Maybank to grow mart share in eDividend

by **hlk** Fri 12 Aug 2011, 21:14

Malayan Banking Bhd (Maybank) is confident of increasing its market share in the electronic dividend payment to 70 per cent by 2013, with an expected transaction value of about RM10 billion, following an enhanced eDividend system.

Maybank's current market share in electronic dividend payment stands at 30 per cent.

Deputy president, head, global wholesale banking Abdul Farid Alias said the enhanced online Cash Management System via Maybank2e.net, was the first linked to the Inland Revenue Board Malaysia (IRB) for automated dividend submission and tax returns.

The e-Dividend system officially launched today, will benefit customers with greater cost savings, convenience, security and flexibility, thereby eliminating the need for hardcopy tax vouchers.

"Being the largest national bank in the country with the first such system that's unique, more than five million consumer accounts, partnership with IRB, 70 per cent is achievable," he said.

The bank is looking at hitting 50 per cent by end of this year, he added.

Share registrars and public listed companies can now outsource payment of dividends, general offers, capital repayments and other such corporate actions to Maybank.

Currently, there are about 400 to 500 listed companies locally that pay dividends, he said.

As of August, Maybank had 161 counters represented by more than 16 registrars on board including the country's three largest registrars, namely Bursa Malaysia Securities as well, which in total capture more than 75 per cent of the local electronic dividend payment market share.

Maybank now commands a client base of about 20,000 Maybank2e.net customers with over 80 million transactions processed.

In the next few months, Abdul Farid said Maybank would roll out more enhancements and capabilities to Maybank2e.net as well as leverage its regional network.

The bank is confident that the e-Dividend service would help expand the acceptance of electronic payments among corporates as well as individual shareholders. -- Bernama