The newly launched Maybank eCustody service will be an enabler to take the Group’s electronic transaction banking services regional.
Maybank Deputy President and Head of Global Wholesale Banking, Abdul Farid Alias said that this new service provides the "final link" in the Group’s overall electronic transaction banking offering to clients.
Mr. John Wong, Managing Director, Transaction Banking Maybank and Encik Farid Alias, Deputy President / Head, Global Wholesale Banking Maybank demonstrating the Maybank eCustody service to the media.
He said this at the launch of the Bank’s eCustody service, which is the latest online module within its electronic transaction banking portal, Maybank2E.net. The service makes Maybank the first local bank to launch an electronic, front-end, internet-based platform offering institutional clients the flexibility of online management of their custody accounts with the Group.
Speaking at the launch in Kuala Lumpur today, Abdul Farid said Maybank eCustody was designed to ensure that it was best-in-class, coming with extensive client-driven features and at par with primary global custodian banks in Malaysia.
He said the service will immediately be made available to all Maybank’s existing custody clients which include asset managers, GLCs, Trustees as well as other financial institutions.
"We currently have more than 100 Custody clients, who in turn have more than 4,000 beneficiaries. We are expecting to convert 60% of our existing client base to the eCustody platform by the end of 2012."
Abdul Farid said that the main feature which differentiated Maybank eCustody from competitors was the unique dashboard summary on the home page. "This dashboard offers clients easy maintenance of each account and features a ‘traffic light’ function which alerts clients of upcoming corporate actions or meetings and enables them to act accordingly," he added. "Maybank eCustody clients will never miss out on important corporate actions that require attention and are assured of having a 360 degree view of their accounts."
Maybank eCustody promises clients better cost savings and convenience as well as improved efficiency and productivity. It enables them to make enquiries about their holdings without the need to call in or request for hard copy statements. In addition, they can send the Bank instructions online instead of via fax or email, which will be transmitted electronically in real time. These are integrated to the back end system for immediate processing, guaranteeing greater accuracy when executing client instructions.
Clients also enjoy better security through the new system as they can set multiple levels of authorisation. Authorised key personnel will be allowed to have dual factor authentication, and trade instructions would have to be authenticated before being transmitted. The system is robust enough for clients to send in as many trade instructions as they wish.
Clients will be able to customize five out of nine types of reports within eCustody to suit their needs. These formats may be in PDF, Excel or Text. Key reports offered by the platform include settlement reports, failed or cancellation trade reports, corporate actions report, shareholdings reports, substantial holdings reports as well as statement of holdings, which is available on a monthly basis.
Farid further added that eCustody was part of Maybank’s transaction banking capabilities which have become a significant revenue driver for the Group.
"In the last financial year ended June 2011, transaction banking revenue grew 9%. Within this, custody services recorded average growth of 10%. Now, we are expecting revenue from custody services to accelerate to grow by at least 20% in the coming year with our new service," he said.
Maybank has, in recent years, been expanding its capabilities in transaction banking, not only for retail clients but also for corporates through Maybank2E.net.
Farid said eCustody would be one of the enablers for Maybank to take its electronic transaction banking portal capabilities regional. "Today, with many corporates investing in the region such as in Indonesia, Cambodia, Vietnam, Singapore and Philippines, this presents us the opportunity to extend our electronic transaction banking services regionally," he said. "We are targeting to launch our regional electronic transaction banking service within the next year. It will incorporate custody services as well as cash management and trade finance."