FIN 542 H U M A N I S I N G F I N A N C I A L S E R V I C E S M A Y B A N K 2023 NUR SYAFIQAH BINTI ZAINURIN 2023401128 MADAM FATHIYAH ISMAIL
CONTENTS M N C Co m p a n y M a y b a n k Ba c k g r o u n d Co m p a r a ti v e Ad v a n t a g e s T h e Pr o d u c t L if e Cy c l e T h e o r y ' s Re l a ti o n W h e n t h e b u s i n e s s c r o s s e d i n t e r n a ti o n a l b o r d e r s a n d h o w it d i d it. T h e ri s k s t h e c o m p a n y h a s t o e n c o u n t e r
What Makes a Company Want to Grow Into a Global Enterprise? Typically, a company's main objective is to grow and maximize revenues. It could think building operations abroad is worth the cost and effort if it can expand its clientele globally and gain market share overseas. Certain foreign regulatory frameworks or tax arrangements may be advantageous to businesses. (Chen, 2023) A multinational corporation (MNC) is a firm that conducts business in at least one country other than its home country and derives revenue from foreign sources. (Chen, 2023) MNC COMPANY What Qualifies as a Multinational Corporation? A multinational company operates and maintains offices in two or more nations. These businesses are frequently run from a central office with its headquarters located in the nation of origin. An enterprise does not become a global corporation by just exporting items for international sale. (Chen, 2023)
COMPANY PROFILE Founded in 1960, Maybank (Malayan Banking Berhad) is the leading financial services firm in Malaysia, with significant operations in Southeast Asia. The bank offers a variety of services, including Internet banking, leasing, venture capital, asset management, insurance, and stock broking. (Maybank, 2023) With the creation of Maybank Kim Eng Holdings in 2011 through a merger with Kim Eng Holdings of the city-state, Maybank has a significant presence in Singapore. Bank Internasional Indonesia, a listed subsidiary with 98% ownership, operates a network of more than 400 branches throughout Indonesia. The largest Islamic bank in the area in terms of assets is also managed by Maybank. It has been granted a banking license to conduct business in Myanmar. (Nikkei, 2019) Dato' Khairussaleh Ramli Maybank president and group CEO
The country was at a turning point when Maybank opened its doors for business on September 12, 1960, marking the opening of its first iconic branch on Jalan H.S. Lee. The late Tan Sri Khoo Teck Puat led the bank's founding fathers, who saw their primary goal as assisting Malaysia, then known as Malaya, in financing its economic expansion and enhancing public access to banking at the time. (TMK, n.d.) MAYBANK FIRST OFFICE Maybank’s first office Malayan Banking in its early days.
A D V A N T A G E S : In Malaysia and Southeast Asia, two of the biggest and most well-known banks are Maybank and CIMB Bank. Although they both provide a large array of financial services, the banks' advantages over the competition are distinct. This is a comparative analysis of their respective benefits with respect to price, product variety, and other aspects. MAYBANK ANDS ITS COMPETITORS Across all of its product lines, including savings accounts, loans, and investment goods, Maybank provides competitive interest rates and costs. Frequent promotional offers are also provided, especially for credit cardholders and users of internet banking. (Maybank, n.d.) CIMB Bank has a competitive pricing approach, waiving fees and giving discounts for online banking services in addition to reasonable rates on loans and deposits. (CIMB, 2019) One of the product of Maybank and CIMB Bank is Islamic Banking which closely rivals Maybank Islamic by offering a broad variety of Shariahcompliant goods and services. Maybank provides a wide array of financial services and products, encompassing retail, corporate, investment, insurance, and asset management. This is referred to as its Comprehensive Product Range. (Maybank, n.d.) Next up, Online Banking. With its Maybank2u platform, which provides a number of online services such as loans, transfers, investments, and payments, Maybank has a major focus on digital banking. (Maybank, n.d.) Lastly, Wealth Management: Well-established in the field, offering high-net-worth clients individualized services. (Maybank, n.d.) In the meanwhile, CIMB has a significant regional footprint in the ASEAN area, where it offers cross-border banking services and takes advantage of regional economic integration. Apart from that, CIMB is renowned for its investment banking services, which encompass capital markets, mergers & acquisitions, and corporate financing. Lastly, Digital Innovation, where CIMB has made large investments in digital banking by providing a wide range of online and mobile banking services through its CIMB Clicks platform.
