Malayan Banking (Maybank) is upbeat on the prospects for south-east Asia’s cash management market and confident that its newly-launched regional cash management system (RCMS) for corporations will enable it to take a bigger share of a market which has been mostly dominated by global banks from the US.
Global consultancy McKinsey estimates that the region’s deposits and cash management market will be worth US$162bn by 2014. Maybank aims to grow its cash management business by a compounded annual rate of 25% regionally for the next three years, helped by the its single platform system which will allow cross border accessibility, multilingual interface and be multi-device-enabled once fully rolled out.
In Malaysia, Maybank currently has a 40% share of transaction volume and 37% share of transaction value in the cash management and transaction banking
“In the past, US banks dominated the market because of the level of technology they had,” said Maybank’s group transaction banking managing director, John Wong, at the launch of the RCMS.
“Now more and more Asean [Association of Southeast Asian Nations] banks are coming in and it is safe to say that large local banks will dominate this space in future because of its knowledge of the history and culture of the markets.”
Maybank said that the RCMS, delivered through its web-based Maybank2E platform, will enable the bank to meet the increasingly regional transactional needs of the global banking clients in all 10 Asean countries, as well as in China and Hong Kong. Developed at a cost of US$20m, the bank expects to recoup its investment within two years.
Nine clients have migrated to the single platform cash management system, which allows them to view and make transactions using preferred currency across borders as well as give access to clients’ portfolio of Maybank accounts and accounts with other banks.
The bank has 25,000 corporate clients in Malaysia, 3,000 in Singapore and 3,500 in Indonesia. Its three main markets are expected to migrate to its single platform system in phases with full adoption in the Q113.
It will then be available in other countries where Maybank has a presence, namely the Philippines, Hong Kong, China, Indochina, Brunei and Papua New Guinea.
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