CIMB Group Holdings Business Model Canvas

CIMB Bank Philippines has forged key partnerships with e-commerce giants Lazada and Shopee, a move that underpins its embedded banking strategy. These collaborations are vital for offering integrated financial solutions directly within the shopping journey.

A prime example is CIMB's role in powering LazPayLater, a buy-now-pay-later service on Lazada. This partnership allows millions of Filipino consumers to access flexible payment options, boosting transaction volumes and customer engagement for both CIMB and the e-commerce platforms.

In 2023, the Philippines e-commerce market saw significant growth, with platforms like Lazada and Shopee handling billions of dollars in transactions. CIMB's presence on these platforms positions it to capture a substantial share of this expanding digital economy by embedding its banking services at the point of sale.

CIMB's key partnerships are vital for expanding its reach and embedding financial services across various ecosystems. Collaborations with e-commerce platforms like Lazada and Shopee in the Philippines, for instance, allow CIMB to integrate its offerings directly into the customer's shopping journey, as seen with LazPayLater.

Furthermore, partnerships with digital wallet providers such as GCash, which boasts over 50 million users in the Philippines as of early 2024, enable CIMB to offer digital savings and lending solutions to a vast, digitally-engaged audience.

These alliances extend to specialized sectors, like the collaboration with Remedi Innovations to develop digital health and wellness solutions, positioning CIMB as an ecosystem enabler within the growing healthcare SME market.

Additionally, partnerships with entities like Credit Guarantee Corporation Malaysia Bhd (CGC) in 2024 are crucial for de-risking SME financing, particularly for businesses pursuing ESG initiatives or digital transformation.

CIMB’s wholesale banking operations provide a comprehensive suite of services, including investment banking, financial advisory, underwriting, and stockbroking. These offerings are vital for assisting corporate clients with their regional growth strategies and managing intricate financial landscapes.

In 2024, CIMB’s wholesale banking division played a key role in facilitating significant corporate transactions across ASEAN. For instance, the bank was a lead arranger for several major syndicated loans and advised on cross-border mergers and acquisitions, underscoring its commitment to supporting regional economic development.

CIMB's key activities encompass a broad spectrum of financial services, from retail and consumer banking, offering diverse products like loans and credit cards, to robust wholesale banking operations supporting corporate clients with investment banking and advisory services. A significant pillar is their commitment to Islamic finance, operating dedicated subsidiaries and integrating Shariah-compliant solutions across their offerings.

Digital transformation is a paramount activity, with substantial investments in platforms like CIMB OCTO and the application of AI and data analytics to enhance customer experiences and operational efficiency, as highlighted by over 90% of customer transactions being digital in 2023.

The group actively supports SMEs through tailored financing, including working capital solutions, and guides them in adopting ESG principles and digitalization, aiming to increase market share in this vital segment across ASEAN.

CIMB’s wholesale banking division in 2024 facilitated significant regional transactions, including syndicated loans and cross-border M&A, demonstrating its role in fostering economic development.

CIMB's extensive ASEAN network, with branches in Malaysia, Indonesia, Singapore, Thailand, Cambodia, Vietnam, and the Philippines, is a cornerstone of its business model. This significant regional footprint allows for deep market penetration and customer engagement across diverse economies.

The group also maintains a presence in China, Hong Kong, and the UK, further broadening its international reach. This expansive network facilitates seamless cross-border transactions and capital flows, a key advantage in the increasingly interconnected global financial landscape.

As of the first quarter of 2024, CIMB Group reported a total of 15.4 million retail customers across its ASEAN operations, underscoring the scale and depth of its customer base. This vast network is crucial for driving revenue through a wide array of financial products and services.

CIMB's key resources are its substantial financial capital, a vast network of approximately 33,000 employees, an extensive ASEAN branch network, robust technology infrastructure, and a strong, trusted brand built over a century.

The group's financial strength is evident with total assets reaching RM755.1 billion and shareholders' funds at RM69.2 billion as of December 2024. This financial muscle supports its wide-ranging banking operations and strategic expansion.

Its digital ecosystem, including platforms like CIMB OCTO, is a critical asset, enhancing customer experience and driving digital transformation. The group also boasts 15.4 million retail customers across ASEAN as of Q1 2024.

CIMB Group Holdings places a strong emphasis on digital convenience and innovation, aiming to provide customers with seamless banking experiences. This includes advanced mobile banking features and user-friendly online platforms designed for ease of use.

The group actively develops and deploys innovative digital solutions, such as embedded banking, which integrates financial services directly into non-financial platforms. This approach simplifies transactions and broadens access to CIMB's offerings.

In 2024, CIMB continued to invest heavily in its digital transformation, with a significant portion of its customer transactions occurring through digital channels. For instance, over 90% of their retail transactions were digitally enabled, showcasing the success of their digital-first strategy.

CIMB's value proposition centers on its comprehensive ASEAN universal banking expertise, enabling seamless cross-border financial solutions and deep market insights across the region.

The group prioritizes digital innovation, offering convenient and user-friendly mobile and online banking platforms, with over 90% of retail transactions digitally enabled in 2024.

CIMB is committed to sustainability, aiming for net-zero emissions by 2041 and targeting RM60 billion in sustainable finance by 2025, demonstrating tangible environmental stewardship.

The bank differentiates itself through competitive deposit rates and a customer-centric approach, simplifying processes and offering personalized financial solutions to attract and retain a broad customer base.

