Co-opbank Persatuan Aimshigh ToComplement Banking Industry

By Siti Zafirah Mohamad Kamal

KUALA LUMPUR, July 14 (Bernama) -- Koperasi Co-opbank Persatuan Malaysia Bhd (Co-opbank Persatuan) which has 20 branches under its wing, has set a strategy to be more visible by emphasising the role of co-operative bank in complementing other financial institutions in the banking industry.

Its newly-appointed Chief Executive Officer, Mohd Nor Abd Razak said Co-opbank Persatuan was in the midst of transforming its human capital capability from a cooperative to that of a financial institution.

"I see that the working culture of a majority of the staff is still on the traditional cooperative body environment, and my main challenge is to change this and the way we work to a banking professional mindset," he told Bernama in an exclusive interview recently.

Mohd Nor said this transformation would be reformulated to ensure its five-year strategic plan would be achieved by 2020.

"How to bring Co-opbank Persatuan to greater heights is by creating a transformation plan for our staff or human capital," he said, adding that the management would also inject fresh talents from financial institutions to firm up its presence.

Meanwhile, the Penang-based cooperative bank had an early history with its establishment in 1950 as Province Wellesley Co-­operative Banking Union Ltd before undergoing a name change to Bank Persatuan in 1995 and to its current name in 2014.

Established as a bank from a co-operative in September 2014, Co-opbank Persatuan is still considered to be in its infancy stage, and hence, a larger capital is needed to further strengthen and expand the bank.

Mohd Nor revealed that the bank planned to raise an additional RM300 million on top of the current RM350 million to fund future working capital and this would be done via the issuance of Islamic redeemable convertible preference shares (iRCPS).

"We are the first co-operative in Malaysia to get approval from the Cooperative Commission of Malaysia to issue the iRCPS and we had conducted a nationwide roadshow. Alhamdulillah, the feedback is good, we just have to wait for the right subscription," he said.

Moving forward, Mohd Nor said Co-opbank Persatuan also planned to embark on electronic banking by providing debit card service as well.