Full Report:
Affin
Bank Strategic Direction in Cash Management and Digitalisation
Affin
Bank’s Strategic Direction and Initiatives as of Late 2025:
Focus
on Cash Management, Corporate Banking, Transaction Banking, Merchant Services, Digitalisation,
and Sarawak Partnerships
Introduction
As Malaysia’s financial sector
continues to undergo rapid transformation, Affin Bank emerges as an agile
player pursuing a multi-pronged strategy anchored on digital innovation,
customer-centricity, and regional expansion. The period up to late 2025 marks a
pivotal transition for the bank, shaped by its Axelerate 2028 (AX28) plan,
inflationary headwinds, evolving customer expectations, and—significantly—a new
strategic alignment with the State of Sarawak. This report provides a concise
yet comprehensive analysis of Affin Bank’s latest direction and initiatives,
with a particular lens on cash management, corporate and transaction banking,
merchant services, digitalisation, fintech partnerships, and the deepening
connection with Sarawak’s digital and economic agenda.
Cash Management: AFFINMAX Innovations
and Expansion
Affin Bank’s cash management
services—encapsulated by AFFINMAX—represent the backbone of its business
offerings to corporate, SME, and institutional clients. AFFINMAX 2.0
marked a major leap forward in 2024, with significant upgrades in real-time
payments, digital token authentication, and virtual account offerings.
The core focus for cash management is
on integration, efficiency, and digital security. AFFINMAX provides a unified
dashboard for transactional oversight, liquidity optimization, and automation
of both payments and collections. For end-users, the AFFINMAX platform,
available both as a web portal and a mobile app, offers:
·
Real-time
transaction monitoring
and consolidated account views
·
Bulk
and straight-through processing for salary, vendor, and regulatory payments
·
Secure
biometric login and digital token authentication—replacing conventional SMS OTP as of
February 2024, which increases security and decreases friction for high-volume
business activities
·
Seamless
integration
with accounting and ERP systems to drive operational productivity
·
Virtual
Account (VA) capabilities,
allowing corporates to streamline payment collection, assign dedicated payer
codes, and generate powerful bespoke reporting—features particularly valued by
businesses with numerous customers or franchisees
Enhanced partnerships, such as the
strategic alliance with ACI Worldwide, have boosted the bank’s real-time
payment capacities by 75% and increased transaction load by more than 20%,
directly addressing Malaysia’s growing demand for instant and scalable payment
infrastructure.
AFFIN Bank’s recent recognition as
Malaysia’s Domestic Cash Management Bank of the Year for AFFINMAX by the Asian
Banking & Finance Wholesale Banking Awards further validates the
institution’s credibility and innovation in this arena.
Moreover, AFFINMAX has extended its
reach across the nation with dedicated implementations in key Sarawak
branches—Kuching, Miri, Bintulu, Sibu, Northbank—serving as pivotal hubs for
corporate and public sector clients in East Malaysia.
Summary Table: AFFINMAX Key Features
|
Feature |
Description |
|
Real-time Payments |
Instant settlement, 24/7
availability |
|
Bulk Processing |
Salary, statutory, vendor payments |
|
Digital Token Security |
Enhanced authentication & Fraud
mitigation |
|
Virtual Accounts |
Custom payer codes,
auto-reconciliation |
|
Multi-platform Access |
Web & mobile app integration |
|
API Integration |
For ERP/accounting systems |
In summary, Affin Bank’s cash
management push is distinguished by comprehensive, flexible digital
solutions tailored to Malaysia’s business landscape, underpinned by
security, easy integration, and strong regional implementation.
Corporate Banking
Strategy: Growth, Sectoral Focus, and Regional Deepening
Affin Bank’s corporate banking
strategy, now in its second full year under the AX28 Plan, is defined by selective
asset growth, diversification of revenue, and digital transformation. The
division targets mid-sized to large enterprises, GLCs, and institutional
clients with services spanning loans, trade finance, deposits, insurance, and
treasury products.
