KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2024 BASIS OF THIS REPORT OUR APPROACH TO SUSTAINABILITY KENANGA AT A GLANCE GOOD GOVERNANCE LEADERSHIP STATEMENTS SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX 49 48 OUR APPROACH Our digitalisation strategy focuses on expanding our digital offerings to create a comprehensive approach to wealth creation. We strive to simplify workflows by automating processes to boost efficiency. Our efforts to strengthen information technology (“IT”) governance and enable effective oversight of digital initiatives are ongoing. We aim to use resources more efficiently, accelerate digitalisation, and refine cost structures. Furthermore, we seek to build strategic partnerships with technology leaders to drive innovation and deliver value to our customers. These initiatives reaffirm our commitment to leveraging digitalisation to fuel growth and innovation in our business. IT Governance At Kenanga, the Board provides direction for and oversees on technology-related matters, including risks, in line with business and regulatory requirements. The Group Board Digital Innovation & Technology Committee (“GBDITC”) supports the Board in its responsibilities, as well as reviews, evaluates, and recommends technological innovations for the development of the Group’s medium- and long-term business strategy. Furthermore, the GBDITC assists the Board in ensuring that the Group’s technology resources and initiatives are aligned with its overall digitalisation strategy and objectives. Driving Digital Transformation in Product Platforms Digitalisation is transforming the way we deliver products and services, revolutionising the customer experience. By embracing advanced technology, we are enhancing accessibility, efficiency, and convenience, enabling clients to manage their financial needs seamlessly through innovative digital solutions. Our products continue to expand, driven by cutting-edge digital innovations that enhance their accessibility and functionality. This expansion allows us to offer more tailored, efficient solutions to meet the evolving needs of our clients in an increasingly digital world. Some key updates on our products’ performance are as follows: As part of our 2025 outlook, Kenanga plans to officially launch the enhanced Treasury FX Platform—originally released in 2023— to empower clients to execute foreign currency trades and transfer funds internationally online. Building on client feedback and system performance since the initial release, the 2025 launch will feature significant User Interface (“UI”) and User Experience (“UX”) improvements, delivering a more accessible and efficient digital experience. DIGITALISATION WHY IT MATTERS Kenanga acknowledges the importance of reinforcing our digital competitiveness to sustain our growth and long-term viability, especially amid the rapidly evolving financial landscape. We aim to enhance internal operational efficiency through digitalisation and create a seamless and unified digital experience through a suite of products. Following the development of the five (5)-year IT strategy in 2022, the strategy remains on track, with a focus on cloud adoption strategy and adoption of AI technology for operations and security. The strategy will continue to be implemented as planned and reviewed annually to ensure it remains relevant and effective. Ease of Operations Simplify operations model and reduce manual manpower and further repurpose human resources. Improve Business Revenue Create additional workstreams to boost business revenue. Reduce Risks Reduce technology and business risks to ensure business runs as usual. Cost Reduction Reduce and repurpose operational expenditure (“OPEX”) to other work initiatives. Time to Market Improve application time to market and gain velocity to support Digital and Digitisation initiatives. IT Strategy 2023-2027 Principles of the IT Strategy 2023-2027 SUSTAINABLE ECONOMIC GROWTH SUSTAINABLE ECONOMIC GROWTH In August 2024, Kenanga Digital Sdn Bhd launched KDi GO, a SuperApp that seamlessly integrates a comprehensive suite of financial and wealth management solutions into one powerful ecosystem. KDi GO empowers users with an intuitive platform to manage their finances effortlessly, featuring AI-driven robo-advisory tools for smart saving and investing, retail payment options, and convenient money remittance services. Developed in collaboration with Ant Digital Technologies, KDi GO harnesses the cutting-edge Mobile-Platform-as-a-Service (“mPaaS”) solution to deliver a seamless user experience. Highlight of 2024: The Launch of KDi GO Kenanga Digital Investing (“KDI”) The KDI platform is a fully automated, AI-driven robo-advisor designed to simplify the saving and investing process. Licensed by the Securities Commission Malaysia, KDI offers two (2) convenient products: KDI Save and KDI Invest. KDI Save provides daily returns on savings with no lock-in period or management fees, while KDI Invest enables wealth growth by offering access to global investment opportunities through US-listed Exchange Traded Funds (“ETFs”) at competitive fees. KDI Save & Invest continued to grow, reaching approximately 33,000 customers and managing around RM400 million in assets under management. Rakuten Trade Rakuten Trade Sdn Bhd (“Rakuten Trade”), a joint venture between Kenanga and Japan-based Rakuten Securities Inc, has made online stock trading more accessible and convenient to hundreds of thousands of new traders and investors. In addition to providing trading access to the US market, the platform also offers foreign trading capabilities such as the Hong Kong Exchange and US fractional share trading, giving Malaysian users a seamless and cost-effective way to further diversify their portfolios. In 2024, 12,087 new users signed up on Rakuten Trade, bringing the total customer base to more than 288,250. Over RM143 billion worth of stocks have been transacted since its inception in 2017. Kenanga Money Developed in partnership with Merchantrade Asia Sdn Bhd (“Merchantrade”), Kenanga Money is our first stockbroker e-wallet platform, marking our entry into the cashless payment sector. Kenanga Money allows our clients to transfer money from their stock trading account into an e-wallet with a prepaid card for retail payments, remittances, and withdrawals globally. Users can also leverage Merchantrade’s innovative multi-currency capability, enabling them to buy, sell, and hold up to 20 foreign currencies at any time, all at competitive exchange rates. Over 800 customers have registered since its launch in 2020. In 2024, over RM310,000 in retail transactions were made through this e-wallet. Key Highlights in 2024 Product
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