CIMB Malaysia is shaping a pivotal phase of growth and transformation under the leadership of CEO Gurdip Singh Sidhu (Gurdip), who took the helm in July 2024. With nearly three decades of experience in financial services and consulting, including 18 years at CIMB Group, Gurdip is spearheading efforts to enhance the bank’s resilience, foster innovation and lead in sustainability.

His leadership comes at a time when digital banks are emerging as competitors, regulatory landscapes are evolving and customers are demanding more inclusive and environmentally conscious banking solutions. “We’re not just adapting to changes; we are actively leading them by aligning growth with responsibility,” Gurdip remarked.

CIMB’s performance reflects this strategic alignment. CIMB announced strong financial performance for the nine months ended 30 September 2024, with a profit before tax of MYR 8.03 billion (about $1.80 billion), a 11.4% year-on-year increase, alongside a 12.6% rise in net profit to MYR 5.93 billion (about $1.33 billion). These results stem from the bank’s Forward23+ strategy, which emphasises operational efficiency, customer engagement, financial discipline and technological innovation.

Gurdip discussed the critical areas shaping CIMB’s recent trajectory: operational resilience, digital transformation, sustainability and innovation. His insights provide a comprehensive look into how CIMB is looking to set benchmarks in Malaysia’s banking industry.

Making operational resilience the cornerstone of growth

Resilience is central to CIMB’s ability to thrive in Malaysia’s competitive banking sector. Gurdip highlighted the bank’s strong financial footing, noting, “Over the last three years, we have meaningfully strengthened our ROE (return on equity), CIR (cost to income) ratio as well as our capital levels amid a volatile global environment”.

The Forward23+ strategy has been instrumental in achieving these results. By streamlining internal processes and optimising resource allocation, CIMB has created a robust operational framework. “We’re focusing on areas like compliance, security, and process efficiency to ensure we stay ahead of market demands” Gurdip said.

Technology plays a vital role in enhancing resilience. CIMB is exploring the use of generative artificial intelligence (AI) for predictive analytics, risk management and operational efficiency. “Generative AI allows us to improve productivity and streamline operations, enabling our teams to focus on higher-value activities,” Gurdip elaborated.

Retail and SME banking tailor solutions for diverse needs

Retail banking remains a cornerstone of CIMB’s operations, but the approach is evolving. Physical branches are evolving to better serve high-value segments such as wealth and small and medium sized enterprise (SME) clients. Gurdip noted, “Branches are no longer just for retail transactions. They are now centres for engaging SME owners and wealth clients who require tailored financial advice”.

For SMEs, CIMB offers accessible financial solutions tailored to their unique needs. “SMEs prioritise convenience and cash flow management over yield. Our focus is on ensuring they have easy access to working capital,” Gurdip explained. This approach aligns with the bank’s strategy to foster SME growth by offering practical and scalable solutions.

Digital access has also been a game-changer in retail banking. Gurdip remarked, “The shift to digital channels post-COVID has allowed us to provide seamless services to customers while freeing up branches for more complex needs”.

SMEs further benefit from CIMB’s partnerships in digital finance. For example, collaborations with fintech firms are enabling small businesses to access innovative funding and payment solutions. “These partnerships allow us to extend our reach and provide value-added services to SMEs across the region,” Gurdip highlighted.

Digital transformation bridges technology and inclusion gaps

CIMB’s digital transformation efforts are aimed at making banking more inclusive and efficient. “Our goal is to ensure that digital tools enable financial inclusion, particularly for underserved communities,” Gurdip stated.

The bank has invested heavily in new technologies to enhance operational efficiency and customer engagement. In embracing AI, Gurdip outlined four focus areas: enabling banker productivity, improving internal processes, enhancing marketing strategies and advancing risk modelling capabilities.

For instance, AI-driven tools help relationship managers better understand client needs and provide more personalised advice, thereby improving customer satisfaction and loyalty.

Additionally, CIMB is exploring new technologies for secure transactions and digital asset management.

CIMB’s digital strategy extends to collaborations with fintech and government initiatives to democratise access to banking. “We’re working with partners who share our vision for creating a seamless and inclusive digital banking ecosystem,” Gurdip noted. These collaborations are enabling the bank to stay ahead of the curve in adopting disruptive technologies.

Leading Malaysia’s green and sustainable finance agenda

CIMB is positioning itself as a leader in sustainability, setting ambitious goals for decarbonisation and green finance. The bank’s Green, Social, and Sustainable Impact Products and Services (GSSIPS) Framework targets to mobilise MYR 100 billion (about $22.4 billion) in sustainable finance by 2024. These funds are directed towards industries and projects that align with Malaysia’s sustainability goals. Gurdip emphasised, “We see our role as not just financing but also enabling the transition to a more sustainable economy”.

