Finance in the fast lane: AHAM Capital digitizes operations with Microsoft Azure

Established in 2001, AHAM Capital has grown to become one of the top three largest asset managers in Malaysia. With over MYR81 billion in assets under administration and more than 200 awards received for performance, AHAM Capital serves a diverse client base, including corporates, institutions, pension funds, and high net-worth individuals. It manages over 160 funds covering local, regional, and global markets.

AHAM Capital's digitalization began in 2018 and was accelerated during the COVID-19 pandemic. “Having a platform that handled the whole gamut of transactions helped us offer uninterrupted services to our customers, and it underscored the importance of a robust collaboration platform,” shares Allen Woo Kai Yeen, Chief Technology Officer at AHAM Capital. Thanks to its longstanding partnership with Microsoft, AHAM Capital was already using Microsoft Windows and Microsoft 365 productivity tools, enabling it to smoothly transition to hybrid work.

However, like many in the financial services industry, AHAM Capital still used enterprise systems from the 80s, characterized by on-premises servers and database-centric technology architecture. Over time, these systems became siloed, so as its next step, AHAM Capital looked to the cloud. "When Microsoft Azure was further enhanced to support local regulatory compliance for Malaysia customers in financial services industry, we decided to explore the possibilities of the cloud,” remarks Woo. “We were one of the first asset managers in Malaysia to do so."
AHAM Capital also anticipated that its future would involve establishing partnerships with FinTech players. “We saw the potential for collaboration with traditional fund managers like us, and so it became essential to have APIs that would allow us to tap into new distribution channels and form those partnerships easily. This made API adoption almost a no-brainer,” shares Woo.

A two-track approach to digitalization

AHAM Capital’s digitalization was a strategic step to future-proof its business and involved a dual-track approach. AHAM Capital maintained its traditional systems while simultaneously developing fully digitized systems in the cloud. This approach enabled it to continue serving customers without interruption, while it reimagined and enhanced its cloud-native system. The entire transition took about eight months. “Considering the scale and complexity of the project, we were able to move quickly,” Woo notes. “I credit that to the collaboration of three parties: the Microsoft team, the fulfillment team Blazeclan, and our developers.”

This collaboration also helped ensure that AHAM Capital’s security practices remained at the highest standards. “Working with Microsoft, we gained knowledge on how to secure our services in the cloud,” Woo states. During this transition, the company also containerized its services to further ensure uninterrupted services for its customers. “We run Azure Kubernetes Services on the cloud, which additionally saves us a lot of costs that would’ve been spent on hardware and maintenance,” Woo adds.

The firm also began using Azure API Management to effectively collaborate with third-party fintech players. “We’ve been told that we’re currently the only ones in the field using API. Having API allows us to immediately integrate with our partners, shortening time to market and making it easier for them to build interfaces,” says Woo. “Our fintech partners can focus on customer acquisition and leave the processing to us.” This is a game-changer for fund managers like AHAM Capital who can now collaborate with third-party distributors like e-wallets and digital banks. Woo adds, “Without these capabilities and not being on the cloud, it would’ve been extremely difficult to work with digital players. Now, we’re well poised to be future proof for the next four to five years.”

Enhanced efficiency and accuracy

With the adoption of Azure solutions, AHAM Capital enhanced its processes. “We’ve transformed the entire value chain from how customers are onboarded to how transactions are processed on the backend. The core processing is codified into APIs, enabling automatic processing with little need for manual intervention,” shares Woo. “About 75% of all transactions are conducted digitally at the moment," shares Yeen.

By cutting out handwritten processes, staff no longer have to decipher written text or double-check transaction data, resulting in reduced errors. “Since data is processed automatically, we can trust that we’re looking at reliable data,” shares Woo. “Even if we find errors, we have very good traceability that allows us to take quick, corrective actions.”

Woo believes that the way forward is to continue innovating. He says, “We’ve saved a lot on having to run and maintain on-premises servers and virtual machines cost. The savings are substantial enough to justify us continuing to build our applications on the web.”

Delivering better customer experience and care

The customers of AHAM Capital have also benefited from more efficient processes. Previously, customer onboarding involved filling out manual forms, a time-consuming and cumbersome process. “Now, onboarding happens purely digitally, which is a considerable achievement for us," says Woo. “Our customers can also make investment decisions and portfolio redemptions digitally without having to call an agent or fill out a form.”

AHAM Capital’s customer service agents are also better equipped to answer queries. “Before the digitalization, information about a customer was updated only once every 24 hours,” describes Woo. “With Azure API Management, we have now achieved near real-time updates, meaning our agents can pull up the latest data needed to really understand the context of a customer’s issue.”

AHAM Capital's new capabilities have positioned it for future growth and success. As AHAM Capital looks ahead, its focus shifts towards expanding its data capabilities and integrating artificial intelligence (AI) into its operations. "We believe data and AI will be the main drivers of future growth and success for AHAM Capital, our partners, and our customers," concludes Woo.