Myanmar

The new chief executive was hired to modernize Myanmar’s struggling United Amara Bank – in a year, he has got rid of the old guard and fired up the business.

Myanmar’s central bank governor Kyaw Kyaw Maung has long been seen as an impediment to reform. But come July, he will be out and a new chief will be in, heralding, it is to be hoped, a new era of change

Seven years ago, the country had virtually no formal banking sector. Now, its clunkier commercial lenders face extinction thanks to the arrival of exciting new mobile money services whose mission is to march onwards and upwards.

KBZ is an exceptional lender with a storied history and matchless connections in the capital Naypyidaw. Its domestic clout and strength means that its CSR credentials are often overlooked. Yet KBZ is the undoubted domestic leader in this field, its commitment to corporate and social responsibility stemming from a terrible and destructive moment in the country’s modern history. In 2008, a massive cyclone crashed into Myanmar’s long coastline, killing 138,000 people, displacing millions, and causing at least $10 billion worth of damage. That calamity compelled the bank to set up its social initiative division, KBZ Brighter Future Myanmar Foundation, and to get to work.

When Myanmar opened up after 2012, it was quick to hand out banking licences – and Singapore’s leading lenders were first in line. This year, the award for best international bank in Myanmar goes to OCBC, which has been here on and off since 1923.

A vast army of small and medium-sized enterprises form the heart, gut and soul of this frontier market. In an overwhelmingly cash-based economy, SMEs make up 90% of all businesses, few of which have access to formal banking services. But a few lenders are spearheading a drive to bring banking to small business owners, led by Yangon-based CB Bank.

Digital banking is a work in progress in Myanmar. Some banks are better at it than others; only a few have given hard thought to their online strategy. CB Bank is by some distance the leader in this field. It was the first Myanmar lender to introduce cash deposit machines, contactless payment services, CRM machines and mobile banking. More than 500,000 of its customers now bank with it on the move.

Like the best banks in Myanmar, CB Bank is always looking to find new ways to improve. Founded in 1992, the lender has spent the last few years updating its core banking system, introducing internet banking for corporates, as well as catering to the needs of large domestic companies that want to expand in Myanmar and beyond, as well as to foreign multinationals hoping to crack this vast and underdeveloped market.

Ayeyarwady Bank, more commonly known as Aya Bank, is a fascinating financial institution. Founded in 2010 by the tycoon Zaw Zaw, it has never been afraid to think differently and ahead of the curve. In 2015, it became the first local lender to meet IFRS compliance requirements and to be audited by one of the big four global accounting firms.