Affin Bank: Navigating Financial Growth and Innovation in Malaysia

Affin Bank stands as a prominent financial institution in Malaysia, encompassing a variety of subsidiaries including Affin Islamic Bank Berhad, Affin Hwang Investment Bank Berhad, and Affin Moneybrokers Sdn. Bhd. The organization provides a vast array of financial products and services tailored to meet the needs of individuals, businesses, and corporate clients. With a significant history in the Malaysian financial sector, Affin Bank has established a reputation for robust banking solutions and contributions to the country’s economic growth.

The bank has been evolving with the digital age, offering mobile and online banking platforms like the AffinAlways application to cater to the modern customer’s demand for convenience and on-the-go financial management. Despite facing occasional service disruptions, which necessitate visits to physical branches, these digital initiatives signify Affin Bank’s commitment to innovation and customer satisfaction. The collective offerings and strategic direction of Affin Bank showcase a well-rounded approach to banking, regulatory compliance, and corporate social responsibility amidst the dynamic financial landscape.

Key Takeaways

• Affin Bank is a comprehensive financial institution with a suite of services for diverse clientele.
• The bank is adapting to digital trends while facing challenges in service delivery.
• Strategic initiatives highlight Affin Bank’s commitment to innovation and social responsibility.

History of Affin Bank

Affin Bank, established in 1975, has evolved from a Malaysian banking entity to a widespread financial services provider. The bank’s history is marked by strategic growth and development, as it continues to serve both individual and corporate clients.

Founding and Early Years

In its inception year, 1975, Affin Bank was founded with a clear vision to provide banking services that would contribute to Malaysia’s financial landscape. Headquartered in Kuala Lumpur, the bank began its operations by offering essential banking services to the Malaysian community. Its early years were focused on laying down a solid foundation for its banking operations.

Expansion and Growth

Over the years, Affin Bank undertook significant expansion efforts. It broadened its service portfolio to include community banking, enterprise banking, corporate banking, treasury, and investment banking. A testament to its growth is the increase in its branch network to 120 branches nationwide by August 2023, indicating a steadfast commitment to accessibility and service expansion across Malaysia.

Recent Developments

In its more recent history, Affin Bank has continued evolving, both in identity and operations. The bank’s modernization is echoed in its adoption of the hibiscus in its logo, which symbolizes courage and rapid growth. Affin Bank has adapted to the dynamic financial environment, continuously updating its products and services to align with modern banking trends and customer needs.

Corporate Structure

Affin Bank Group’s corporate structure is oriented towards efficient management and synergy across its various businesses. This structure encompasses a clear ownership model and a network of subsidiaries and affiliates contributing to the group’s overall financial ecosystem.

Ownership and Holdings

Affin Bank is substantially held by several major entities. The ownership structure as of March 31, 2021, was characterized by the dominant shareholder, Lembaga Tabung Angkatan Tentera, which held a 59.42% stake. Close behind were other noteworthy shareholders including The Bank of East Asia, Limited, with 23.65%, and Boustead Holdings Berhad, with 20.81% of the equity.

Subsidiaries and Affiliates

The bank’s network extends through various subsidiaries and affiliates, each focusing on different aspects of banking and financial services:

• AFFIN Islamic Bank Berhad: Focused on Islamic banking services.
• Affin Hwang Asset Management Berhad: Specializing in asset management.
• AFFIN-i Nadayu Sdn Bhd: Involved in investment holding.
• KL South Development Sdn Bhd: Real estate development.
• Raeed Holdings Sdn Bhd: Various investments.

Affin Bank Financial Information

Affin Bank’s financial information is a reflection of its activities in the financial services sector, with an emphasis on commercial, Islamic, and investment banking. This section delves into the bank’s annual financial reports, market capitalization, and investor relations.