CIMB Group Holdings actively fosters community engagement through robust financial literacy programs, aiming for economic inclusion. In 2024, CIMB continued its commitment to enhancing financial knowledge for underserved populations and its workforce, strengthening community bonds and its corporate social responsibility.

CIMB Group Holdings cultivates strong customer relationships through a blend of personalized service for high-value clients and robust digital self-service options. The bank actively uses data analytics and strategic partnerships to enhance customer acquisition and personalize the banking journey. In 2024, CIMB saw a 35% year-on-year increase in mobile banking transactions, underscoring the success of its digital engagement strategies.

CIMB Group Holdings leverages an extensive network of ATMs and self-service kiosks, acting as a vital component of its customer accessibility strategy. These touchpoints offer 24/7 access to core banking services, including cash withdrawals, deposits, and account inquiries, effectively extending the reach of its physical branch network.

As of the first quarter of 2024, CIMB Group operated over 6,000 ATMs and CDMs across its key markets in Southeast Asia. This robust infrastructure significantly enhances customer convenience, allowing for over 50 million transactions annually through these self-service channels alone, thereby reducing reliance on traditional branch visits.

CIMB Group Holdings utilizes a multi-channel approach, blending a substantial physical branch network with advanced digital platforms like CIMB OCTO. This hybrid model ensures broad customer accessibility and caters to diverse banking needs. As of late 2023, CIMB operated around 760 branches across ASEAN, complemented by over 6,000 ATMs and CDMs available 24/7 in early 2024.

Digital channels are paramount, with over 90% of retail transactions conducted digitally by the end of 2023. CIMB actively invests in these platforms, enhancing user experience and security to drive further adoption. Partnerships with e-commerce platforms and digital wallets are also key, embedding financial services into everyday customer journeys.

CIMB Group Holdings serves large corporations and institutions, often referred to as wholesale banking clients. This segment encompasses multinational corporations and significant domestic businesses that require a broad spectrum of sophisticated financial services. These services include complex investment banking solutions, corporate finance advisory for mergers and acquisitions, and robust transaction banking to manage their global cash flows.

For these institutional clients, CIMB provides specialized asset management capabilities and treasury services designed to meet their intricate financial requirements. The bank actively supports their strategic objectives, particularly their expansion and operational needs across the ASEAN region, leveraging its extensive network and expertise.

In 2024, CIMB continued to focus on strengthening its wholesale banking franchise. For instance, CIMB Investment Bank Berhad was recognized for its role in advising on significant M&A deals within Malaysia and the broader Southeast Asian market, reflecting the demand for its corporate finance expertise from large entities.

CIMB Group Holdings serves a broad customer base, including individuals seeking everyday banking, SMEs requiring financing and digital tools, and large corporations needing sophisticated investment and transaction banking. The bank also targets mass affluent and high-net-worth individuals with specialized wealth management services and caters to those preferring Shariah-compliant financial products through CIMB Islamic.

In 2024, CIMB continued to enhance its digital offerings across all segments, recognizing the growing demand for online financial solutions. This digital push is crucial for customer acquisition and retention, especially among younger demographics and digitally-savvy SMEs.

The Islamic finance segment, represented by CIMB Islamic, remains a key focus, with significant asset under management demonstrating strong customer trust. The bank's commitment to providing tailored Shariah-compliant products across various customer types, from individuals to institutions, highlights its strategic positioning in this growing market.

CIMB Group Holdings dedicates significant resources to marketing and branding, encompassing comprehensive campaigns and customer acquisition initiatives across its diverse markets. These expenditures are crucial for promoting its wide array of financial products and sophisticated digital services to a broad customer base.

CIMB Group Holdings' cost structure is dominated by operating expenses, with staff costs being a significant component due to its extensive regional workforce. In 2024, the group maintained a focus on disciplined cost management across its broad network and varied operations.

Significant investments in technology and digital transformation are a key cost driver for CIMB. In 2024, the bank continued to allocate substantial funds towards upgrading core systems, enhancing cybersecurity, and developing digital platforms like the CIMB OCTO App. These expenditures cover software, infrastructure, and specialized ICT services.

Interest expenses on deposits and borrowings are fundamental to CIMB's cost base. The group's strategy of growing its deposit base, particularly low-cost CASA deposits, aims to optimize its cost of funds. For instance, CIMB's cost of funds was a critical factor influencing its net interest margin in Q1 2024.

CIMB Group Holdings generates substantial revenue from fee and commission income, a vital component of its non-interest earnings. This includes income derived from credit card interchange fees, account maintenance charges, and fees associated with transactional banking services.

Financial advisory services and asset management fees also contribute significantly. For instance, in 2024, CIMB's fee and commission income reflects the breadth of its product offerings, catering to diverse customer needs from retail banking to wealth management.

CIMB Group's revenue streams are diverse, encompassing both traditional banking income and a growing portfolio of fee-based services.

Net Interest Income remains the bedrock, driven by a substantial loan book and efficient deposit management. For the first quarter of 2024, CIMB Group reported Net Interest Income of RM3.5 billion, highlighting its core strength.

Non-Interest Income, generated from wealth management, investment banking, and transaction fees, is increasingly important. CIMB's focus on client relationships has led to significant growth in this area, as evidenced by its Q1 2024 performance.

Islamic banking and trading/investment income further diversify CIMB's revenue, contributing to overall financial resilience and profitability.