Amid increasing competition from financial technology (fintech) companies, Malaysian publicly listed lender Maybank Indonesia plans to go digital this year to boost its fee-based income.
Maybank Indonesia president director Taswin Zakaria has said that aside from focusing on its two main segments, namely corporate and micro, small and medium enterprises (SMEs), the lender would also focus on retail banking by using digital technology to offer an appealing and convenient banking experience to its customers this year.
"We will be launching a new digital banking platform called Maybank2u [M2u], as well as a revamped Maybank Indonesia official website in the near future," Taswin told reporters in Jakarta recently.
He added the two platforms would be integrated to make it easier for customers to access its services.
The bank has aside 65 percent of its Rp 220 billion (US$15.6 million) capital expenditure to invest in information technology (IT) infrastructure, including digital banking platforms, Taswin said.
"Banks generally need IT for various purposes, such as digital and security services. The banking industry has seen a rapid development of IT, so it is natural for lenders to allocate large funds for IT infrastructure," he said.
Maybank Indonesia finance director Thilagavathy Nadason said the lender expected a rebound on its fee-based income through its digital banking services as transactions contributed a major portion of its income.
The lender's fee-based income declined 17 percent to Rp 2.26 trillion in 2018 from Rp 2.72 trillion in the previous year.
"Transactions are important for fee-based income. I expect the new website and M2u platform to help boost not only the number of our customers but also customer transactions, especially those who never come to our branches as they prefer to use [mobile] applications," she said.
Despite the decline in fee-based income, the lender's consolidated net profit grew by 21.6 percent year-on-year (yoy) to a new high of Rp 2.19 trillion in 2018.
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