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Bank Rakyat’s Digital Transformation Journey
Discover how EY helped a leading cooperative Islamic bank overcome operational challenges, adopt Agile methods, and lead the way in digital transformation.
Client
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The better the question
How can a traditional financial institution evolve while preserving its values to lead in a digital-first world?
The EY organization collaborated with a leading Development Financial Institution (DFI) to redefine how tradition and innovation can coexist, helping create a foundation for future growth.
In today’s fast-paced financial landscape, digital adoption is no longer optional – it’s essential. Yet, many institutions rooted in tradition face significant hurdles when trying to modernize. Digital competencies and agile expertise, evolving technology landscape, embracing new ways of working, and strengthening regulatory compliance can make transformation seems daunting. These challenges are particularly pronounced for institutions that balance long-standing tradition of trust built over decades with the need to innovate while upholding community values.
Bank Rakyat, Malaysia’s leading Islamic cooperative bank, has a proud reputation of supporting small businesses and communities. While its values remain strong, its operations must evolve to meet the demands of a digital-first world. The bank’s technology landscape relied on traditional systems that present a significant opportunity to enhance for digital-first operations, which create integration challenges for modern solutions, such as customer platforms and digital onboarding tools. Another key strategic focus is fostering a mindset that values transparency, speed, and empowered decision-making will be essential and transitioning from siloed operations to more integrated ways of working can unlock significant efficiencies.
Regulatory compliance pressures added another layer of complexity. As scrutiny around customer identity verification increases, Bank Rakyat must strengthen its adoption of regulatory technology through tools and automation. The question is clear: How can tradition and innovation coexist to deliver better outcomes for customers?
We’re blending our cooperative establishment with tomorrow’s digital capabilities to create something truly unique in Malaysian banking.
EY collaborated with Bank Rakyat with a bold approach, blending experience in Agile methodologies, technical upskilling and strategic system modernization.
Bank Rakyat’s proactive approach to transformation highlights its dedication to staying ahead in the financial industry while remaining true to its roots. This journey is a testament to the bank’s forward-thinking leadership and its unwavering focus on delivering excellence to its customers.
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The better the answer
Empowering change: The intersection of people, technology and vision
Transformation isn’t just about technology, it’s about empowering people to think differently, work collaboratively, and lead boldly into the future.
Transformation is never easy, but with the right partner, it can be a game-changer. EY’s collaboration with Bank Rakyat was rooted in a co-creation approach that went beyond delivery and implementation. The Digital Augmented Resources (DAR) model embedded EY professionals within the bank’s workforce, helping enable hands-on training in Agile methodologies and technical skills, such as application programming interface (API) integration, open banking solutions and data analytics.
One of the standout initiatives is the development of a microservices integration hub – a platform designed to help enable open banking partnerships and fintech collaboration. This hub reduces integration timelines and supports core banking applications, help create a scalable foundation for future digital expansion. The architecture includes a developer sandbox for secure API testing, facilitating seamless integration with third-party services.
EY also led a phased cloud migration strategy, modernizing infrastructure while prioritizing security and compliance. Specialized training sessions helped adherence to regulatory requirements, helping Bank Rakyat to confidently embrace digital innovation. This phased approach began with non-core systems before progressing to customer-facing applications, allowing teams to build cloud management competencies progressively.
These efforts weren’t just about technology – they were about people.
Forty employees were trained in Agile methods and technical skills, resulting in a
increase in digital competency.
By fostering a culture of collaboration and supporting teams, EY teams helped Bank Rakyat accelerate its digital transformation journey, positioning itself as a leader in the financial industry.
The co-creation approach laid the groundwork for lasting change, blending tradition with innovation to provide better outcomes for customers.
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The better the world works
Inspiring a ripple effect: Redefining banking for a digital era
What happens when tradition meets innovation? Bank Rakyat’s transformation journey has set a benchmark for the financial industry and beyond.
The results of this transformation have been making waves. Faster project delivery improved customer experiences, while strategic initiatives like the microservices hub and cloud migration laid the groundwork for future growth.
But the impact goes beyond immediate outcomes. This transformation sets a benchmark for how financial institutions can blend tradition with innovation to lead in a digital-first world. By modernizing existing systems and embedding a culture of collaboration, the institution has positioned itself as a forward-thinking leader in Shariah-compliant financial services.
The ripple effect of this change extends to enhanced customer trust and satisfaction. Customers now benefit from faster, more seamless services, while the institution gains the agility to respond to evolving market demands. Improved regulatory compliance safeguards the institution’s resilience in the face of increasing scrutiny, further strengthening its reputation in the financial industry.
generated, improving efficiency and customer engagement.
On a broader scale, Bank Rakyat’s transformation has the potential to inspire other financial institutions to embrace digital innovation. By demonstrating how tradition and technology can coexist, the institution is paving the way for a more inclusive and adaptive financial ecosystem.
The work carried out by EY and Bank Rakyat is not just about solving today’s challenges – it’s about shaping the future of banking for generations to come.
The conventional client-consulting dynamic has evolved wherein consultants and clients work side by side, bringing the best of their expertise, aligned to common goals and collaborating on a deeper level. This collaboration has proven to be a game-changer in driving dual outcomes for the bank of delivering transformative projects and uplifting internal capabilities
This collaboration highlights the power of collaboration and innovation, showcasing how asking the right questions can lead to bold answers that transform industries and communities. Bank Rakyat’s journey is a shining example of how tradition and innovation can work together to help create lasting value.
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