Baiduri Bank, the largest private commercial bank and a household name in Brunei’s financial sector, marked its 30th anniversary in 2024 as a pivotal player in the nation’s economic transformation. As Brunei diversifies from its dependence on oil and gas, Baiduri Bank’s role extends beyond banking, serving as a critical partner for consumers, businesses and communities.

Under the leadership of Ti Eng Hui, who has been with the bank for 28 years and CEO since 2019, Baiduri Bank has embraced digital transformation, enhanced its small and medium sized enterprise (SME) support systems, and adopted sustainability as a core principle. “We are reshaping the way banking is experienced in Brunei, focusing on innovation, resilience and people-centric solutions,” Ti emphasised.

He discussed Baiduri Bank’s approach to addressing customer needs, adapting to global trends, and expanding its footprint regionally—all while maintaining a steadfast commitment to the communities it serves.

Strengthening leadership and building resilience

Leadership is central to Baiduri Bank success, and Ti’s approach focuses on long-term sustainability. “When I became CEO, the first thing I did was strengthen the management team,” he explained. This included realigning the organisational structure and ensuring that senior leaders were equipped to address emerging challenges.

In addition to restructuring, Ti moved Baiduri Bank into a new headquarters to improve efficiency and morale. “Having a consolidated headquarters helps us work better as a team and boosts staff morale,” he noted. The new facility also features modern infrastructure to support the bank’s digital transformation goals.

The global COVID-19 pandemic tested Baiduri Bank’s resilience, but Ti credits strong planning and collaboration. “We aligned ourselves with common goals and values, which helped us overcome challenges and emerge stronger,” he said. Investments in infrastructure, such as a state-of-the-art data centre, have also reinforced Baiduri Bank’s ability to navigate crises.

Baiduri Bank’s financial results highlight its ability to thrive despite disruptions. “Our record profits in 2023 demonstrate how resilience and focus can drive growth even in uncertain times,” Ti shared. The bank achieved nearly double the profitability compared to its pre-2019 levels.

Aligning with Brunei’s economic goals remains a top priority for Ti. “We finance both SMEs and larger FDI (foreign direct investment) projects to support Brunei’s diversification strategy,” he explained. This dual focus allows Baiduri Bank to contribute to both local and national growth efforts.

Record profits in 2023

Baiduri Bank achieved record-breaking financial results in 2023, marking a significant milestone in its growth trajectory. The bank's net profits increased by 37.55% year-over-year to BND 90.3 million ($66.6 million), reflecting a return on equity of 15.82%, up from 12.77% in 2022. This performance underscores the effectiveness of its strategic initiatives, including its focus on digital transformation, customer-centric services, and innovation.

In addition to its earnings growth, Baiduri Bank’s total assets reached BND 4.03 billion ($2.9 billion), up 11.5% from BND 3.62 billion ($2.6 billion) in 2022. This growth highlighted the bank’s ability to leverage its robust financial position to expand operations and reinforce market leadership. The bank’s cost-to-income ratio improved significantly, declining from 44.17% in 2022 to 38.21% in 2023, a testament to enhanced operational efficiency. However, the non-performing loan ratio increased slightly to 3.47%, up from 2.72% in the previous year.

The bank’s growth story has been bolstered by strategic mergers and acquisitions, including the acquisition of UOB’s retail banking business in 2015 and HSBC Brunei’s retail and commercial banking portfolio in 2017. These moves have significantly expanded Baiduri Bank’s customer base and enhanced its service offerings, positioning it as one of the leading financial institutions in Brunei.

Looking ahead, Ti expressed confidence that Baiduri Bank can sustain its momentum in 2024 despite potential challenges. “We are prepared to navigate the uncertainties ahead and remain committed to delivering strong results,” he said. He pointed to the bank’s ongoing digital transformation and regional expansion plans as critical drivers for continued growth.

Ti emphasised that these achievements are not just about financial success but also about creating meaningful value for the community: “We are committed to growing with our customers and communities, and our efforts reflect this focus on long-term sustainability and impact.”

Driving digital transformation to meet evolving needs

Digital transformation is one of the cornerstones of Baiduri Bank’s strategy. Ti shared that the bank took a “big bang” approach by simultaneously upgrading its core and internet banking systems. “We decided to replace both systems at the same time to give our customers a seamless and improved experience,” he explained.

This comprehensive transformation addresses rising customer expectations. “Customer expectations are higher and higher, and technology needs to keep up,” Ti noted. The new systems, expected to go live by 2025, aim to enhance operational efficiency while enabling frequent updates to meet customer demands.

