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Telekom Malaysia – Driving strategic initiatives to accelerate digital transformation capabilities in BFSI and Oil & Gas Industries

February 12, 2019
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An Asia Pacific end-user survey by Frost & Sullivan highlighted that 93% of the organisations surveyed considered themselves ready or have embarked on the digital transformation journey.

Digital transformation is one of the key strategic goals for enterprises and the public sector across the region. An Asia Pacific end-user survey by Frost & Sullivan highlighted that 93% of the organisations surveyed considered themselves ready or have embarked on the digital transformation journey. Further result from the survey shows data analytics and Artificial Intelligence (AI) were rated as critical investments over 2017 – 2023 to the success of their digital transformation.

The drivers for these investments however vary significantly depending on the size and digital maturity of these organisations. To ensure desired business outcomes, enterprises are continuously exploring new technologies and investing in critical enablers such as Data Analytics and AI – as analytics itself has undergone a paradigm shift over the recent years – from data warehousing and mining to providing predictive business intelligence.

As organisations adjust to the rapidly changing digital lifestyle of consumers worldwide, they are discovering the importance of understanding and envisaging the impact of information generated from digital sources. Sophisticated analytic capabilities and intuitive visualisations are driving a profound change in how marketing, advertising, communications, supply chains, value chains, processes, transactions and deals are going to be accomplished.

Banking, Financial Services & Insurance (BFSI) and Oil & Gas sectors – Reinventing in the digital world

Amongst other verticals, leading BFSI and oil & gas companies are building their digital transformation strategies as the foundation for sustained growth. While, the BFSI sector has leveraged digital extensively over the years, there is continued focus on adopting technologies that can enable improved cost of operations, streamline processes and create better customer experience. Big Data and AI tools are being deployed extensively by banks in the region to ensure greater compliance as well as gain deeper customer insights to identify cross-sell opportunities. Besides, emerging technologies like blockchain, continue to transform the industry, in a way that may completely disrupt traditional banking in years to come.

Digital has also emerged as the key enabler in oil and gas sector, driven by the need to reduce costs, make faster and better decisions, and to increase operational productivity. Besides operational applications and digital asset management, Internet of Things (IoT) driven applications are creating a data-first approach to managing existing assets, supply chains, or customer relationships. Integrated deployment strategy with analytics is becoming the key for oil & gas companies to unlock value and potential.

The constant advancement of hardware and breakthrough Machine Learning (ML) algorithms has also unleashed a new wave of exponential progress that is set to affect every industry. True success in AI depends on access and timeliness of data, drawing insights and utility from the Internet of Things and Big Data paradigms. While all industries stand to benefit from this, the adoption is at different levels.

Telekom Malaysia’s (TM) end-to-end solutions and services capabilities create a compelling value proposition for enterprises and is also demonstrating a continued focus towards creating value for supporting enterprises in their transformation journey. TM’s offerings across software applications, network services, Tier-III Data Centre, Cloud services, high-performance computing infrastructure and managed services position it well to partner with enterprises in their digital journey.

Given TM’s strong focus towards offering digital solutions for both BFSI and Oil & Gas Industries, TM led a strategic initiative of inviting UK based AI companies (in partnership with British High Commission) in October 2018. Close and intensive engagements with these AI companies helped explore opportunities for collaboration and identify means to create greater value for BFSI and Oil & Gas organisations in the region.

Security and Scalability

The initial discussion started with an introduction on TM solutions and capabilities, as well as TM’s strong understanding of the Malaysian Market. Led by Wan Ahmad Kamal, Executive Vice President, Enterprise Business, TM ONE, the conversation deep-dived into how the nation’s Convergence Champion and No. 1 Converged Communications Services Provider, has transformed itself to fully support both BFSI and Oil & Gas industry’s transformation journey and continuously be relevant in the digital market.

He added that by having a deeper understanding of verticals, TM is better equipped at delivering solutions and services packed with high security standards catered to the need of the BFSI and Oil & Gas industries. TM, through its business solutions arm, TM ONE, assures securities aspects of both industries via its Twin Core Data Centre’s world class security capabilities.

