Malaysia’s financial service Essay Example for Free

Malaysias monetary service Essay1.0 instau balancenMaybank was established in 1960, Maybank has grown into an international brand. Malaysias financial function leader with presence in 20 countries operating from 2, two hundred mail services, with a workforce of over 47,000. embodied responsibility is integral to the way they do their business. For more than 50 divisions ago, they have believed in an actively practiced Putting People First. To be Maybank customers, commitors, partners, employee or even the community. In 1990, Maybank has set up the Tabung Kebajikan Kumpulan Maybank (TKKM), a trust fund through which Maybank could reach out to various communities to bring about undecomposed social. Over the years, TKKM has evolved and grown. Beginning with medical and social welf atomic number 18, the fund soon found different ways in which it could contribute to positive change by nurturing continuing economic and community development, heritage preservation and envir onment conservation. In 2010, in conjunction with the groups 50th anniversary, the Maybank foundation replaced TKKM as a steerage of hope for all those who atomic number 18 isolated and disadvantaged. As Maybank new vehicle for Corpo govern Responsibility, the Maybank foundation aims to pad their impact across the region, touching lives wherever they atomic number 18 ope ordain, and empowering communities to build a better future two for present and future generations. http//maybankfoundation.com/history.htmlMaybank host offers a comprehensive range of products and services that includes commercial banking, investment banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring, trustee services, asset charge, stock broking, nominee services, venture majuscule and Internet banking.1.1 IntroductionMaybanks mission is to humanize financial services across Asia, by providing access to financial services to the people at fair terms and pricing, an d to be always at the heart of the community. Maybank vision is to be the stellar(a) financial solutions provider in the target markets and communities they commit to save. http//www.maybank.com/en/about-us/who-we- ar/overview.pageThe target market would be for resident that has identity card of themselves and local, it contribute be adult, youth and young kids for their saving money. The resident can be a consumers, investors, entrepreneurs, non-profit organizations and corporation any purpose can using the Maybank without worrying..2.0 Comparison with others competitors2.1 SWOT synopsisStrength (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = true scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() Strength of Maybank is the leading regional market. It is the largest bank in Malaysia in terms of number of br anches where is it was 384 domestic branches and 190 international branches and office of the Maybank. Maybank is the largest listed on the Malaysian stock exchange, Bursa Malaysia, with market capitalization of over RM54 billion as end of march 2011. Capital adequacy, Dividend Yield, Return on Assets and return on Equity are substantially higher than the exertion and sector average. A Higher returns is according to its financial report Maybank showed low overhead and cost. Maybank has a customer base of more than 21 million. The user of friendly website, www.maybank2u.com.my is the pioneer for internet banking in Malaysia and easy to be used, it does not wasting people time to go to the bank to make their business. With maybank2u people can do their business smoothly without worrying their busy time. Maybank is the largest Banking Service Provider in Malaysia with their ATM Machines widely on tap(predicate) all over Malaysia even the international money transfer service was owne d by a Maybank Malaysia, its visible(prenominal) through Malaysia, Singapore, Indonesia, Brunei, Philippines, Cambodia, Vietnam and Pakistan. Maybank product line is diversification from adds, financing, deposit, insurance to investment Banks, over coulomb% profit in Sales Performance at branches increased product penetration in Maybanks incorpo scored client product portfolio.WeaknessesWeaknesses of Maybank is too much of Banking Operation are focused in and around Malaysia and Singapore, accordingly limited global penetration and too much revenue enhancement comes from retail banking and Islamic Banking, less revenue comes from other offerings. Revenue Concentration with all the good branding, Malaysia is still low of the customer satisfaction rating. They are rated at number of 17out of 17 banks in Malaysia for the customer service in year 2010. Maybaks has no insistent evaluation and updating of human resources practice and policies. The workers collateral agreement has been passed due from March 2010. The increase of none Interest expense, Maybank has a reputation for the new product development and creativity. However, they remain vulnerable to the possibility that their renewing may weaken overtime due to homogeneous product service. Maybank has a strong presence in the Malaysia, as they need to look for a portfolio of other countries in order to spread business risk. Maybank tends to invest in countries which have none stable economic presence such as Vietnam, Indonesia and Philippines. Maybank share determine is low than other banks and have to pay a huge amount of money to stakeholder. 