MALAYAN Banking Bhd (Maybank) sees revenue from its transaction banking business growing by a fifth in the next one to two years from nine per cent in the last year.
In Malaysia, transaction banking is a business dominated by foreign banks. Maybank aims to capture a bigger share of that market, having identified it as a significant revenue driver for the group, said John Wong, group head of transaction banking.
"It's actually an economic-cycle-resilient business (as) typical transactions will still occur in a downturn. In the past years, we've seen an average of 7-9 per cent growth from a volume and revenue perspective, and for the next one or two years, we're looking at 20 per cent growth," he said after the launch of eCustody service here yesterday.
Transaction banking, one of four businesses within the group's wholesale banking segment, involves activities such as cash management, trade finance and custodian services.
The newly-launched eCustody service enables institutional clients to manage their custody accounts with the group online.
Maybank is the first local bank to offer such a service and more are likely to eventually follow suit.
Maybank deputy president and head of global wholesale banking, Abdul Farid Alias, said the new service within its Maybank2e.net portal for corporates, includes features that put it at par with primary global custodian banks in Malaysia.
Currently, Maybank has 126 custody clients that include asset managers, government-linked firms and trustees. It hopes to convert 60 per cent of these to its eCustody platform by the end of 2012.
"Clients can make enquiries about their holdings via this new eCustody system without the need to call in or request for hardcopy statements. They can also send us instructions online instead of via fax or post, all of which will save them time and money," Abdul Farid said,
Assets under custody, which stood at some RM50 billion as at end-June this year, are anticipated to grow by 20 per cent in a year.
In Malaysia, transaction banking is a business dominated by foreign banks. Maybank aims to capture a bigger share of that market, having identified it as a significant revenue driver for the group, said John Wong, group head of transaction banking.
"It's actually an economic-cycle-resilient business (as) typical transactions will still occur in a downturn. In the past years, we've seen an average of 7-9 per cent growth from a volume and revenue perspective, and for the next one or two years, we're looking at 20 per cent growth," he said after the launch of eCustody service here yesterday.
Transaction banking, one of four businesses within the group's wholesale banking segment, involves activities such as cash management, trade finance and custodian services.
The newly-launched eCustody service enables institutional clients to manage their custody accounts with the group online.
Maybank is the first local bank to offer such a service and more are likely to eventually follow suit.
Maybank deputy president and head of global wholesale banking, Abdul Farid Alias, said the new service within its Maybank2e.net portal for corporates, includes features that put it at par with primary global custodian banks in Malaysia.
Currently, Maybank has 126 custody clients that include asset managers, government-linked firms and trustees. It hopes to convert 60 per cent of these to its eCustody platform by the end of 2012.
"Clients can make enquiries about their holdings via this new eCustody system without the need to call in or request for hardcopy statements. They can also send us instructions online instead of via fax or post, all of which will save them time and money," Abdul Farid said,
Assets under custody, which stood at some RM50 billion as at end-June this year, are anticipated to grow by 20 per cent in a year.