The bank also supports corporate clients in their sustainability journeys, offering advisory services and tailored solutions to help them transition to greener practices. The bank has developed sector-specific decarbonisation pathways for six critical sectors to guide industries towards achieving lower carbon footprints.

For retail clients, CIMB has introduced green investment options, allowing customers to contribute to sustainability goals while growing their wealth responsibly. These offerings align with the bank’s broader mission to integrate sustainability across all levels of its operations.

CIMB’s sustainability leadership extends to partnerships with global and regional organisations focused on environmental stewardship. Gurdip remarked,

“Collaboration is essential for tackling global challenges like climate change, and we’re proud to be at the forefront of these efforts in ASEAN”.

Gurdip expressed satisfaction with the recognition that the bank has received for its efforts and acceleration in sustainability. “When we started our journey on sustainability, we were ranked at the bottom 20% of financial institutions globally as measured by the S&P Corporate Sustainability Assessment and fast forward to the last update in 2023 we have moved up to being in the top 12th percentile in the world,” he said.

CIMB plays an active role to help the B40 low-income community and micro-SMEs. Gurdip added, “We have disbursed over MYR 27 billion (about $6.1 billion) to B40 Malaysians as well as MYR 23 billion (about $5.2 billion) to micro and small businesses over the last five years. Additionally, one of our flagship retail products, the CIMB Eco-save i by CIMB Islamic allocates funds to various initiatives that helps the society at large. We have disbursed over MYR 7 million (about $1.58 million) in the last three over years to supporting forest, river and wetland conservation efforts”.

Growing key business segments

Gurdip emphasised that as a universal bank, CIMB is actively driving growth and innovation across all segments. “For the consumer business, current and savings accounts, wealth and financing solutions have grown steadily over the recent years. While competition is intense, margins on deposits remain healthy, notwithstanding we do see margins on mortgages remaining very tight,” he explained

Wealth management is an increasingly important focus for CIMB as it seeks to diversify revenue streams and cater to Malaysia’s growing affluent and high-net-worth population. Gurdip noted, “We’re seeing rising demand for personalised wealth solutions, particularly among high-net-worth clients who seek tailored advice and exclusive products”.

CIMB is leveraging its branch network to enhance wealth management services. “Our branches have become key hubs for wealth discussions, where relationship managers invite clients for in-depth consultations,” Gurdip explained. This strategy has improved customer engagement and conversion rates.

Digital tools are also playing a crucial role in wealth management. “We have invested in better enabling our customers digitally and these platforms has helped them to manage their wealth conveniently and effectively,” Gurdip highlighted. These innovations align with the bank’s broader digital transformation goals.

Collaborations with global asset managers have expanded CIMB’s product offerings, allowing the bank to offer funds tailored to both retail and corporate clients. “Partnerships with top asset managers have enabled us to introduce exclusive products that cater to diverse client needs,” Gurdip said. These include sustainable investment options that align with CIMB’s green finance goals.

CIMB’s wealth management division is also integrating sustainability into its offerings. Gurdip shared, “We’re providing green investment opportunities that not only deliver returns but also align with our clients’ growing interest in environmental and social responsibility”.

In the business banking and wholesale segment, Gurdip said CIMB has likewise invested heavily in enhancing its technology and digital capabilities. For example, CIMB is re-architecting its cash management platform to bring a complete suite of solutions its clients.

“SMEs are a critical part of the economy and CIMB has put in place various programmes to catalyse this sector. Performance for the last three years has been very encouraging, and we see a lot of synergies between the SME sector and our other businesses. For example, CIMB is developing supply chain financing programmes that link its SMEs with its anchor corporate clients,” he explained.

In the sustainability space, he shared that CIMB has also rolled out various programmes to enable its clients to better transition. For example, GreenBizReady, Sustainability Linked Loans and the Low Carbon Transition Facility.

Gurdip attributed the bank’s positive momentum to the macro tail winds in Malaysia. “We are benefiting from cascading opportunities driven by the various positive government initiatives and strong FDI (foreign direct investment) flows, particularly for the wholesale and commercial banking segments,” Gurdip explained. This will help CIMB build a stable foundation for growth.

A vision for the future

CIMB under Gurdip’s leadership, is navigating a transformative phase with a clear focus on resilience, innovation and sustainability. By addressing challenges with tailored strategies and leveraging technology to drive inclusion, experience and efficiency, the bank is redefining its role in Malaysia’s financial ecosystem.

Gurdip summed up the bank’s vision, “We are committed to building a future where growth and responsibility go hand in hand. Our purpose as an organisation is to advance customers and society and we take on that role with a deep sense of gratitude and responsibility to all our stakeholders” With its holistic approach to operational excellence, digital transformation and green finance, CIMB is positioning itself for leadership in the next phase of Malaysian banking.