Looking At The Maybank ATM Machines
Maybank was founded by Malaysian business tycoon Khoo Teck Puat, who died in 2004. Amirsham Abdul Aziz. Dato’ Sri Abdul Wahid Omar was officially appointed as President and CEO of Maybank Group in May 2008. (http://www.maybank2u.com.my/)
Today, it is the largest financial services group in Malaysia. Its extensive products and services include commercial banking, investment banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring, trustee services, asset management, stock broking, nominee services, venture capital and Internet banking. (http://www.maybank2u.com.my/)
Maybank currently ranks among the top five banks in ASEAN, and is a Qualifying Full Bank (QFB) in Malaysia. For the convenience of Maybank customers, all Maybank’s 374 branch offices and more than 2,800 ATM machines are strategically located in both the business districts and suburban estates.( http://www.maybank2u.com.my/)
Today, Maybank proudly stands above its peers as Malaysia’s flagship financial services group in a vibrant, strong and highly competitive banking and financial services landscape. Total assets of the Group stand at RM310.7 billion.( http://www.maybank2u.com.my/)
Chiefly, the environmental factors are categorized into two different groups, they are internal and external. Internal factors are taken place within the boundaries of organisation. Specifically to the case of Maybank, there are few significant internal factors that they are subject to will be examined such as products and services, vision and mission, SWOT analysis, and Leadership.
2.1 SWOT analysis
– well known bank 374 branch offices in Malaysia.
– more than 2,800 ATM machines
– Correspondent banking relationship with 700 foreign banks throughout the world.
– Strong performance where it was listed second largest in Malaysia Stock Exchange and Bursa Malaysia
-Inefficient Service and poor customer Service.
– Have to pay huge amount of money to stakeholder
-experts in the industry and shares their experience with the employee
– Maybank have many other investments from other companies
– Economic slowdown like right now where stalling economies are bad for the banking sector
Table 1.0 SWOT analysis
It is a well known bank where it have over 374 branch office and more than 2,800 ATM machines. Correspondent banking relationship with 700 foreign banks throughout the world. It also have diversity in product where they provide opening account, giving loan, credit cards, investment & insurance, and Islamic banking.(http://www.maybank2u.com.my/)
Strong performance where it was listed second largest in Malaysia Stock Exchange and Bursa Malaysia and Maybank workforce come from a multifaceted background of skills, disciplines, experience and industry knowledge to create talented teams of idea generators.
Inefficient Service and poor customer service, for example Maybank does not have bank systems be automated with built-in security features to verify their customer’s accounts and details without having to rely on a piece of physical paper with a signature. This would make customer harder to replace card or change account if go to different branch. This kind of service is totally unacceptable in today’s competitive world where time equals money.
Have to pay huge amount of money to stake where dividend payout ratio (of 60%) to the stakeholders. They set policy to pay dividend of 60% percent of their profit as the long term policy.
Growth of existing market where Maybank is experts in the industry and shares their experience with the employee so by then they can expand further in the industry.
Maybank have many other investments from other companies and expand its operations in Vietnam, China, Philippines and India. (http://www.maybank2u.com.my/)
Economic slowdown like right now where stalling economies are bad for the banking sector as it impedes loans growth which is the sector’s bread and butter (borrowers become more cautious) and it stirs up bad loans (due to the burden of rising borrowing cost) which in turn erodes a bank’s financial comfort.) The job is made harder by a brutally competitive landscape
HSBC and how it has grown from the Hong Kong and Shanghai Banking Corp in the past to becoming a truly global bank today. They were even been bold enough to venture into Islamic Banking and created HSBC Amanah at a time when most banks, especially foreign ones, were figuring out what Islamic Bank was all about and were skeptical.(http://www.hsbc.com.my/1/2/personal-banking/deposits/basic-current-and-amanah-basic-current-account-i)
2.2Product and service
Maybank product and service range includes commercial banking, investment banking Islamic banking, offshore banking, insurance and takaful, factoring, trustee services, asset management, stock broking, nominee services, venture capital and internet banking.Maybank has consistently set new benchmark for the product and service delivery by achieving many firsts in the industry which include the first to introduce a rural credit scheme, mobile banking services, internet banking and receivable financing on a non-recourse basis.( http://www.maybank2u.com.my/)
The product is designed to satisfy a certain need and normally is sold in a competitive environment and so that product success is very much driven by market forces and must compete on cost, quality in the board sense, and delivery time.(Derek L.Waller 2003,page 147)
In an effort to reinforce service quality standards and continuously promote service excellence, the Maybank implements various programmes such as customer sales, and service training programmes, service standards monitoring, and customer surveys.
