MBSB Bank Merger: A New Chapter in Malaysian Banking

MBSB Bank stands as an important financial institution in Malaysia, recognized for its adherence to Shariah-compliant banking principles. As a licensed entity under Bank Negara Malaysia, it serves a diverse clientele offering a blend of traditional values and modern financial practices. The bank has established a reputation for prioritizing customer satisfaction through high-quality service and a range of financial products designed to meet the varied needs of its customers.

The bank has embraced digital banking initiatives to stay aligned with the evolving landscape of the banking industry. Features such as the M Journey Online Banking and the M Journey Mobile App cater to the growing demand for convenient and secure digital banking services. Moreover, MBSB Bank has been involved in community projects and sustainability efforts, reflecting its commitment to corporate social responsibility.

Key Takeaways

• MBSB Bank provides Shariah-compliant financial services in Malaysia.
• The bank offers a comprehensive suite of digital solutions for personal and corporate banking.
• MBSB is actively involved in community development and sustainable practices.

History of MBSB Bank

MBSB Bank, established as part of Malaysia’s banking evolution, has a significant history marked by strategic growth and expansion in the Islamic banking sector.

Founding and Early Years

MBSB Bank Berhad, known today as a comprehensive provider of Shariah-compliant banking services, has its origins rooted in the Federal and Colonial Building Society Limited, incorporated in 1950. It began servicing the Malaysian community by focusing on home financing and related financial services.

Milestones and Growth

The bank’s journey from a building society to a full-fledged Islamic Bank involved several key milestones. In 2018, it undertook a substantial rebranding exercise, which culminated in the renaming of Asian Finance Bank as MBSB Bank Berhad on April 2, marking a new era in its corporate history. Over the years, MBSB Bank has expanded its offerings to include a wide range of financial products and services for retail, small to medium-sized enterprises (SMEs), and corporate clients.

Corporate Structure

The corporate structure of MBSB Bank is delineated into a Board of Directors and a Management Team, each playing a distinct yet complementary role in governance and operations.

Board of Directors

MBSB Bank’s governance is spearheaded by a Board of Directors responsible for the strategic direction and oversight of the organization. The Board ensures that MBSB operates within regulatory frameworks and adheres to high standards of corporate governance.

Management Team

The Management Team of MBSB Bank, led by the Group Chief Executive Officer, executes the strategic goals set by the Board. It manages the day-to-day operations to deliver on the bank’s mission of providing Shariah-compliant banking solutions, with a keen focus on sustainability and ethical banking practices.

Financial Products and Services

MBSB Bank offers a comprehensive suite of financial solutions aligned with a customer-centric approach. These solutions cater to varying needs, from individual banking to corporate financing, underpinned by a strong Islamic banking foundation.

Retail Banking

In retail banking, MBSB Bank provides individuals with personal financial services that include competitive savings programs and personal financing options. Clients can apply for personal loans with low-interest rates and expect fast approval processes, ensuring timely access to funds when needed.

• Personal Loan & Financing
  • Fast approval
  • Competitive rates

Corporate Banking

For corporate clients, MBSB Bank extends its expertise to facilitate business operations. This includes offering specialized financial products and services that support businesses in managing their finances efficiently through M Journey Corporate Online Banking, which presents a user-friendly internet banking experience.

• Business Loans
  • Corporate Online Banking
  • Customized financial solutions

Islamic Banking

MBSB Bank is prominent for its Shariah-compliant banking services. It offers a broad spectrum of Islamic financial products designed to meet the ethical and financial needs of its customers. This includes wealth management and property financing with terms conforming to Islamic law.

• Wealth Management & Protection
  • Shariah-compliant products
  • Partnership with trusted business partners
• Property Financing
  • Low-interest rate mortgage loans
  • Residential and commercial properties

Digital Banking Initiatives

MBSB Bank has been proactive in enhancing its digital banking services to provide customers with convenient and secure banking experiences.

