The client

Headquartered in the Middle East, the client is one of the region’s largest and oldest banks. It serves retail, corporate, treasury, and investment customers, incorporating modern banking services with traditional practices and values.

The situation

After half a century of successful operation, the client was looking for ways to grow its business. Around this time, Malaysia’s central bank invited the client to consider expanding to the country and offered a license to operate there.

To assess the potential in Malaysia, the client asked McKinsey to perform a traditional market entry analysis. Once we presented the strategic recommendations, the client decided to proceed. They asked us to collaborate with them as they embarked on an ambitious program to build the new bank from the ground up.

McKinsey’s contribution

The market entry project was our first for this client. The client selected McKinsey because of our strong presence across the Middle East and Malaysia and our deep knowledge of the financial services industry. The client also appreciated our ability to assemble an international team of experts who understood the challenges involved in a project like this (e.g., retail operations, banking, IT, marketing). Our work on the market analysis resulted in a strong relationship and a natural transition to the development strategy and implementation.

Impact

We helped the client understand the opportunities of the Malaysian market and how to create an innovative, customer-focused bank unlike any other in the market. For the next year and a half, as the client hired a CEO and its first staff in Malaysia, we worked alongside them to define, develop, and deliver the essential elements of the new bank:

• Distribution channels
• Products and services
• Organization and human resources plan
• Technology and operations
• Marketing and customer acquisition
• Financial budgeting and management
• Regulatory management and administration
• Physical infrastructure and site plans

Within three months of launch, the bank opened 12 branches, putting it on schedule to meet its 5-year goal of 50 branches. In addition, the bank was able to attract top talent to fill 300 jobs. It has been well received by the public and the press.

The bank is midway through a 5-year plan, guided by three principles:

Convenience: The new bank will have more branches and ATMs at accessible locations than any other foreign bank; longer open hours; and world-class technology and efficient operations to reduce customer wait time.

Service: Customers will be guaranteed a superior branch experience from the moment a friendly face greets them at the door through the sales and service process. The bank expresses a customer-first attitude in training, marketing, and touch-point design.

Innovative firsts: Products will be designed with a complete understanding of the customer experience. Processes will be user-friendly, convenient, personalized, and largely paperless.