Assignment 2 QBAA2 2019 654548 PDF

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ASSIGNMENT 2

FINANCIAL MARKET DAN BANKING SERVICES (FIN435)

FACULTY PROGRAMME

: BUSINESS AND MANAGEMENT

SEMESTER

:2

NAME

: GLORIA ANAK KELBIN

GROUP

: QBAA2

LECTURER

: MDM ERIMALIDA BINTI YAZI

ACKNOWLEDGMENT

I acknowledge the support and guidance from my dedicated lecturer Mdm Erimalida Binti Yazi who promptly responded to my queries via WhatsApp. Despite the seminar has been cancelled due to the pandemic outbreak that hinders us to meet at the physical seminar, she never failed to conduct the online class via Google Classroom. She explained clearly the details of the tasks and conduct online class. I truly appreciate all of her efforts. I sincerely thank my classmates who rendered their help during the period upon completing this task. I’m grateful for the university’ library PTAR for the unlimited resources that have been very useful when I’m doing my research. Last but not least, I would like to express my gratitude to my parents for moral support. Their encouragement during this pandemic is much appreciated and duly noted. My heartfelt thanks.

TABLE OF CONTENT

TITLE PAGE ......................................................................................................................... i ACKNOWLEDGEMENT ...................................................................................................... ii TABLE OF CONTENT ........................................................................................................ iii

Introduction to Maybank.................................................................................................... 1 Products and Services Offered ......................................................................................... 2 Products and Services Issues .......................................................................................... 5 Discussion Questions ....................................................................................................... 6 References ......................................................................................................................... 7

Introduction to Maybank

The founder of Maybank is Khoo Teck Puat while Datuk Abdul Farid Alias is the current group President and CEO of Maybank Corporation. Maybank was incorporated in 1960 and began its first operations in the capital of Malaysia, Kuala Lumpur. The same year did not only mark the birth of Malayan Finance Corporation (later known as Mayban Finance), the first wholly bank-owned finance company, but also the opening of Maybank’s first overseas branches in neighbouring Brunei Darussalam and Singapore. Two years later, Maybank spread its wings to Hong Kong and London and much later to New York, Bahrain, Saudi Arabia, Uzbekistan, Pakistan, India, China, Philippines, Papua New Guinea and other countries in Southeast Asia. Maybank’s home markets – Malaysia, Indonesia and Singapore contribute the largest proportion of Profit Before Tax (PBT) in 2014 amounting to 88.6% of the total group’s profits while the remaining percentage is derived from Maybank’s overseas markets in London, Saudi Arabia, Uzbekistan, Bahrain and New York. Maybank is committed to its core values - Teamwork, Integrity, Growth, Excellence and efficient and Relationship building (TIGER) - which is a perfect reflection of Maybank’s corporate logo of a Malayan Tiger. Humanising financial services is translated into a corporate strength by “making the unbankables bankable”. For instance, Maybank provides financing accessibility to customers and enables those with poor credit background to secure financing provided that they have strong evidence to improve their situation. Maybank’s intentions are clear, that is to help boost socioeconomic conditions of the society through wealth creation. As the leading banking group in Malaysia, Maybank has 402 branch offices and more than 2,600 automated teller machines (ATM) in the country to date. Serving over 22 million customers in 20 countries such as Singapore, Brunei, Hong Kong and other nations with 2,400 operating offices manned by more than 47,000 employees worldwide and a total asset worth RM640 billion. Maybank is by far the largest bank in Malaysia. Maybank offers a comprehensive range of products and services that include corporate, personal banking, investment banking, Islamic banking, commercial trade facilities, insurance, offshore banking, hire purchase and lease, asset management, trustee services, stock broking, factoring, nominee services, venture capital and internet banking and many more. Over the years, Maybank has established itself as a strong brand in Malaysia and beyond. It is ranked first among listed Malaysian companies and among the top 500 companies in the Forbes Global 2000 leading companies of the world. Besides being the recipient of Malaysia’s Most Valuable Brand in 2007, 2008 and 2012, Maybank is ranked as one of the Top 3 companies in Malaysia and Top 100 companies in Asia by Channel NewsAsia in terms of sustainability performance. In 2014 and 2015, Maybank was named the Best Retail Bank in Malaysia by the Asian Banker. Maybank also won the title of Brand of the year 2014-15 for the Banking sector by the World Banking Awards. During the same tenure, Maybank was also named as the World’s Top 20 Strongest Banks, awarded by Bloomberg Markets. Maybank is also ranked first among Malaysian banks and 134th among the top 1,000 banks in the world by The Banker Magazine of UK. Maybank is also among the top 5 banks in South East Asia with total assets of more than USD 150 billion (Maybank, 2016).

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Products and Services Offered

Phone Banking Maybank Phone Banking offers convenient access to customer’s bank account(s), for both personal and business transactions. It is accessible 24 hours a day, 7 days a week and accessible via any touchtone phone, mobile phone or even public phone. Customer can call from anywhere in Malaysia at local rates. Moreover, it offer secure banking whereby each individual is identified by a unique confidential access or card number and Personal Identification Number (PIN).