PLC Theory Application to Maybank Introduction: Launching a brand and creating a presence in foreign marketplaces. Growth: Quick diversification and growth into new markets and offerings. Maturity: Technology progress, improving service offerings, and consolidation through acquisitions. Renewal: Constant innovation and adaptation, with an emphasis on digital transformation and sustainable growth, to avert decline. PRODUCT LIFE CYCLE (OUR HISTORY | MAYBANK, 2019) INTRODUCTION (1960S) First Expansion: Maybank entered the introduction stage with the opening of branches in Singapore, Brunei, and Hong Kong. During this time, new businesses were set up, and new markets were penetrated. Market Entry: Made large investments in establishing infrastructure and brand recognition while concentrating on raising awareness and acceptability in these new areas. GROWTH (1970S–1990S) Service development: Maybank started providing a greater range of banking services in addition to its geographic development, catering to various clientele groups and commercial requirements. Enhanced Market Penetration and Competition: Maybank faced more competition as a result of its expanding presence, which made tactics for client retention and differentiation necessary. MATURITY (2000S–2010S) Technological Advancements: To provide creative banking solutions and streamline processes, a focus on digital transformation and the use of new technologies was placed. Improved Service Offerings: Concentrated on strengthening bonds with current clients by providing all-inclusive financial solutions, such as wealth management, insurance, and investment banking. DECLINE OR RENEWAL STAGE Adaptation and Innovation: Maybank keeps coming up with new ideas, concentrating on digital banking and branching out into emerging countries in order to escape the decline phase. This may be interpreted as an effort to revive and reinvent its business strategy. ESG & Sustainability Initiatives: putting more of an emphasis on environmental, social, and governance (ESG) and sustainability activities in order to comply with legal obligations and worldwide trends in an effort to stay relevant and continue growing.
FIRST GROWTH (1960S–1980S) Singapore (1960): Taking advantage of the strong commercial links between Singapore and Malaysia, Maybank opened its first foreign branch there. Brunei (1960): Maybank established a branch there not long after it was founded. Hong Kong (1962): Maybank open an office in Hong Kong in order to get access to the Asian financial center. Further Regional Growth (1980s–1990s) London (1962): Maybank opened a branch there in an effort to reach out to European consumers. New York (1984): The bank opened a branch in New York City as part of its US expansion. Philippines (1997): Expanded its footprint in Southeast Asia by entering the Philippine market. INTERNATIONAL BORDER (Maybank, 2023) Strategic Growth (2000s–2010s) Indonesia (2008): Bank Internasional Indonesia (BII) was bought by Maybank, greatly increasing the bank's footprint. Vietnam, Cambodia, and Laos: Maybank persisted in opening offices and branches in these and other Southeast Asian nations over time. Global and Digital Banking To expand its worldwide reach, Maybank has concentrated on digital banking projects and building strategic collaborations in recent years. This entails growing its service offerings via collaborations with financial firms and digital platforms. Maybank London Maybank HongKong
RISK (KEY HIGHLIGHTS, N.D.) Market Risk Interest Rate Risk: The bank's profitability can be impacted by changes in interest rates, which can have an effect on both the cost of interest-bearing obligations and the income from those liabilities. Currency Risk: Maybank conducts business in several nations with varying exchange rates. Its foreign currency denominated assets and liabilities may lose value due to fluctuations in exchange rates. Operational Risk Cybersecurity Risks: Maybank is more vulnerable to fraud, data theft, and cybersecurity breaches as it improves its online banking offerings. Operational Failures: Hazards arising from malfunctioning internal systems, procedures, or human error that may cause disruptions to banking operations. Strategic Risk Risks expansion: Include the potential for large investments and the possibility that desired profits won't be realized for a variety of reasons. Acquisition Risks: There is a chance that you won't get the benefits you had hoped for while integrating acquired company.
Maybank's achievements since its foundation in 1960 continue to amaze me. In addition to being proud of Maybank since it is a Malaysian product, I am also proud because, despite the numerous ups and downs it has experienced, Maybank has remained strong. The fact that Maybank has so many branches overseas demonstrates that the company is doing well. I hope that Maybank will continue to exist for decades to come, while also enhancing the country's profile on a global scale. CONCLUSION
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