Maybank targets 70% share with enhanced eDividend

KUALA LUMPUR: MALAYAN BANKING BHD [] (Maybank) plans to increase its market share in electronic dividend payments to 70% from 30% by 2013 with the introduction of its enhanced eDividend system.

It said the new system, launched on Friday, Aug 12 would bring to the market additional benefits to customers which included greater cost savings, convenience, security and flexibility.

Maybank deputy president and head of global wholesale banking (GWB) Abdul Farid Alias said 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,” he said.

Farid said Maybank was the first in Malaysia to partner with the Lembaga Hasil Dalam Negeri (Income Tax Department) to automate the taxation process of dividends, which would eliminate 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,” he said.

Farid said for registrars and corporate clients, 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 a client base of about 20,000 customers and a leading market share of 26% in corporate deposits. Its Maybank2e.net system processed over 80 million transactions valued at about RM800 billion last year and it has been growing at an average of 30% annually.