Maybank expects eDividend market share to increase from 30% to 70%

Maybank is confident of increasing its market share in the electronic dividend payment from 30% to 70% by 2013, with an expected transaction value of about RM10 billion.

This is due to the enhanced online Cash Management System via Maybank2e.net, which was the first linked to the Inland Revenue Board Malaysia for automated dividend submission and tax return, according to Maybank's deputy president, head, global wholesale banking Abdul Farid Alias .

The e-Dividend system 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 full story is available at Bernama.