TM ONE’s Twin Core Data centre, comprises two-state-of-the-art Data Centres, named as Iskandar Puteri Data Centre (IPDC) that is located at Iskandar Puteri in Johor and Klang Valley Data Centre in Cyberjaya, Klang Valley. IPDC is in compliance with various industry and security certification standards, including undergoing threat, vulnerability and risk assessment (TVRA), ISO27001, as well as PCI DSS1. While KVDC, will be undergoing a few rounds of certification processes to complement its sister twin, after 3 months of operation once construction completes in early 2019.

Wan Ahmad Kamal added that with the Twin Core infrastructure in place, scalability, flexibility and agility will no longer be an issue. As speed to market becomes critical for both of these industries, the need to scale with technology that is constantly agile, capabilities and competencies that are always available and on top of an infrastructure that is robust through changing times, is crucial to maintain a business’ relevancy and competitiveness in the market.

He also commented that TM ONE has been involved in various infrastructure investments in order to support both of these industries. Among the solutions provided are TM ONE’s Multi-Cloud Services, Twin Core DC Disaster Recovery (DR) services and TM’s very own TM ONE ID Hub, or widely known as eKnowYourCustomer (eKYC) and Managed Security.

Driving Fundamental Change

Digital transformation entails the integration of digital technology into all areas of business, and these integrations would then drive the fundamental changes of how a business operates and deliver value to its customers.

Driving the discussion further, the AI vendors explained how their technology capabilities enable businesses to enhance their customer experience, optimise processes and operations as well as improve security in a highly data intensive environment. The discussion focused on how businesses are taking precautionary measures in their own digital transformation journey.

Everyone generally agreed that by going digital, the banking and insurance companies would require clear articulated strategy, funding, talent, agile ways of working and an internal culture that is willing to take risks in order to transform their businesses. As for the Oil & Gas industry, there is a need to optimise operational performance that would significantly reduce costs and minimise risks throughout the transformation process.

It is clear that to drive transformation; an organisation would require a thorough enhancement to the business’ organisational efficiency and increase the speed of delivery to its customers. Opinsta, one of the UK companies, showcased their capabilities in countering operational challenges. The company specialises in amplifying an organisation’s operational potential, in essence, by putting routine business processes into an automated and digitised mode.

Their capabilities include digitising and innovating customer-related business operations, with a multifunctional app that acts as a bridge to employees of all levels. It serves as a tool for efficient maintenance reporting and to minimise manual processes altogether.

As experts in rapid build, development and support in amplifying operational performance, they have to-date built nine (9) separate solutions that caters to specific business requirements.

Managing Risks

It was clear that digital has changed the way businesses operate over the years. Given its impact it has on businesses, the risk of human error would bound to happen along the way. Jazz Networks, another UK company involved in the discussion, explained that businesses need to mitigate human error from the source.

They continued to explain that their technology was created to address complexities of human behaviour and the countless times humans have indirectly bypassed security built to protect them. Their platform is equipped with an advanced learning systems that collects and analyses human behavioural data of users on the network, and detect flagged activities that is considered suspicious.

This platform gives the administrator a complete transparent view of the network – with a user interface that analyses the collected data to ensure end-to-end visibility for each activity happening on the network.

Jazz Networks takes accuracy and transparency seriously. Their platform enables users to view real-time data that will help them make benefitting business decisions each step of the way. And to top it off, their platform’s capability to scale together with user’s business needs, managed as a single entity through intelligent segmentation that dynamically split the network into logical partitions, enable any security policy and machine learning insights to apply to all end users’ computers.

Accelerating Businesses, and the Nation Forward

The discussion was effective as it leveraged on TM’s strong understanding of the Malaysian market and deep domain/ industry expertise. At the same time, the AI vendors brought forth technologies which would enhance customer experience, optimise business processes and operations as well as improve security in a highly data intensive environment.

In summary, all parties cohesively agreed that:

Digital has been driving the country’s digital economy for the last decade, and will continue on for the next. It is imperative for businesses to be on the right digital track, with the right technology, at the right time, or they will risk being irrelevant to the market. The need to be equipped with scalable capabilities, coupled with competent resource is also important for any business embarking on their digital transformation journey.

