strategic alliance proposal - affin islamic bank
TRANSCRIPT
7/18/2019 Strategic Alliance Proposal - AFFIN ISLAMIC BANK
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Strategic AllianceThe Way Forward …
Table of Content
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COMMERCE TAKAFUL BERHAD
CONTENT PAGE
EXECUTIVE SUMMARY 1
INTRODUCTION 2
PRODUCT 3 – 4
PRICING 5
COMMISION 6
TRAINING 7
SERVICING BY COMMERCE TAKAFUL 8
MANAGEMENT MEETING 8
CONCLUSION 8
APPENDICES
- MRTT Product Features Appendix 1
- Houseowner Takaful Appendix 2
- Motor Takaful- CIG Call Center Appendix 3
- Commerce Group Networks Appendix 4
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Strategic AllianceThe Way Forward …
Executive Summary
This proposal suggest partnership program between STANDARD
CHARTERED BANK BERHADand Commerce Takaful in providing takaful
products and services under Bancassurance business initiative.
Commerce Takaful is in the group of second largest financial institution
in Malaysia has the resources and readiness to provide products,
competitive takaful contribution rates and services required by
STANDARD CHARTERED BANK BERHADto complement its Islamic
financing products.
The purpose of this paper is to propose ways on which a partnershipprogram may be set up for mutual benefit. The paper covers the area of
various business distribution channels, products, staff and product
training.
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COMMERCE TAKAFUL BERHAD
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Introduction
• Commerce Takaful is able to provide competitive product,
competitive takaful rate (premium rate) and services required by
AFFIN ISLAMIC BANK.
• This reasonable rating will make the STANDARD CHARTERED
BANK BERHAD financing package more competitive in the market
place
• There is huge untapped market for takaful products evidence by
small marginal takeup rate of takaful or insurance among the
muslim market.
• There is an opportunity for STANDARD CHARTERED BANKBERHADto expand its fee-based income to a greater scale.
• Embracing advanced technology in administration and services
together with excellent customer services, the company is well
poised to achieve exceptional growth in the next five years and
beyond.
• Straight through processing and paperless transaction is our
aspiration towards providing excellent services to our Banca
Partner as well as our valuable end customers.
• It is noted that there has been acceleration towards providing full
financial service by STANDARD CHARTERED BANK BERHAD
could offer across a broader range of financial services which
includes takaful via independent risk carriers. Commerce Takaful
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COMMERCE TAKAFUL BERHAD
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Strategic AllianceThe Way Forward …
is merely complementing STANDARD CHARTERED BANK BERHAD
as a one stop financial center.
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COMMERCE TAKAFUL BERHAD
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Strategic AllianceThe Way Forward …
• Enhances the STANDARD CHARTERED BANK BERHAD image as
a dynamic and customer focused financial institution by providing
comprehensive financial needs of customer. Hence, maximizing
cross selling opportunities from the bank huge customer base and
enhance customer loyalty by minimizing the migration of
customers to competitors.
• The relationship would generate greater opportunity in
strengthening customer relationship by offering wider range of
financial products.
Product
• Financing Related Products
Financing given to borrowers, apart from the normal required security
it would be also beneficial to get additional protection in the case ofdeath, permanent disability or even critical illnesses to borrower. In
this situation STANDARD CHARTERED BANK BERHADwould be able
to recover it financing from takaful operator.
The related products namely:-
1.Mortgage reducing term takaful (MRTT / MRTA)
• This is to cover house financing
• Please refer to Appendix 1 for product features
2.Group Credit Takaful (GCT/DTA)
• To cover personal financing facilities
• Please refer to Appendix 2 for product features
3.HouseOwner Takaful
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• Please refer to Appendix 3 for product features
4.Equipment all risk
• This is to cover equipment finance by STANDARD
CHARTERED BANK BERHAD under business bankingfinancing.
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COMMERCE TAKAFUL BERHAD
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5.Marine Takaful
• On-line transaction for immediate coverage.
• Cover Note could be issue at bank branches / trade centers
The products can be packaged together with bank product of which
the takaful contribution can be priced together with the financing or
the bank may extend financing for the takaful contribution.