Online Banking

M JOURNEY is MBSB Bank’s corporate online banking platform, introduced as a step towards innovating the future of corporate banking. It aims to improve customer experiences and secure their interests within the dynamic financial environment.

Mobile Banking

MBSB Bank has not specifically outlined its mobile banking initiatives in the provided information. It is, however, standard for banks undergoing digital transformation to offer mobile banking solutions allowing customers to manage accounts, pay bills, and access other banking services through their smartphones.

Fintech Partnerships

MBSB Bank has signed a Memorandum of Understanding (MOU) with CelcomDigi. This collaboration signifies MBSB Bank’s commitment to continuous digitalization and enriching customer experiences by integrating advanced technology solutions in their banking operations. The partnership aims to develop smart banking solutions including cyber security services.

Branch Network and ATMs

MBSB Bank offers a network of branches spread throughout various regions of Malaysia, catering to the needs of customers in the Northern, East Coast, Central, Southern, and East Malaysia regions. Each branch provides banking services as well as customer support to ensure accessibility and convenience for individuals and businesses alike.

Notably, a branch in Pulau Pinang is located at:

• Pulau Pinang Branch
  • Ground Floor, Wisma Penang Garden, No 42, Jalan Sultan Ahmad Shah, 10050 Pulau Pinang.
  • Telephone: 04-2266275
  • Fax: 04-2286275

The Seberang Jaya branch is another accessible location for customers:

• Seberang Jaya Branch
  • Unit No. 41, G, 1F & 2F, Jalan Todak 4, Seberang Jaya Tengah, 13700 Pulau Pinang.

MBSB Bank is equipped with state-of-the-art Self Service Banking including Cash Recycling Machines (CRMs), which function as both Automated Teller Machines (ATMs) and Cash Deposit Machines (CDMs). These are available at various branches, which not only enhances the ease of transactions but also provides 24-hour access for daily banking activities.

The bank’s head office is centrally located at:

• Head Office
  • Menara MBSB Bank, PJ Sentral, Lot 12, Persiaran Barat, Seksyen 52, 46200 Petaling Jaya, Selangor.
  • Enquiries Hotline: 03-2096 3000

For any banking inquiries, customers may contact the hotline available from 9.00 am to 6.00 pm, Monday through Friday. Online banking services for individual accounts are offered around the clock, ensuring customers can manage their finances at any time.

Customer Service and Support

MBSB Bank maintains a robust customer service framework, providing various channels for account holders and the public to reach out for support and banking inquiries.

Help Center

MBSB Bank’s Customer Service Centre operates at the heart of its support, offering assistance through their hotline: +603-2096 3000. The centre is available from 9:00 am to 6:00 pm (Monday to Friday) for general inquiries, with extended services for fraud cases via a dedicated line: +603-2083 7900 (available 24 hours). For ease of access, customers can also engage through email for queries at customer.service@mbsbbank.com.

Customer Feedback

Feedback is a vital part of MBSB Bank’s service improvement. Customers can fill out an online feedback form available on the bank’s website for convenience. They can also reach out directly by writing to the Customer Experience Management Department at the bank’s headquarters. MBSB’s commitment to swift and attentive response to complaints is mapped in their Complaint Handling Process Flow, ensuring that all feedback is addressed appropriately and effectively.

Regulatory Compliance and Governance

MBSB Bank is committed to upholding the highest standards of regulatory compliance and governance. The bank has implemented robust mechanisms for managing compliance and ensuring adherence to all applicable laws and ethical standards.

Risk Management Policies

MBSB Bank has an established Board Charter, which includes the Terms of Reference of the Risk Management Committee (RMC). The RMC’s role is to support the Board in overseeing the management of risk across the entire bank. This includes reviewing and recommending risk and compliance policies for the Board’s approval. A key focus area is Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF), where the bank maintains strict policies to prevent unlawful activities.