Baiduri Bank has also implemented robotic process automation (RPA) to streamline back-office functions and reduce manual workloads. “RPA allows us to improve efficiency without compromising quality,” says Ti. The bank is also exploring AI capabilities, starting with its chatbot. “We have incorporated AI into our chatbot, and we plan to expand these capabilities,” he added.

While embracing digitalisation, Baiduri Bank continues to prioritise its physical presence. “We are keeping our branches because banking is still a face-to-face business in Brunei,” Ti asserted. This balance ensures that customers who prefer in-person interactions are not left behind.

The integration of Baiduri Bank’s digital systems with Brunei’s national payment infrastructure is another key initiative. “We aim to make it seamless for our customers to transact both locally and internationally,” said Ti. These efforts align with the bank’s broader vision of being a digitally advanced institution.

Elevating consumer banking with personalised touch

Consumer banking is at the heart of Baiduri Bank’s operations, and Ti highlighted the importance of tailoring services to customer needs. “We see different segments of customers preferring different types of services, and we try to meet them where they are,” he explained.

The simultaneous upgrade of Baiduri Bank’s core and internet banking systems reflects this commitment. “Digital channels are becoming increasingly important for convenience, but we also know the value of face-to-face interactions,” Ti said. The bank’s refreshed branch network complements its digital offerings to provide a consistent experience across touchpoints.

Wealth management is another area of focus for Baiduri Bank. “We work with trusted partners to provide access to high-quality investment options,” Ti shared. This initiative caters to the growing demand for financial planning services in Brunei.

Education is central to Baiduri Bank’s consumer strategy. “Educating our customers about smart financial decisions is an ongoing effort,” Ti noted. Through workshops and consultations, the bank equips individuals with the knowledge needed to make informed financial choices.

Integration with national instant payment system

Baiduri Bank is preparing to integrate with Brunei’s upcoming Digital Payment Hub (DPH). This instant payment platform, managed by the National Digital Payments Network (NDPX) is designed to facilitate real-time payments across banks and digital wallets, streamlining transactions for both domestic and international transfers. “As one of Brunei’s major local banks, we will play a significant role in the national digital payment system,” explained Ti, emphasising Baiduri Bank’s alignment with Brunei’s digital transformation initiatives.

As a participant in the Digital Payment Hub, Baiduri Bank is leveraging application programming interfaces (APIs) to ensure seamless connectivity. “Our new core banking system allows us to integrate with external platforms more efficiently through APIs,” Ti noted. This capability not only reduces operational costs but also enhances the bank’s agility in meeting evolving customer demands.

The NDPX initiative includes features such as linking payments to mobile numbers, making transactions faster and more user-friendly. Highlighting the benefits, Ti remarked, “We expect the API features to enable is to do much more with third-party systems.” This integration aligns with Baiduri Bank’s strategy to offer cutting-edge digital solutions that complement national advancements.

In addition, the Digital Payment Hub is expected to integrate with Brunei’s broader digital infrastructure, including digital identity verification systems, creating a unified and efficient ecosystem. “This system represents a big step forward in how we serve our customers, combining speed, convenience and security,” Ti added.

By aligning with NDPX and the Digital Payment Hub, Baiduri Bank is positioning itself as a forward-thinking institution, ready to support Brunei’s increasingly digital economy while contributing to the country’s broader financial goals.

Empowering SMEs to drive economic growth

SMEs are vital to Brunei’s economy, and Baiduri Bank is committed to supporting their growth. “SMEs need more than just financing; they need mentorship and resources to grow,” Ti emphasised. Through the Baiduri Enterprise Hub, the bank provides programmes that equip SMEs with skills ranging from financial literacy to digital adoption.

The bank also partners with Darussalam Enterprise (DARe) to offer capacity-building initiatives. “Collaboration with DARe has been instrumental in helping us reach a broader SME audience,” Ti added. Financing solutions tailored to SME needs, such as flexible repayment terms, further reflect Baiduri Bank’s commitment to this sector.

Baiduri Bank’s tailored financing solutions for SMEs reflect its commitment to financial inclusion. "Each business is unique, and our products are designed to meet their specific needs," Ti explained. The bank offers flexible repayment terms and competitive interest rates, making it easier for SMEs to access the capital they need to grow.

Technology also plays a role in Baiduri Bank’s SME support. "We are working with SMEs to integrate digital tools into their operations," said Ti, highlighting how this approach aligns with Brunei's broader economic goals. By providing access to digital platforms and resources, Baiduri Bank helps SMEs enhance their operational efficiency and competitiveness.

