About Us / Who We Are / Our Business Model

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 and the political crisis impact

  • Client impact: adverse impact on revenues of affected businesses and unemployment.
  • Impact to the Bank: Adequate provision in our books to ensure that the Bank’s Balance Sheet remains strong and workouts with affected customers on-going to protect the quality of loan asset base. Further, the management of liquidity to ensure that there are  adequate near liquid resources to meet claims and liabilities. 
  • Opportunities: COVID presented new normal of working from home and presents the banking industry an opportunity of providing digital services. The Bank is well postured for this with its digital wallets, providing services to anyone, anywhere and anytime. 

2. Mobile Wallets

  • Client impact: Clients moving away from traditional banking channels to alternate fintech mediums. 
  • Impact to the Bank: Competition from banks and mobile financial services entities that are aggressively competing for the digital space.  
  • 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

Emerging from the recovery of COVID-19 and stabilising of the political crisis is the competition from over 40 banks in the market. 

  • 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. 
  • Despite the increased competition, the Bank is responding through various strategies and asset size continues to expand month-on-month. 

Heightened Surveillance

Understanding that the emerging threats are challenging particularly with an environment that is volatile both internationally and locally, the various Management Committees and Board of Directors are ensuring that surveillance is heightened and so that the Bank will adequately respond to all threats.