RM54m Bank Islam re-branding (August 22, 2007)

SHAH ALAM: Bank Islam Malaysia Bhd is investing about RM54mil to remodel its 90 branches nationwide in line with the bank’s revamped corporate identity.
The branch re-branding exercise is part of the bank’s transformation programme implemented last September following two years of financial difficulties.
Managing director Datuk Zukri Samat said he expected the re-branding exercise to elevate the bank’s corporate image and change perception of the bank as one that catered solely to Muslims customers to one that was meant “for everybody”.
“We are looking to grow our non-Muslim customer base, which currently stands at 10% of the bank’s one million customers,” he said at the launch of Bank Islam’s new corporate identity yesterdayat its first remodelled branch in Shah Alam.
The re-branding exercise, to be completed in 12 months, will see another 20 branches remodelled by year-end.

Minister in the Prime Minister's office Datuk Dr Abdullah Md. Zin and Bank Islam Malaysia Bhd managing director Datuk Zukri Samat at the official launch of Bank Islam's New corporate identity and new remodelled Shah Alam branch opening on Tuesday.
Zukri said the bank had spent about RM1mil on transforming the Shah Alam branch into its flagship outlet. Remodelling the other branches is expected to cost an average RM600,000 per branch.
“We believe this new brand positioning will help Bank Islam stay competitive in the face of growing competition locally and regionally, and help achieve the bank’s vision, which is to be a global leader in Islamic Banking.”
On the bank’s transformation programme, he said it had to be carried out in stages.
“We are fixing a moving aeroplane, so we cannot fix all the engines in one go,” he said.
Zukri also said as part of cost rationalisation, the bank was considering outsourcing some of its non-critical business units like ATM services.
He also said the bank’s information technology system, which had been in place for the past 15 years, was not “robust enough to move the bank forward and compete” and would be upgraded at an estimated cost of RM100mil.
Moving forward, Zukri said the bank expected next month to sign a “mutually beneficial partnership” with a European bank to develop syariah-based products.

http://biz.thestar.com.my/news/story.asp?file=/2007/8/22/business/18661825&sec=business