Malaysian Bank Optimistic on Growth of Asean's Cash Management Market

Malayan Banking Bhd (Maybank) is confident its newly-launched regional cash management system (RCMS) for corporations will enable it to grab a chunk of Asia's fast-growing cash management 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$162 billion by 2014.


Maybank expects to grow its cash management business by a compounded annual growth rate of 25% regionally for the next three years, helped by the new single platform system which will allow cross border accessibility, multilingual interface and be multi-device-enabled once fully rolled-out.


In Malaysia, Maybank has a 40% share of transaction volume and 37% share of transaction value in the cash management and transaction banking market.


"In the past, US banks dominated the market because of the level of technology they had," Maybank group transaction banking managing director John Wong told Malaysian journalists at the launch here yesterday.


"Now more and more Asean 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 is the first Malaysian bank to launch such a regional system.


Maybank Singapore, considering its status as a regional treasury centre, expects to see its cash management transaction volumes jump two- to three-fold over the three years.


Maybank deputy president and head of global wholesale banking, Abdul Farid Alias, said given the increasing intra-Asean trade and momentum of growth in Asia-Pacific, corporations and multinationals will benefit from having a cost-effective and efficient cash management system, real-time view of
their liquidity positions as well as a complete spectrum of trade finance capabilities to better manage their businesses.


RCMS, a web-based Maybank2E platform, was introduced after extensive study into the needs of Maybank's regional clients particularly in the transaction banking and trade finance segments.


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 first quarter of 2013.


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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