1. Background Analysis

1.1 A Brief History of Maybank

Malayan Banking Berhad (Maybank) is the largest banking and financial services group

in Malaysia, founded by Malaysian business tycoon Khoo Tech Puat in 31 May 1960. Maybank

became the first bank in Malaysia, that computerizes its savings and current account services in

October 1978, set up an ATM at its Ampang branch in Kuala Lumpur in September 1981, offer

Autophone for making customers the convenience of conducting their banking transactions and

payment of selected utility bills through a computerized telephone service in September 1992,

offer internet Banking service through its online financial portal www.maybank2u.com in June

2000. Maybank also is the first bank in Malaysia that offer Malaysia Bancassurance services and

become the No.1 in Bancassurance business.

Maybank is the leading banking group in South East Asia for over three and a half

decades. Maybank expand internationally with a network of over 1750 branch offices in 14

countries and major financial centre in London, New York, Hong Kong and Singapore, it has

correspondent banking relationships with 700 foreign banks throughout the world. Maybank

also has the largest asset, amount more than USD100 billion, and about USD18.6 billion of

market capitalization, USD9.1 billion of total equity and USD1.2 billion of total net profit.

Maybank offers a range of services from commercial banking, investment banking, financial

services, insurance, trustee services, factoring, asset management, stock broking, property and

unit trust fund management to venture capital.

Maybank set up vision of to be a regional financial services leader and mission of

humanizing financial services from the heart of ASEAN, objectives of No.1 retail financial

services provider in Malaysia by 2015, leading ASEAN wholesale bank by expand to Middle

East, China and India, domestic insurance champion and emerging regional player, truly regional

organization with 40% of pretax profit from international operation by 2015, become the largest

Islamic bank in ASEAN, look for growth opportunities and maximize value of shareholder.

Maybank operates with teamwork, integrity, growth, relationship building, excellence and

efficiency as their core values.

1.2 Main Activities of Maybank

Transformation journey (LEAP30) is one of the main activities that began in 2008.

LEAP30 act to remain its leadership and regionally position in the financial industry with

strategies of improving the quality of operations, looking for opportunities and focus on

execution operation. Wave I 2009/2010, the first wave of Maybank that aim to create momentum

of consumer, enterprise, investment, Islamic banking, insurance, international business,

operations and human capital development. Wave II is the converging aspirations by synergies

between companies. Company need to change new management skill to support this

transformation journey. Wave II 2010-2015 aim to expand regional businesses on Malaysia,

Singapore and Indonesia.

Another activity is focus on managing information technology. Improving operational

delivery of current and future IT services, finding the solution to improve the ability to align

bank’s IT strategy, reduce cost, improved level of consistency, quality and flexibility in service

delivery, looking for innovation, global knowledge and process expertise. Dividend

Reinvestment Plan (DRP) also is a part of Maybank’s activities. DRP tends to conserve and

manage its capital. RDP enablse Maybank declare dividends to shareholders either receive the

dividend in cash or reinvest the dividend into new Maybank shares. The reinvestment in new

Maybank shares will increase the value of shareholders as the shares are issued at a discount of

up to 10%. This will help Maybank to remain a portion of its capital and the capital become

Maybank’s dividends.

2. Types of Contemporary Information System

The three types of Contemporary Information System used by Maybank Berhad Malaysia

are payment system, Internet Banking System and Analytical Customer Relationship System.

2.1 Hardware and Software

i) Automated Teller Machine Service

Maybank Kawanku Automated Teller Machine(ATM) service is a self-serve banking

facility that enables Maybankard credit or debit holders pay bills, loans and many others as well

as one can withdraw cash from the ATM. This service is available from 6 am to 12 am

throughout the week and in some selected locations only and it serves for 24 hours a day.

Maybank Kawanku ATM needs mainframe computer to support the services. Maybank

Berhad spent a high cost in mainframe computer for the purpose to deliver a better service to

customer. Maybank Berhad is using Safety Assurance System as the software that run in ATM

system which ensure that the risks associated with the use of software in safety related ground-

based ATM systems, are reduced to a tolerable level.