Frost & Sullivan, and TM ONE believe that engagements between leading service providers and emerging global technology vendors play a critical role towards accelerating development of innovative solutions and creating an ecosystem enabling sustained growth of organisations in the digital era.

Nishchal Khorana,
Director, Digital Transformation
Practice, APAC,
Frost & Sullivan

  1. The Payment Card Industry Data Security Standard (PCI DSS1) is a set of security standards designed to ensure that ALL companies that accept, process, store or transmit credit card information maintain a secure environment. (https://www.pcicomplianceguide.org/faq/)

Envisioning MyDIGITAL for the Rakyat
A Digital Government Blueprint for Malaysia

August 02, 2021
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One of the aims of MyDIGITAL is to create a digitally-enabled government that will provide end-to-end digitalised public services which are more efficient, effective and transparent. Through TM ONE’s Digital Services, powered by our comprehensive Digital Connectivity and Digital Infrastructure, we are set to take the government’s digital transformation forward, supporting MyDIGITAL and enhancing the lives of all Malaysians.

How our digital solutions can enhance and transform various public services.

These digital solutions are supported by communication collaboration, big data and artificial intelligence, powered by a scalable cloud platform, hosted on secure data centres within Malaysia, and connected by a robust nationwide digital connectivity.

Click here to learn more about TM ONE Cloud α

CELEBRATING SUCCESS
How Maybank is Leading Digital Transformation in Banking Sector

July 29, 2021
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Maybank, changing the face of traditional banking

Malayan Banking Berhad (“Maybank Group” or “the Group”) is the largest financial services and banking group in Malaysia. The Group serves its 22 million customers through a robust portfolio of financial products and services, including consumer and corporate banking, treasury activities, insurance, and asset management. These contributed to the Group’s annual revenue of MYR 51 billion in 2020. For the same year, Maybank Group had an operating income of MYR 6.48 billion and was the winner of the world’s best consumer digital bank in Malaysia and Indonesia. 

Despite topping local and international market charts with notable digital milestones like QRPay and Maybank Trade, the Group’s M25 plan persists on digitalisation as a key-value driver. The strategy is similar to its Digital Bank of Choice strategy set in 2020. With customers spoilt for choice in today’s market, it is a challenge to reach that pinnacle of customer experience and preserve customer relationships at the same time, especially if a brand doesn’t fully invest in digital roadmaps and collaborations.

“We must always have the user behaviour in mind when we are creating new digital services and/or products. Digital banking providers who provide the best user experience and can solve customers’ problems will continue to be relevant,” said Datuk John Chong, Group CEO of Maybank Community Financial Services.

In this article, you will see Maybank in its journey to improve service delivery capabilities in the era of hyper-digitisation and competition.

Improving the digital banking experience

Maybank takes inspiration from the rapid rise of digital banking and fintech startups in its pursuit to continue enhancing customer experience. The bank’s mission is to provide customers with simple and convenient access to its financial services using ubiquitous digital solutions.

In 2018, the Group revamped the Maybank2U mobile application and website to offer a seamless transacting experience. The mobile application, which now features enhanced payment capabilities and customer personalisation, boasts over 12 million mobile downloads with an impressive 7 million active users (excluding website users) in 2020. New upgrades have allowed customers to generate dynamic PayNow QR codes for on-demand transfers. The mobile app also features a display of remittance options for more transparent overseas fund transfers.  Apart from that, other Maybank2U experience-enhancing functions include Scan & Pay, a personal debit and credit spending tracker, and a customisable savings planner. 

As the Group recognised the growing importance of digital products and services, it launched MAE (Maybank Anytime, Everyone) by Maybank2U in 2020. This complimentary mobile banking and e-wallet application seamlessly integrate online banking with one’s lifestyle needs. MAE not only allows customers to have full access to their savings accounts, pay bills and transfer funds. It also offers newer fintech solutions such as expenses monitoring, in-app virtual debit cards and ‘Tabung’, an individual and group-goal based saving feature. 

