| Maybank banks on new online service
KUALA LUMPUR: Malayan Banking Bhd (Maybank) expects its trade finance sector to contribute 20% to the group's revenue in financial year ending June 30, 2009 (FY09), following the introduction of its new online trade finance service. The e-trade finance service, expected to be rolled out in April next year, is anticipated to contribute 20% to the group's revenue in its first year of implementation, and 25% for subsequent years, said senior executive vice-president, head of business banking Rozidin Masari after the signing ceremony for online trade finance services between Maybank and HCL (Malaysia) Sdn Bhd on Wednesday. Rozidin said the trade finance sector contributed 16%-17% to the group's revenue for the last financial year. At present, Maybank has more than 17,000 customers utilising its trade finance facilities, with about 3,000 business customers registered with Maybank2e.net, an integrated online enterprise cash management financial portal. "We aim to convert 10% of our Maybank2e.net customers in the first year of rollout to use this service and to grow it by 30% each year," said Rozidin. The online trade finance services via Maybank2e.net would "enable customers to utilise and monitor their trade financing activities and status online anywhere, anytime" said chief operating officer Datuk Johar Che Mat. The new e-trade service, targeted at small-medium enterprises (SMEs) is expected to further enhance Maybank's present SME market, said Rozidin. "We anticipate double-digit growth in SMEs and the commercial market for the financial year ending June 30, 2008 (FY08)," he added, in spite of only 1.1% growth in SME loans in its first quarter results ended Sept 30, 2007.
Sumitomo Trust, Aozora Bank to form broad business tie-up
Sumitomo Trust & Banking Co. and Aozora Bank announced Tuesday they will form a comprehensive business tie-up in the three fields of real estate, trust and asset management. The two banks made the decision to survive intensifying competition from megabanks, but they stressed they will not form a capital tie-up. By offering services and financial products to each other's customers, the two banks plan to strengthen their foundation for higher profitability. The two banks said they will first set up a "tie-up promotion committee" consisting of senior officials of both banks. The committee will decide on the details of the tie-up by March next year, including a possible expansion of the alliance beyond the three fields. According to the agreement between the two banks, an Aozora group company with strength in collecting debts will support the rehabilitation of Sumitomo Trust's debt-ridden client companies using their real estate.
Kenya: Top Dog Bank to Be Determined By Network Size
Ongoing branch network expansion will determine the winner of the war for dominance in Kenya's banking sector, a new industry report indicates. The report published by ThinkBusiness, a financial consultancy and publishing firm, says interest rates-based competition is being steadily relegated to the back banner by the quest for a wider reach and bigger customer base. .
Business briefs
Bank of American tapped Glencoe resident David J. Rudis to provide business, civic and philanthropic leadership throughout Illinois. The former LaSalle Bank head of personal financial services will have the title of market president, and will have operational responsibility for checking and debit product strategy, management and integration. He will report to Susan Faulkner, deposits and student lending executive. He replaces John Brennan, who plans to pursue other opportunities following completion of his role with B of A's acquisition of LaSalle Bank. Rudis began his banking career at American National Bank in 1976. TOY RECALL FALLOUT: .
Maybank Eyes 30 Pct Trade Finance Market Share
KUALA LUMPUR, No v 21 (Bernama) -- Malayan Banking Bhd (Maybank) expects to grow its trade finance market share to 30 percent in the current financial year ending June 2008 with the launch of its online trade finance services, Maybank2e.net. "Currently, Maybank has about 28 percent of the overall trade finance market share," said its senior executive vice president/head of business banking, Rozidin Masari. Rozidin said this after signing an agreement with HCL (M) Sdn Bhd here Wednesday. HCL, as systems integrator, will implement the online front-end trade finance solution for Maybank. He said trade finance business contributed about 17 percent of Maybank's overall income in 2006 and was expected to grow to 20 percent in the first year of Maybank2e.net roll-out. "Maybank2e.net, which is scheduled to roll out in April 2008, also caters to both conventional and Islamic trade finance needs of its customers in Malaysia and internationally," he said.
Summit targets small-business owners
A free informational session on business financing for small-businesses owners will be held in Honolulu Dec. 5. Hawaii-based mortgage banking company Meridian Financial Network is sponsoring its first Small Business Summit, which it plans to hold annually. The company, a U.S. Small Business Administration-approved lending institution, said the half-day session will help familiarize small-business owners with both in-house and government loan programs, including SBA loan programs. The SBA offers loan programs to help small businesses obtain financing when they might not be eligible for conventional bank loans because of a lack of financial history. Speakers at the session will include Andrew Poepoe, director of the SBA's Hawaii District office; Jim Tollefson, president and CEO of the Chamber of Commerce of Hawaii; and Keith Ogata, director of S.C.O.R.E.
Banks missing opportunities to better serve small business - CFIB
Despite saying it wants to increase service to small- and mid-size business, Canada's banking sector is making little progress, the latest research from CFIB shows. Banking Matters reveals dwindling satisfaction with major financial institutions, with only two improving their rating since the previous survey in 2003. "Since the late 1980s fewer and fewer small business owners have applied for bank financing," CFIB President Catherine Swift explains. Small business loan activity has remained fairly stable since 1988 while loan activity for larger businesses has increased significantly. "This trend shows the banks may be missing opportunities for growth with the small business sector that accounts for 45 per cent of the Canadian economy," Swift says. "You have to question whether banks are meeting the borrowing needs of small businesses." CFIB asked members to rank their financial institution on nine performance indicators, including lending terms, service charges, access to full-service branch, online banking and treatment by their account manager.
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