Looking ahead, Baiduri Bank plans to expand its SME support initiatives. "We are exploring new ways to support SMEs, including offering more digital solutions and expanding our training programs," Ti shared. These efforts underscore Baiduri Bank’s commitment to empowering SMEs as a key driver of economic growth in Brunei.

Sustainability as a core principle

Sustainability is central to Baiduri Bank’s mission as it aligns its business operations with global environmental, social, and governance (ESG) standards. Ti highlights how the bank’s recent initiatives are not just environmentally conscious but also community-focused. “Our new headquarters has spaces like the South Lawn and Atrium for community engagement, which foster collaboration and belonging,” he said.

The headquarters itself is designed with energy efficiency and environmental sustainability in mind. “The way we have constructed the building reflects our focus on reducing our environmental footprint,” Ti explains. These physical efforts are complemented by digital tools that reduce paper waste and encourage online transactions.

In 2025, Baiduri Bank plans to launch its Financial Wellness Centre, an initiative aimed at improving financial literacy and health. “This centre will focus on providing workshops and resources for individuals and families, helping them achieve stability and growth,” Ti shared. This effort underscores the bank’s belief in the interconnectedness of financial and physical well-being.

The bank’s sustainability framework, approved by its board, serves as a roadmap for embedding ESG principles into its operations. “This framework ensures we are aligned with international best practices while addressing local needs,” Ti noted. By adhering to these principles, Baiduri Bank hopes to set a benchmark for sustainable banking in Brunei.

Partnering with global experts and hosting ESG forums further solidifies Baiduri Bank’s commitment to sustainability. “We work with experts to ensure we are at the forefront of sustainable banking trends, sharing knowledge and learning continuously,” said Ti. This collaborative approach is crucial as the bank aims to influence positive change across Brunei’s financial ecosystem.

Expanding beyond Brunei’s borders

Regional expansion is a significant milestone in Baiduri Bank’s growth strategy, and Singapore is the first market under consideration. “Singapore is a natural choice due to its proximity and its position as a financial hub,” said Ti. The bank is currently exploring partnerships to facilitate its entry into the market.

The rationale for regional growth stems from Baiduri Bank’s strong domestic foundation. “With excess liquidity and a solid capital base, we are ready to explore opportunities beyond Brunei,” Ti shared. These resources allow the bank to take calculated risks and focus on sustainable expansion.

ASEAN markets such as Malaysia, Indonesia and the Philippines are also on Baiduri Bank’s radar. “These markets are dynamic and growing, offering significant potential for collaboration,” Ti explained. However, he is cautious about the challenges that come with entering new territories. “Regional expansion requires careful planning and alignment with local regulatory and cultural requirements,” he noted.

Baiduri Bank’s digital capabilities are a key differentiator as the bank prepares to compete in regional markets. “Our expertise in digital banking positions us well to serve increasingly tech-savvy customers across the region,” Ti said. By leveraging its advanced technology and customer-first approach, Baiduri Bank aims to replicate its domestic success on a larger scale.

Strategic partnerships will play a pivotal role in ensuring Baiduri Bank’s smooth entry into regional markets. “We are evaluating potential partners who share our values and vision, as collaboration is essential for success in unfamiliar markets,” Ti concluded. These partnerships will help Baiduri Bank establish a meaningful presence while adapting to the nuances of each market.

Building a resilient and inclusive future

As Baiduri Bank looks ahead, its journey is marked by resilience, innovation, and inclusivity. Ti Eng Hui reflects on the bank’s achievements over the past 30 years and the roadmap for the future. “We are committed to growing with our customers and communities,” he says, highlighting the importance of aligning the bank’s goals with Brunei’s broader aspirations.

From empowering SMEs to leading digital transformation, Baiduri Bank has set itself apart as a key player in Brunei’s financial sector. “Our focus on innovation and sustainability ensures that we remain future-ready,” Ti added. The bank’s efforts to integrate ESG principles, support local businesses, and educate consumers underscore its commitment to driving meaningful change.

Regional expansion presents both challenges and opportunities, but Ti remains optimistic. “The resilience we’ve built will guide us through whatever comes next,” he asserted. Baiduri Bank’s plans for entering ASEAN markets reflect its ambition to grow beyond Brunei while maintaining its core values.

As Brunei transitions to a diversified economy, Baiduri Bank’s role as a financial partner will remain critical. “Our journey reflects the aspirations of Brunei itself—a focus on growth, adaptability and community impact,” Ti concluded. With a strong foundation and a clear vision, Baiduri Bank is poised to shape the future of banking in Brunei and beyond.