Maybank Group received numerous feedbacks from customers with negative experiences from self-service options, such as chatbots and FAQs. Looking to offer a better solution, the Group implemented E-CLEVA, an integrated live video chat solution. With this new capability, insurance claims teams could provide real-time assisted claims support for motor and fire insurances, allowing the bank to process claims digitally and within 15 minutes. 

Building operational efficiency with digitalisation

As customers stay at home during the movement control order, Maybank Group saw a significant surge in the number of digital transactions and users on its platforms — zakat payments before the festive period, for example, has increased by 227% year-on-year (Y-o-Y). At the same time, QRPay saw a transaction volume growth of over 650% Y-o-Y. With active mobile users expanding by 34%, Maybank Group had to deploy cutting-edge technologies to maintain its business outcomes at a rapid speed. 

The Group placed a heavy focus on automating its back offices, namely to streamline back-end processes by implementing machine learning for processing credit applications, branch operations, remittances and trade services. It reinvented the technology stack to support every layer of banking operation by adopting technologies like robotic process automation (RPA), ICR/OCR (Intelligent or Optical Character Recognition) and application integration for certain ‘open’ operations. 

Other digitalising efforts include migrating transactions from branches onto the online payments platform and implementing Artificial Intelligence (AI) in Anomalous Parts Detection for vehicle claims submission. The Group also launched a fully digital Know Your Customer (KYC) capability, enabling a customer to onboard through app-integrated video calls. 

Maybank Group measures the success of all digital initiatives through two (2) measures — straight-through processing (STP) rates and customer turnaround times. These measures allow the bank to track and analyse the efficiency of its services, enabling more productive service delivery capabilities across various operations.

Enabling convenient, safe and secure transactions

The rise of digital banking is analogous to a double edge sword — on one end, you have greater convenience at your fingertips. But on the other side, digital vulnerabilities and frauds can now affect us more than ever. Maybank Group mitigates these risks by internalising a robust cybersecurity infrastructure that covers internal governance, human knowledge and network capabilities. 

The Group employs a best-of-breed Security Information and Event Management (SIEM) technology that enables continuous real-time monitoring of any internal or external cyberattacks. Coupled with its Regional Security Operations Centre, which centrally manages the operational level of system security, the bank’s security specialists can quickly and continuously detect and respond to malicious activities using the Splunk Enterprise Security platform. 

Driven by the surge of digital transactions, Maybank announced in April 2021 that it is discontinuing the SMS TAC (transaction authorisation code) for approving online transactions on both its apps. The bank intends to protect its customers with improved online banking security. Customers will switch to Secure2U as the preferred authorisation method for most transactions, excluding Financial Process Exchange (FPX) and Direct Personnel Expense (DPE). This alternative feature adds an extra layer of protection. Transactions can only be approved within 50 seconds on a registered device using Secure Verification (one-tap authentication) or Secure TAC (a six-digit TAC number generated on the mobile app).  

This new ability creates a safer and more conducive way for customers to transact. At the same time, Maybank Group can build a digital ecosystem that enables safe and secure transactions continuously, fostering digital trust with its users.

Accelerating growth through key partnerships

As non-banking institutions with digital banking licenses flood the market, Maybank Group ensures business competitiveness by engaging in strategic partnerships to introduce new products while enhancing existing offerings. The bank focuses on creating close C-level collaborations with technology disruptors to foster customer stickiness by integrating lifestyle propositions with financial services.  

At a time where customers are increasingly adopting digital products in their lifestyle, Maybank Group joined hands with the ride-hailing company, Grab, to drive the acceptance and ubiquity of cashless payments further. By integrating the two payment systems, customers of Maybank and Grab can choose between using their GrabPay or Maybank QRPay mobile wallets at the merchants they support. Direct cash top-ups on the GrabPay mobile wallet via Maybank2U enrich the online experience between these two digital apps.