Legal and Ethical Standards

At MBSB Bank, the Chief Compliance Officer leads the compliance function, ensuring that legal and ethical standards are fully integrated into the bank’s operations. MBSB’s governance framework includes a comprehensive Memorandum and Articles of Association, which serves as the legal foundation for the bank’s commitment to ethical conduct. Regular liaison between compliance officers and business units guarantees that compliance remains at the forefront of all banking activities.

Community Involvement and Sustainability

MBSB Bank is actively engaged in Community Involvement and Sustainability through its CSR initiatives and environmental stewardship. The institution focuses on strategic projects that promote educational development, community welfare, environmental conservation, and sustainable workplace practices.

Corporate Social Responsibility

MBSB Bank anchors its CSR efforts in five key pillars: education, community, environment, workplace, and industry. Its strategic partnerships with NGOs underscore a commitment to education and community welfare, systematically addressing social betterment. The bank endeavors to contribute to improving quality of life via investment in its customers and the broader community. These initiatives are distinguished by their transparency, inclusivity, and innovation, aiming toward a fair balance of stakeholder interests.

Environmental Initiatives

MBSB Bank interlaces environmental considerations within its operations, exemplified by the Sustainability@Workplace campaign. This initiative is designed to foster a culture of environmental consciousness and sustainable practices among the bank’s employees. Participation in events such as the International Sustainable Energy Summit (ISES) aligns with this mission, signaling an unwavering commitment to sustainability in the banking sector. MBSB’s corporate strategy interweaves sustainability comprehensively, reflecting in its service provision and the annual Sustainability Report, which details the bank’s environmental impact and targeted actions.

Awards and Recognitions

MBSB Bank has received several awards that highlight its performance in the banking and financial sector. It’s important to note the recognition MBSB Bank has achieved in recent years.

2018:

• Company of the Year: MBSB Bank was distinguished in Banking and Financial Institution category.

2021:

• Sustainability and CSR Malaysia Awards: MBSB Bank was acknowledged for its contributions towards sustainable practices.
• Cambridge IFA Islamic Retail Banking Awards:
  • Best Retail Bank Malaysia: An upcoming award for MBSB Bank.
  • Best Islamic Retail Banking Campaign: Recognized for the CASA-I Campaign.

These recognitions underscore MBSB Bank’s commitment to excellence within the banking industry and its dedication to sustainable and ethical banking practices. The awards also reflect the institution’s successful marketing efforts, particularly in the Islamic retail banking sector.

Future Outlook and Strategies

MBSB Bank has charted a course for the future with a clear strategic vision: to establish itself as a leading progressive Islamic bank by 2025. Key to this vision is its Strategic Roadmap for 2022-2023, which emphasizes shared prosperity as a guiding principle.

The bank aims to expand its financing by 7%-8% by the end of 2023, employing a four-pronged strategy to achieve this growth:

• Asset Quality Management: They plan to enhance asset quality, focusing on sectors anticipated to show strong performance.
• Portfolio Realignment: There will be a shift from traditional construction sector financing to manufacturing and high impact sectors, reflecting changing economic dynamics.
• Financing Approvals: They are set to increase with a strategic realignment toward these growing sectors.
• Strategic Goals: These include developing a responsive and robust Islamic banking service portfolio, addressing the needs of both retail and corporate clients.

MBSB Bank’s forward-looking statements suggest a proactive approach to market growth and an emphasis on responsive financial services. This projection is characterized by a commitment to strategic adaptation and a responsible outlook on sustainable banking practices.

Key Focus Areas	Strategic Actions
Asset Quality Improvement	Sector-focused financing
Portfolio Realignment	Diversification of sectors
Increase in Financing Approval	Expansion in key industries
Strategic Goal Achievement	Offering robust services

How to open a bank account with MBSB

To open a bank account with MBSB Bank in Malaysia, you will typically need to follow a set of procedures and provide certain documents. Please note that specific requirements may vary, and it’s always advisable to contact the bank directly or visit their official website for the most up-to-date information. Here is a general guide on how to open a bank account with MBSB Bank:

Step 1: Choose the Type of Account

MBSB Bank offers various types of accounts, including savings accounts, current accounts, and Islamic accounts. Choose the type of account that best suits your needs.

