Affin Bank Berhad | Annual Report 2020

52 MANAGEMENT DISCUSSION & ANALYSIS ORGANISATION EXECUTIVE SUMMARY CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION The Programme requires a shift in the underlying business mix of organisation, people, process and capabilities and efficiency improvements involving all business units within the Bank. Through AIM22, our approach focuses on five Key Areas: i.e. ROE Focus, Productivity & Efficiency, Turbo Charged CASA, Digital Transformation Acceleration and People. To elevate the level beyond 7.0% ROE FOCUS: VALUE CREATION PRODUCTIVITY AND EFFICIENCY Improve productivity with enhanced assets quality and capital management TURBO CHARGED CASA To minimise funding cost DIGITAL TRANSFORMATION ACCELERATION To build value and improve efficiency PEOPLE: TEAM HIGH PERFORMANCE CULTURE Robust performance management 5 KEY FOCUS AREAS AIM22 Transformation Programme to develop a high-performance culture We will focus on key areas to provide valid and reliable performance indicators to achieve value creation. Effective dissemination of various initiatives such as economics improvement, segment prioritisation, wealth proposition to support functions, cost management, big-data analytics and ecosystem strategy will enable us to acquire usable knowledge for our banking structure. This will allow us to expand the scope and depth of our pursuits, particularly in relation to measuring value creation and performance. PRODUCTIVITY AND EFFICIENCY The Group will continue to improve its productivity and efficiency by enhancing its asset quality and capital management via various initiatives which include active loan management, digitalisation, new loan originating system, operations model, risk return optimisation as well as cost optimisation exercise with the aim to reduce operating expenses to improve our cost to income ratio. TURBO CHARGED CASA The Bank is aware of the importance to build its CASA for stability and management of funding costs. The Bank has launched two new products, AVANCE and INVIKTA to capture affluent and high net worth segments. During the financial year, we also made improvements to our retail internet banking and launched AFFINMAX, our new corporate internet banking solution that will help to attract more CASA to the Bank. DIGITAL TRANSFORMATION ACCELERATION As part of our multi-channel engagement approach, we are committed in providing resilient digital platform with innovative products and services for customers to leverage on. 2020 had been a year with a dramatic growth of digital initiatives across all industries worldwide. With staying home being the best way of protection against COVID-19, digital transformation has inevitably been accelerated to cater to tremendously increased demand to improve efficiency and value creation. Our digital projects, ie Lifestyle App, Mobile App, Digital Imaging Solutions and Branch Delivery System Enhancement are progressing well and scheduled to go live in 2021. PEOPLE: TEAM HIGH PERFORMANCE CULTURE The development of a high-performance culture starts by having the right people, according them with the right incentives and ensuring that they are surrounded with the right culture; one that is conducive, supportive and goal-oriented. These components are currently being assessed and evaluated for effective recommendations. We have established Affin Academy Institute which would equip our people with the relevant knowledge and soft-skills to tap for more businesses and strengthen our position in the industry. ROE FOCUS: VALUE CREATION With the achievement of the four key focus areas, the ultimate goal would be the improvement of ROE for the Group which is targeted at 7%. The Group will also continuously review its capital position, capital mix and capital allocation taking into consideration the Group’s strategic direction, organisational and regulatory requirements to support the business growth while optimising returns to shareholders.