The partnership with Grab doesn’t stop there. Maybank Group unveiled a new dual-faced credit card that enables customers to seamlessly collect GrabRewards points that they can then use to redeem vouchers and other rewards. Aiming to serve younger consumers further, the Group also teamed up with an e-commerce powerhouse, Shopee, to offer a lifestyle and e-commerce credit card. Similarly, users obtain rewards – Shopee Coins which they can spend on future online or offline purchases.

The Group also partnered with various property leaders including, UDA Holdings, Tropicana Corp. and i-City to offer “HouzeKEY”, an alternative home financing solution for first-time home buyers. Another partnership with Permodalan Nasional Berhad (PNB) saw the launch of ASNB e-channels on the bank’s platform.  The collaboration enables cross-system transactions and the viewing of account balances via Maybank ATMs or the Maybank2U app. 

Maybank is poised to conquer the fast-growing digital banking space with its wide range of digital products and services, seamlessly integrated into a customer’s everyday life. The Group continues to defend and grow key customer markets in the era of digitalisation without losing sight of its core principle; humanising banking.

TRENDS AND DIGITAL STRATEGY
The Bank of Tomorrow – Hizam Ghazali

July 28, 2021
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Banks have been at the forefront of digital transformation. They have always been the leading adopters of technology and have led the way to show how customer journeys can be digitalised.

As consumers, we seldom have to go to banks now and the banks have come to the consumer’s smartphone. Add to this the plethora of new innovative financial services made available by start-ups and tech giants alike. Consumers are besieged with choices.

Despite all the progress, this is still Day One for the banking industry. The per-capita consumption of financial services in our country and globally is still at low single (3 to 4 services) digits. Financial services are the backbone of every personal life, and every business and industry.

“There are huge opportunities to improve this consumption by taking away points of friction and improving accessibility. TM as a digital enabler to the banking industry, we see there are four (4) distinct innovation opportunities as we look into the next decade”, says Hizam Ghazali, Head of Digital Services, Telekom Malaysia Berhad (TM). 

Some of the potential innovative services opportunities are:

#1 Invisible banking
Most of us are not excited about making a trip down to the bank. It is often considered a waste of precious time. Bill Gates famously quoted way back in 1994, “Banking is essential, but banks are not.” The vision is to help us consume banking and financial services without visiting the bank or even transacting over the banking app. Akin to the famous “Intel Inside” campaign, can banks enable us to live better lives but still be invisible, make it so easy to consume that we are not even aware of its existence? The key is to embed the services seamlessly into the existing customer journeys, be it shopping or furthering your education. The more the invisibility, the greater the ease of consumption. It has taken us over two and a half decades to understand the vision that Bill Gates espoused.

#2 Ecosystems
Ecosystems are a way of organising the business to enable a high degree of collaboration between various stakeholders (customers, partners, employees, investors, government). It is a new business model which harnesses the idea of co-creation by the various industry stakeholders. Almost all digital-native businesses that we know such as Google, Amazon and GRAB are examples of the ecosystem in action. Banks have this incredible opportunity to build their own ecosystems as well as become part of others to drive growth. Through the use of Open Banking Application Programmable Interface’s (API’s), banks can now enable third-party fintech companies to access their core banking capabilities and develop innovative products to serve customers. The biggest benefit is the ability to innovate and take new services faster to market. The ecosystem owner focuses on the user experience and relies on the stakeholders to help drive innovation, market outreach and other capabilities. While GRAB started with the Mobility Ecosystem, they saw incredible growth during the pandemic in their Delivery Ecosystem and their future growth agenda is with the Financial Services Ecosystem.

#3 Hyper-personalisation
A critical pillar of differentiation for banks moving forward will be their ability to personalise services for the customers. Open Banking is an enabler for hyper-personalisation. This allows customers to opt-in and allows the bank have oversight of their financial investments across all providers. Then, through the use of big data and Artificial Intelligence (AI), they can be in a good position to generate customer-specific insights and offer very personalised solutions. These personalised solutions can be an aggregation of the bank’s products as well as third-party providers. Enabling this frictionless, personalised user experience has been the strategy adopted by several of today’s banking leaders in response to the competition from big-tech. Offering this at a large scale requires tight integration of technologies and partnerships.