In Maybank, it has several different type of savings account services provide to the customer.Example for the savings account products are Golden Savers Saving Account, specially tailored for senior citizens, retirees and those planning for early retirement. This account offers high returns and a host of other benefits and discounts meant to enhance your golden years. Yippie saving account a saving account designed for children aged below 18 years old.Children can start an account with as little as rm1, and enjoy monthly dividend on a profit-sharing basis. (To get more information, please refer to appendix 1 and appendix 2) (http://www.maybank2u.com.my/)
2.3 Vision and mission
The visions of Maybank are “To be a leading regional financial services group by 2015.”
An organization need to have effective operation management effort must have Mission, it will help them knows it is going and provide boundaries and focus for organization. Maybank mission are
1) To be the top five financial services group in South/South East Asia, by size and
2) Undisputed leadership in Malaysia, across all high margin/profitable products/segments
3) Truly regional organization, with 40% of gross loans derived from international
4) Recognition for delivering innovative and superior value proposition to customers
5) Top quartile employer of talent in each of our markets.
(To get more information please refer to appendix 3)
Figure 1.0 Leap 30 Performance Improvement Programme
Maybank is committed to inculcating a leadership culture which not only encourages high impact communication but also values ideas and feedback. Active communication is the key to ensuring Maybankers are well-informed and knowledgeable about the Group’s operations, business strategies and management decisions.
As part of Maybank vision to create world-class managers, Maybank have a robust Leadership Model built on the leadership philosophy and competencies that are required to support the Group’s aspirations. Maybank’s leadership philosophy describes the essence of a great leader guided by the corporate values of teamwork, integrity, growth, excellence, efficiency and relationship building. The leadership competencies serve as a guideline for assessment of leaders and reiterate the six core competencies that every Maybank leader should have. These are strategic thinking, a spirit for achievement, ability to develop talent and cultivate relationships, being customer-centric and the desire to innovate and change. (http://www.maybank2u.com.my/)
In order to increase the effectiveness of maybank staff, a Mentoring programme was introduced for the succession plan candidates of identified C-suite positions. Foundation programmes within Maybank’s Personal & Managerial Effectiveness Learning Roadmap were also structured for entry level and executive positions while intermediate programmes were targeted at team leaders and new managers. The advanced programme promotes a talent development culture which places emphasis on leadership across all boundaries. One such example is the Maybank Great Manager (MGM) programme aimed at improving managerial skills, capabilities and knowledge. In 2009, a total of 103 Human Capital workshops involving the participation of 2,000 managers were completed.(http://www.maybank2u.com.my/) Maybank Annual report 2009
3.1Political and Legal
The operations of Maybank are affected by the government policies on the regulations of banking industry. Currently government are controlling the marketing of banking industry because of responsible for promoting a stable monetary and financial structure.. Governments also control the license given for open the banking industry and other legislation need to follow such as Central Bank of Malaysia act 2009,Banking and Financial Institutions Act 1989(BAFIA), and Exchange Control Act 1953. (http://www.bnm.gov.my/index.php?ch=14)Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market. Maybank should also protect its workers by ensuring all the hiring, compensation, training or repatriation is according to Malaysian Labor Law as stipulated. Example Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Group and the Bank.(http://www.maybank2u.com.my/)
