboration between Hong Leong Islamic Bank and Hong Leong Islamic Asset Management. This partnership aims to provide customers with the opportunity and accessibility to invest in Shariah-compliant funds.

One notable aspect of the PIA-i is its partnership with Bank of Chengdu Co., Ltd. Hong Leong Islamic Bank holds 18% of Bank of Chengdu Co., Ltd's equity.

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Hong Leong Bank Berhad has a history of significant acquisitions. In May 1982, Kwong Lee Bank Berhad was acquired by the MUI Group, a corporate group controlled by Tan Sri Dato Khoo Kay Peng.

The MUI Group renamed Kwong Lee Bank Berhad to Malayan United Bank Berhad in 1983, which was later renamed MUI Bank Bhd. Under the MUI banner, the bank grew from 11 branches to 35 branches.

In 1994, the Hong Leong Group Malaysia acquired MUI Bank Berhad through Hong Leong Credit Berhad and renamed it as Hong Leong Bank Berhad. This marked a significant milestone for the bank, which was later listed on the Kuala Lumpur Stock Exchange.

Hong Leong Bank Berhad continued to grow and expand, with the consolidation of the banking institution meeting the requirements of Bank Negara Malaysia. The bank's growth was remarkable, with the total paid-up capital enlarged to RM 470 million.

In 2011, Hong Leong Bank announced the acquisition of EON Bank's assets and liabilities, making EON Bank part of the Hong Leong Bank Group. The merger created the country's fourth-largest bank with an asset size of more than RM140 billion, and a total of 329 branches.

Hong Leong Bank's approach to innovation is not without its challenges. Balancing legacy systems with cutting-edge technologies is a struggle.

The bank's Group Managing Director and CEO Kevin Lam acknowledges this challenge, but is committed to making it work. Lam stays updated on the latest AI developments, particularly in financial services.

HLB has implemented AI-driven solutions that have already shown impressive results, such as replacing manual customer payment reminders with AI bots. This innovation saved the bank 20 overhead positions while maintaining customer satisfaction.

In February 2013, the bank embarked on a rationalization exercise to review its business and maintain competitiveness.

This exercise involved transferring non-executive staff from all over the country to three centralized locations.

The move created dissatisfactions amongst affected employees, who were not happy with the change.

A picket was held at Wisma Hong Leong in November 2013, protesting the bank's decision.

Alleged wrongful dismissal of 27 employees for refusing to transfer has been referred to the Industrial Court.

Hong Leong Bank is a great example of how to blend innovation and human touch. By leveraging artificial intelligence (AI) and customer-centric strategies, they're transforming their operations to meet modern customer demands.

Their Group Managing Director and CEO, Kevin Lam, leads by example, staying updated on the latest in AI, particularly in financial services. This top-down approach is complemented by a bottom-up culture through initiatives like the AI Ignite Challenge, which encourages employees to propose AI-driven solutions.

About 40 colleagues pitched ideas to senior management through this challenge, with winning projects like one focused on retail credit already being implemented. AI bots replaced manual customer payment reminders, making over 300,000 calls with a success rate matching that of human agents.

The innovation saved Hong Leong Bank 20 overhead positions while maintaining customer satisfaction. Branches are transitioning into advisory hubs, focusing on problem-solving and building customer relationships.

Some transactions require high-security measures or consultative engagements, which can't be done virtually. By prioritizing these in-person interactions, branches remain essential.

Hong Leong Bank's integration of AI and data-driven processes is a testament to its commitment to innovation. It's about being a digital bank first while ensuring a seamless, customer-centric experience.