KUALA LUMPUR (Aug 4): Alliance Bank Malaysia Bhd aims to double its loans to small and medium enterprise (SME) customers over the next five years by launching more product and service innovations, expanding sales teams and digital channels while broadening its reach via strategic partnerships.

"We will equip our SME sales force with new digital tools, such as the ability to provide our clients with quick approval-in-principle for their loan applications," said the bank's outgoing group chief executive officer Joel Kornreich in a statement after the group's 40th annual general meeting held virtually on Thursday (Aug 4).

Alliance Bank had RM15.41 billion of SME loans as at March 31, representing 33% of its total gross loans, according to the group's annual report for the financial year ended March 31, 2022 (FY22).

Loans to individuals amounted to RM22.43 billion or 48.6% of its total gross loans.

Kornreich said Alliance Bank will also scale up its consumer banking business by serving business owners' personal banking needs, growing wealth management and using digital channels to scale up customer acquisition.

"This financial year, we plan to increase customer acquisition by 40% year-on-year and double our acquisition of business owners with personal and business relationships to 10,000," he said.

For FY22, Kornreich said the bank acquired 56,000 new-to-bank customers, an increase of 50% over the previous year.

Meanwhile, loans under the government's loan repayment assistance programme, Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH) programme, have been reduced to RM6.55 billion, or 14.2% of the bank's loan book, as many customers have resumed repayment.

Furthermore, he said 99% of Alliance Bank customers who have left the PEMULIH programme have resumed full or partial financing repayment.

Kornreich also said Alliance Bank will invest about RM50 million annually in the next five years to implement its digitalisation strategy by delivering quick services to customers.

"We will focus on strengthening our IT capabilities, including modernising our core architecture and strengthening our data analytics to create a better customer experience," he said.

Shares of Alliance Bank traded unchanged at RM3.45 at noon break, giving it a market capitalisation of RM5.34 billion.