Maybank Kawanku ATM service allows their customer to perform many self service

banking transaction outside regular banking hours. The main function is enables card holders to

withdrawal money upto a maximum limit of RM 5,000 per day. Beside this, some other basic

functions like account balance inquiry, PIN change, pay bills, fund transfer and interbank fund

transfer also can be done at Maybank Kawanku ATMs. Futhermore, customers now can enjoy

the convenience of reloading their Touch n Go card or prepaid mobile at Maybank Kawanku

ATMs. Other than that, Maybank Kawanku ATMs also provides Electronic Share

Application(ESA) which is a facility provide Maybankard holder to subscribe to new share

issues via the ATM.

ii) Internet Banking System

Online banking or internet banking is a service that allows customer to conduct financial

transactions on a secure website operated by their bank or credit union. In this sector, Maybank

is providing Bills and Statements that enables customer to manage their bills, bank statements

and advices online.

Hardware which supports online banking must support web application development and

management with a smooth integration into a main banking information system. Maybank is

using a mid-range client/server hardware configuration with several enhanced features. However

for the supporting software, Maybank applies Electronic Banking Software in order to support

Bills and Statement services. Electronic Banking Software is a uniform electronic facility that

enables Maybank clients to monitor their account and processing transaction via internet.

According information stated at www.maybank2u.com.my, Bills & Statements provides

customer a chance to view statements of savings accounts, current account, credit card and

trading accounts. Beside this customer also can viewing statements and bills out of Maybank

such as bill from Telekom Malaysia, Tenaga Nasional Berhad or even Digi postpaid bill. Bills

and statements enable customers to view and save their banking advice and notices. This include

credit advises such as Rentas, Inward Telegraphic transfer, Foreign Cheque, GIRO Inward,

GIRO Inward Return and debit advices such as Foreign Cheque. Those bills and statements will

be saved and kept on a secure platform up to 3 months.

iii) Customer Relationship System

Customer relationship management (CRM) involved all aspects of interaction that a

company has with its customer, clients and sales prospects. Customer relationship management

is treated as an important activity for Maybank. By understanding customer better, Maybank has

invested in the Analytical Customer Relationship management (aCRM) system to improve their

knowledge about customer experience, customer loyalty and profitability. The aCRM not only

enables Maybank to meet the current expectation but also future expectation.

Referring to the annual report, Maybank is using mainframe computers as its hardware to

run aCRM. For the software part, Maybank uses Oracle Data Integrator to support their aCRM

system. Oracle Data Integrator is a comprehensive data integration platform that covers all data

integration requirements and supports data extraction, loading, and transformation process from

source system to aCRM marketing data mart.

The aCRM could strategically help Maybank to leverage their customer information at

the right time. After applying the system, Maybank is able to effectively analyze, predict,

influence and better understanding about the customer behavior and their propensity. In addition,

the aCRM system is also being used to conduct an effective communications to improve

customer acquisition, cultivation, retention, loyalty, and profitability. Analytical Customer

Relationship management support predictive modeling to indentify highly profitable customer at

risk for attrition, so Maybank can increase customer retention by offering what they actually

need.

2.2 Advantages and Disadvantages

Payment System

i ) Autodebit Clientele Module

The payment business provided by Maybank included payment services, remittances,

ATM services and Forex business. One of the recent payment services that offered by Maybank

is Autodebit Clientele module. The advantage of using Autodebit Clientele module is Maybank

will automatically deducted from their customer bank account for paying the bills, thus providing

convenience to their customers. Maybank offers the flexibility payment to their customers such

as monthly, quarterly, and yearly. Autodebit will make payment on time thus helps the customer

avoid paying penalty as the result of late payment. Autodebit Clientele module is a safe and

secure payment system. The most important is customers need no to be charged the

administrative fees for using Autodebit Clientele module.

The disadvantage is, after the customers applied the Autodebit Clientele module,

Maybank will automatically debit the customer bank account on time. If customers were running

short of cash, they are required to inform the bank in order to avoid the risk of overdrawing their

accounts. Besides, if there is insufficient fund available in the customer account, the customers

are required to pay the costly penalty.

ii) Automated Teller Machines (ATM)

Automated Teller Machines (ATM) provides convenience to customers since customers

can withdraw the money at anytime anywhere with that kiosk available. It also provides benefit

to the travelers because they can withdraw the money in any states or even outside the home

country. As stated at the link below, ATM card holders of Maybank Malaysia can withdraw the

money at Philippines, Singapore, Brunei and Indonesia. Nowadays, ATM had been installed off-

site which is away from the bank such as 7-eleven, shopping mall and installed on-site which is

inside the bank. ATM also eases the work of the bank’ staff as customers can do the transaction

by themselves.

