KUALA LUMPUR: Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) aims to reduce its reliance on personal financing segment to 70% by 2025 from the current 89% to improve its profitability.
Bank Rakyat chairman Datuk Noripah Kamso (pix) said the target could be achieved via BR25, its new strategic plan, launched today.
“We will reduce our concentration on personal financing and diversify into granting more products that add value to other segments such as mortgage, car, business and corporate financing,” she told a press conference in conjunction with the launch of BR25 here today.
BR25 is a five-year plan until 2025 to ensure Bank Rakyat remains relevant and it will be implemented in three phases- Phase 1, Aspirational Evolution 2025; Phase 2, Implementation Plans to achieve Phase 1; and Phase 3, Monitoring the Milestone and the Key Performance Indicator in Phase 2.
Noripah said under Phase 1, in its effort to future-proof, Bank Rakyat would construct a business model that embraces changes in technological evolution and fulfill expectations of its customers, expected to be largely millennials.
She also expressed hope that under the new initiative, all of its 900,000 shareholders would become the bank’s member customers by 2025.
“Currently, only 40% of them are our member customers,” she said, adding that she believed the increased number of members coupled with the technological evolution or digitalisation, could drive the company’s revenue and profit growth, moving forward.
Meanwhile, Secretary-General of the Ministry of Entrepreneur Development Datuk Wan Suraya Wan Mohd Radzi said Bank Rakyat, a unit under the ministry’s purview, was committed to fostering a robust ecosystem that reinforces growth, inclusivity and vitality of the local entrepreneurial landscape.
“This will provide the small and medium entrepreneurs with greater visibility, as well as increase confidence among investors that will open up new opportunities for further expansion and allow them to stay ahead of the curve,” she added.