The year 2009 was tough would be an understatement given the upheaval created worldwide as a result of the global financial crisis that saw financial giants fail or requiring Government support. In these difficult times, Maybank remained prepared and strong. Maybank was able to withstand the challenges of a highly stressed and competitive operating landscape given its strong capital and liquidity position, and continued to play a significant role in ensuring that credit remains available to help the Malaysian economy and to support Malaysian business and consumer economic activities. Example For the year ended 30 June 2009, Maybank recorded higher revenue of RM10.5 billion compared to RM9.6 billion last year. However, net profit was lower at RM691.9 million compared to RM2.9 billion recorded in the previous year. The lower profit was largely due to higher loan loss provisions, interest on the additional RM9.1 billion securities and subordinated debts issued in 2008 as well as the impairment charges in relation to its investment in BII and MCB Bank of RM1.62 billion and RM353 million respectively. Excluding the impairment charges and the reversal of the allowances for the non-refundable deposit for the BII acquisition, Maybank Group’s core profit after tax stood at RM2.18 billion. ( (http://www.maybank2u.com.my/)( To get more information please refer to appendix 4)
The changing lifestyles of Malaysia due to development of Malaysian economy should be also taking into consideration. While more people are able to purchase car and house, there are a number of housing loan and hire purchase packages that have been developed in the market to suit the particular needs of the borrower. They want to have greater innovation, value, quality in services and more conveniences that can differentiate one bank from another. Besides that, Consumers want technology in their life and facilities such as credit card payment, online banking channel for payments or opening a bank account. All these needs should also be taken into consideration. For example Maybank online portal has the largest number of payee corporations. Close to 700 types of bills can be paid via Maybank2u.com (http://www.maybank2u.com.my/)
Technology is widely recognised by various literatures on strategic management (Capron and Glazer, 1987; Johnson and Scholes, 1993).Over the past few decades the impact of technology, in particular information technology, is undisputed in almost every aspect of banking industry. Currently, Maybank is the established market leader in online banking in Malaysia, with the largest user base of 3.8 million customers and the highest number of web based product offerings online. Maybank2u.com was voted as the Best Brand for Banking Online and was awarded the Brand Laureate Award by the Asia Pacific Brands Foundation. Besides that, Maybank employ the latest in encryption technology to ensure safety and confidentiality of your transactions.
Maybank has a strong policy that supports environmental issues. Maybank efforts to reduce its carbon footprint encompass both its operational as well as product offerings.
In daily operations, environment-friendly practices are constantly encouraged. This includes recycling of paper, electronic communication, utilising energy-saving practices for lighting and air-conditioning as well as centralised printing to reduce use of individual printers and consumables. Example in introducing new products, Maybank is offering more paperless transactions, implementing electronic payment and online statements. The new American Express Gold Credit card provides online statements, while the nation’s first Online Bill Presentation service with Tenaga Nasional Berhad introduced electricity bill statement and online payment via Maybank2u.com.( http://www.maybank2u.com.my/)
4.0 Influence of policies and decision making on E- business
E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA) or automated teller machine (ATM).( Institut Bank; Bank Malaysia)
4.1 Influence of policies and decision making on E- business to customer
4.1.1ATM (automated teller machines)
Automated teller machines providing banking services, in particular cash dispensing service which facilitate direct withdrawals from deposit accounts and check account balance at previously unfeasible location and time. ATM are efficient in dispensing controlled amount of cash rapidly and accurately. To move customer to more efficient delivery channel, ATM handle other simple transactions, which are often categorized as being of low value to the bank.(Institut Bank ;Bank Malaysia)
Maybank provide more than 2,800 ATM machines are strategically located where customers require cash to make purchases, such as at shopping centres, PETRONAS petrol service station or outside the branch premises. Maybank customers are able to conduct banking transactions after normal office hours. Maybank ATM performs banking transactions including cash withdrawals and funds transfers at customer preferred time; convenient access to cash, in local currencies, when customers are overseas. .( http://www.maybank2u.com.my/)
With the growth and maturity of online statement delivery, paperless statements are fast becoming the norm in the banking industry. Paperless statements under different service tags ranging from E-Statements, Email Statements, PDF Statements and Online Statements. Paperless statement can be made available through emails, e-banking services or over websites and are usually free of charge.
