Alliance Bank's Alliance Digital SME Honored as Financial Inclusion Initiative of the Year - Malaysia

Its transformative Alliance Digital SME earns recognition for its seamless digital banking journey and significant shift towards branchless banking.

Alliance Bank Malaysia has been recognised for its groundbreaking initiative, Alliance Digital SME, which has earned the prestigious title of Financial Inclusion Initiative of the Year at the ABF Retail Banking Awards. This revolutionary solution has transformed the way businesses of all stages interact with the bank, providing a branchless experience and empowering customers with a seamless digital banking journey.

The Digital SME initiative was launched in response to the challenges posed by the pandemic, which underscored the need for remote and digital banking services. Alliance Bank's forward-thinking approach allowed customers to proceed with loan applications and business current account openings through virtual interviews for verification, eliminating the need for physical branch visits.

One of the key achievements of the Digital SME initiative was the remarkable shift in customer behaviour, with a staggering 96% of all consumer banking transactions transitioning from physical branches to digital platforms. This impressive transformation exemplifies Alliance Bank's commitment to embracing cutting-edge technology to enhance customer experiences.

A pivotal aspect of Alliance Digital SME is the introduction of virtual relationship managers (RMs) who conduct remote video calls to perform fully remote assessments on digital loan applications. This innovative approach enables customers to receive personalised assistance and guidance throughout the application process, irrespective of their location. The remote-assisted onboarding feature has proven to be especially important for more complex products, such as loans, where customers may have questions about interest rates and loan tenures.

To ensure the success of the initiative, Alliance Bank employed an Agile Development Framework and rolled out several Minimum Viable Products (MVPs) to continually improve the customer journey. These MVPs included remote digital SME applications, the virtual RM model, and the integration of WhatsApp as an additional channel for customer interactions.

The achievements of the Alliance Digital SME initiative are remarkable and far-reaching. Since its launch, the time required for loan applications has been significantly reduced, with a jump from 26% to 46% in submitted applications. Moreover, the virtual RM model has improved efficiency, with each RM now able to handle three times more virtual interviews than before. Additionally, leveraging WhatsApp as an additional channel has resulted in a 40% increase in completion rates for the full remote onboarding process.