Business

Friday November 6, 2009

MEPS sees 15% growth in transactions

By EDY SARIF


Al Rajhi Bank the first Islamic foreign bank to join network

KUALA LUMPUR: Inter-bank network service provider Malaysian Electronic Payment System Sdn Bhd (MEPS) expects to achieve at least 15% growth in the number of its transactions next year by creating more awareness and educating consumers on using its service.

Group managing director Mohd Suhail Amar Suresh said MEPS’ cross banking transactions were currently valued at over RM11mil per month on average.

“For the last two to three years, we have achieved 15% annual growth in transactions and we believe we will continue to see that same kind of figure next year,” he said yesterday after the launch of Al Rajhi Bank Malaysia’s participation in MEPS’ shared automated teller machine (ATM) network event.

Al Rajhi Bank is the first Islamic foreign bank to join the ATM network that now connects 14 banks and close to 9,000 ATMs nationwide.

From left: Mohd Suhail Amar Suresh, Datuk Seri Abdul Wahid Omar, Bank Negara deputy governor Datuk Zamani Abdul Ghani and Al Rajhi Bank CEO Ahmed Rehmen at the launch

Suhail said MEPS was in talks with two other foreign Islamic banks to join the network, including Kuwait Finance House.

“We are very optimistic of getting them to join us, maybe in the first quarter of next year. In the case of Al Rajhi Bank, negotiations took four to five months and the bank has to date recorded more than RM25,000 worth of transactions.

MEPS chairman Datuk Seri Abdul Wahid Omar said Al-Rajhi Bank’s participation in the largest singular network in Malaysia would enable the bank to offer greater banking convenience to its customers through wider transaction touch points and cash withdrawal facilities.

“As a member bank, Al Rajhi will also collaborate with MEPS to form strategic partnerships in Gulf Cooperation Council (GCC) countries. We are confident that MEPS and its member banks will soon provide Malaysians travellers in the said countries, access to their funds via the ATM,” he said.

He added that MEPS saw this as an important link especially in view of the high number of Malaysians performing the haj or umrah. “This bilateral service will also be made available to tourists from the GCC countries travelling here.”

Al Rajhi Bank Malaysia chief executive officer Ahmed Rehman said the alliance with MEPS gave the bank’s customers access to 9,000 shared ATM network.

He added that the bank’s balance sheet now stood at RM6bil from RM2bil in 2007 and he hoped to see continued growth in the future.

Ahmed also said the bank planned to open up four or five branches next year but this was subject of Bank Negara approval.

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