Annual Financial Reports

The annual financial reports of the Affin Bank Group offer a comprehensive overview of its financial performance. Key metrics from the latest Annual Report 2022 include:

• Net Promoter Score (NPS): +50
• Customer Satisfaction Score (CSAT): 88%
• Product Holding Ratio: 3.0
• Digital customer base: 1.4 million
• Annual online transactions: 68 million

These reports demonstrate the bank’s commitment to responsible banking and its impact on the community.

Market Capitalization

Market capitalization is an important indicator of a bank’s size and investment potential. As of the last available data, the AFFIN BANK Share Price contributed to its market valuation on the public exchange. Investors monitor this figure to gauge the bank’s value in the market.

Investor Relations

Investor relations for Affin Bank focus on maintaining transparency and providing stakeholders with up-to-date and relevant financial information. Key points include:

• The bank’s range of services: commercial banking, Islamic banking, investment banking, asset management, and insurance.
• Share price information and quarterly results, which inform current and potential investors about the bank’s financial health and investment attractiveness.

Affin Bank Products and Services

Affin Bank provides a diversified selection of products and services to meet the financial needs of individual and corporate clients. These offerings are organized into three main categories: Personal Banking, Business Banking, and Islamic Banking.

Personal Banking

Affin Bank caters to the financial needs of individuals with a variety of products such as savings and checking accounts, personal loans, credit cards, and investment services. The bank ensures customers have access to both conventional and tailored solutions to manage their finances effectively.

Business Banking

The bank supports businesses with services including enterprise and corporate banking solutions. It offers business loans, trade finance, and cash management services. Additionally, Affin Bank provides businesses with Treasury and Investment Banking products to aid in their financial planning and growth.

Islamic Banking

Affin Islamic Bank Berhad, operating under Affin Bank, provides a full range of Shariah-compliant products and services. These include Islamic savings accounts, financing packages for Small Medium Enterprises (SMEs), retail, institutional, and corporate clients. The bank remains committed to the principles of Islamic finance while serving diverse market segments.

How to Open a banking account at Affin Bank

The process for opening a bank account at Affin Bank in Malaysia may involve the following steps. However, keep in mind that processes may change, and it’s recommended to contact the bank directly or visit their official website for the most up-to-date information. Here’s a general guide:

1. Choose the Type of Account:

• Affin Bank offers various types of accounts, including savings accounts, current accounts, fixed deposit accounts, and more. Decide on the type of account that suits your needs.

2. Gather Required Documents:

• Generally, you will need to provide certain documents for the account opening process. Common documents include:
  • MyKad (Malaysian Identity Card) for Malaysians or Passport for non-Malaysians.
  • Proof of address (utility bills, rental agreements, etc.).
  • Income proof (such as salary slips or income tax statements).

3. Visit an Affin Bank Branch:

• Locate a nearby Affin Bank branch. You may want to check the official website or contact the bank to find the nearest branch.

4. Speak with a Bank Representative:

• Approach a customer service representative or the designated staff at the bank. Inform them of your intention to open an account and ask for guidance on the required steps.

5. Complete the Application Form:

• Fill out the account opening application form. Provide accurate and complete information. The bank staff will guide you through the process and may assist with any queries you have.

6. Submit Required Documents:

• Submit the necessary documents along with your application form. The bank may verify the information provided.

7. Initial Deposit:

• Some accounts may require an initial deposit. Ensure that you have the necessary funds ready for this purpose.

8. Receive Account Details:

• Once the account is successfully opened, you will receive account details, including your account number.

9. Activate Online Banking (Optional):

• If Affin Bank offers online banking services, you may inquire about the activation process if you wish to manage your account online.

Always verify the specific requirements and procedures with Affin Bank directly, as they may have introduced new features or updated their account opening processes since my last update.

Digital Banking Initiatives

Affin Bank’s commitment to digitalization is evident through substantial capital investment in technology to enhance customer experience and operational efficiency.

Mobile and Online Services

Affin Bank has significantly increased its investment in mobile and online services. Customers can now enjoy a more streamlined and user-friendly mobile banking experience. With the upcoming launch of its new mobile banking app, Affin Bank is expected to enhance its Current Account Savings Account (CASA) initiatives, which are crucial for the institution’s growth and customer retention.