The disadvantage of ATM is Maybank requires constantly funding the cash into the ATM

allowing their customer to withdraw. Some of the ATM located at the city which required

Maybank to funding the cash into ATM frequently. Maybank will face the risk of robbery at the

time when the staff places the money into ATM. In addition, the transaction fees of RM1 will be

charged when customer withdraw their money by using the ATM provided other than their own

bank.

Analytical Customer Relationship Management (aCRM) System

Maybank has won the CRM Excellence Award 2010 for its high level performance.

Maybank introduced the Analytical Customer Relationshp Management (aCRM) system in 2007.

By implementing aCRM system, Maybank is able to understand more about theirs customer’s

behaviors, hence can satisfy their customer needs as well as improve the customer loyalty and

retention by using the data collected. The aCRM system of Maybank is not only meeting the

customer current expectations, but also their future expectations and ultimately leads to an

increase in revenue. After Maybank launched aCRM system, Maybank gained RM 3.0 billion in

new sales in year end of 2009.

On the other hand, by applying aCRM system, Maybank is required to backup the

information of their customers in data warehouse, which will be a burden in cost for Maybank.

Besides, the staffs of Maybank need to be trained in order to use the system. The training will

take quite some times before the staffs are fully expert in using it. Thus, there will be an idle in

production.

Internet Banking System

Internet banking launched by Maybank enables the customers to perform their financial

transaction anytime anywhere. Maybank offers a variety of online services included online bill

payment, online purchase insurance which is eMotor Takaful and Personal Accident policies and

so on.

Besides, Maybank can achieve time and cost saving by using the internet banking system

as Maybank is able to deal with numerous customers at the same time and reduce the expenditure

of the paper forms and slips. As stated at the annual report of Maybank 2010, Maybank had

achieved RM 6.8 million in cumulative cost savings as at June 2010 from its migration to e-

statements, which eliminated the need to print customer’s account statements and mail them. As

compare with conventional banking, customers now can access to their information regarding

their balance of saving account as well as current account through internet. If the customer found

that any amiss with their balance, they can quickly inform the bank.

The disadvantage of the internet banking is lack of personalization customer service. By

suing internet banking, customers are not able to make enquiries face to face with the staffs in

the bank. The major concern is still security. Although Maybank will often upgrade their

internet banking system, some of their customers may not fully trust on internet services due to

the issue of hacker. Moreover, to apply internet banking, the steps are fairly complicated. This

will cause inconvenience to the elderly person because it is difficult for them to catch up the

latest technology.

2.3 Implementation Challenges

i) Payment System (ATM)

Although there are a lot of ATM machines available, but some of the ATM may

temporarily go offline or out of cash. Sometimes, the system will be down and causes many

troubles to their customers. When customers need to withdraw the cash or do transactions on

ATM in urgent case but it shows temporarily offline. Moreover, some of the elder people refuse

using the ATM services; they prefer to queue up because they feel more secure when they face to

face dealing with the staffs of Maybank.

ii) Analytical Customer Relationship Management (aCRM) System

Analytical Customer Relationship Management (aCRM) system helps Maybank

communicate with their customers using the right channel at the right time. In order to achieve

this goal, Maybank deployed a Teradata system and Teradata Relationship Manager Software.

There are some implementation challenges Maybank faced as stated at the report of “Maybank

We’re Banking on Customer Engagement”.

One of the implementation challenges of aCRM is limitation of resource. The IT

management was being outsources and the IT resources in Malaysia is scarce. Maybank has to

find the vendor who has the expertise in running the CRM system to ensure the vendor has the

capabilities to build the aCRM effectively. Another implementation challenge is technology

understanding. All the staffs of Maybank are required to learn and know how the system works.

