Unlike most lenders in its region, Malaysia’s largest
banking group Maybank has invested in advanced CRM solutions
heavily in the last few years – with key focus on analytics in
2011. David Chong, head of corporate development and CRM strategy,
tells Meghna Mukerjee about how Maybank aims to serve customers
better using CRM solutions.
Go deeper with GlobalData
Malaysia’s largest
banking group, Maybank, has got several things right in 2011. Key
among them has been its growing investment in advanced analytical
Customer Relationship Management (CRM) solutions.
With over 2,100 branches and offices across 17
countries, the Maybank Group serves more than 21m customers.
In Malaysia, Maybank itself has 9m customers
and the advanced CRM capabilities allows the lender to serve each
one of them better”, according to the head of corporate development
and CRM strategy for Maybank, David Chong.
Through 2010 and particularly 2011, Maybank’s
CRM strategy has heavily focused on expanding the analytical CRM
capabilities across the entire retail customer base, which has been
a “key investment”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThis instantly sets Maybank apart from its
competition in the Malaysian banking market as some local lenders
don’t even have rudimentary CRM solutions in place, informs
Chong.
According to Chong, Maybank has invested in,
and developed, “the most mature CRM capabilities in Malaysia” for
good reason.
“With a better analytics database, we have the
capability of looking at things more holistically and completely.
From the analytics information perspective, we now know what the
average product holdings by different customers are,” says
Chong.
However, the “CRM movement bang” in the
Malaysian market started in the early 2000s, when most banks began
getting interested in making investments in CRM solutions.
“Obviously the foreign banks were ahead of
this movement but more local, Malaysian banks started coming
in.
“Maybank started investing in analytical CRM
solutions technology in 2006-2007 – with the implementation of
S1software solutions for the frontend and Teradata solutions for
the backend – but the capabilities were only used for a certain
group of customers.
“We started with the most valuable customers
and as of last year we have extended our analytical CRM
capabilities to our entire retail banking customer base,” adds
Chong.
“For example, now if a customer walks into the
branch, the staff is able to have a 360 degree view of the
customers and what products they have,” says Chong.
At the same time, the campaign management
capabilities recommend certain products for a particular customer,
boosting Maybank’s cross sell capabilities.
Maybank’s 9m customers are classified into
three macro segments and 13 micro segments.
“We can look at the revenue and profit
contribution by different segments, and with better analytical
capabilities we can have more insight into customer behavior. But
at the same time, more importantly, we can use those analytics to
target our marketing campaigns more specifically.”
The marketing campaigns revolve around
products ranging from credit cards, housing loans, auto finance to
mortgages.
Owing to the advanced
CRM solutions, Maybank has launched 982 campaigns with
approximately 3.5m leads sent off in the last six months alone –
that is 10 to15 campaigns on a weekly basis.
“So it is a very high usage scenario. We
launched these campaigns through multiple channels – approximately
1m through call centres, 1.5m through branches, half a million
through various direct marketing channels. We use different
channels depending on the type of campaign and type of customer,”
adds Chong.
Though Maybank does offer mobile banking, the
platform has not been “explored” for direct marketing yet, other
than the SMS channel.
“The mobile channel is fairly new. On a face
to face basis, our focus in the last one year was on rolling out
the mobile channel as an integrated extension of internet
banking.
“In Malaysia not all the banks are on a mobile
platform yet. Even less than half of the banks have a proper mobile
channel. As far as I know, no bank has actively used the mobile
channel for the purpose of marketing other than sending SMS’s –
just to alert the customer about offers – like we do,” says
Chong.
Maybank, however, plans to invest in
developing its mobile banking platform over the next two years.
“I wouldn’t say that the [Malaysian] market is
not ready but it is about the adoption. We have about 2m active
internet banking customers, but mobile adoption is just a small
fraction of that,” says Chong.
More immediately, Maybank plans to revamp its
internet banking platform over the course of 2012.
“We are planning to add enhancing platforms
for internet banking as part of our key priority at the moment. The
plan is in very early stages but we are looking at physically
enhancing the platform,” says Chong.
Though Maybank has offered customers internet
banking for the last decade, the platform has shown a consistent
15% annual growth since 2010.
Alongside the CRM capabilities, Chong also
attributes this growth to broadband penetration in Malaysia now
being more than 60% and the younger generation – between the age of
20 and 30 years – becoming the bank’s mainstream customers.
The focus now for Maybank is “moving our
customers who are not on the internet banking platform on to
it”.
Maybank’s keys aim for its 2012 CRM strategy
involves increasing the adoption of CRM by users and encouraging
greater usage of marketing leads by the branch staff, to “extract
more value”.
Maybank also plans to extend its CRM
capabilities – that are currently used mainly on the retail banking
side – to the SME and corporate banking sectors in 2012.