Maybank bank is offering more paperless transactions, implementing electronic payment and online statements Example the new American Express Gold Credit card provides online statements, while the nation’s first Online. Customers are also being to switch to online statements instead of receiving printed copies. It is easy n convenient for customer to tracking personal financial and mange personal account online any time. (http://www.maybank2u.com.my/)
4.1.3Credit card(online transaction)
A plastic card that allows a person to purchase goods and services by paying with money borrowed from a creditor. The borrower then repays the credit card company, often with interest. The borrower doesn’t always have to pay interest, because paying the debt off on time might not result in interest being charged.
Credit card is often the most convenient method around when customers need to buy something important or when customers need to fund an emergency that occurs. Maybank offers a wide variety of credit cards. There are different types to suit different lifestyles and needs. There is the Maybank-Sogo Visa Card in Classic and Gold, The Classic and Gold MasterCard and the Classic and Gold Visa card. The Maybank credit card payment online service is a facility that is available to customers. The valued customer can pay a variety of bills over the internet by using a Maybank credit card. It saves plenty of time that would be better spent on other pursuits and projects. ( http://www.maybank2u.com.my/)
There are rewards to be had when customer use the Maybank credit card payment online service. Customer becomes eligible for points under the bank’s GiftPoints programme when customers use their Maybank credit card to make purchases over the Internet. (http://www.maybank2u.com.my/)
Improve on its policy of meeting the customer needs efficiently and effectively by assisting the commercialisation of e shopping. Customer can find it convenient and easy to online shopping from the comfort of their home or office. Maybank offer variety of product service online such as electronics, gift and collectibles, health and beauty, kids and newborn, branded fragrances, clothing and travel gear. (http://www.businessdictionary.com/definition/online-shopping.html)
Maybank Customers can purchase a variety of products and services online and pay conveniently by direct debit from their Maybank Savings and Current Accounts Maybank2u.com Cyber Mall offers convenient and reliable online shopping. Maybank number one focus is customer satisfaction. Customer can expect quality merchants, value for money and take advantage of special offers. Enjoy shopping at customer own convenience from customer home or office with the assurance of a secure connection. Maybank trust that shopping at Maybank2u.com Cyber Mall will be a rewarding experience.( http://mall.maybank2u.net/main.jsp?pageid=Home)(To get more information, please refer Appendix 6 )
4.2Influence of policies and decision making on E- business to business
The flagship B2B cash management system from Maybank, Maybank2e.net, remains a sought-after solution as it maintains its cutting-edge lead in managing complex financial supply chain and working capital activities under a well integrated platform. The system has expanded its capabilities and currently contains six different modules: Information Management, Payables Management, Receivables Management, Liquidity Management, and Financial Supply Chain and Corporate Services.
The cash management front is becoming increasingly demanding where companies have to efficiently manage liquidity across their businesses. A strong testimony to Maybank our commitment is the number of awards accorded by international organisations to Maybank2e.net including FinanceAsia Best Cash Management Bank Country Award 2009, Best Cash Management Bank for Malaysia Asset Triple A Transactional Banking Awards, Best Local Currency Cash Management Services 2008 Award by AsiaMoney Polls and Alpha SEA Best Cash Management Bank Award. (To get more information, please refer to appendix on title of Award and Recognition.)