Key strategic thrusts in corporate
banking include:
Regional Deep Dives: Sarawak’s
Strategic Role
Through its expanded presence in
Sarawak, Affin aims to become a key financier for state-linked infrastructure
and green projects, capitalising on both policy tailwinds and new business
flows from its 31.25% Sarawak government ownership. An example is its growing
involvement in funding the Coastal Road Network, hydropower facilities, a new
international airport, and a hydrogen-ready power plant in Miri developed in
collaboration with Mitsubishi Heavy Industries.
Corporate clients increasingly
leverage AFFINMAX for cash management and trade, while the Quantum
treasury system delivers improved liquidity and risk oversight—critical for
companies operating in volatile, high-stakes market sectors.
Performance Snapshot
Transaction Banking Services:
End-to-End Digitalisation and Personalisation
Affin’s transaction banking is
squarely focused on digitisation, automation, and customisation. With AFFINMAX
2.0 (launched November 2023) at the heart of its transaction banking
revamp, clients can handle their end-to-end business cycles, from onboarding to
reconciliations, online.
Key Initiatives and Offerings:
Affin’s transaction banking suite
comprehensively meets the needs of modern businesses seeking safe, compliant,
and highly efficient digital solutions.
Merchant Services: Digital Enablement
and Strategic Partnerships
Merchant services at Affin have seen
notable upgrades, not only in acceptance channels but through partnerships and
process improvements designed for Malaysia’s evolving retail, services, and SME
sectors.
Recent advancements and key offerings:
Security and Compliance remain front and centre, with Affin
enforcing industry standards for data protection and merchant risk management.
Digitalisation
Strategy: The AX28 Plan and “Banking 4.0”
Digital transformation is the
centerpiece of Affin’s group strategy, crystallized in its AX28 (Axelerate
2028) Plan, which replaced A25.
AX28 Key Pillars:
Strategic Initiatives:
The AX28 vision is ambitious: 35%
CASA ratio, RM1.8 billion pre-tax profit, 3 million customer base, and 25% of
the loan book in sustainable finance by 2028. Group-wide, the AX28 plan
aims to transform Affin into a future-ready organization, blending digital
adoption with regional inclusivity and ESG commitments.
Affin’s digital push dovetails with
the Sarawak government’s commitment to full end-to-end digital government
services and the state's AI and smart economy agenda.
Fintech and Digital Partnerships
A hallmark of Affin’s strategy is
selective, high-impact partnerships that supercharge its digital platforms and
offer customers seamless, value-added solutions:
Through these alliances, Affin is
entrenched as both a national and regional ecosystem player, bridging banking,
commerce, government, and digital marketplaces.
Sarawak Government
Partnership and Stakeholding: Strategic and Economic Impact
In September 2024, the Sarawak state
government, via SG Assetfin Holdings Sdn Bhd, became the largest shareholder in
Affin Bank with a 31.25% stake. This development is seen as a game-changer for
Affin’s growth prospects, particularly in East Malaysia.
Strategic Impacts:
Sarawak's strategic
objectives—outlined in PCDS 2030 and supported by Affin—encompass sustainable
growth, digital inclusion, support for rural communities, and the development
of a regional financial ecosystem that empowers SMEs and high-impact industries.
Affin’s on-ground expansion in Sarawak
is materialized through increased branches, business centres in major economic
zones, and digital onboarding capabilities.
Table: Key Areas of Synergy Between
Affin Bank and Sarawak State
|
Area |
Current
Synergy/Impact |
|
Stakeholding |
31.25% Sarawak government ownership |
|
CASA Deposits |
Anticipated > RM4 billion inflow;
payroll onboarding |
|
SME/Business Lending |
Focus on agric, green, digital, and
manufacturing SMEs |
|
Infrastructure Projects |
Road, hydropower, aviation, port,
smart city financing |
|
Digitalisation |
Integration with regional AI,
SarawakID, SDMS |
|
Community/CSR |
Financial inclusion, rural access,
education programs |
CASA Deposit Growth
and Impact from Sarawak
Affin’s CASA growth in 2024 and into
2025 is directly linked to its Sarawak expansion and stakeholder dynamics. The
CASA ratio rose from 26.7% in 2023 to over 30% by mid-2025, beating internal
targets and setting the stage for further growth as more government and civil
service payrolls are channelled through Affin.
