Drive Thru ATM Machine in Malaysia

HONG Leong Bank (HLB) is looking at investing some RM40 million to expand and upgrade its network of branches in its financial year ending June 30 2011.

The money will be equally split between upgrading existing branches and setting up new ones – at least 10 in total.

Last week, the bank launched two branches in the Klang Valley: in Bandar Mahkota Cheras and Sunway Giza.

Yesterday, two flagship branches were launched in Jalan Kepong and Jalan Ipoh in Kuala Lumpur.

The two branches, effectively a merging of three, see a total 10,000 additional sq ft of space to cater for HLB customers.

The two latest branches also introduced the bank’s first drive- through automated teller machines (ATMs).

“Our growth agenda at HLB hinges on transforming our branches, just like we are doing here, so we can better serve and embed ourselves into the community.

“Transformation doesn’t just mean expanding into new markets, it also means deepening and sustaining our relationships in vibrant communities where we have been for some time, like Kepong,” said HLB group managing director Yvonne Chia.

The bank currently has 188 branches nationwide, with six more to come. At the same time, it is looking at upgrading or relocating some 20 per cent of its existing branches to more convenient locations.

Chia said that its branch network remains a very important part of HLB’s business strategy as it aims to bring banking staff closer to the customers.

“We remain relevant to customers by being on the ground, talking to them and understanding local markets. Branches enable us to do this and, as such, are the bedrock of our franchise,” she told reporters at the launch of the Jalan Kepong branch.

Chia also said that HLB’s expansion plans would be concentrated on “new townships, new communities, and new growth areas that are coming up”.

While HLB continues to focus on the brick-and-mortar branch- banking, the group is also looking at aggressively repositioning itself in electronic banking (e-banking).

Chia noted that although e-banking made up less than 5 per cent of banking transactions in the market currently, there were clear signs that it was heading for exponential growth.

“The signs and trends are all there. We intend to compete effectively in this area so plans have been drawn up to bring things up to a new level, including, potentially, mobile banking,” she said.