Myanmar’s banking sector is undergoing significant changes as new regulations are introduced to ensure financial stability and compliance. For Construction Housing and Infrastructure Development Bank (CHID Bank), which has a long history of serving the country's infrastructure and housing development needs, these regulatory shifts have necessitated a comprehensive update to its operational framework. Soe Sandar Aung, who leads the CHID Bank's core and digital banking initiatives, is at the forefront of these changes, steering through a digital transformation that aims to enhance both efficiency and customer service.

Established in 2013, CHID Bank has been an important institution in Myanmar’s financial landscape, particularly in providing financial services tailored to the construction and housing sectors. Over the years, CHID Bank has expanded its services to include a broader range of financial products, aiming to support the country’s infrastructure development and economic growth.
Throughout its history, CHID Bank has faced various challenges, including economic sanctions, political instability, and a rapidly changing regulatory environment. Despite these challenges, the bank has managed to maintain its position as a key player in Myanmar’s financial sector, adapting to changes and continuously seeking ways to innovate and improve its services.

Myanmar's banking sector is currently facing more stringent regulatory requirements, which has pushed many financial institutions, including CHID Bank, to rethink their operational strategies. The Central Bank of Myanmar has introduced new regulations aimed at increasing transparency and stability in the financial system. For CHID Bank, this has meant upgrading their core banking systems to meet these demands while ensuring that the bank remains competitive.
"We’ve recognised that our old systems were not equipped to handle the new regulatory demands," said Aung. "By adopting the latest technology, we’re not only meeting these requirements but also positioning ourselves to offer better services to our customers."

Digital transformation as a strategic tool

To address these challenges, CHID Bank has adopted Temenos’ latest core banking system, which provides enhanced capabilities such as real-time transaction processing and improved data management. These features are essential for compliance with new regulations that require more rigorous reporting and monitoring of financial activities.

Aung highlighted the significance of these upgrades: "With the new system, we can process transactions more efficiently and provide our customers with real-time updates, which greatly improves their banking experience."

The digital transformation is not just about compliance but also about enhancing customer engagement. The new system allows CHID Bank to streamline its operations, reduce the risk of errors, and deliver a more seamless banking experience to its customers.

Enhancing customer experience

One of the key goals of CHID Bank’s transformation is to improve the customer experience. The bank has started to implement artificial intelligence (AI)-driven tools and automated processes to offer more personalised and efficient services. For instance, the introduction of AI chatbots has enabled the bank to provide 24/7 customer support, significantly improving response times and customer satisfaction.

"Our goal is to make banking more accessible and convenient for our customers," explained Aung. "By leveraging AI and automation, we’re providing services that are tailored to each customer’s needs, which is a significant improvement over our previous system."

In addition, the bank is focusing on mobile banking solutions to reach customers in remote areas where traditional banking infrastructure may not be available. This initiative is part of CHID Bank’s broader strategy to expand its customer base and ensure that financial services are accessible to all.

The central bank has played a crucial role in shaping the current regulatory environment. In recent years, it has implemented policies aimed at increasing financial inclusion and stability, which have directly impacted how banks like CHID Bank operate. These policies include stricter capital requirements, enhanced reporting standards, and the promotion of digital payments to reduce the reliance on cash.

As a result, CHID Bank has had to adapt quickly to these changes, ensuring that its systems and processes are aligned with the new regulations. The bank’s investment in digital transformation is a direct response to these regulatory pressures, ensuring that it can continue to operate effectively in a more controlled and transparent financial environment.

Long-term strategic goals

Looking ahead, CHID Bank plans to continue its investment in digital technologies, with a focus on expanding its digital offerings and enhancing its market position. The bank is also exploring the integration of more advanced technologies such as blockchain to further secure transactions and improve transparency.

"We’re committed to continuous improvement," Aung concluded. "Our investment in digital transformation is not just about compliance; it’s about building a bank that can thrive in the future."

The bank's future plans include expanding its product portfolio to offer more innovative financial solutions, such as digital loans and mobile payment systems, which are expected to meet the evolving needs of Myanmar's growing digital economy.

CHID Bank’s digital transformation is a strategic response to Myanmar’s evolving regulatory landscape. By upgrading its technology and focusing on customer service, the bank is positioning itself for sustained success in a challenging environment. The transformation not only ensures compliance with new regulations but also enhances the bank’s ability to deliver high-quality services to its customers.