AmBank’s MAT to speed up loan approvals

The application was built to be seamless and convenient, as opposed to what’s in the market today


AMMB Holdings Bhd (AmBank) has targeted to capture 50% of its total auto finance loans via its newly launched Mobile Application Terminal (MAT), a system that is expected to provide auto finance instant approval.

Group CEO Datuk Sulaiman Mohd Tahir said the application was built to be as seamless and convenient as possible, as opposed to what’s in the market today.

“You will get the approval on the spot and will not require staff at the back end to process manual documentation at all.

“We’ve made it easy and convenient by linking it straight to the applicant’s Employees Provident Fund (EPF) statements, as well as scoring engines,” he said at the launch in Kuala Lumpur yesterday.

MAT will allow customers to submit loan applications, capture documents’ images, as well as obtain approval within 30 minutes, considering all requirements are met.

Currently, there are about 15,000 auto finance applications monthly that are processed by AmBank and the group targets to have about 7,500 applications processed by MAT.

Sulaiman said there are currently 800 MATs that have been rolled out to car dealers and 150 to the bank’s staff.

“So far, we had about 2,400 hire purchase applications via MAT, after it was deployed on July 1, 2017, to 138 AmBank sales advisors.

“The loan approval rate has been about 40%-50%,” he said, adding that they would like to see a 100% approval rate via MAT.

Sulaiman said the group debuted this application in auto financing because they have a forte in this form of loans and want to make a comeback in the industry.

“We are familiar with the whole process flow, and we know what is required. This launch is also timely, we are aware of how seasonal car buying can be.

“Some people may want to purchase a new car during the festive season but because there is no automated system yet, people have to wait for banks to process loans.

“The point is to create it for when the customer needs it most,” he said.

AmBank has also identified 11 processes to improve the approval process, and Sulaiman said the bank can now save about 1.4 million hours by leveraging on technology via this product.

“We want to move into a completely paperless phase. The 11 processes identified, which works out to savings of RM70 million to RM80 million yearly.

“The digital economy is a key driver for the country. It’s expected to contribute about 18.2% of gross domestic product to the economy next year and hit 20% by 2020,” he said.

“We have a biometric system that can verify faces, fingerprints and signatures now. Compared to before, I think we have a better platform and a much better footing to avoid fake identities,” he said.

Group COO Datuk Iswaraan Suppiah said they have not reduced the requirement for customers, and since they also verify details against the EPF and signatures, there is no concern from the bank.

Meanwhile, Sulaiman said MAT can also be used for many banking phases including transactions over the counter and opening of new accounts.