AmBank launches auto finance instant approval service

KUALA LUMPUR: AmBank, which today introduced Malaysia’s first digital auto finance instant approval service with the Mobile Application Terminal (MAT), plans to roll out MAT for other products in the next six months, including for credit cards and personal loans.
MAT allows users to submit loan applications, capture documents’ images as well as obtain approval for financing within 30 minutes, if all required conditions are fully met. MAT is embedded with features like a biometric reader that allows customers to perform thumbprint verification and optical character recognition to capture information from documents.
MAT has been deployed since July 1, 2017 to 138 AmBank sales advisors and has received over 2,400 hire purchase applications via the terminal nationwide.
AmBank group CEO Datuk Sulaiman Mohd Tahir said it aims to capture 50% or 7,500 auto loan applications of its 15,000 applications monthly via MAT. The bank currently has 800 MAT rolled out among its 2,500 dealers and 150 staff in 175 branches, and targets to have all dealers and branches equipped with MAT.
With the launch of MAT, it hopes to strengthen its brand presence in the auto industry market by positioning AmBank as the top-of-mind brand among car buyers.
“AmBank has long been in the auto finance industry, those days we’re definitely the top bank out there and we would certainly like to make a comeback by creating that seamless, improved customer experience,” he told a press conference after launching the instant approval for auto finance with MAT today.
Auto loans make up 48%-49% of AmBank’s retail financing portfolio. Its auto finance market share (in terms of loans) stood at 10%-11%.
Sulaiman said the bank is on track to achieve a mid, single-digit loan growth in auto finance, as the industry’s loan growth in this segment is flat. He said the bank has not seen any decline in the quality of loans, but pointed out that it is seeing retail spending and improved customer confidence.
Sulaiman said AmBank had saved about 1.4 million hours by leveraging on digital technology and is able to save RM70 million-RM80 million a year with MAT from 11 processes identified.
Malaysian banks have been ramping up digital initiatives, from obtaining approval for electronic Know-Your-Customer (e-KYC), launching facial and voice recognition security authentication service, to opening digital branches and introducing mobile applications to improve efficiency and enhance customer experience.
Meanwhile, when asked on the potential sale of its 51% stake in AmGeneral Insurance, Malaysia’s top auto insurer, an AmBank spokesman said it is going through changes in the way it is doing things and is always reviewing and improving its operations.
“We’re always looking at partners and how to drive the business going forward. Any specific ones will be too premature to say because it’s still at an early stage,” said the spokesman.
It was reported that AMMB Holdings Bhd picked JPMorgan Chase & Co to advise on a possible deal that could value the company at US$800 million (RM3.3 billion).