This will take much time for all the staff in Maybank to gain the fundamental knowledge of this

system.

iii) Internet Banking System

The challenge of internet banking system is the time taken to access and response. The

people who prefer online banking wish to have a quick response and time saving. If the users

have to wait for a long time just to login the web page, there is no point for this system to be

implemented. It is same as queuing up at the bank counter to do the transaction. Thus, as the

number of users begins to grow, Maybank has to upgrade the server in term of bandwidth and

capacity to ensure that the access and response in just in a blink of eye.

2.4 Security Issues

i) Payment system - ATM

In case customers lost the ATM card or it has been stolen, they can immediately report by

calling the 24 hours customer care hotlines as stated at the ATM which is 1 300-88-6688.

Besides, customers can also report to the customer care hotlines if they found any irregular

activities when they are at the ATM. Sometimes, ATM card will retained at ATM due to the

mechanical error and problem, the customer can report to the branch and collect back the ATM

card. Maybank has set the maximum withdrawal limit of the ATM card to RM 5000 per day It

aims to reduce the loss suffered by the customer in the case of robbery.

ii) Analytical Customer Relationship Management (aCRM) system

There are some security issues of aCRM system such as the safety of the customer

information. By using the aCRM system, all the information of customers will be centralized.

This management will be more safety and reliable since all the information is stored in one

platform and it is easily to be protected. Besides, as stated at the report of “Maybank We’re

Banking on Customer Engagement”, all the staffs of Maybank will took time to gain a

fundamental knowledge of the aCRM system. As the staffs of Maybank have deeply knowledge

on the aCRM system, they will know the basic precaution to prevent any illegitimate activities

happen in the system. The information of their customers will not be easily obtained by others

and this ensures the privacy and confidence of the information.

iii) Internet Banking System

The greatest concern of the security issues of internet banking is still the information of

customers. The hacker will any time breaking into the customer computers in order to get the

customer username and password to do unlawful activities such as purchasing by using

customer’s credit card. Maybank implemented the new features which is related to the login

process and selected transactions to its internet banking portal on 27 March 2011. This new

features offers greater protection to customers who accessing the internet banking portal. It

requires the customer to answer some personalized challenge questions that will serve as further

verification before the transaction. Besides, this new features will also protect customers from

being misled by phishing scams because this features will help the customer to ensure that they

are via the valid Maybank2u.com.

3. Porter’s Five Forces Analysis

According to the Principles of Contemporary Marketing by Kurtz and Boone, Porter’s

Five Forces is the model developed by strategy expert Michael Porter that identifies five

competitive forces that influence planning strategies: the threat of new competitors, the threat of

substitute products or services, the bargaining power of customers, the bargaining power of

suppliers and the rivalry among existing firms in the industry. These five forces determine the

ultimate profit of an industry. This analysis allows Maybank to have a better insight and

understanding about the industry context in order to develop strategies for vigorous competing.

And Maybank has now become the Malaysia’s largest financial services group.

Extracted from http://en.wikipedia.org/wiki/File:Porters_five_forces.PNG

3.1 The Threat of New Competitors

Nowadays, banking industry is a popular sector due to its high profitability. And this

ultimately attracts many entrepreneurs to venture in this particular industry. Traditionally, only

banks are the sole grantors for consumer finance. But now there are lots of institutions that

engage in this business for instance private finance companies as well as other unlicensed

companies.

The mentioned force is threatening Maybank especially when the private finance

companies often offer lower rate to borrowers. Their strategy to lower the cost of borrowing aims

to grab away a large portion of customer base from banking industry. In addition internet allows

sharing the common technology and thus lowers the switching cost for the customers to shift,

from banks, to finance companies. The situation becomes worsen to Maybank when the finance

companies permit a faster and less complicated process of applying consumer finance. One of

the greatest competitors of Maybank as it goes international is Western Union which provides

money transfer service. With this service, the receivers from the other side of the world are able

to collect the money within 15 minutes from the appointed bank.

As a result of robust demand in international money transfer service, Maybank has

created a new payment system named Maybank Money Express (MME). It provides a speedy,

economical and secured remittance service to customers. The money transferred reaches

beneficiary as fast as a blink of eye with no hidden cost. MME has created touch points in

Indonesia, Vietnam and Cambodia just within 60 days of operations. And proudly to say that

Maybank is the pioneer in providing a home grown web-based remittance service for instance

global money transfer.

