Sustainability / Strategy / Impacts
George Koshy
Sustainability Officer
Our Commitment
Our journey toward sustainability began in 2018, with continuous improvements made each year. Over time, we have progressively integrated leading sustainability practices into the Bank’s core strategies.
Guided by the United Nations Sustainable Development Goals (SDGs) and our commitment to measuring and reducing our carbon footprint, we have aligned our approach to reflect these principles. Out of the 17 SDGs, the Bank has chosen to focus on 7 where we can make the most meaningful impact.
As a socially responsible financial institution, we are dedicated to expanding our loan portfolio by increasing financing for initiatives that align with these SDG objectives and ensure that our products and governance standards strive towards best sustainability practices.
At uab, we have identified 7 SDGs in which we can contribute meaningfully and have the most impact in supporting the goals. Accordingly, we have short term and mid-term targets for each SDG. We are committed to meet these goals and are devoting significant resources to this end.
Targets and SDG Goals
| SUSTAINABLE DEVELOPMENT GOALS |
|
|---|---|
| Material Assessment Identification |
|
uab bank’s strategy formulation process involves active engagement with various stakeholders,
including customers, shareholders, regulators, employees, business partners, and the community. Through these engagements and materiality assessments, the Bank identifies key
concerns and aligns its business strategy with the United Nations Sustainable Development
Goals (SDGs). This ensures that the Bank’s contributions are in line with global sustainability
efforts, reinforcing its commitment to creating opportunities, connecting people, and ultimately
changing lives for the better.
Our Material Assessment identified 7 (seven) key concerns of Stakeholders as stated in the above Table together with 7 (seven) SDG areas of which the Bank could have the greatest potential impact.
CLEAN ENERGY AND SDG RELATED FINANCING
As a financial institution, our largest contribution towards meeting Stakeholders expectations is in our lending activities and for FY2024, the Bank allocated significant credit lines to support UN Sustainable Development Goals (SDGs) and they are stated as below:
| Category | Loan Amount (MMK) | SDG Contributions |
|---|---|---|
| Solar | 19,876.2 million | SDG 7: Affordable and clean energy |
| Electric Vehicle | 4,230.0 million | |
| Education | 24,346.0 million | SDG 4: Quality education |
| Healthcare | 38,716.5 million | SDG 3: Good health and well-being |
| Home Financing | 137,464.8 million | SDG 11: Sustainable cities and communities |
| SME | 209,586.6 million | SDG 8: Decent work and economic growth |
| Infrastructure | 114,019.8 million | SDG 9: Industry, innovation and infrastructure |
| Agriculture | 372,317.1 million | SDG 2: Zero Hunger |
| SDG 3: Good health and well-bein | ||
| Total Financing | 920,557.2 million |
Further, the Material concerns of Stakeholders were incorporated in the strategies of the Bank and, we have established specific time-bound targets within each selected issue and allocated substantial resources to the attainment of targets.
| Item | Target | Time Target | Achievement in FY 24 |
|---|---|---|---|
| Supporting Agri Sector (SDG 2) | 15% of total loan portfolio to Agri and Agri-related financing | 31st March 2025 | In FY 24 (from 1st April 2023 to 31st March 2024), 15.3% of loan portfolio
totalling MMK 372 Bn utilised for the
financing of the Agri and Agri-related
sectors covering produce such as corn,
rice and beans.
Further, as indirect financing, the Bank also provided financing to eight (8) Microfinance Institutions with lines of credit totalling MMK 85.5 Bn. |
| Training Schemes (SDG 4 ) | Conduct training schemes for more than 50 trainees annually | 31st March 2025 | 106 Trainees attended a 6-months banking and sales training scheme in FY 2024. Successful trainees were offered full time employment upon completion of the scheme. |
| Training and Talent Developments (SDG 4) | Provide minimum 50,000 man-hours training annually to improve the quality of banking experiences | 31st March 2025 | Total of 60,914 man-hours training was
conducted and training sessions were
available for over 2,000 employees of
the Bank throughout FY 2024. 71 students received Internship opportunities ranging from 1 to 3 months to enable them to gain technical exposure in banking, marketing, IT and finance. 278 students from six (6) Schools and Colleges attended half day programs on career and workplace exposure conducted by the Bank over FY 2024. |
| Bancassurance (SDG 3) | Develop bancassurance by financial year 2021 | 1st phase launched in May 2021 and 2nd phase being launched. | uab bank partnered with Manulife to
offer life insurance protection through
the Bank’s bancassurance product. This
is with effect from January 2021.
