CIMB expects more conducive economy for consumer banking in 2H2016
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Collaboration between CIMB and Tesco Stores (Malaysia) Sdn Bhd today, the group’s CEO of group consumer banking Renzo Viegas told pressmen that while the current marketplace remains tough for business, the mass affluent community will still continue to invest.
“It’s a tough environment, so loan growth will be slower than last year for sure (in terms of) investment products, people are really concerned about the global economy and the Malaysian economy; (there are) a lot of volatility, so people are holding back their investment decisions, but the mass affluent customers will still invest, so the second half should pick up a bit,” he said.
“(In the) second half (of 2016), the whole economy environment should improve to become more stable and predictable; investment by consumers should also grow, and therefore our wealth management would also do well,” he added.
On the other hand, Viegas said CIMB is also monitoring its credit quality closely, to avoid any deterioration in the group’s consumer portfolio.
“All in all, there will still be slower growth, and we are watching the credit quality. So far, there is no deterioration to our credit quality in consumer portfolio. But there are still challenges, and there are still going to [be] opportunities like the launch today,” he said.
Viegas said the partnership will allow CIMB to benefit from Tesco Malaysia’s three million weekly customers, by the increased accessibility to other products offer by the bank.
“In the next two years, we hope we can garner half a million new card customers,” he added.
Earlier at the launching ceremony today, CIMB’s CEO Tengku Zafrul Aziz announced an exclusive five-year strategic partnership with Tesco Stores (Malaysia) Sdn Bhd to come out with the new card services.
“In the next two years, we hope we can garner half a million new card customers,”
The collaboration will also see CIMB set up its consumer banking kiosks at 38 Tesco stores nationwide. Tesco Malaysia currently operates 55 stores, with about 8,000 employees.
Zafrul said the partnership between CIMB and Tesco Malaysia represents a winning formula in delivering value to both companies’ customers.
“Being able to bring our vast suite of products through a seamless and paperless process to Tesco stores, make for a truly compelling value proposition to customers, both current and new. We genuinely believe that this partnership is the start of many great things ahead,” he said.
The new CIMB Tesco MasterCard members will enjoy an annual fee waiver. From April 1, 2016 to March 31, 2017, one Tesco Clubcard point will be awarded for every RM2 spent on CIMB Tesco MasterCard at other retail outlets.
Tesco Malaysia CEO, Paul Ritchie, also commented that the partnership, which had taken a year to materialise, is the form of bringing the best of two companies to enhance customers’ shopping trip.
“With Tesco’s variety in range at fantastic promotions and good prices, and CIMB’s strengths in the financial and banking sector, together we will be able to reward our customers and create value to earn their long-term loyalty,” he said.
Questions & Answers
Q.What is CIMB's target for new card customers from this partnership?
What is CIMB's target for new card customers from this partnership?
CIMB hopes to acquire half a million new card customers within the next two years as a result of its collaboration with Tesco Malaysia. This partnership aims to increase accessibility to the bank's products.
Q.Where will CIMB set up its consumer banking kiosks?
Where will CIMB set up its consumer banking kiosks?
CIMB will establish consumer banking kiosks in 38 Tesco stores located nationwide. This initiative is part of the new five-year strategic partnership between CIMB and Tesco Malaysia.
Q.What incentive is offered for new CIMB Tesco MasterCard members?
What incentive is offered for new CIMB Tesco MasterCard members?
New CIMB Tesco MasterCard members will benefit from an annual fee waiver. Also, they will earn one Tesco Clubcard point for every RM2 spent at other retail outlets from April 2016 to March 2017.
Q.How will CIMB benefit from the partnership with Tesco Malaysia?
How will CIMB benefit from the partnership with Tesco Malaysia?
The partnership will allow CIMB to reach Tesco Malaysia's three million weekly customers, increasing accessibility to the bank's products. This is expected to help CIMB gain new card customers.
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