Emerging Markets Direct has released their latest Malaysia Banking Industry Report

1H11 which revealed that the total loans in the Malaysia banking industry grew by 11.84% y-o-y

to RM854.18 billion. About 55.61% of total loans are driven by the household sector (eg.

mortgage, hire purchase loans for passenger cards and personal loans). This analysis has shown

that there is an intensive competition in consumer loan granting. Thus, as to diverse the revenue

generating portfolio, Maybank is currently focusing on wealth management such as units trust

and structure products like Floating Rate Negotiable Instrument of Deposit (FRNID) / Islamic

Negotiable Instrument (INI). This strategy enables Maybank to differentiate them from the new

competitors. Besides, wealth management is indeed a zero-starting cost business as the capital of

the investors go to the unit trust issued company, Maybank will receive commission. Unlike the

loan granting, the bank has to experience cash outflow prior to the cash inflow in the form of

interest stream.

3.2 The Threat of Substitute Products or Services

Malaysia is gradually recovering from economic crisis; many corporations are able to

offer a higher rate of return to such investors as shareholders and bond holders. This is actually a

threaten to Maybank as the customers of it will finally withdrawal their money from savings

account or fixed deposit accounts and invest in the particular firm’s shares, cherish the hope that

they will be rewarded a high return.

As the impact of technology evolution, all businesses are now going online, eliminating

brick and mortar. A bank is no longer gaining absolute advantages although they have achieved

large scale of economies. This is due to the high fixed and operating cost like rental and utility

fees of the physical store. Besides, the bureaucracy organizational structure may harm the

performance of it as the result of inefficient and inflexibility. Many researches argue that Internet

banking will ultimately be the dominant trend in banking sectors.

In order to cope with the above challenges to remain sustainability, Maybank has offered

e-share application. It gives a fast way for customers to applying for Initial Public Offerings

(IPO) via Maybank2u.com (M2U). By integrating this investment service, Maybank can assist

the customers to well manage their wealth and successfully prevent the customers from

withdrawing their money and subscribe the IPO at brokers.

Maybank has acquired more than half the Malaysia online market through continuous

investments in the particular field. And now, Maybank2u.com remains the leader in Internet

banking with 55.16% market share as at June 2010. Internet banking has helped Maybank to

retain the assisting customers and draw numerous potential customers because the customers

found that internet banking can ease their work and save the time. Customers are able to pay for

purchases online, conduct transactions, obtain electronic bills and statements, pay income tax

and make investment (e.g. in ASB ) online.

By implementing internet banking, Maybank experiences a drastic growth in their

revenue. As evidence, it achieved revenue of RM30 million in fee-based incomes from

commissions and service charges from M2U payee corporations (41% of total income), eGIRO

service charges (35%), and online prepaid commissions (12%). Meanwhile, Maybank has save

RM6.8 million from its migration to eStatements. Internet banking has eradicated the need to

print customers’ account statement and mail them.

In addition, Maybank has introduced the Autodebit Clientele module to hunt and assist

the small to medium-sized enterprises that have limited information technology capabilities in

Autodebit accounting system. Maybank has also integrated prepaid reload functions for payee

corporations such as U-mobile, Tune Talk and MOL, into the Automated Teller Machines. These

two competitive strategies have effectively driven Maybank an increase in revenue of 18% and

4.5% respectively.

3.3 The Bargaining Power of Customers

Customers are very imperative essential for a business especially when Maybank is a

customer-centric bank. This is because customers are the net suppliers of fund for a bank. For the

sake of this reason, Maybank disallows customers to have a high bargaining power with them

since those large volume depositors will negotiate privately with Maybank to get a higher rate of

saving and lower cost of borrowing if they do have such power. This could drive down the

revenue of Maybank.

Furthermore, poor customer service of a bank may increase the bargaining power of

customer. For example, if Maybank could not understand what actually customers require or

ineffectively handle the customer complaints, it could reduce the switching cost of customers and

they will finally switch to other banks for a better service.