Key factors contributing to this
uptrend:
Cost of funds is expected to decrease
nominally (estimated 3 basis points per RM1 billion fresh CASA injection), with
direct positive impact on net interest margin and group return on equity,
reinforcing Affin’s funding competitiveness.
Alignment with SCSDU
and Sarawak Digitalisation Initiatives
Sarawak Digitalisation Landscape
The Sarawak Centre of Digitalisation
and Urbanisation (SCSDU) has become a regional trailblazer, driving initiatives
such as SarawakID digital identity, open data platforms (SDMS), conversational
AI (Dayang chatbot), and cybersecurity standards across the state civil
service. The 2025 GSMA APAC Digital Nation Award for SarawakID as “Best Social
Media Impact Video” attests to Sarawak’s thought leadership in digital
inclusion and governance.
Collaboration and Support
Affin Bank’s AX28 plan aligns closely
with the SCSDU’s ambitions:
SarawakID and Regional Digital
Platforms
SarawakID, the digital identity
program, is now a widely adopted platform for government, health, utility, and
financial services access—recently receiving regional accolades from GSMA.
Affin Bank’s platforms have been developed for compatibility, supporting
secure, authenticated logins, and laying the groundwork for integration with
local e-wallets (SPay), public sector portals, and open-data ecosystems.
This integration will only deepen as
Malaysia’s public-private digital strategies focus on seamless
citizen-to-business connectivity, secure transactions, and financial
inclusion—objectives aligned with both Affin’s and SCSDU’s roadmaps.
SME Development Initiatives and Green
Finance in Sarawak
Affin’s commitment to regional SME
development in Sarawak is evidenced by a constellation of initiatives:
Regional Bank Empowerment: Sarawak’s leadership has publicly
encouraged Affin to localize loan approval authorities, further accelerating
credit disbursement and finance access for rural and urban SMEs alike.
Infrastructure
Financing Projects in Sarawak
Affin Bank is becoming a partner of
choice for major infrastructure initiatives in Sarawak, thanks to both its
strategic shareholder structure and readiness to fund high-impact projects:
The revenue potential for these
projects is substantial, with internal and sectoral analyses estimating over
RM100 billion in project value across digital, aviation, healthcare, green
energy, and logistics segments.
|
Summary Table: Affin Bank’s Key 2024–2025
Initiatives and Sarawak Focus |
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2. https://www.bk.mufg.jp/malaysia/pdf/20250319_mou_affinbank_and_mufg.pdf |
Other Links
https://www.sarawak.gov.my/media/attachments/PCDS_Compressed_22_July_2021.pdf
https://www.affinalways.com/storage/ASCEND/affin-ascend-q3-2023.pdf
Conclusion
Affin Bank’s strategic direction for
late 2025 is defined by: aggressive digitalisation (AX28), regional
intensification, sector-specialised banking, and an innovation-driven
partnership with Sarawak. Its cash management and transaction banking
offerings are now among the most sophisticated regionally, while strategic
fintech alliances and digital transformation power its vision to be Malaysia’s
“Most Creative and Innovative Financial Company.”
Sarawak’s emergence as Affin’s anchor
stakeholder does not merely add capital; it multiplies opportunities in CASA
flows, SME and corporate lending, merchant enablement, and ESG-linked
infrastructure financing. The synergy with SCSDU and the region’s digital
platforms amplifies Affin’s impact—embedding the bank in Sarawak’s journey
toward economic resilience, digital excellence, and inclusive growth. As these
programs mature, Affin is not only set to contribute substantively to Sarawak’s
ambitions but also to carve out a more progressive role in Malaysia and the
wider region.