Fintech Integration

The bank’s Fintech integration efforts focus on collaborating with experienced technology service firms like Aspire Systems. This partnership is designed to fast-track Affin Bank’s digital transformation, leveraging Aspire’s expertise in managing digital banking programs, with the goal of achieving swift digital maturity.

Cybersecurity Measures

To safeguard its advancing digital frontier, Affin Bank is implementing robust cybersecurity measures. As it expands its digital offerings, ensuring the security of customer data and online transactions is a top priority. The bank is dedicating substantial resources to fortify its systems against cyber threats, securing both trust and functionality in its digital platforms.

Regulatory Compliance

Affin Bank Berhad (ABB) has demonstrated a firm commitment to regulatory compliance, aligning its operations with both domestic and international guidelines and fostering a compliant corporate culture.

Domestic Regulations

Affin Bank adheres to the principles of the Malaysian Code of Corporate Governance 2021 (MCCG 2021), which were set by the Securities Commission of Malaysia. This code provides a framework for good governance, insisting on ethical conduct and responsible corporate behavior. For the year ending December 31, 2021, and December 31, 2022, ABB has disclosed compliance measures pursuant to Paragraph 15.25 of Bursa Malaysia’s Listing Requirements, underscoring its dedication to domestic regulatory standards.

International Standards

The bank ensures its policies resonate with international standards, aiming to maintain a level of compliance that meets global requirements. This is particularly relevant for cross-border operations and interactions with the international financial community where ABB must demonstrate adherence to a range of regulatory landscapes.

Compliance Programs

ABB runs comprehensive compliance programs to implement and monitor its adherence to the set regulations:

• Internal Policies: Continuous promotion of ethical, prudent, and professional behavior within the bank’s operations.
• Training Initiatives: Regular training sessions for staff to stay updated on compliance matters.
• Reporting Mechanisms: Periodic compliance reports are prepared for the Management Committee, Board Committees, and the Board of Directors, serving as an internal audit of compliance health.

Corporate Social Responsibility

Affin Bank considers the social, economic, and environmental impacts fundamental in its decision-making process as part of its commitment to corporate social responsibility (CSR). Efforts are concentrated on aligning business objectives with community development and sustainable practices.

Community Engagement

Affin Bank focuses on benefitting the wider community as a core aspect of its operations. The bank has initiatives like the GrowGrove Mangrove Tree Planting Programme, which took place on 26 June 2022, demonstrating a hands-on approach to contributing to environmental conservation within local ecosystems.

Sustainability Efforts

The bank promotes an ethos of responsible banking, integrating environmental, social, and governance considerations into business strategies. Affin Bank’s A25 plan outlines the long-term objectives centered on responsible banking with impact, positioning itself as a forward-thinking financial institution committed to sustainable development.

Awards and Recognition

Affin Bank has consistently been acknowledged for its distinct contributions to the financial sector in Malaysia. These accolades have affirmed the bank’s standing as a reputable institution dedicated to excellence and innovation.

In recent years, Affin Bank has been the recipient of several prestigious awards:

• Best Bank for SMEs in Malaysia: This recognition, coming from the Asiamoney Best Bank Awards, underscores Affin Bank’s commitment to supporting small and medium-sized enterprises (SMEs). The accolade showcases the bank’s efforts in developing services and support structures to propel SME growth within the nation.
• Best Bank for Digital Solutions, Malaysia: The bank’s focus on digital innovation was recognized at the Asiamoney Best Bank Awards 2022. Affin Bank’s creation of the SME Colony mobile app, a digital platform aimed at SMEs, exemplifies their push for digital leadership and creative financial solutions.

The bank’s strategic vision, known as the A25 transformation plan, aims to position Affin Bank as the ‘Most Creative Financial Company in Malaysia’, focusing on pillars such as unrivalled customer service, digital leadership, and responsible banking with Environmental, Social, and Governance (ESG) impact. These endeavors have not only reinforced the bank’s vision but have also cemented its reputation through the accolades received.

