Bank Islam Brunei Darussalam (BIBD) is set to bring its customers on a journey of innovative banking experience when its state-of-the-art Olive system gets fully integrated into the bank by 2025.
Leveraging cutting-edge artificial intelligence (AI) technology, BIBD At-Tamwil Berhad introduced Olive, its digital banking mobile application, on July 3, 2023.
Since its inception, Olive has successfully onboarded over 21,000 customers, showcasing its rapid acceptance among the public. Encouraged by the support, BIBD At-Tamwil Berhad aspires to bring a minimum of 50 per cent of its customer base onboard to the digital platform by 2024, with a more ambitious target of 90 per cent set for 2025.
Deputy Managing Director 11, Head of Retail Banking Group and Chief Information Officer of BIBD Irwan bin Lamit and Managing Director of BIBD At-Tamwil Berhad Haji Mohd Said bin Haji Zania spoke on how Olive can benefit BIBD’s customers in an interview with the Bulletin.
According to Haji Mohd Said, “Through Olive, BIBD customers can now complete banking tasks conveniently, such as opening accounts or securing financing, anywhere and at any time.
“Physical presence at a branch is no longer required for the approval of applications within this new unified digital ecosystem.”
Irwan bin Lamit said, “Currently, applying for financing, credit or debit cards requires physical visits to BIBD branches. To buy shares, for example, you would need to visit a different location. This makes it less convenient for customers.
“With the introduction of a unified digital ecosystem, we hope to ensure equitable access to banking services, as well as foster enhanced financial access and literacy.
“The transition will empower Bruneians to experience digital banking on par with other countries, promoting greater convenience and efficiency in their financial transactions.”
He added, “Upon integrating Olive with BIBD, we can further integrate it into the regional payment network, allowing for cross-border payments.
“However, we must prioritise safety and security. It needs to be robust and foolproof, considering the prevalent scams and the many cases of inadvertent disclosure of personal information. We are fully aware of these challenges and will incorporate them into the next generation of banking solutions.”
He explained the safety measures of digital banking, “Thanks to the implementation of e-KYC (Electronic Know Your Customer), initial registration becomes significantly more secure.”
“Over the past three months, we have seen quite a number of applications rejected because we are able to detect when registrations are made by someone other than the actual applicant, such as their spouse, children, or grandchildren.
“With e-KYC, we can accurately verify the identity of the registrant. The use of digital contracts and digital signatures further ensures that the applicant’s are who they say they are.
“The incorporation of dynamic identification adds an extra layer of safety and assurance.
Moreover, with Olive, any attempt to access your mobile banking triggers an alert, allowing you to monitor and identify the individual trying to log into your app.”
Irwan shared that there are a number of safety measures in the works for Olive, for example in the case of person-to-person payment.
“In the event of an unusual transaction being identified, instead of an immediate transfer of funds, the money will be temporarily placed into a holding account. This introduces a cooling off period before the funds are transferred.
“When an individual realises that they did not initiate the transaction during this cooling-off period, they have the option to reverse it, ensuring that they do not incur any financial loss.”
“With robust customer authentication mechanisms utilising biometrics, we also hope to reduce the practice of individuals renting their accounts to third parties,” Irwan added.
“We did not develop Olive just for BIBD At Tamwil, but for the entire bank. Therefore, we are proving that this technology can work and is reliable. Currently, rigorous testing is underway, and for the E-KYC system, we have enlisted an external auditor to conduct an assessment and provide certification of its safety and reliability. The audit report is shared with our regulator, the Brunei Darussalam Central Bank,” he said.
Looking at the experience of Olive in BIBD AT-Tamwil so far, he said, “Alhamdulillah, we have witnessed substantial growth in our market share and we haven’t had to downsize our workforce as our staff plays a pivotal role in processing online transactions.
He added, “Project Olive embodies our commitment to innovation, specifically in seeking safer and more efficient methods to minimise risks and ensure the well-being of our customers.”
The Deputy Managing Director II of BIBD also addressed the concern of the loss of jobs in BIBD due to digital transformation.
He said, “It will involve a displacement of jobs rather than outright replacement. Job roles will evolve, but human workers will not be entirely substituted. Traditional job positions will change; for example, if fewer individuals visit our physical branches, more will engage in online interactions and transactions.
“Consequently, we will need to provide our staff with retraining and redeployment opportunities to cater to the online customer base. It’s true that AI, in some instances, can immediately approve straightforward applications. However, for other cases, human experts will remain essential for reviewing and making approval decisions. This is where our workforce can be directed.”
He continued, “Our AI is integrated with the Brunei Darussalam Central Bank’s credit bureau and World Check to conduct background and credit score checks. As a result, the AI is capable of performing all necessary suitability checks. Presently, three out of every four bank account opening applications from our customers receive instant approval from AI, and this process is already in motion.
“Currently, the approval rate stands at one in three applications, primarily because we are in the experimental phase with this new technology. We are also closely monitoring the algorithm’s accuracy and learning from its outcomes.”
Irwan said, “Branches will still be available. Our teams at BIBD At-Tamwil will remain accessible, and anyone can visit our branches for guidance and assistance in getting started with Olive.”
The Deputy Managing Director II of BIBD highlighted the imperative of embracing change in the rapidly evolving world.
“Initially, anything new tends to be challenging. However, it’s the only way we can progress as the world continues to evolve. Failure to change alongside the world will result in being left behind.
“The broader ASEAN region is already discussing the ASEAN interconnectivity payment network. Without investing in digital banking, we risk stagnation.
“To thrive in the era of digital transformation, we must possess the necessary infrastructure, skills, and capabilities. The key question isn’t whether to embrace digital transformation but when to do so, as it’s only a matter of time. Whether you’re an early or late adopter, everyone will ultimately need to embrace digital transformation.” – James Kon
