Financial Inclusion & Literacy

Commitment To Financial Inclusion and Health

As a responsible corporate citizen and financial intermediary, we conduct periodic in-depth impact analysis on our businesses and portfolios across our markets to identify our most significant impact areas. Arising from this, we have prioritised Financial Inclusion and Health as a priority matter.

We believe in fair treatment for all our customers, and hence we ensure that our products and services facilitate fair treatment for all financial consumers as per the CIMB Group's Treating Customer Fairly Policy, with a particular focus on vulnerable individuals.

To improve financial inclusion and health within the communities where we operate, we take the following approach in our efforts, which have been concurred by our Board:

a)    Prioritising Financial Inclusion and Financial Health of Vulnerable Populations

We are committed to setting targets that will drive our business activities to make a substantial contribution to the financial health and inclusion of the communities around us, particularly for those who are most vulnerable, including those living in poverty, who often face additional obstacles in accessing financial services and building economic resilience.

b)    Protecting Vulnerable Clients

We are committed to putting in place policies, procedures, and safeguards to help protect the rights and improve financial well-being of our vulnerable clients, particularly when assessing the creditworthiness of borrowers to prevent client's over-indebtedness. We will also work to strengthen our employees' understanding of vulnerable clients, ensure communications and information about products and services are legible and comprehensible, and prevent aggressive sales techniques and disrespectful treatment of vulnerable groups. We will make available easily accessible complaints mechanisms to vulnerable clients, so that we can respond to their needs and ensure fair treatment is provided.

c)    Providing Suitable Financial Products and Services

We are committed to innovate to ensure that our financial products and services are able to cater to vulnerable and underserved groups, taking a fact-based approach to understand, address, and tailor delivery methods based on the needs and preferences of vulnerable groups, including those with lower income levels, physical disabilities, the elderly, and those facing financial hardship.

d)    Collaboration and Non-Financial Support

We are committed to providing relevant and impactful non-financial support for specific vulnerable groups, actively collaborating with social welfare organisations, Higher Education Institutions, and other industry players to expand the reach of inclusive financial services and to improve financial well-being of vulnerable groups.

e)    Monitoring and Reporting Progress

We will monitor and report on our progress towards meeting our targets on an annual basis at the management and board level.

Our Targets

Having identified financial inclusion and financial health as a material matter, we carried out an in-depth analysis of our operations and portfolio to identify where we could make the most meaningful impact. Based on these insights, we have established strategic goals aimed at enhancing access and support particularly for vulnerable groups. Our progress towards these goals will be tracked and reported annually, overseen by our sustainability teams at both management and Board levels.

As we analysed the financial inclusion and financial health data in each of our key markets, we found that the needs and priorities of the vulnerable groups differ by country. Our target-setting process began in Malaysia, where we have the largest customer base. Based on the results of our analysis, we have decided to focus on the bottom 40% income (B40) earners, defined as those with household income of less than RM4,850 per month, because they usually face significant economic vulnerability. For example, the median Employee Provident Fund (EPF) savings of B40 individuals is RM1,063, which is far less than the RM240,000 estimated to be required for an adequate retirement.

To address these challenges, CIMB has launched a targeted initiative in Malaysia, where we aim to provide customers in the vulnerable segments with greater access to wealth-building and insurance products, to empower them with solutions that build their credit history, improve their financial management skills and reduce reliance on high-cost financing sources. Through financial literacy and digital literacy training initiatives, we aim to help customers better understand financial products and risks of banking in a digital world, empowering them to make better informed decisions.

To track our progress in meeting our goal of promoting financial health and inclusion within the communities we serve, we have set a target to increase the number of our existing customers in the vulnerable segment, who also hold solutions aimed at improving their long-term financial health. Notably, we exclude products that may lead to negative impacts, such as credit cards and personal loans.

Enabling Financial Inclusion​ by Improving Accessibility

Financially enabling individuals through accessible and affordable banking services creates a ripple effect that drives improvements across local society and the economy. With our presence in a region where significant population remains unbanked and underbanked, CIMB plays an important role in bringing financial services and solutions to local communities.

We are actively working to bridge the financial access and inclusion gap by innovating and creating partnerships to provide financial services that address real pain points for underserved communities.