As at March 2023, bancassurance
products offered by the partnership includes:
Over FY 2024, the Kyee Pwar Chan Thar product was launched offering a savings product with insurance coverage. |
| Scholarship and bursary support to employees’ children (SDG 3 & 4 ) | Provide scholarships and bursaries to contribute skilled workforce for our future | 31st March 2025 | The Bank provided bursaries to 56 children of lower salaried employees to support their education needs and this financial contribution was totalled MMK 9,100,000 in FY 2024. |
| Home ownership (SDG 8 & 11) | 5% of total loan portfolio | The 5% target was achieved in FY 2024 | MMK 142.9 Bn was allocated to Home financing in FY 2024, and we financed 837 families under the Home Loan scheme. This made up 5% of our loan portfolio. |
| Digital Solutions (SDG 8 & 9) | Facilitate customers to access the accounts through mobile handheld devices | uab pay, launched in September 2020, is designed to offer a comprehensive digital banking solution for customers. With the continuous addition of new features and improvements, it is evolving into a “Super App.” This development aims to provide customers with extensive control over their accounts and access to various services on a single mobile device, enhancing convenience and efficiency. | The following features have been
developed in the uab pay app:
By 30th March 2024, the number of pay wallets opened had reached almost 1 million. We also launched uabpay+ which enables merchants and agents to receive and manage payments. Money transfers can also be conducted wallet to wallet, through agents or through interbank transfers to accounts at several banks in Myanmar. Foreign transfer may be received through RIA and Western Union services. Digital gold investment was successfully launched in March 2023, targeting small scale investors who can easily avoid the complicated processes through a few simple steps on app. Over FY 2024, the Kyee Pwar Chan Thar product was launched enabling uabpay users to participate in a savings plus insurance product enabling them to save money in small amounts starting from MMK 5,000 to MMK 700,000 monthly over 36 months. It includes 3 packages with a variety of options. |
| Financial Literacy (SDG 8) | To conduct at least 12 financial literacy sessions annually. | 31st March 2025 | Our financial literacy program is
designed to educate people on savings,
digital banking solutions and making
payments using the remittance system
internationally and locally. By fostering
financial inclusion and empowering
communities with the tools, one can
make informed financial decisions,
enhance economic stability and
promote sustainable growth.
Over FY 2024, through our Tatkone, Kyaukpadaung, Pakokku, and Naypyitaw branches, we reached 1,360 people in 23 villages with our financial literacy program. Over FY 2024, the Bank also conducted 31 seminars on financial services and payments at the North Dagon Labour Office in Yangon for a total of 16,050 individuals as part of their pre-departure preparations as Myanmar workers overseas. These seminars help them understand the remittance options they have when they wish to remit monies home safely to their families. Seminars were also conducted in Maha Chai and Bangkok in Thailand to reach 640 migrant workers on 19th and 20th December 2023. Further, 5 seminars were conducted for Seaman over FY 2024 reaching 207 individuals. |
| Financing SMEs (SDG 9) | 20% of total loan portfolio | 31st March 2028 | As of FY 2024, SME financing
accounted for 8.64 % of the total
loan portfolio, amounting to MMK
209.5 billion. Within the SME financing
category, 16.78% was facilitated
through the JICA two-step loan
program, which offers preferential
interest rates to lower borrowing costs
for SMEs.
1,286 SMEs in FY 2024 (compared to 1,180 in FY 2023), benefited from the financing of their business and this not only enabled them to expand but also created job opportunities for the community. |
| Modernised banking (SDG 9 & 11) | Redesign branches, open retail centres and introduce new concepts in banking Modernised banking aims to create a more efficient, secure, and customer-centric banking environment, adapting to the evolving needs and expectations of customers in the digital age. | 31st March 2025 | Digital Banking: The Bank presently provides banking services through digital channels such as mobile apps, wallets, online platforms, cards, deposit machines and ATMs. This has allowed customers to perform transactions, make payments, check balances, and more without visiting a physical branch.
In FY 2025, the Bank is expected to roll out Smart Teller Machines (STM) which will enable the Customer to perform self service transactions from opening accounts, getting an instant debit card and performing transaction seamlessly with assistance of biometrics. Customer Experience: In FY 2024, apart from 6 new branches with modern designs, 6 other existing branches were redesigned to offer seamless, user-friendly, and personalised services. These redesigned spaces offer a more welcoming and efficient environment for our customers. Agent banking: In FY2014, the Bank began the Master Agent scheme for agent banking and the appointment of Master Agents covering 89 townships throughout the nation and with 3,000 agents. Customers are now able to make deposit, withdrawal and remittance transactions through their nearest agent at these townships. Over FY 2025, the Bank will open its own “Pay Stores” in several other Townships and look to roll out “Bank on Wheels” for the convenience of Customers. |
| Opening of new bank branches to improve access to financial services (SDG 9&11) | To establish 100 branches in various townships nationwide | December 2025 | During FY2024, the 6 (six) new branches in various regions were
opened:
|
Some of our Non-financial Key Performance Indicators are available in the link below and they cover:
Non-Financial KPIs
- Employee engagement
- Turnover
- Absenteeism rate
- Health & Safety
- Frequency rate/Fatality Rate
- Training
- Career Development
- Equal Opportunity
- Disability
- Environmental issues
- Societal responsibilities
Non-Financial KPIs
Activities that serve the greater good of the community are prioritised at uab bank. A short report on the following topics is available in the link below:
You can read more on our non-financial activities here:
Non-Financial Activity
- Customer health & safety
- Supplier/Contractor selection and criteria
- Environmental friendly value chain
- Interaction with communities
- Anti-corruption programme and procedures
- Creditor rights
- Central Bank of Myanmar Directives
- Operational Incident Reporting mechanism
You can read more on our non-financial activities here:
Non-Financial Activity