Bank Muamalat, Pos in expansion talks

Bank Muamalat Malaysia Bhd is in talks with Pos Malaysia Bhd to explore potential avenues to strengthen its presence by leveraging on the national postal company's national network.

Bank Muamalat chief executive officer, Datuk Redza Shah Abdul Wahid, said in a way, Pos Malaysia would offer a natural extension to the bank's operations with its extensive postal network in the country.

"We are looking at other models of postal banks around the world, like in New Zealand, Singapore and Switzerland, and see what is best for us in terms of cooperation," he said after the launch of Bank Muamalat's first Kiosk in Kemuning Utama today.

Currently, DRB-HICOM Bhd, which is a substantial shareholder in Pos Malaysia also has a 70 per cent stake in Bank Muamalat, aims to ultimately inject the Islamic bank into Pos Malaysia to widen the bank's branch network.

Redza said the bank was reviewing its expansion plans and studying ways to integrate the postal network into its operations, coupled with plans to increase its outreach by opening more Kiosk nationwide.

"The most important thing the Kiosk offers the bank is that it is
substantially cheaper by five to six times compared to the cost of opening up a new branch," he said, adding that banking transactions in the Kiosk were almost equivalent to some of its branches.

He said the Kiosk, which received warm response from the public, has generated about RM5 million in terms of business for the bank in less than 30 days of its operation.

"We will monitor the volume of transactions to determine our success factor, and once this picks up, especially in terms of financing, we will have more Kiosks," he said.

The bank aims to open 12 Kiosks across the country within two years, with the next Kiosk slated for opening in Johor next month.

The Kiosk is opened seven days a week and is not only equipped with automated teller machines but also staff to serve customers.

It offers services ranging from opening current and savings accounts, to retail, home and car financing, along with structured personal financing. -- Bernama