As part of our commitment, we placed wheelchairs in 160 branches in Malaysia to make it easier for our customers to access services at branches. We are committed to ensuring that every CIMB branch in Malaysia has at least one wheelchair on the premise.

We have also improved the account opening and debit card application process for customers who are print-disabled, blind, or visually impaired. We revamped our processes, as well as terms and conditions, so that visually impaired customers can complete the application using their own mobile device without requiring a witness. Additionally, we have started absorbing the RM10 stamp duty charges for these customers.

In addition to setting targets, we continue to innovate and expand our range of financial products and services to better align with the needs of the targeted underserved groups based on market research. This analysis helps us to better understand, address and tailor delivery methods based on the needs and preferences of our targeted vulnerable groups, including those with physical disabilities, the elderly and those facing financial hardship. The following section shares case studies on our financial and non-financial products & services that promote financial inclusion for the target populations. 

Case Studies on our Financial Products and Services to Promote Financial Inclusion

Access to Investments for Wealth Building (ASB Financing)

At CIMB, we aim to enhance financial inclusion by providing underserved communities access to wealth-building opportunities. Our Amanah Saham Bumiputera (ASB) financing in Malaysia underscores this commitment. ASB is a unit-trust fund managed by Permodalan Nasional Berhad, with the objective to generate long-term, consistent and competitive returns whilst ensuring the preservation of capital at minimal risk tolerance level. This product specifically targets the needs of the underserved B40 community, representing the bottom 40% of income earners in Malaysia, whose median mandated retirement savings of RM1,063 is severely lacking for an adequate retirement, of which an estimated RM240,000 is required. This ASB financing initiative provides financing designed to help these underserved groups invest in ASB trust funds without collateral at a low interest with a maximum cap. This helps the community generate more investment savings via the power of compounding and disciplined savings, thus fostering wealth building and promoting financial inclusion.

In 2023, CIMB extended RM1.5 billion in ASB financing to 27,492 B40 customers. Recent developments include a collaboration with CTOS Data Systems Sdn Bhd and Sun Life Malaysia Takaful Berhad, which aims to promote financial literacy and empower Malaysians to take charge of their financial well-being. Customers who take up the ASB financing solution during the campaign period receive a complimentary MyCTOS Basic Report, providing an overview of their credit health, and a 12-month takaful coverage worth up to RM10,000.

Giro Kartini - Supporting Women Entrepreneurs in Indonesia

Among our initiatives is the Giro Kartini, a current account product tailored specifically for women entrepreneurs in Indonesia with lower income backgrounds. Women entrepreneurs, especially in emerging markets such as Indonesia, often face barriers to financial services due to gender disparities and socioeconomic factors. This initiative not only provides financial support but also promotes financial literacy and entrepreneurial skills among women, a key underserved group. This product offers preferential rates such as lower account fees, transaction fee refunds, as well as capacity-building support for women entrepreneurs. Additionally, for every Giro Kartini account opened, CIMB Niaga donates Rp25,000 to support traditional weaving training for women with disabilities in Sulawesi, further promoting gender equality and economic empowerment.

As of 2023, Giro Kartini has around 455 active account holders, with close to RM26 million of account balances.

Digital Banking Access for the Unbanked and Underbanked in the Philippines

The Philippines has one of the lowest rates of banking penetration in Southeast Asia, with only 56% of the population having a bank account. Rural areas often suffer from limited banking access. Digital banking services can improve accessibility and enhance the adoption rates of banking among the unbanked population. Traditional bank accounts require minimum balances and charge monthly fees which many cannot afford.

Our efforts to expand banking access have been widely recognised, culminating in our ranking as the #1 Bank in the Philippines in Forbes’ World’s Best Banks 2023 List. This recognition highlights our success in providing essential financial services to previously unbanked and underbanked populations, fitting the criteria for increasing access to financial services for underserved groups. This initiative includes checking accounts and loans designed to meet the needs of underserved clients, with zero account fees charged, no minimum balance or initial deposit requirements.

Since its establishment in 2019 as a digital bank, CIMB Bank Philippines has made significant strides in promoting financial inclusion via its digital banking services. By the end of 2023, we had extended banking access to 7.5 million depositors, with more than 50% being first-time bank account holders. 