Electronic payment is any digital financial payment transaction involving currency transfer between two or more parties (source: World Bank) Internet is usually believed to be the only mode. In reality e-payments cover a much broader range (phone, interbank networks, etc)(http://www.intracen.org/e-trade/docs/nepal/catani.pdf)
Maybank2e.net e-payment represents a revolution in the manner in which customer business is able to execute payment transactions. It caters for a complete range of payment transactions such as funds transfers and local / foreign remittances. Maybank e-payment also provides a comprehensive payroll service, allowing customer to automatically credit employee salaries directly into their designated accounts. Convenience is offered via the ability to submit contributions online to statutory bodies such as Employees’ Provident Fund (EPF) and Social Security Organization (SOCSO). (http://www.maybank2e.net/is_epayment.shtml)
Submitting payments online increases the efficiency of the payment process by cutting down manual tasks and processes. Payments can be made to both Intrabank (within Maybank Group) and Interbank (other local banks) accounts through the GIRO and RENTAS platforms. All transactions are guaranteed total security with Maybank leading edge security infrastructure. With online reporting, customer access to accurate and timely information for account reconciliation. Customer can view their file status, download processed files or print a summary of the processed files.
Maybank2e.net is highly committed in ensuring that all transactions performed through www.maybank2e.net are secure, safe and confidential. The security features of Maybank2e.net have been tailor-made to meet the requirements of corporate users. Maybank2e.net is located within the internal security system of the bank, which provides firewall systems, strong data encryption (128-bit SSL), anti-virus protection and round-the-clock security surveillance systems. Beside that, regular security reviews of Maybank systems by Maybank internal system auditor as well as external security experts. In additional, Maybank2e.net has incorporates a comprehensive security infrastructure, utilising binding encryption on all data transmission. Security control is further enforced via audit trails, dual control access levels and re-authentication. This guarantees that corporate user transactions are protected, private and secure at all times.
5.0Effectiveness of e-business in Maybank
Maybank’s Consumer Banking is anchored by its strong franchise, which encompasses the most extensive ATM network coverage in Malaysia. Maybank maintains the lead in having the most number of largest ATM network in the country with market share of 32%. During the year, Maybank installed 92 Off-Bank ATMs throughout Malaysia. In January 2008, the branch network was migrated from a legacy framerelay system to an Internet Protocol Virtual Private Network (IPVPN), leading to reduction in network complexity, easier network management and improved cost effectiveness as well as exchange of encrypted confidential data. Currently the IPVPN service operates at more than 400 branch networks, over 2,800 ATMs and 160 point-of-sales merchant networks.
Figure 2.0 Number of Maybank ATM and CDM
From Figure 2, it shows that, Maybank has increased their number of ATM machine by 107% from 1356 to 2804 in year 2005 to 2009. Beside that, Maybank has increased their number of CDM machine by 87% from 485 to 910 in year 2005 to 2009.
Maybank2u.com is the No.1 Internet banking website in Malaysia with 3.8 million registered users and a market share of over 54%. The strong growth during the year was attributed to innovative product offerings through electronic commercial transactions as well as a shift from simple fund transfers to more complex transactions. Example the First Public Report of Online Usage in Malaysia released by comScore – a leader in measuring the digital world, listed Maybank2u.com as the top local site in Malaysia. The report includes a ranking of the most visited Internet properties and top visited local-based properties, based on the comScore World Metrix service. In June 2009, 9.3 million people in Malaysia age 15 and older accessed the Internet from home and work locations, with each consuming an average of 1,066 pages of content and spending nearly 14 hours online during the month. Maybank2u.com topped the list as the most visited local site, with more than 1 million visitors, reaching nearly 12 percent of all Malaysians online, making it the most engaging site of the top 10 Malaysian properties.
Table 2.0 Top 10 sites in Malaysia
5.3 New Electronic Services
Maybank introduced the All-new, All-you Maybank2u.com by revamping Maybank existing website with new features in compliance with web 2.0 technology. Maybank also kicked off Malaysia’s first online bills summary by a bank, My Bills. Initially launched with Tenaga Nasional Berhad, users can now also view, pay and save DiGi and TM bills via this facility.
Additionally, Maybank online portal enables users to make additional ASB investments online, the first and only facility in Malaysia. Launched by the Prime Minister on 21 April 2009, the facility also allows third party investment in ASB.
Currently, Maybank online portal has the largest number of payee corporations. Close to 700 types of bills can be paid via Maybank2u.com. This will be further bolstered with additional Government-partnered initiatives such as online payments for Agensi Kaunseling dan Pengurusan Kredit, Skim Simpanan Pendidikan Nasional and the Ministry of Finance Housing Loan Scheme.
