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RHB Unveils New TWP24 3-Year Roadmap to Drive Service Excellence

KUALA LUMPUR: RHB Banking Group today unveiled its new 2022-2024 three-year strategy titled “Together We Progress 24” (TWP24) to continue the growth momentum of its previous five-year FIT22 strategy and deliver on the group’s ambition to be a leader in service excellence.

Group Managing Director and Chief Executive Mohd Rashid Mohamad said the FIT22 strategy has laid the foundation to take the group’s segment-focused strategy into the next phase of growth and, as RHB progresses , it continues to enhance new customer-centric ideation through strong customer-first culture.

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FIT22 comprises 22 initiatives and is based on three key pillars: financing our journey, investing to win and transforming the organisation.

He said the TWP24 programs to be carried out over the next three years are designed to promote more robust performance enabled by improved digital, computing and analytical capabilities, and position the group as a key player in the field of sustainability. . .

RHB has shortened its strategic planning cycle to three years to address ongoing changes in market trends and customer preferences and to improve customer experience, as well as the increased importance of being agile, he said. to reporters after unveiling the TWP24 here today.

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“As part of TWP24, a number of key targets have been set, including an equity return of 11.5% and a cost/income ratio of less than 44.5% by 2024, as well as targets not finance related to digital, IT and analysis.

“Sustainability targets include mobilizing RM20 billion in sustainable financial services and a financial inclusion target of empowering two million people by 2026, and for the group to become carbon neutral by 2030 “, he noted.

Each company’s priorities under the TWP24 strategy are centered on improving customer excellence through digital innovation.

Continuing his developments, Mohd Rashid said that the strategy of TWP24 will be centered on three strategic objectives, namely “To be everyone’s main bank” by building deeper relationships with target customers, “Priority to customer experience ” by delivering market-leading and differentiated customer experience and service levels, and to “generate quality growth” by focusing on domestic and international growth, where the group is equipped with the “right to win” strategies while focusing on the profitable growth of the business.

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In paving the way for the implementation of TWP24, he said the group had recently strengthened its leadership team through internal moves and expanding the roles of some key existing senior management.

“This will ensure greater focus on key growth areas, (thus) accelerating the group’s digital journey towards customer experience transformation,” said Mohd Rashid.

On TWP24’s risk exposure, he said the group would be cautiously optimistic as there are still many uncertainties surrounding the market, especially due to geopolitical tensions and rising global inflation rate.

Regarding the downtrend of the ringgit, he said the bank’s exposure to foreign investment is still low and the focus is still on the ringgit, therefore the impact on TWP24 will be minimal.

However, he remains optimistic about Malaysia’s economic growth after the country recorded gross domestic product growth of 5% in the first quarter of 2022.

On RHB’s loan growth target this year, Mohd Rashid said the bank was targeting growth of 4-5%, slightly below industry expectations of 5.2%, in anticipation of some uncertainty.

“We think 4-5% growth is more realistic at this point as inflation and the overnight rate hike will impact borrowing sentiments. But we think with the continued growth in the economy, that would be neutralized and people would come back to borrow,” he said.

Elaborating on the ringgit trend, he said the bank estimated the local currency would strengthen to the 4.10 to 4.15 level in the last quarter of this year, on the back of continued inflow and economic improvement, as ringgit flows will depend on demand and supply.

Meanwhile, discussing the digital banking license with his partner, Boost Holdings Sdn Bhd, Mohd Rashid said it would be a totally different setup of banking.

“We are the investor in the new joint venture to be formed…I see this as a continuing journey of RHB’s digital agenda, in which the group could leverage cross-referencing as well as help the customers served that we are unable to serve at this time,” he added. – Bernama