Strategic Partnerships and Alliances

Affin Bank Group has strategically positioned itself by forming key partnerships and alliances, thereby strengthening its presence in the financial services sector. A principal component of Affin Bank’s strategy involves capitalizing on synergistic partnerships and external alliances on a group-wide scale, an approach that aids in enhancing their service offerings and expanding their market reach.

• Banking Sector Collaboration: Affin Bank is committed to providing comprehensive banking services by embracing the concept of Banking 4.0, which pivots on accessible banking anytime, anywhere. This addresses the modern customer’s need for convenience and efficiency, enhancing the customer experience at every touchpoint.
• Islamic Banking Growth: Affin Islamic Bank Berhad, a wholly-owned subsidiary dedicated to Shariah-compliant products, has engaged in a strategic bancatakaful partnership. This move aligns with the growing demand for Islamic financial services in Malaysia and asserts Affin Islamic’s position in the industry.
• Financial Performance Targets: The Group has charted out its ambitions through its A25 Plan, which includes a suite of five strategic thrusts, amongst which a notable goal is to elevate its Sustainable ROE to 10%, marking a firm commitment to stable and long-term financial growth.

By maintaining a proactive stance towards forging beneficial alliances, Affin Bank positions itself to leverage collective strengths and shared expertise. This strategy not only facilitates the expansion of their service portfolio but also aligns with their larger financial targets and business expansion plans.

Customer Service and Satisfaction

At Affin Bank, customer service is a critical aspect that the bank prioritizes to ensure customer satisfaction. With a comprehensive suite of banking products and services, the bank understands the importance of accessible and reliable customer support.

Contact Numbers:

• General Inquiries: +603-8230 2222
• After-hours Reporting (Lost Bankcards): +603-2028 6262

Operating Hours:

• General Inquiries: 8:00 am – 12:00 am (daily, normal hours)
• After-hours Support: 24-hour service for bankcard loss reporting

Customers can expect to reach a customer service representative during the extensive operating hours ranging from early morning until midnight. This ensures that assistance is available for a wide array of customer needs.

Additionally, Affin Bank has implemented a system to handle card loss after hours, addressing potential security concerns promptly to protect customers’ financial interests.

Convenience Features:

• Schedule a Call: Customers have the option to arrange a call at a time that suits their schedule, adding a layer of convenience to the traditional customer service framework.

Affin Bank continues to enhance its customer support structure, incorporating feedback into service improvements. The aim is to achieve a high level of customer satisfaction by ensuring their concerns and inquiries are addressed effectively and efficiently, with clear communication as the foundation of these interactions.

Frequently Asked Questions

Affin Bank provides a range of banking services, including credit card applications, online money transfers, and customer support. Below are commonly asked questions pertaining to these services.

How can I apply for a credit card with Affin Bank?

An individual can apply for an Affin Bank credit card online through the AffinAlways portal or by visiting a bank branch. They need to fill out the necessary application form and provide required documents.

What are the different subsidiaries under Affin Bank?

Affin Bank has several subsidiaries, including Affin Islamic Bank and Affin Investment Bank. These subsidiaries offer specialized banking and financial services.

Where can I find an Affin Bank branch near me?

To locate the nearest Affin Bank branch, one can use the branch locator feature available on Affin Bank’s official website or through the mobile banking application.

What is the process for transferring money online with Affin Bank?

To transfer money online with Affin Bank, a customer logs into their Retail Internet Banking (RIB) account, navigates to the transfer section, enters the recipient’s details, and confirms the transaction with security authentication.

How can I get in touch with Affin Bank’s customer service?

Customers can contact Affin Bank’s customer service through the contact center, online feedback forms, or by visiting a local branch. Response times are geared to be timely.

What are the requirements for obtaining a personal loan from Affin Bank?

Applicants for a personal loan from Affin Bank must typically provide proof of income, employment details, and other financial documentation as required by the bank’s lending policies.