In order to avoid a high bargaining power implanted in customers, Maybank has invested

in an Analytical Customer Relationship Management system to efficiently utilize the information

gained from each customer for improvement purpose. This system enables Maybank get to know

the expectations of customers towards the bank. Then, Maybank formulates strategies and comes

out with superior performance to cater the needs of customers. Right now, Maybank is hoping to

generate a complete picture of a customer’s lifecycle by using the system to grow their business.

Besides establishing of the feedback dropper on their website, Maybank also focus on the

fundamental values of hospitality, friendliness and skills in handling customer complaints. To do

this, the GUEST & Telephone Etiquette Programme has been launched April 2009 and We

S.E.R.V.E Programme in December 2009. Maybank also promotes various incentive

programmes to reward the customers. For instance, in conjunction with the launch of GSC

Mobile App (iPhone), Maybank2u.com is absorbing the online booking fee for 100,000 tickets

purchased using the GSC Mobile App (iPhone) and paid via M2U mobile. All the above

strategies are able to enhance the customers’ loyalty towards the bank.

3.4 The Bargaining Power of Suppliers

Bank Negara Malaysia is the main legal power supplier for all the banks in Malaysia. It

endows power to all the banks for carrying out their businesses as long as they comply the

banking acts. In such case, Maybank has to comply with the minimum rate of interest which is

3% currently, the increase in Statutory Reserve Requirement from 3% to 4% and the prohibition

of investing in the low credit rating corporations although they offer high return.

As the increase in Statutory Reserve Requirement and the impact of prohibition reduces

the revenue of Maybank, it has to diverse the strategy by focusing on the main fund resources to

enhance the revenue. Maybank provides Merchant Programme for the businesses to sell their

products and collect the payment through Maybank2u.com.

The Merchant Programme offers the businesses’ customers an alternative means to make

payment. It also enhances the business productivity by having a 'cashless' operation as

transactions are done online. Besides, it improves the awareness for businesses as all merchants

will be listed on the website. Through online Merchant Programme, it actually attracts large

volume of business customers dealing with Maybank. As evidence, Maybank has won NEF-

Awani ICT Awards 2011 as Favourite Online Banking Service Provider.

3.5 The Rivalry among Existing Firms in the Industry

Although each bank in the industry is selling homogenous product at almost the same rate

(e.g. the rate of saving account), there is still an intensive competition among them and the banks

are struggling to differentiate their products from others’ by offering additional benefits.

Theories suggest that bank may compete in term of performance growth, customer retain rate,

profitability and risk taking. This occurs especially when the forces are not only arisen from local

banks and private local financial institutions but also from the foreign banks. At this moment,

the economy of Europe countries is encountering a downturn; many foreign banks such as HSBC

bank and OCBC bank are vigorously competing with local banks in Malaysia.

Maybank, after analyzing the behavior and needs of the customers through Analytical

Customer Relationship Management system, introduces a lot of reward whenever customers are

dealing with the bank. For example, Digi Prepaid Super Reload is introducing RM35 reload and

customers who reload via Maybank ATM or M2U is eligible to enjoy free sms and free mobile

internet. And for those who wish to travel abroad, Maybank is offering Air TravelCare

Protection Plan which benefits include coverage up to RM460, 000 for comprehensive personal

accident while travelling, emergency repatriation and evacuation up to RM1, 000, 000, medical

expenses reimbursement and emergency medical assistance up to RM300, 000. And many other

remunerations and reward for each time customers dealing with their Internet banking system.

The current trend in banking industry is merging. In order to enlarge the assets and

capitals to compete with foreign banks, Maybank has obtained the approval of Bank Negara

Malaysia in preliminary negotiations with RHB Capital Berhad for a possible merger of the two

banking institutions. Up to now, everything is still in progressing and further acknowledgement

will be announced in future appropriate time.

4. Strategic System Analysis

4.1 Structure of Industry

The corporate structure of Maybank is divided into 3 categories. They are Commercial

Banking, Investment Banking and Insurance. In the Commercial Banking category, it is the most

important business of them, Maybank has 100% of Maybank Islamic Bhd, 96.83% in PT Bank

Maybank Indocorp, 99.97% of Maybank Philippines, 100% of Maybank PNG Ltd, 100% of

Maybank International (L), 20% of MCB Bank Ltd, 20% of An Binh Bank and 97.5% Bank

International Indonesia.