6.0Area to improvement
6.1Hire expertise, provide training
Maybank should hire more expertise in order to implementation and administration e-banking efficiently and effectively. Beside that, Maybank should provide a holistic approach enhancing employee skills and competencies through its online e-learning programmes. The programmes include upkeep, maintenance, security and implementation of networks. All crew members should be well-trained before sending them to work career.
6.2Improve quality of maybank website (www.maybank2u.com.my/)
Maybank should consume extensive amounts of time and money to define, design, develop, test, implement, and maintain website in order to improve the quality of e products and service. Beside that, Maybank staff should treating complaints seriously and resolving them as quickly and fairly as possible.If Maybank wants their Maybank2u.com to be popular among online banking website it should leave the user with a positive impression about the organization, so consumers can get an impression that the company cares about them.
6.3Increase online security
Maybank should ensure that all transactions performed through their online financial service are secure, safe and confidential by installing the latest firewall systems, strong data encryption, anti-virus protection and round-the-clock security surveillance systems to detect and prevent any form of illegitimate activities on maybank network systems. Beside that, keep on update privacy protection control systems when new versions are released. So that Maybank customers can enjoy Maybank Internet Banking with total peace of mind.
6.4 Increase Maybank e shopping
At Maybank2u.com Cyber Mall, Maybank offer variety categories such as electronics, gift and collectibles, health and beauty, kids and newborn, branded fragrances, clothing and travel gear but each category provides few or even none of product and service. Example the travel gear didn’t provide any product or service. Maybank should find more potential and quality partner merchant, to provide more product and service to satisfies customer need and want. Beside that, Maybank need to provide multiple images from different angles for the product. An image in each color, of the front, back, and sides, and even detailed shots of specific features can all go a long way toward making a consumer more likely to buy.
In conclusion, this report analyzes both internal and external environment of Maybank, a largest financial services group established in Malaysia. Due to the length constraint of the report, there are only significant environmental factors are analysed in terms of their influence on the organization and the organization’s response towards environmental changes.
Internal environment factors are analyzed include products and services SWOT analysis, Vision and mission, and leadership,. Any product or policy of a company has to reviewed and make change accordingly that fit to the contemporary needs of the organization. Example the Maybank Great Manager (MGM) programme aimed at improving managerial skills, capabilities and knowledge.
The external factors are political, economy, social, technology, environment and legal. Five of these factors exert tremendous pressure on Maybank business operation especially the economical factors. For Example result of the global financial crisis that saw financial giants fail or requiring Government support. Maybank remained prepared and strong. Maybank was able to withstand the challenges of a highly stressed and competitive operating landscape given its strong capital and liquidity position.
The second part of the report analyzes the influence of e- business toward Maybank in terms of policy and decision making. Besides, the effectiveness of response to those concepts is studied as well.
Lastly, there are few recommendations have been suggested to improve their current initiatives of knowledge management and learning organization concept. For instance, Maybank could move themselves even closer to success in e-business by Improve online security, improve maybank e- shopping, improve quality of maybank website and provide training and hire expertise.
Derek L. Waller, 2003, Operation Management, Italy, Gray Publishing.
Capron, N. and Glazer, R. (1987), Marketing and Technology
Johnson, G. and Scholes, K. (1993), Exploring Corporate Strategy
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Appendix 1: Golden Savers Savings Account
Appendix 2: Yippie Savings Account
Appendix 3: Strategic Transformation Plan and Leap 30 Performance
Appendix 4: Five-Year Group Financial Summary
Appendix 5: Five-Year Maybank2u registered users and active users
ô€‚ƒ€ Active Users: 1.32 Million
ô€‚ƒ€ Payee corporations: More Than 700
ô€‚ƒ€ Monthly Transactions: Over 51 Million
ô€‚ƒ€ Monthly Value: Over RM 3.6 Billion
ô€‚ƒ€ Concurrent users: 20,000 (Peak)