RHB opens more branches

GEORGE TOWN: RHB Banking Group Berhad is bucking the national trend when it comes to expansion of branches, running counter to the notion that physical interaction in banks should be reduced with the advent of e-banking and digitalisation.
Its acting head of group retail banking Nazri Othman, told the media that the group will continue to consider setting up more branches in strategic areas because it wants to serve its affluent market, as well as to offer quality personalised services.
Hence, the move to open its seventh branch on Penang island recently at Wisma Banjul in Tanjong Tokong.
Nazri said that the affluent group segment prefers more face-to-face banking in view of their need for private engagement on the range of products and services offered by the RHB Group.
Although 75% of banking transactions can be executed online, Nazri said that RHB needs to strike a balance between the digital and the personal services.
The bank would continue to automate some of its services, but its branches will also offer premium banking services to cater to the affluent segment.
"If there is a need, RHB will continue to open up more branches."
It has 209 branches throughout the country with the Klang Valley, Penang and Johor their strongest market segments in terms of business growth and customers.
"And we foresee a 10% growth in the customer base for Penang next year," said Nazri.
Earlier, the group's managing director Datuk Khairussaleh Ramli told invited guests that Penang has remained a resilient state, citing that its gross domestic product (GDP) growth of 5.7% in the past five years surpassed the national average.
RHB also continues to outperform the industry's averages in terms of housing loan approvals, and it also has a low rate of its non-performing loans.
Nazri said the bank remained bullish on the present economic outlook with the company seeking to attain a 7% growth in the financial year ending in December.
"It is a forecast figure, which is well within the reach of the group."