2.2 SWOT abbreviationOpportunityMaybank growing global Islamic Finance Market as a Maybank Islamic Berhad on track to record RM1 billion in pre-tax profit for 2012. The wider regional Islamic Finance Market to Singapore, Indonesia, Brunei, mainland China, the Philippines and the warmness East. Maybank were the business expansion that can explore and exploit are sized up and its egression authorization assessed in the profile. The strategic Restructuring scout for the potential investments and acquisition targets, with detailed insight into the companys strategies, financial and operational performance. Maybank high opportunity is to plump into countries like Laos, once the banks gets the license to operate and to grow in investment banking in Hong Kong. Growth in internet banking will increase the customer base. Maybank is exploring the international banking opportunity in Thailand, Myanmar and Cambodia to achieve its plan to become Regional Financial services leader in 2015.Threats2.2 selling strategiesMarketing strategies is the Maybank employee boosts their product from old product to new product to everyone. Which is they promote at a obtain mall, where a lots of people and easy to get a customer. They promote by using a card or giving a short talk about their product such as in terms of giving loan with smaller interest. T here are many types of the product for the Maybank to promote for the customer. Undisputed No. 1 Retail Financial Services Provider in Malaysia In Malaysia, Maybank is aiming to have their top ranking, in terms of overall market share, across their core retail financing products including mortgages, go financing, credit cards, unit trust financing, and individual deposits. Maybank is intending to reinforce their leadership position in touch points and scattering network as a key community destination and focal point. The Maybank Customer Value proposition centers on convenience and serving the needs of the community and they are committed to the values of a angiotensin converting enzyme Stop Shop, Needs Based Selling and World Class Services. They will leverage on a shared distribution model across all parts of the Group network, and will customize and narrow their products by segment to meet the needs of their four different types of customers High Net Worth, Affluent, Mass a nd SME. The Group will in any case capitalize on technology and innovation to achieve high performance in processing times and customer service. Leading ASEAN Wholesale Bank and eventually to expand into the Middle East, China and India Maybank is aim to become the leading ASEAN wholesale bank which will involve enhancing to corporate relationship model. strategic initiatives will include Improving domestic and regional market position for corporate and non-retail deposits Building a regional investment bank, increasing contributions to revenue from non-domestic markets and increasing the fee to income ratio contribution. Maybank also aim to expand to the Middle East, China and India.Undisputed Insurance and Takaful Leader in Malaysia and Emerging RegionalPlayer Maybank is sample to be the domestic insurance champion and an emerging regional player by 2015 through the growth of their life, general insurance and takaful business, carried on a lower floor the Etiqa brand. For gener al insurance and takaful, the Group will keep pace with patience growth while maintaining a healthy portfolio mix and supporting a better combined ratio compared to the market. To achieve organic growth in life or family business, they are aggressively growing the Assets infra Management (AUM) of their life or family funds through product innovation. The strategy of the Maybank asset management hyponym is to build a leading asset management brand by providing strong investment management support for Etiqa funds, wholesale funds and institutional mandates as well as by leveraging on Maybanks extensive distribution network. Truly regional organization, with 40% of pre-tax profit derived from international operations by 2015 Maybank goal is to become a truly regional organization with approximately 40% of loans and pre-tax profit derived from international operations by 2015. This will be driven by their key markets of Indonesia and Singapore. At the same time, Maybank are developin g a presence in the Philippines, Cambodia, Vietnam and China by building scale and scope in these growth markets. Global leader in Islamic FinanceMaybank target is to have one ordinal of their domestic financing backed by Islamic financial assets by 2015. To achieve this, Maybank Islamic banking operations will take full advantage of Maybanks huge domestic branch network as well as its electronic banking platforms and the various