#4 Security
While we saw a massive uptake of digital banking in the last 18 months, it has brought about a huge spike in cybercrime. Banking related phishing attacks have seen a twenty-fold increase in the same period of time. The situation is aggravated as the less digital-savvy population, which is the most vulnerable, starts adopting digital banking services. Banks are responding to this challenge with increased measures to authenticate users and add additional layers of security. These additional security measures are impediments to the greater use of digital banking. We believe there is an opportunity for banks to use some of the latest technologies including biometrics and AI to enable a secure yet frictionless experience.

Research firm, twimbit has estimated that the per capita consumption of financial services is set to explode and reach about 15 to 20 services by the end of the decade. While the competition is intense, there is enough opportunity for all market participants, simply because of the growth in innovation.

“I am excited about how the financial services industry is going to evolve in the coming decade. The convergence between these four (4) innovation opportunities will open a plethora of new possibilities. We are seeing more banks, e-commerce businesses and other financial institutions adopting digital components such as Robotic Process Automation (RPA) to enhance its daily operations, processes and of course, customer experience. We look forward to partnering with the industry to enable this new vision of possibilities,” Hizam added.

Enterprises Taking Transformation Forward

July 27, 2021
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Q The Government’s initiatives under JENDELA, Digital Nasional Berhad (DNB) and MyDIGITAL, are imperative building blocks to drive digital transformation in the country. However, 70% of digital transformations fall short of their objectives. What makes digital transformation challenging for enterprises?

According to IDC, 55% of Malaysian organisations do not have an integrated enterprise-wide digital transformation strategy, and 91% of Malaysian enterprises are either on stage one or two, of a five-stage IDC maturity curve. Many of the challenges faced broadly falls under access and complexity.

The lack of access to the required skills is a large challenge, especially talent steeped in what IDC terms as third and fourth platform technologies and technology delivery models. These include cloud computing, Internet of Things (IoT) and mobility (underpinned by 5G), and big data analytics and machine learning, all of which need to operate in a secure environment. Implementing digital transformation requires multi-domain expertise spanning business and technology, which is hard for enterprises to acquire. Emphasis is often placed on processes and not outcomes. Employees often need to be retrained. Business continuity takes precedence over targeted investments.

Q How are enterprises creating    more    value   by leveraging on technologies to ensure successful transformation?

In the journey towards establishing a Digital Nation, the private-public and people are embracing technologies hence accelerating digital transformation efforts.

BFSI: Techwire Asia found that more than 70% of Malaysians are looking forward to a digital banking revolution. Malaysian banks are transforming digitally to align to customer needs, improve operations, meet compliance, enable open ecosystems by leveraging emerging technologies to address new opportunities.

Healthcare: The healthcare sector is turning to digital solutions to realise the promise of connected digital healthcare. Enhancing patient experience, increasing diagnostic accuracy, and improving patient care are some of the goals that the healthcare sector is hoping to achieve as a result of digital change.

Q Why  TM  ONE   is  the  right partner in supporting your transformation journey?

Emerging technologies are shaping the industries from continuous remote diagnostics, conversational Artificial Intelligence (AI), distributed cybersecurity, industrial robotics and automation and more.

To facilitate and accelerate digital adoption, TM ONE has built its offerings along four (4) technology pillars of digital transformation – Cloud, cybersecurity, smart services and professional services. Cloud carries the weight of digital change squarely on its shoulders. TM ONE Cloud α empowers enterprises with a comprehensive, customised, end-to-end, cloud solutions that deliver agility, innovation and growth. It is complemented by TM ONE cybersecurity solution, known as CYDEC (Cyber Defence Centre), which offers the best continuous, real-time and predictive protection spanning private and public networks, data, identity, and devices and infrastructure–to mitigate attacks on brand and reputation, online fraud, and mobile channels. Smart services are the most visible ambassadors of digital transformation, taking Malaysia a step closer to the Digital Malaysia aspiration. Whereas TM ONE Professional services help leaders create vision and roadmaps, enabling predictable, business-aligned digital transformation.

This article was written in collaboration with The Edge.

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