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WHOLESALE BANKING | Cesar Tordesillas, Malaysia
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Maybank upbeat on ETP benefits

Maybank is seeing opportunities in segments of its financial services despite the slowdown.

 

By 2015, it aspires to double its banking business from RM21bil to RM41bil.

“Boosted by opportunities from the Economic Transformation Programme, the compounded average growth rate is expected to hit 16% from 8% to 10% in the last few years,” says Lim Hong Tat, deputy president and head, community financial services.

Other types of loans expected to notch double digit growth are Construction loans, for which RM4bil in outstanding loans has been extended as of Dec 31, 2011, and trade finance, in which Maybank has a 27% market share as at Dec 31, 2011.

Among all these loans, a new strategy and focus has been drawn up for business banking to double its growth in a few years.

The transformation includes the creation of the “hunter farmer” sales and distribution model, and “go to market” strategy, emphasis on supplier distributor financing while enhancing the existing asset quality framework, which includes sharpening fraud detection techniques.

“We are emphasising more on supplier distributor financing and trying to build an ecosystem,” says Lim. Maybank is strong in corporate loans. This sector comprises listed companies, multinationals and government-linked companies - a conducive base for the financing of distributors.

A pilot project is being conducted to provide services to non-borrowing customers, an area which has yielded good results especially in cash management.

Improving asset quality in case of a slowdown in the economy involves strengthening of the know-your-customer concept, fraud detection and risk scoring.

“Our aspiration is to grow business banking to RM41bil by 2015, with a CAGR of 16% from 8% to 10%. There are opportunities from the ETP. If we are disciplined, we can grow aggressively,” says Lim.

Maybank's lending criteria emphasises business viability, and the bank is willing to lend on unsecured basis to eleigible clients for viable and profitable business propositions.

“That is the stand we took on humanising financial services, providing easy access to financing at fair terms and pricing, selling based on need and not providing excess financing,” he says.

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