[OR] [MB] [E4] [CBS] [1] [DP] Retail and SME Loans

High-Level Critical Business Service

Outline Detailed Processes (Sub-CBS) for

CBS-1: Retail and SME Loans

Purpose of the Chapter

The purpose of this chapter is to provide a comprehensive understanding of one of Maybank Malaysia’s most critical business services: Retail and SME Loans.

This service is a cornerstone of the bank’s contribution to Malaysia’s financial ecosystem, supporting individuals and small to medium-sized enterprises (SMEs) with vital financing.

The chapter aims to break down this critical business service into detailed Sub-Critical Business Services (Sub-CBS), helping the reader understand the operational components, interdependencies, and resilience requirements for maintaining service continuity, especially during disruptions.

By the end of this chapter, readers are expected to gain insight into how a complex and high-impact service like loan delivery and management can be mapped, analysed, and strengthened through operational resilience planning.

This understanding supports better implementation of resilience practices within their institutions, aligned with frameworks such as ISO 22301 and the Financial Services sector's resilience regulations.

Description of CBS-1: Retail and SME Loans

This critical business service refers to the end-to-end process of originating, processing, disbursing, and servicing retail and SME loans across Maybank Malaysia.

It plays a key role in supporting the Malaysian economy and maintaining customer trust and financial stability.

Sub-CBS 1: Loan Product Origination and Marketing

Purpose

• Develop and promote retail and SME lending products.

Business Processes

• Product design and pricing
• Credit policy formulation
• Digital and physical marketing campaigns
• Customer engagement through relationship managers and digital platforms
• Pre-screening tools integration with credit bureaus

Sub-CBS 2: Customer Onboarding and Application Processing

Purpose

• Capture borrower data, validated documents, and process applications.

Business Processes

• KYC (Know Your Customer) and AML (Anti-Money Laundering) screening
• Customer application intake via branches, mobile app, or website
• Identity and document verification (e.g., NRIC, business registration, income statements)
• Consent management for credit scoring
• Pre-assessment eligibility checks

Sub-CBS 3: Credit Assessment and Underwriting

Purpose

• Determine the creditworthiness of applicants and approve loans.

Business Processes

• Internal and external credit scoring (e.g., CCRIS, CTOS integration)
• Collateral valuation and verification
• Risk grading and internal approval workflows
• Loan committee review and approval (if required)
• Auto-decisioning systems for pre-approved segments

Sub-CBS 4: Loan Disbursement and Documentation

Purpose

• Finalise legal documentation and release loan funds.

Business Processes

• Generation and execution of loan agreements
• Digital signature and document archiving
• Verification of disbursement conditions (e.g., insurance, title deed)
• Fund disbursement to borrower accounts
• Notification to customers and internal systems update

Sub-CBS 5: Loan Servicing and Customer Support

Purpose

• Maintain and service active loans post-disbursement.

Business Processes

• Monthly billing and payment collection
• Loan balance updates and statement generation
• Handling payment queries, restructuring requests, and redemptions
• Integration with Maybank2u online banking for self-service
• Customer support via call centre, live chat, and relationship managers

Sub-CBS 6: Loan Monitoring and Early Warning Systems

Purpose

• Monitor repayment behaviour and identify early risk signals.

Business Processes

• Automated alerts for missed payments
• Risk-based segmentation of delinquent accounts
• Early intervention outreach (calls, SMS, email)
• Reassessment of loan terms where applicable
• Integration with internal collections systems

Sub-CBS 7: Collections and Recovery

Purpose

• Recover overdue amounts and manage non-performing loans (NPLs).

Business Processes

• Soft and hard collection strategies (calls, letters, legal notices)
• Payment arrangement negotiations
• Asset repossession and auction (for secured loans)
• Write-offs and provisioning
• Reporting to regulatory authorities (e.g., Bank Negara Malaysia)

Sub-CBS 8: Compliance and Regulatory Reporting

Purpose

• Ensure compliance with regulatory obligations and internal governance.

Business Processes

• Daily/weekly/monthly compliance checks (BNM, AMLA, Basel guidelines)
• Submission of reports to Bank Negara Malaysia
• Audit trails for all loan-related transactions
• Periodic internal and external audits
• Data privacy and cybersecurity controls

Sub-CBS 9: System Support and Technology Infrastructure

Purpose

• Maintain the core systems supporting the loan lifecycle.

Business Processes

• Loan origination and management systems (LOS & LMS)
• API integrations with credit bureaus and government systems
• Maybank2u digital platform availability and uptime
• Cyber resilience and data recovery protocols
• Real-time monitoring dashboards

Sub-Critical Business Services (Sub-CBS) Table for CBS-1: Retail and SME Loans

Operational Resilience Considerations

• Impact Tolerance: Establish acceptable thresholds for disruption (e.g., time to restore SME disbursements).
• Mapping Interdependencies: Identify third-party vendors (e.g., CTOS, CCRIS), digital platforms, and key staff dependencies.
• Scenario Testing: Conduct simulations (e.g., cyberattack on LMS or pandemic-related staff shortage).
• Communication Plans: Notify affected customers, regulators, and internal stakeholders during disruptions.
• Backup and Recovery: Maintain alternate data centres and manual fallback procedures.

Summing Up ...

Understanding the structure and dependencies of Maybank’s Retail and SME Loans service is critical for designing effective operational resilience strategies.

By mapping the full loan lifecycle into detailed Sub-CBS, this chapter illustrates the depth and complexity of ensuring continuity in a high-impact financial service.

As readers explore each sub-process, they will gain clarity on the key risk points, regulatory responsibilities, and technological enablers that must be aligned to withstand disruptions.

This knowledge forms the foundation for building robust resilience frameworks—not just within Maybank, but as a model for other financial institutions aiming to meet rising expectations for service reliability and regulatory compliance.

 

Operational Resilience in Action: Case Studies and Best Practices for MayBank
eBook 4: Starting Your OR Implementation
CBS-1 Retail and SME Loans
CBS-1 DP	CBS-1 MD	CBS-1 MPR	CBS-1 ITo	CBS-1 SuPS	CBS-1 ST

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Gain Competency: For organisations looking to accelerate their journey, BCM Institute’s training and certification programs, including the OR-5000 Operational Resilience Expert Implementer course, provide in-depth insights and practical toolkits for effectively embedding this model.

 

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