Aeon Bank Plans to Break Even Within Five Years, Leveraging Brand and Market Presence
Aeon Bank, Malaysia’s first Islamic digital bank, is making waves in the financial sector with its ambitious goal to break even within five years. Leveraging the strong brand presence of Aeon Group, the bank has already received an overwhelming response from depositors since its launch on May 26.
During a press conference after its AGM, Aeon Credit CFO Lee Siew Tee revealed that the bank has exceeded expectations in terms of deposits, although the exact numbers were not disclosed. This positive response has spurred the bank to continue launching new products, pending approval from Bank Negara Malaysia.
Managing director Daisuke Maeda highlighted the competitive edge that Aeon Bank has, thanks to Aeon Group’s presence in shopping malls and household brand recognition. By offering attractive financial products integrated with customers’ daily shopping experiences, the bank aims to stand out in the digital banking market.
Despite facing competition from four other digital banks, Aeon Bank is focused on ensuring robust cybersecurity infrastructure before expanding its product offerings to include loans. Chairman Ng Eng Kiat emphasized the importance of a careful and gradual approach to product development in the highly competitive digital banking sector.
At the group’s 27th AGM, all resolutions were approved by shareholders, including a proposed final dividend of 14 sen per share for the financial year ended Feb 29, 2024. Aeon Credit’s revenue saw a significant increase in FY24, driven by higher transaction and financing volume, particularly in easy payment and personal financing segments.
Maeda highlighted the positive progress in the bank’s digital transformation journey, with the introduction of instant approval schemes and risk-based interest rates. The bank has seen a surge in demand for used car financing solutions, leading to a 50% increase in sales of used car loans.
Looking ahead, Aeon Bank plans to upgrade its Aeon Wallet to promote digitalization and offer a wider range of financial products. By integrating the digital bank into its ecosystem, Aeon Group aims to provide comprehensive financial services to enhance customer convenience.