Hong Leong Bank transforms branches to solve non-virtual problems

CEO Kevin Lam reveals five branch models that merge tradition and technology.

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Hong Leong Bank Bhd is revamping its branches all over Malaysia as part of a digitalisation push under its branch transformation program, according to its top official.

"Not all branches will be the same in the future," Kevin Lam, group managing director and CEO at Hong Leong Bank, told Asian Banking & Finance in an interview. "We're in the process of rolling this out in our branch transformation program."

Some branches of Malaysia's sixth-biggest bank by assets will offer services across retail and investment banking, as well as wealth management, whilst others will be strategically located inside the buildings of partner companies in the car and property sectors, he said.

A key part of this revamp is their pivot to automation using artificial intelligence (AI). In March 2024, Hong Leong Bank started using an AI bot that managed to make 300,000 calls to customers who were late on payments, replacing 20 human roles.

"We collaborated with a Chinese AI company to bring over 300,000 calls to customers, and the success rate was just as good as what a human could do," Lam said. "By doing that, we're able to save about 20 headcounts in this particular area of function by the end of this financial year."