Wednesday, 7 December 2011

Maybank assets under custody set to grow 20%

Maybank assets under custody set to grow 20%
http://biz.thestar.com.my/news/story.asp?file=/2011/12/7/business/10045221&sec=business


KUALA LUMPUR: Malayan Banking Bhd (Maybank) expects its new eCustody service to grow assets under custody by 20% next year, from RM50bil at June 30 this year.

eCustody is an online module within Maybank’s enterprise cash management portal, Maybank2E.net.

Deputy president and head of global wholesale banking Abdul Farid Alias said that Maybank’s local and international assets under custody stood at RM37bil at June 30, 2010.

“Transaction banking services are a growing revenue driver for the Maybank group. In the financial year ended June 30, 2011, transaction banking revenue grew 9% (and) custody services recorded growth of 10% for the past five years.

Now, we are expecting revenue from custody services to grow by at least 20% in the coming year with eCustody,” Farid said at the launch of eCustody.

He said Maybank had been putting up building blocks and that the new service provided the final link for the group to provide a complete, single platform for electronic transaction banking.

Farid said the bank currently had 126 custody clients and expected to convert 60% of them to the eCustody platform by end-2012.

He said Maybank already had a sizeable presence in trade finance with a market share, in terms of volume, of 24% and 30% in cash management.

Managing director (transaction banking, global wholesale banking) John Wong explained that eCustody was already iPad-enabled and that the next phase would be introduced in March for BlackBerry and Android-based devices.

Wong assured that eCustody was a secure system, saying it required dual authentication whereby a client would be given a “token” that generates a password on top of his password.

He said eCustody would be one of the enablers for Maybank to take its electronic transaction banking platform regional. The system, Wong said, had gone live in Cambodia and was being planned for roll-out in Indonesia and Singapore next year.

He said Indonesia would be enabled with eCustody by June 2012, followed by Singapore and subsequently Greater China to cater to key Asean market.

Farid said owing to the bank’s extensive network in the region, it saw an opportunity to extend its electronic transaction banking services regionally. “This will incorporate not only custody services but also cash management and trade finance via a single platform.”

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