Image credit: The Malaysian Reserve
PETALING JAYA: Domestic banks remain cautiously optimistic about their prospects for the year ahead, despite challenges from global economic uncertainties and geopolitical tensions.
Affin Bank Bhd president and group chief executive officer Datuk Wan Razly Abdullah said he expects market volatility to continue in the year ahead.
“However, we remain cautiously optimistic that we will be able to successfully navigate the currents and maintain our positive growth trajectory,” he said in the bank’s annual report.
To this end, Wan Razly said Affin Bank’s focus will remain guided by its strategic objectives.
“By investing in cutting-edge technology to strengthen our digital capabilities, implementing new approaches that enhance the customer experience, and capitalising on growth opportunities in sustainable finance, we have three clear pathways to differentiate ourselves in an evolving banking landscape.
“Underlining our commitment to growth and inclusivity, we will continue to develop and launch innovative financial products tailored to diverse market segments.”
These include Diventium (private banking), Invikta (high net worth) and Avance (professional), alongside dedicated solutions for digital, small and medium enterprises and corporate clients, Wan Razly noted.
“Through this, we aim to broaden our addressable market, enhance customer engagement and drive financial empowerment across various client segments.”
Meanwhile, CIMB Group Holdings Bhd group CEO Novan Amirudin said: “I see many challenges and I also see our ability to pivot as imperative and critical when market forces change, and the operating environment keeps evolving.”
Novan highlighted three key developments that will require a shift in the way banks operate.
“First, business and strategies will be affected by the complex dynamics and interplay between geopolitical tensions and wars.
“With the growing protectionism and polarisation of power, geopolitics and tensions will continue to affect global trade relations, policies and regulations, increasing the market uncertainty and volatility for banks,” he said in the bank’s annual report.
Second, Novan said uncertain economic policies will remain a concern.
“In 2024, we have already seen rate cuts in both Thailand and Indonesia, which may impact our net interest margin.
“As an organisation, it is crucial that we exercise prudent fiscal management while reinforcing and strengthening our value propositions to mitigate this impact.”
Lastly, Novan said the emergence of GenAI, which is increasingly becoming a tool for highly sophisticated phishing and financial frauds, puts both the bank’s customers’ interests and the bank’s reputation at risk.
“CIMB has been accelerating its security measures through significant investments in technology to address these risks, safeguarding both the bank and our customers.
“These proactive steps reflect our unwavering commitment to maintain the highest standards of security and trust.”
Collectively, Novan said the global geopolitical tensions, uncertain economic policies and the rise of GenAI are making the world a more complex and uncertain place.
“These factors create a growing need for organisations to simplify processes, improve efficiency and respond swiftly to change,” he said.
Meanwhile, Malayan Banking Bhd (Maybank) president and group CEO Datuk Khairussaleh Ramli said the bank will continue to ramp up its digitalisation efforts.
“As we continue to drive digitalisation for both banking and non-banking solutions, we have seen increasing traction for the products offered, further increasing our online market share while entrenching Maybank as a leader in this space.”
Source: https://www.thestar.com.my/business/business-news/2025/04/07/banks-cautiously-optimistic-of-2025-despite-economic-uncertainties