Economic Inclusion & Financial Literacy

Commitment to Economic Inclusion and Health

As a responsible corporate and financial intermediary, we conduct periodic in-depth impact analysis on our businesses and portfolios across our markets to identify our most significant impact areas. Arising from this, we have prioritised Economic  Inclusion and Health as matter of priority and established our strategic commitment in our Group Sustainability Policy to continuously expand and tailor financial services for underserved and vulnerable groups across our markets. Our commitment includes both financial and non-financial interventions to promote equitable access, protect client well-being, and support sustainable financial behaviours. This commitment is monitored and reported annually and is overseen by our sustainability teams and the Board of Directors.

We take the following approach in our efforts:

a) Prioritising Economic Inclusion and Financial Health of Vulnerable Populations

We seek to provide access to finance across the geographies where we operate, including low-income and lower-middle-income countries, as well as to underprivileged and underserved communities, where feasible and aligned with our respective business strategies. In doing so, we aim to help ensure that underserved populations and businesses receive the necessary financial support for meaningful and sustainable development. We are committed to disclosing our contributions to these markets, including the proportion of financial products, services, and capital channelled to support these economies.

We disclose the distribution of our retail customers by income group to provide greater transparency.

*Active individual customers of CIMB Malaysia with income data from year 2020 onwards.

b) Protecting Vulnerable Clients

To protect the rights and financial wellbeing of our targeted vulnerable groups, we have internal policies, procedures and safeguards in place when assessing potential borrowers in order to prevent over indebtedness. We also conduct training programmes to strengthen our employees’ understanding of vulnerable groups to ensure communications and information about products and services are easily legible and comprehensible, and to ensure appropriate sales techniques and respectful treatment of these groups. CIMB Group also has complaint mechanisms easily accessible to our vulnerable customers, so that we can respond to their feedback promptly and continuously improve the quality of our services.

We strive for a Just Transition in addressing climate change — greening the economy in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities, and enabling financial inclusion for underprivileged communities, tailoring our approach in alignment with local needs, capacities, and business priorities. This involves maximising the social and economic opportunities of climate action, while minimising and carefully managing any challenges in partnership with our stakeholders — including through effective social dialogue among all with impacted groups, ensuring responsible divestment strategies, and maintaining respect for fundamental labour principles and rights.

c) Providing Suitable Financial Products and Services

We are committed to innovate to expand our range of financial products and services to better align with the needs of the targeted underserved groups based on market research. This analysis helps us to better understand, address and tailor delivery methods based on the needs and preferences of our targeted vulnerable groups, including those with physical disabilities, the elderly and those facing financial hardship. 

d) Collaboration and Non-Financial Support

We also actively engage with social welfare organisations, Higher Education Institutions and other industry players to expand the reach of inclusive financial services and offers non-financial support for specific underserved groups.  

e) Monitoring and Reporting Progress

Governance oversight of our Economic Inclusion and Financial Health policies and commitment resides with our Board Group Sustainability Committee, which reports progress to the Board of Directors. Senior management and sustainability leads are accountable for driving execution, tracking key performance indicators, and ensuring integration into core business practices We monitor and report on our progress towards meeting our targets on an annual basis at the management and board level.

Our Targets

Having identified economic inclusion and health as an area of priority, we carried out an in-depth analysis of our operations and portfolio to identify where we could make the most meaningful impact. Based on these insights, we have established strategic goals aimed at enhancing access and support particularly for vulnerable groups. Our progress towards these goals will be tracked and reported annually, overseen by our sustainability teams, as well as management and Board.

As we analysed the economic inclusion and financial health data in each of our key markets, we found that the needs and priorities of the vulnerable groups differ by country. Our target-setting process began in Malaysia, where we have the largest customer base. Based on the results of our analysis, we have decided to focus on the bottom 40% income (B40) earners, defined as those with household income of less than RM4,850 per month, because they usually face significant economic vulnerability. For example, the median Employee Provident Fund (EPF) savings of B40 individuals is RM1,063, which is far less than the RM240,000 estimated to be required for an adequate retirement.

To address these challenges, CIMB has launched a targeted initiative in Malaysia, where we aim to provide customers in the vulnerable segments with greater access to wealth-building and insurance products, to empower them with solutions that build their credit history, improve their financial management skills and reduce reliance on high-cost financing sources. Through financial literacy and digital literacy training initiatives, we aim to help customers better understand financial products and risks of banking in a digital world, empowering them to make better informed decisions.

To track our progress in meeting our goal of promoting financial health and inclusion within the communities we serve, we have set a target to increase the number of our existing customers in the vulnerable segment, who also hold solutions aimed at improving their long-term financial health. We exclude products that may lead to negative impacts, such as credit cards and personal loans.

Facilitating Economic Inclusion 

With a presence in a region where many remain unbanked or underbanked, CIMB is committed to playing a pivotal role in expanding financial access and inclusion, where feasible and aligned with our respective business strategies. By forging strategic partnerships and continuously innovating our services, we strive to deliver solutions that address the unique challenges faced by underserved communities, bringing them closer to essential financial services and opportunities.

Improving Accessibility

Developing Inclusive Products

Enabling Economic Inclusion