Maybank

… first to be linked to Lembaga Hasil Dalam Negeri (LHDN) for automated dividend submission and tax returns

Maybank is targeting to raise its market share in electronic dividend payments to 70% from the current 30% by 2013 with the introduction of its enhanced eDividend system. The new system is set to bring to the market a host of additional benefits to customers including greater cost savings, convenience, security and flexibility.

The new system was launched at Menara Maybank today by Abdul Farid Alias, Maybank Deputy President and Head of Global Wholesale Banking (GWB). Also present at the event were Mohd Sait B Ahmad, Deputy Director General (Operations) of LHDN; Zailan Azhar Baharin, Head Counter Management, Market Operation of Bursa Depository and John Wong Tze Yow, Managing Director, Head Transaction Banking, GWB, Maybank.

Speaking at the event, Abdul Farid said that launch of the enhanced eDividend service was another milestone for Maybank’s online Cash Management system, Maybank2e.net. “This service incorporates best in class features including automated report generation, email and SMS notifications and the shortest lead time requirement of only 2 days before payment date for files to be uploaded.”

In addition, he said the Bank was the first in Malaysia to partner with LHDN to automate the taxation process of dividends, thereby eliminating the need for hardcopy tax vouchers. “This means that shareholders no longer have to fill this section in their income tax returns when using the e-filing service as all their relevant dividend payment records will be captured. We are working towards linking dividend payments and tax information to Maybank account holders through our popular online banking portal Maybank2u,” said Farid.

He added that the value proposition Maybank was offering to registrars and corporate clients through this new service included greater cost savings, convenience, security and flexibility.

“For a start, the auto generation of reconciliation files linked to our payments systems will ensure accuracy and punctual delivery of reconciliation reports which means straight-through processing. As a result, our service is more efficient as this reduces Maybank’s per transaction cost. This benefit is then passed on to our clients,” he added.

“We also offer better convenience and client satisfaction for both parties. Shareholders are kept informed of their dividend payments via email and SMS notification while registrars and corporate clients enjoy the flexibility of our system which can cater to customised file formats even though they are of differing operating systems.”

Maybank has long been a leader in electronic payments even before web-based solutions were introduced and now commands a client base of approximately 20,000 customers and a leading market share of 26% in corporate deposits. Its Maybank2e.net system processed over 80 million transactions valued at approximately 800 billion Ringgit last year, and has been growing at an average of 30% annually.

Abdul Farid explained that given the magnitude of electronic payment business through Maybank2e.net, and the strategic importance of many clients using this service, the Bank was well aware of it responsibility and role in ensuring that its system remains capable and robust to meet the growing payment needs.

“We are continuing to explore areas where we can use cutting edge technology to serve our clients better. In the next few months, we will be introducing even more capabilities to Maybank2e.net. We will also be leveraging on our regional network with the intention of cementing our leadership and boosting our offering in this segment.”

eDividend is one of the modules within Maybank’s electronic cash management system or Maybank2e.net. The other modules consist of Information Management, Payables Management Payroll Management, Receivables Management and Liquidity Management. Maybank2e.net was launched in 2003.