In the Investment Banking, Maybank has involvde itself into many sectors, for examples,

it has 100% of Maybank Investment bank, 70% of Maybank Ventures Sdn Bhd, 100% of Bina

Fikir Sdn Bhd, 30% of Pelaburan Hartanah Nasional, 33% of Maybank Agro Fund Sdn Bhd and

33% of Maybank Ventures Capital Sdn Bhd.

As for the Insurance industry, Maybank has 69.05% of Maybank Fortis holdings, 100%

of Maybank General Assurance, 92% of Mayban Life Assurance, 100% of Etiqa Insurance,

100% of Etiqa takaful, 100% of Etiqa Offshore Insurance (L), 32.5% of Pak-Kuwait Takaful Co.

Ltd and 100% of Mayban Investment management Sdn Bhd. The industry structure graph is

provided as followings.

4.2 Value Chain

Business

Maybank offers various types of service and product, for example commercial banking,

investment banking, Islamic banking, cards issuance, offshore banking, leasing and hire

purchase, insurance, factoring, trustee services, asset management, stock broking, nominee

services, venture capital and Internet banking. Maybank is just like a one stop center to complete

all our daily financial transaction needs. Besides that, Maybank also provide sufficient of

customer services staffs to assist their customers and they divide the products clearly into

different departments, so customer will not get confused.

Firm

Maybank has the largest banking network in Malaysia with 386 branches, 17 trade

finance centers, 39 business centers, 37 share investment center and 22 private banking centers.

Since that Maybank have this wide network and touch point, customer can easily approach

Maybank and enjoy all those service provided by Maybank in different regions. Maybank also

try their best to improve themselves in order to serve their customer better. For example, they

improve their web service from Maybank2u web 1.0 to Maybank2u web 2.0. This new web

server is more focusing on customer communication rather than product promotions.

Maybank owns a training center which located in Bangi. All employees of Maybank are

required to attend, at least one time, the training programme provided. The purpose is to make

sure that all employees can achieve the quality standard set by the management and understand

clearly about the services and the product features in the bank.

Industry

Ihe banking industry, Maybank is the first internet banking website provider. It has 3.8

million registered users and is leading this market with more than 54% market share.

Besides that, Maybank Islamic is currently the largest provider of Islamic financial

services in the Asia Pacific region. Maybank Islamic is wholly-owned by the Maybank Group,

and it is the full-fledged licensed Islamic bank and ranked 10 th among the world’s Islamic

financial institution in terms of Shariah-compliant assets.

Maybank is the first bank in Malaysia to cross USD100 billion in total asset size and

USD1 billion in profits after tax in 2010 and also the first bank which launches disabled banking

branches in Malaysia for wheelchair bound in 2010.

4.3 Alignment of IT with Business Strategies and Goals

Maybank is the company aligning IT with their business strategies and goals. In

economic theories, using IT insteads of capital and less labor consumption to convenient all jobs.

It saves all employees and customer times to carry out the transaction process. IT helps Maybank

contract in size because it can reduce transaction costs.

Maybank’s mission is “Humanising Financial Services from the Heart of ASEAN”.

That means Maybank tend to provide the best service to their customers in order to satisfy their

customers. By using Maybank2u.com internet banking website, it can help Maybank to achieve

their mission. Customers can carry out a lot of transactions easily and the most important is it can

save our time. Without Internet banking, we need to line up and spend long time in the bank.

Now customers can complete their transactions through the e-banking system.

Customers can also pay bill by using e-banking online system. Before this, bills like

telephone bill, electricity bill and other must go to different places to pay it. However, customers

can now pay these bills through Maybank2u.com. Using the internet banking system, customers

can provide suggestion as well as make complaints directly to the Head Quarter.

By using IT system, Maybank is able to share information among different branches.

Nowadays, the most popular social network web-site is Facebook, if you don’t have a Facebook

account, you are considering outdated. Same as Maybank, they have their own Facebook page

too. They can update all the information, for instance, the newest promotion or the new services,

onto the page. Customer can also post their comments or suggestions on the Maybank Facebook

page. This allows the management of Maybank to get the feedback directly and timely from their

customers.