Case Studies on our Non-Financial Support to Promote Financial Inclusion

CIMB Islamic’s iTEKAD Rider Entrepreneurship Programme 1.0

This programme exemplifies CIMB’s commitment to fostering financial inclusion through comprehensive support for micro-entrepreneurs from low-income backgrounds (B40 – bottom 40% of income earners in Malaysia), helping them achieve financial resilience and generate sustainable income. Micro-entrepreneurs have annual sales turnover of less than RM300,000 per Malaysia’s SME Corporation’s national definition. Launched in 2021, this innovative initiative blends social finance elements to provide seed capital, microfinancing, and structured training in collaboration with implementation partners.

The Rider programme aims to provide participants with job opportunities as food delivery riders with Foodpanda Malaysia, supplemented by quality training from Taylor’s Community on entrepreneurship. This programme provides structured training including financial management, technical skills and emotional wellbeing. Upon successful completion of their one-year work placement with Foodpanda Malaysia, the riders will have the option of continuing their employment with Foodpanda Malaysia or becoming full-fledged entrepreneurs.

Since its inception in 2021, CIMB Islamic has invested RM2.2 million into the programme, positively impacting around 92 participants. In 2023, the programme expanded its reach, offering training, guidance, and seed funding to 54 new participants, which included a motorcycle grant and a one-year employment opportunity with Foodpanda, a food delivery partner.

CIMB MicroBizReady Technical Assistance Program for Microentrepreneurs

CIMB’s MicroBizReady program exemplifies the bank’s commitment to providing non-financial support to microentrepreneurs in Malaysia through providing technical assistance. This initiative offers comprehensive financial training to micro-entrepreneurs from low-income backgrounds (B40 – bottom 40% of income earners in Malaysia), empowering them with exposure, skills and knowledge necessary to develop their business operations and make informed decisions about financial products and services. Micro-entrepreneurs have annual sales turnover of less than RM300,000. The program also focuses on teaching participants digitalization strategies, financial management literacy, business pitching technique and addressing emotional well-being as a core component. Ultimately, MicroBizReady aims to create a sustainable entrepreneurship program that benefits the micro-community. This holistic approach not only enhances financial inclusion but also supports the long-term sustainability and success of micro-enterprises.

Developed in partnership with Taylor’s Education Group, the Malaysian programme has assisted more than 400 participants across 10 cohorts since its inception. In 2023, MicroBizReady extended its reach to the northern and southern regions of Malaysia, offering business owners an opportunity to attend a five-day physical boot camp.

Our Financial Literacy Program for Youths in Indonesia and Malaysia

Our financial literacy programs is another testament to CIMB’s commitment to improving financial inclusion and literacy. We target youths in emerging markets such as Indonesia and Malaysia from poorer socioeconomic backgrounds to equip them with the necessary financial management skills in preparation for their future entry into the workforce. 7,831 youths participated in the programs below, mainly across Indonesia. According to the World Inequality Database, the bottom 50% of the population in Indonesia owns only 4.5% of the wealth in 2022, a very small increase from 3.8% in 1995.

CIMB Niaga in Indonesia participates in financial literacy programs through the Ayo Menabung dan Berbagi (AMDB) and Tour de Bank (TDB) programs. TDB introduces banking functions and savings benefits to elementary school students, while AMDB targets middle and high school students, introducing them to financial planning. In the 2023 AMDB program, 4,737 secondary school students (SMP-SMA/K) participated, showing a 37% increase in financial literacy understanding according to the analysis. The 2023 TDB program had 2,909 participants from primary schools (SD), demonstrating a 28% improvement in financial literacy understanding according to the analysis.

Launched in 2016, BE$MART targets youth, particularly those studying in public universities and colleges across Malaysia in providing financial literacy training. Over 25,000 students have benefited from the programme since its inception. BE$MART aims to equip students with essential financial knowledge to manage their finances effectively as they graduate and enter the workforce. The programme covers a broad spectrum of financial topics, including budgeting, saving, investing, managing debt, financial protection, and fraud awareness. By providing comprehensive financial literacy training, BE$MART helps these underserved youth make informed financial decisions, contributing to their long-term financial well-being. The approach emphasises real-world scenarios, making financial concepts easily comprehensible. In 2023, a revamped approach to the programme reached 98 students.

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