distribution outlets of Maybank strategic partners. Maybank also aim to grow their Islamic business in markets like Indonesia and Singapore. Our Islamic banking operations, meanwhile, will focus on delivering innovative and globally recognised products and services that differentiate they Maybank from other Islamic financial institutions. http//www.scribd.com/doc/106370482/Swot-Analysis2.3 Pricing strategieshttp//www.onlinebanksguide.com/maybank/loan.htmlMaybank provides various types of loans to both the personal and business banking customers. The availa ble loans include personal, base, car, ASB andgovernment guarantee loans as well as the Maybank Mikro and Islamic Mikro for a small business enterprises and self-employed individuals. Apart from Malaysia, various types of loans including personal, car, education and home or housing loans are also available in Singapore and consumer loans in Philippines.Maybank add ASBMaybank ASB loans or financing are provided for purchase ASB unit trust. ASB are available in two types namely ASB financing and ASB financing I. Both are offered with a minimum loan amount of RM 10,000 and up to a utmost of RM 400,000. The details of pricing, payment, period and other requirements can be obtained from the website. Maybank Loan CarMaybank car or simple machine loans are available for purchasing and financing on new or second hand cars. On the other hand, these loans can also be used for financing on reconditioned or modified the motor vehicles. In addition, the Islamic and customary car loans are available with the margin of finance value up to 90% of the sellers invoice at the maximum and the maximum repayment period of to nine years.Maybank Loan HomeMaybank home loans are provided for buying a new house or financing on various types of properties under construction or completed properties. These loans are available as the following types. * maxi Home* Maxi Homei with protean and fixed rate option* Home Equity-iMaybank Loan RateMaybank loan rates are varied from one type to another and the interest rate also depends on the type of the loan and amount borrowed from the bank. For the home loans, the rates are available in various options including the variable and fixed rate packages. In fact the home loans are offering at the lowest rate of 4.50% for the first 3 years.Maybank Loan CalculatorMaybank provides various types of web based calculators to calculate the monthly repayment, maximum repayment amount, maximum financing amount for the home loans and monthly installment for car or auto loans. These calculators are available as home loan, Islamic home loan and hire purchase calculator.2.4 crossroad concentration2.5 Types of short term and long term loan availableBusiness loanhttp//www.maybank2u.com.my/mbb_info/philippines/ humankind/personalList04.do?channelId=FIN-FinanceprogramId=FIN05-CorporateComLoanchCatId=/mbb/Personal/FIN-Finance Floor Stock FinancingA revolving facility providing finance for auto dealers working capital requirements to support purchase of inventory of new vehicles for a short term period Salary LoanSalary deductible loans for any legal purpose give to qualified employees of companies accredited by the Bank.Revolving faith LineLoan granted for purpose of working capital, where the amount paid is made continuously available provided it does not exceed the approved credit line. Short Term LoanTerm loans are granted for the purposes of project financing, capital assets acquisition, or business expansion 3.0 ConclusionAssignme nt 21.0 perplexity 1Calculate the future value of RM1, 000 invested today for three years at 10% (i=0.10) interest rate per annum? Simple interestFV = P (1+ (I x n) )P = amount borrowed / principalI = interest rateN = number of yearsFV 1st year= RM1,000 (1+ (0.10 x 1) )= RM1,000 (1.1)= RM1,100FV 2nd year= RM1,000 (1+(0.10 x 2) )= RM1,000 (1.2)= RM1,200FV third year= RM1, 000 (1+(0.10 x 3) )= RM1,000 (1.3)= RM1,3001.1 Question 1Compound interestFV = P (1+i)nFV 1st year= RM1,000 (1+0.10)1= RM1,000 (1.1)= RM1 100FV 2nd year= RM1 100 (1+0.10)2= RM1 100 (1.21)= RM1 331FV 3rd year= RM1 331 (1+0.10)3= RM1 331 (1.331)= RM1 771.5612.0 Question 2PV= FV1+inPV = RM100 1(1+0.05)1 + RM100 1(1+0.05)2 + RM1000 1(1+0.05)3PV = RM100(1.05) + RM100(1.05)2 + RM1100(1.05)3PV = RM95.24 + RM90.70 + RM950.22PV = RM1 136.163.0 Question 3Simple interestFV 1st year= RM10 000 (1+ (0.06 x 1) )= RM10 000 (1.06)= RM10 600FV 2nd year= RM10 000 (1+(0.06 x 2) )= RM10 000 (1.12)= RM11 200FV 3rd year= RM10 000 (1+(0.0 6 x 3) )= RM10 000 (1.18)= RM11 800FV 4th year= RM10 000 (1+(0.06 x 4) )= RM10 000 (1.24)= RM12 400FV 5th year= RM10 000 (1+(0.06 x 5) )= RM10 000 (1.3)= RM13 0003.1 Question 3Compound interestFV 1st year= RM10 000 (1+0.06)1= RM10 000 (1.06)= RM10 600FV 2nd year= RM10 600 (1+0.06)2= RM10 600 ( 1.1236)= RM11 910.16FV 3rd year= RM11 910.16 (1+0.06)3= RM11 910.16 (1.191016)= RM14 185.19FV 4th year= RM14 185.19 (1+0.06)4= RM14 185.19 (1.26247696)= RM17 908.48FV 5th year= RM17 908.48 (1+0.06)5= RM17 908.48 (1.338225578)= RM23 965.594.0 Question 45.0 Question 5