KUALA LUMPUR: Hong Leong Investment Bank is positive on Malayan Banking Bhd’s latest move in digital space as the research firm expects decent return from the effort.
HLIB said Maybank’s digital effort would also garner new potential business with shorter turnaround time.
“Maybank recognised that the volume of digital banking transactions is growing at a fast rate through the growth of smartphones in circulation, wide spread of social media usage, and increasing ecommerce popularity which provide an abundance of opportunity.
“To lead in the digital space, Maybank introduced various digital initiatives such as MaybankPay, SamsungPay, Maybank Heart (digital social fundraising platform for NGOs) and partnered Western Union for mobile remittance via Maybank2u,” HLIB said in a note.
Maybank expects the value of banking transaction via Maybank2u to rise 50 per cent year-on-year to RM22 billion in 2017.
“We continue to like Maybank for its well-balanced exposure in both retail and corporate segments. Maybank is the front runner beneficiary and the best proxy to ride on a continued expansion in the Malaysian economy,” HLIB said.
HLIB maintains a “buy” call on Maybank with an unchanged target price of RM10.70.