KBZ Bank: Path to Sustainability

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Responsible Business Practices

At KBZ Bank, we are committed to enabling individuals, businesses and, through them,  the country, to thrive. Through our products, processes and policies, we drive progress in ways that are both inclusive and sustainable, improving lives and livelihoods, and promoting development.

Myanmar is a fledgling economy that has opened up in the last decade and it is making a critical shift to a market-driven economy. Being able to draw on the experiences of our neighbours and the latest developments in both thinking and technologies means both the private and public sectors can leapfrog while considering the sustainability implications of growth strategies. 

As one of the nation’s largest financial institutions, KBZ Bank embraces that mindset, even as it fulfils a critical role in Myanmar’s development. And as we ensure a continuous supply of capital to individuals and businesses across the country, our commitment to sustainability and inclusive growth ensures that our activities have a positive social and environmental impact.

We also believe in equitable growth. That is why we build products and services that benefit people across a wide cross section of sectors and social groups. Our priority is to be relevant and accessible to Myanmar and its people and to work tirelessly to strengthen communities and institutions for the long-term, forming the right foundations for nation-building.

“MCRB has welcomed KBZ’s participation in our discussions and workshops around responsible business over recent years, and in particular the leadership they have shown on disability inclusion, and the role they play as a founding member of the Business Coalition on Gender Equality.  We look forward to working with them on other collective actions by business – particularly banks – to strengthen Myanmar’s ability to deliver on the Sustainable Development Goals.”

Vicky Bowman, MCRB


KBZ’s Pillars of Sustainability

KBZ Bank’s path to sustainability has been both deliberate and systematic. Our Sustainability Strategy, which is aligned to a number of the United Nations’ Sustainable Development Goals (SDGs), is centred around three core pillars that address current, continuing and future needs:

  1. Promoting 100% financial inclusion in Myanmar
  2. Driving equitable growth for Myanmar’s economy and its communities
  3. Creating Myanmar’s workforce of the future

We have recently formed a sustainability task force for ESG, D&I and Human Rights with representatives with different backgrounds such as Risk Management, Legal and Compliance, Human Resources, Social Purpose, Corporate Communications and an independent external consultant. This task force supports the bank in the implementation of various initiatives, policies and guidelines related to these areas. 

Progress on Sustainability Strategy 

We have engaged an external consultant to assist with the development of our sustainability/ ESG strategy and report with the aim to structure our approach on ESG. 

The first phase of the process has completed in the second quarter of 2022, i.e. assessed the gaps between KBZ Bank current practices and various local and international standards such as Pwint Thit Sa Transparency Report, WWF, Fair Finance, etc.,. 

The gap analysis will help us to develop a sustainability roadmap together with a practical action plan. After this phase, the core priorities for its path to sustainability will be identified. Ultimately, we will develop a Roadmap as an integral part of our business strategy with various action plans that address the top material issues that are important to our stakeholders. We’re also engaging with external stakeholders to help us understand the current ESG topics and trends.

In the second phase, we aim to build our capacities on various topics related to ESG as we strongly believe that our people will be instrumental to shifting mindset and behaviours, internally and externally. Various trainings and e-learning modules will be developed to ensure a common understanding across different functions and teams. To measure our sustainability journey, we will monitor the implementation of action plans mapped out under the first phase. Finally, we will structure and deliver the first sustainability report for KBZ Bank by the end of 2023, which will be aligned with the UNGP, the TCFD, the GRI Standards and the Integrated reporting frameworks. 

These concrete steps underscore our commitment to embracing sustainability within the Bank. Over the next 5 years, the bank will be focusing on increasing awareness of sustainability principles and sustainable development amongst our network of stakeholders. Our goal is to create value for each of our stakeholder groups in the form of positive environmental, economic and social impacts.


Promoting 100% financial inclusion in Myanmar

We believe that financial inclusion is critical to reducing inequality. Access to financial services gives individuals and communities the resources – and an opportunity – to lift themselves out of poverty and improve their quality of life. We give them the tools to begin saving, accumulating assets, and reducing their dependence on public aid and welfare. They can access everyday accounts to save and track spending, shopper loans to finance bigger purchases, and make payments to digital services without needing to hold a bank account. 

That is why financial inclusion is one of the goals that KBZ Bank pursues with great determination. In a country where some 90 percent of the population remains unbanked, we have prioritised digital financial services that bring more people into the formal financial economy by putting banking at their fingertips. Our financial literacy programmes, meanwhile, give them the confidence to manage their finances and make sound money-related decisions.

In August 2018, we introduced KBZPay, a mobile-first approach that created both the technological infrastructure and easy-to-use interfaces that would enable us to take banking to the people. With this in-app mobile wallet, individuals and businesses can save and spend, safely and easily. Instead of travelling hours to the nearest branch to open a bank account, KBZPay has brought banking and financial services to communities across Myanmar through their smartphones. 

Today, KBZPay powers over 290,000 Myanmar businesses, and the daily transactions and payments of 5 million consumers. Half of KBZPay users are from areas other than Yangon Region, Mandalay Region and Shan State, and we continue to reach out to people with little or no access to formal financial services. Our goal is to serve 30 million users by 2028 or half of Myanmar’s population.

The reach and data from this network have also enabled us to develop and deliver other meaningful digital services and encourage business connectivity and digitisation, bringing microentrepreneurs online, connecting startups to a wider base of customers, and enabling enterprises to go mobile-first.

Financial and digital literacy is key if people are to be able to manage their finances better. Understanding money basics also gives individuals the confidence to venture into more sophisticated financial services. This, in turn,  can increase their wealth and provide access to more opportunities. 

When we introduced KBZPay, we recognised that simply putting technology into the hands of our customers, agents, and merchants was not enough. We had to ensure both our users and staff understood the technology and its potential.

To address this, our 18,000 employees conducted face-to-face onboarding exercises for customers, agents, and merchants on the KBZPay network, explaining how it worked, what it could be used for, and how to use it securely.

We also conduct financial and digital literacy seminars at public universities across Myanmar, ensuring new workforce entrants know how to save, get better returns on their money, and protect their digital identities. To-date we have conducted seminars at over 30 universities, reaching more than 1,000 students.


SDGsUN Targets for 2030KBZ Bank’s Initiatives (2019)
Goal 4: Quality EducationEnsure inclusive and quality education for all and promote lifelong learning● Develop talent and leaders through a Value Centre model, continuous learning programmes, a strong commitment to diversity and inclusion, and supporting youth education
Goal 5: Gender EqualityAchieve gender equality and empower all women and girls ● Empower women through microfinance
● Diversity and inclusion at the workplace
● Equal opportunity employer
Goal 8: Decent Work and Economic GrowthPromote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all● Nurture entrepreneurship and support small business owners
Goal 9: Industry, Innovation and InfrastructureBuild resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation● Create financial connectivity beyond bank branches by introducing products and services that support a Mobile First Myanmar
● Finance national infrastructure projects
● Strengthen institutions
● Power new industries
Goal 10: Reduced InequalitiesReduce inequality within and among countries●Promote truly inclusive banking by giving the underserved and unbanked access to digital financial services through KBZPay