Our Business Model
Our Business model is anchored on deploying our resources optimally to create sustainable value for our stakeholders.
Feedback and active engagement with our stakeholders further help us to evaluate the value creation process and the effectiveness of our business model in that value creation.
The business model takes into account the need to balance short term, medium term and long-term goals since what is of short-term benefit may not be in the long term sustainable.
Our Operating Context and Risks
Financial services business is inherently risky due to inherent varied term of assets and liabilities, a full discussion of which is made in our Risk Management Report in our latest Annual Report. This is further exacerbated by the interplay of various intravenous and extraneous factors.
Our Approach
Through rigorous and ongoing assessment of risk, we at uab bank, continuously identify the changing trends and assess how they impact our business model and opportunities they present. Early identification of risk provides window of opportunities to proactively address the risk and exploit the opportunities.
Emerging Threats and Opportunities
1. COVID Impact
- Client impact: adverse impact on revenues, unemployment and rapidly deteriorating equity capital base.
- Impact to the Bank: deteriorating quality of asset base and consequential impact on returns.
- Opportunities: COVID presented new normal of working from home and presented banking industry an opportunity of providing services that can be availed from home. Providing services to anyone, anywhere and anytime is in alignment with our strategic focus.
2. Mobile Wallets
- Client impact: clients moving away from traditional banking channels to alternate fintech mediums.
- Impact to the Bank: decreased customer base, poor risk diversification, reduced non-interest-based income.
- Opportunities: mobile wallets tend to make society more financially inclusive and financially literate. This will move Myanmar from largely cash based economy towards digital economy, which will increase the customer base and revenue.
3. Increased Competition
From 2021 foreign banks will be able to provide a retail banking services in Myanmar.
- Impact to the Industry: many players competing for the same customers.
- Impact to the Bank: impact to growth rate in new to bank customers and consequential impact on revenues and returns.
- Opportunities: though construed as a challenge, we take it as an opportunity as we can learn from peers and improve our approach towards banking and stay competitive.