Internet banking made easier
KUALA LUMPUR: Internet banking will be made easier come March next year when all banks provide at least one Internet banking kiosk at all their branches to give the public better access to online banking and Interbank Giro (IBG) services.
This is in line with Bank Negara’s effort to encourage and speed up migration to e-payments, which is one of the key strategies in the central bank’s financial sector blueprint to be achieved by 2020.
Bank Negara deputy governor Datuk Muhammad Ibrahim told a press briefing yesterday that research indicated Internet banking had the potential to generate savings of about 1% of gross domestic product (GDP) annually.
Under the blueprint, Bank Negara has to increase the number of e-payment transactions per capita in Malaysia from 56 last year to 200 by 2020, which means an annual growth of 608 million e-payment transactions over the next eight years.
Other targets set under the blueprint are to increase the number of debit card transactions per capita to 30 by 2020 from only 1.2 in 2012 and the number of EFTPOS (electronic funds transfer at point of sale) terminals per 1,000 inhabitants to 25 by 2020 from 9.3 last year, while reducing the number of cheques by half to 100 million by 2020.
To date, more than 2,100 kiosks are available at bank branches nationwide, or 74% of the country’s total bank branch network.
Earlier, Bank Negara announced a new pricing structure for e-payment services in the country – the reduction of the transaction fee for IBG conducted via Internet and mobile banking to 10 sen from RM2 since May 2, 2013 and a cheque processing fee of 50 sen fromApril 1, 2014.
“The adjustment to the IBG and cheque prices is to align them closer to their cost of production,” Muhammad said.
He noted that the migration to e-payment was a natural progression for the country as it moved toward a high value-add economy.
He said the current trend suggested there was still a lot of room for improvement for the country in terms of migration to e-payment.
Cheque usage in Malaysia, for one, remained relatively high at 7.1 per capita, compared with that of advanced nations such as Norway, Finland and Australia at 3.9 per capita. According to Bank Negara, Malaysians used an average 205 million cheques amounting to RM2 trillion each year for the past three years.
Malaysia’s currency in circulation was also relatively high at 6% of GDP, compared with advanced nations’ average of 4.6% of GDP.
Meanwhile, Datuk Abdul Farid Alias, chairman of the Association of Banks in Malaysia, said that the clearing time for funds transfer via IBG would be made faster by the end of this month.
The effort, he said, would see customers’ accounts being credited within two hours of IBG clearing for there would be at least two clearing windows by the end of September 2013. Currently, customers’ accounts are credited anytime before midnight.
“By the end of February 2014, there will be faster fund availability as there will be four clearing windows,” said Abdul Farid, who is also the newly appointed president and CEO of Malayan Banking Bhd.
He said that by the end of next year, IBG payments initiated by customers before 5pm would be credited to the recipients by 10.30pm on the same day. At present, the cut-off time for same-day clearing for IBG was 12.30pm.
Publish date: 3/09/13