• Stand Alone Product
Commerce Takaful would suggest some of takaful product which is
modeled on simple underwriting and simple acceptance procedure.
The product would be of low cost and affordable by general public.
The products namely:-
1.Personal Accident
• Customer to pay via Credit Card on monthly basis as low as
RM20 per month.
2.Auto PA• One off payment from RM50 per year for entire family in the
event of accident whilst driving the registered vehicle.
• Exclusive Product
It is also possible to jointly develop takaful product to meet
STANDARD CHARTERED BANK BERHAD specific need. The
developed takaful product along bank product to enhance it featuresto be more appealing to customers. STANDARD CHARTERED BANK
BERHAD may have it own branding for the product.
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Pricing
Commerce Takaful rating for takaful contribution is competitive within
the industry norm and practices. The detail rates or pricing for each
product will be subject to information available.
As for MRTT, our female rating is the lowest in the industry as at to date.
This will attract low & competitive package when it is package with
STANDARD CHARTERED BANK BERHAD housing loan.
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COMMERCE TAKAFUL BERHAD
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Commission to Bank
Commissions offered to bank are the standard level of commission
practiced in the industry.
Family Takaful Products
Item Products Commission
1 Mortgage Reducing term Takaful 10%
2 Group Credit term Takaful 10%
3 Individual Family Takaful TBA
General Takaful Products
Item Products Commission
1 Houseowner/Householder Takaful 15%
2 Fire Takaful 15%3 Motor Takaful 10%
4 Personal Accident Takaful 25%
5 All Risks Takaful 25%
6 Money Takaful 25%
7 Fidelity Guarantee Takaful 25%
8 Marine Cargo Takaful 25%
9 Burglary Takaful 25%10 Public Liability Takaful 25%
11 Foreign Workers Takaful 10%
12 Workmen Compensation Takaful 25%
13 Contractors All Risks Takaful 15%
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COMMERCE TAKAFUL BERHAD
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14 Equipments All Risks Takaful 15%
Training
Training is a critical part of overall business performance. Commerce
Takaful will undertake to train and develop a range of knowledge and
skills to STANDARD CHARTERED BANK BERHAD financial executives
and staff.
•
Area and Scope of Training
o Product knowledge
o Rating
o Motivation
o Selling techniques
• Structured Training Program
Commerce Takaful is committed to support the development of the
Financial Executives and bank employees. In view of this,
Commerce Takaful would implement a structured training program
to develop the bank employees along their new career path.
• Support Employees
Bank employees who is directly involved in processing of
customers takaful needs will be provided with training on
product knowledge, operational matters and claimmanagement.
• Financial Executives
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COMMERCE TAKAFUL BERHAD
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Financial executives as frontliners will be train on product
knowledge, rating, motivation, selling techniques as well
claim.
Servicing by Commerce Takaful
• Klang Valley
Bank Headoffice and branches within the Klang Valley will be
serviced by team of Commerce Takaful executives from
Commerce Takaful head office. The executives will make
scheduled visits to bank branches or if required would also beavailable anytime to attend to bank’s need.
• Service Network
The other bank branches would be serviced by executives from
20 Commerce Group branches nationwide. List of Commerce
International Group Branches is available in Appendix 4.
Management Meeting
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COMMERCE TAKAFUL BERHAD
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Strategic AllianceThe Way Forward …
It is propose that Commerce Takaful and STANDARD CHARTERED
BANK BERHAD Management to meet and to see through on
implementation also to review overall business matter on quarterly
basis.
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COMMERCE TAKAFUL BERHAD
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Conclusion
The financial business environment is fast changing. The bigger players
are getting bigger and stronger through merger and acquisition.
Every player would like to delight and lock its customers and at the same
time win away competitors’ customers in the name of business
expansion.
Therefore,STANDARD CHARTERED BANK BERHAD and Commerce
Takaful could leverage on each other capabilities at the same timefocusing and improving on their own core competencies.
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COMMERCE TAKAFUL BERHAD