RHB Bank to launch three new digital products
PETALING JAYA: RHB Bank Bhd plans to launch three new digital products within the first half of the year, pursuant to its FIT22 strategy, where digital enablement is a core priority.
Speaking after the group’s annual general meeting yesterday, RHB Bank group managing director Datuk Khairussaleh Ramli hinted that the new products would be centred on the bank’s two main areas of growth – mortgages and small and medium enterprises (SMEs).
It is noteworthy that some 90% of RHB’s personal loan applications are made via its ChatBot on RinggitPlus.com, which is a realtime messenger-style platform where users can obtain loan eligibility results within a day.
“One or two of these apps will be launched next month.
“Going forward, we expect mortgage and SME growth to continue as well as seeing our Singapore business improve.
“One of the challenges (of achiev- ing the loan growth target) will come from the corporate segment repayments,” he said.
RHB is targeting a loan growth of 6% this year.
Khairussaleh added that RHB would not see a major reduction in its cost as the bank would be investing in its FIT22 initiatives.
The bank has allocated capital expenditure for its digital capabilities and technological investments amounting to RM200mil to RM300mil over the next three to five years.
Hence, RHB will have to focus on improving its income.
Khairussaleh commented that RHB had seen good traction for the first quarter of the year and expected capital market activities to pick up, which will, in turn, improve the bank’s fee income.
RHB is expected to see more fee income contribution from various areas such as the affluent business, investment banking activities, insurance and asset management.
“Generally, the banking industry will benefit from the overnight policy rate increase this year.
“The deposit cost will only be reset later and loans can be reset much faster, but that would taper off towards year-end when deposits have been repriced
“From our point of view, we believe that loan growth will be better than last year, and capital market activities should also improve,” he said.