Tabung Haji Maybank provide service to perform banking transactions easily and conveniently for own or third party Tabung Haji account at Maybank ATM and CDM. This service is charge at reasonable fees on selected transactions.

Overseas Services  Pre Departure Account Opening in Australia Known locally as NAB, the National Australia Bank is one of the Australia’s largest banks and is ranked as the safest Australian bank and number 17 overall World’s Safest Bank. It allows customer to open an Australian bank account before departing from Malaysia. Opening an account is very easy just by a simple online application with no fees and no minimum deposit and no monthly account fees.  Maybank RegionLink Maybank offer real-time access to ATMs services like cash withdrawals, credit card cash advances, fund transfers, funds transfers, bill payments, PIN change, etc in the Philippines, Singapore, Brunei, Indonesia and Cambodia. This services also provide access to over the counter banking services like withdrawals, deposits and funds transfers within participating countries, except for Maybank Philippines, Cambodia and PT Bank Internasional Indonesia. In order to use the service, customer’s need to activate their Maybankard.  Integrated Maybank2u.com One login for customers with both Maybank2u Malaysia and Singapore online banking which provide easy access with a single customer name and password at no service charge  Overseas Withdrawal Maybank provide Visa Plus and Visa Interlink. It allows Maybankards to be accepted at overseas ATMs and any merchants that displaying the Visa Interlink and Visa Plus logos. With Visa Plus, customer able to use their Maybankards Bankcard to withdraw cash or enquire about their balance at any ATM worldwide that features the PLUS logo while with Visa Interlink, customer can pay for their purchases.

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H.O.T Broking 1 (Islamic Financing) A Shariah-compliant share investing facility that lets customer to purchase shares in approved Shariah counters listed on Bursa Malaysia with their own funds or through a Share Margin Financing scheme. It offer financing tenure for 1 to 5 years with minimum of RM50000 financing amount. The benefits of this service is it based on the principle of Murahabah and the selling price rate is capped at a ceiling rate so that customer would not face fluctuations over the selling price rate.

Foreign Telegraphic Transfer & Guaranteed OUR (G’OUR) This is another interesting service offered by Maybank to help customer send their money with minimum amount of RM10000 to overseas easily at lower rates on Maybank2u and Maybank2u.Biz. It available to over 100 countries in 24 different currencies. The service charge are transparent. It allow the beneficiary receive the exact amount sent to them using Foreign Telegraphic transfer (FTT). It also incurs a fixed agent fee and informed to the senders upfront.

M2U Visa Direct Sending money to anyone living abroad is now much easier. With Visa Direct, customer can conveniently make payment or send cash to directly to the cardholders’ Visa credit, debit and prepaid card in 200 countries excluding Columbia, Cuba, Iran, Israel, USA, Sudan, Syria and Venezuela at no hidden cost to the recipient, and their money will be credited between 30 minutes to 2 days. Whether the receiver is in Asia or living half-way around the globe, Visa Direct allows customer to send money from RM300 up to RM7,500 a day, with a fee as low as RM10 per transaction. The maximum transaction limit in a month is RM50,000 or 8 transactions. Digital Products & Services  Maybank2u, Maybank2u App and Maybank2u.Biz Maybank2u allows customer to perform online funds transfer, pay bills, pay Zakat Fitrah, manage finance, online application and many more. It helps customer to save on cost because no more extra charges for cheque processing fee. Besides, customer can make payment instantly to keep business partner happy and easily track payment or transactions anywhere. There are many features available in this app, such as QRPay, QRPay Biz, JomPAY, MAE, mobile services, live chat, secure2u and multiple access for different account. MAE is an e-wallet which encourage customer to go cashless and easily check balance, use QRPay, pay bill, send money, request money, and reload mobile, pay movie or flight ticket.  MaybankPay Let customers enrol their Maybank Visa credit, debit & prepaid cards in their smartphones and make payment. Spending with MaybankPay is fast, safe with 6 digit passcode and easy to use by just tap to pay.  Maybank2u Pay Maybank2u Pay is a payment getaway. It provide a range of convenient ways for businesses to get paid. Customer can pay using current or saving account or any bank’s card, including payment instalment plan. This help businesses to receive money faster which is on the next of working day of Page | 3

transaction. Moreover, businesses can easily identify their day to day transactions through detailed online report.  Maybank Wealth App This app helps customers to keep updated with their finance anytime and anywhere by providing proprietary market insight by Maybank’s in-house financial research and latest promotions or events tailored to match customer’s interest and needs.  Maybank Treats Cards App The is a new app by Maybank which designed to revolutionise the way customer’s find and locate Maybank Card promotions across Malaysia, Singapore, Indonesia and Philippines. It provides the latest promotions and offers just at the palm of the hands. The Maybank Treats App is iBeacon interactive and it notifies the promotions within customer’s proximity.