Step 2: Visit a Branch

Locate a nearby MBSB Bank branch. You may check the official MBSB Bank website or contact their customer service to find the nearest branch.

Step 3: Bring the Required Documents

When visiting the branch, make sure to bring the necessary documents. The specific requirements may vary, but generally, you will need:

1. Proof of Identity (Original and Photocopy):
   • Malaysian citizens: MyKad (National Identity Card)
   • Non-Malaysian citizens: Passport and valid visa or work permit
2. Proof of Address (Original and Photocopy):
   • Utility bill (electricity, water, or gas bill) or
   • Bank statement or
   • Tenancy agreement (if applicable)
3. Income Verification Documents (if required):
   • Payslips or
   • Income tax returns or
   • Letter of employment
4. Passport-sized Photographs:
   • Typically, two recent passport-sized photographs

Step 4: Complete the Application Form

Fill out the account opening application form provided by the bank. Ensure that all information is accurate and complete.

Step 5: Initial Deposit

Some accounts may require an initial deposit. Check with the bank regarding the minimum deposit requirement for the type of account you are opening.

Step 6: Attend the Account Opening Interview

You may be required to attend an account opening interview at the bank. This is a standard procedure to verify your identity and obtain additional information.

Step 7: Receive Account Details

After the account opening process is complete, you will be provided with your account details, including your account number.

Tips:

• It’s advisable to contact the bank or check their official website for any specific requirements or changes in the account opening procedure.
• MBSB Bank may offer both conventional and Islamic banking services, so choose the type of account that aligns with your preferences.

Remember that banking regulations and procedures may change, so it’s essential to confirm the current requirements with MBSB Bank directly before initiating the account opening process.

Conclusion

In conclusion, the story of MBSB Bank unfolds as a dynamic narrative in the landscape of Malaysian banking, marked by a commitment to Shariah-compliant principles and a dedication to meeting the diverse financial needs of its customers. The bank’s evolution from its early years, rooted in home financing, to its current position as a comprehensive Islamic bank with a broad range of financial products and services, signifies its strategic growth and adaptability in the ever-changing banking industry.

MBSB Bank’s embrace of digital banking initiatives underscores its responsiveness to the evolving preferences of customers, with a focus on providing convenient and secure financial solutions. The collaboration with CelcomDigi and the emphasis on technology-driven advancements highlight the bank’s commitment to staying at the forefront of digital transformation.

The corporate structure, governed by a robust Board of Directors and Management Team, ensures effective governance and strategic execution. MBSB Bank’s emphasis on regulatory compliance, risk management, and ethical standards further reinforces its commitment to maintaining the highest standards of integrity in its operations.

A standout feature of MBSB Bank is its active engagement in community development and sustainability. Through CSR initiatives and environmental stewardship, the bank demonstrates a holistic approach to corporate citizenship. Notable achievements, such as awards for sustainability and recognition in the Islamic retail banking sector, underscore the institution’s excellence and dedication to ethical practices.

Looking ahead, MBSB Bank’s strategic roadmap for 2022-2023 outlines ambitious goals, including becoming a leading progressive Islamic bank. The emphasis on shared prosperity, expansion in financing, and strategic realignment toward growing sectors reflects a proactive approach to market growth. The bank’s commitment to asset quality improvement, portfolio realignment, and responsible banking practices positions it as a key player in shaping the future of Islamic banking in Malaysia.

In essence, MBSB Bank’s story is one of evolution, adaptability, and commitment to excellence, setting the stage for a promising future as a leading force in Malaysian banking.