Investment Services  EzyInvest Maybank provide a simple long-term investment plan ideal for retirement planning. It is also a more convenient way of investing in the stock market regardless of age, income or experience. EzyInvest offers customer a unique wealth-creation opportunity from an affordable and regular investment amount to the flexibility of managing wealth and stocks. Some of the advantages of this service are a better way to save earning and saving for children’s future needs. Besides easy for new investors or industry veterans, it is low fees with no annual management fee, upfront subscription fees or switching fees. It also offer flexibility in choosing, selling, changing and adding stocks.  MaybankInvest Maybank offers share investing facility that allows customer to purchase shares quoted on Bursa Malaysia using their own funds or via a Share Margin Financing scheme. The minimum financing amount is RM50000. MaybankInvest offer some benefits such as straight-through processing system frees customers from the hassle of first dealing with Bursa Malaysia brokers, then banks. Besides, the trade instructions are electronically routed to designated stockbrokers in complete secrecy with no delay in sending trade orders or receiving confirmations and the ability to plan finances better by allowing customers viewing entire investment portfolio, trade orders and confirmations online in real time. Furthermore, discounted trading fees and other features for trading can be made via M2U Online Stocks. a. Share Margin Financing Maybankinvest provides credit funds in margin account (for individual accounts) will earn interest of prevailing multi-tier Premier 1 rate to help increase customer’s investment potential to trade in Bursa Malaysia quoted shares. b. Non-Margin Facility If customer’s choose to use their own funds, their Maybankinvest account will be debited on the purchase settlement date (T+3 = transaction date) based on availability of funds.

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Products and Services Issues

Transaction System Delay Delays in receiving the TAC number to perform transactions have been acknowledged as one of Maybank’s slight glitches in regards to the M2U online service. Such delays would cause the customer to request for multiple TAC numbers for a single transaction, which would cause interruptions in the performance of the transaction as only one request of the TAC number is required per transaction. When multiple TAC numbers are requested, this automatically invalidates the first request. Hence, the customer would need to redo the transaction from the beginning and this would cause frustration and annoyance among customers as time would be wasted in completing a simple task. Apart from this, customers may also experience missing links or non-functioning links which would sometimes prompt a message such as ‘not available’, ‘under construction’ or ‘under maintenance’ (Maybank, 2014).

Fund Transfer Outage Maybank’s funds’ transfer services suffered from an outage for at least six hours today, with users on social media reporting they were unable to get security codes or TAC numbers to complete transfers across banks. The bank’s customers have complained of being unable to transfer money through its teller machines and also through its Maybank2U service. The timing was bad as many workers had just received their salaries and were paying their bills. Based on complaints by users on Twitter, the issue also extends to other banks, with those transferring funds from other banks into Maybank being unable to do so. Maybank has been mentioned more than 1,000 times on Twitter, with most of its complaints on the service, taking the number three trending spot on Twitter. A Maybank spokesperson explained that the service interruption occurred earlier this afternoon owing to a technical issue which affected MEPS, TAC and some card-related transactions conducted via the bank’s electronic banking channels. (Nambiar, 2019). Low Customer Satisfaction Rate The weakness of Maybank is customer satisfaction rating of Maybank is still low and they are rated at number 7 out of 8 banks in Malaysia for customer service in year 2012 (Scribd, n.d.). Inefficient Service and poor customer service also is one of the weakness of Maybank. For example, Maybank does not have bank systems be automated with built-in security features to verify their customer’s accounts and details without having to rely on a piece of physical paper with a signature. This would make customer harder to replace card or change account if go to different branch. Besides, much of the banking operations of Maybank are focused in and around Malaysian and Singapore. Hence, it has limited global penetration. And much of the revenue of Maybank comes from retail banking and Islamic banking. Thus, It will has less revenue comes from other offering. In addition, Maybank has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may weaken over time due to homogeneous products served

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Discussion Questions

1. Choose one Banks (commercial banks, Islamic banks or investment banks) 2. Describe their products and services offered to their customers. 3. Describe the issues /critics arise in their products / services.

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References

1. Maybank 2014, Leading Asia, Connecting Lives in Our Digital World, Sustainability Report 2016, viewed 28 May 2020, https://www.maybank.com/iwovresources/corporate_new/document/my/en/pdf/Maybank-SR2016.pdf 2. Top Banks in Malaysia, Overview of Malaysia’s Leasing Financial Institutions, viewed 28 May 2020, https://corporatefinanceinstitute.com/resources/careers/companies/top-banks-inmalaysia/ 3. Mahdzan, Nurul & Mohd-Any, Amrul & Hamzah, Zalfa. (2016). Co-creating value with online banking services: The case of Maybank. 10.1007/978-3-319-32970-3_2. 4. Maybank 2014, Maybank Online Annual Report 2014, Maybank, viewed 10 June 2020, http://www.maybank.com/iwovresources/corporate_new/document/my/en/pdf/annualreport/2015/Maybank_AR2014Corporate_a.pdf 5. Nambiar. (2019). Maybank’s major banking outage causes uproar on social media, viewed 10 June 2020, https://www.freemalaysiatoday.com/category/nation/2019/03/27/maybanks-majorbanking-outage-causes-uproar-on-social-media/

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