Sunday, February 24, 2013

Islamic banking via Pos Malaysia soon

THE plan by Bank Muamalat Malaysia Bhd to offer Islamic banking services through post office counters by the third quarter of the year is still pending approvals.

Chief executive officer Datuk Mohd Redza Shah Abdul Wahid said the collaboration with Pos Malaysia Bhd would provide the bank substantially wider reach through more than 1,000 post office service counters nationwide. “By year end, all post office counters should be able to off er our services.”

These include Pos Minis, self service terminals, Post-On-Wheels mobile outlets, postal agents and stamp agents — making it one of the most extensive retail network in Malaysia.

Under the same alliance, Bank Muamalat will also offer Pos Malaysia services through its counters, Redza said. The bank currently has 58 branches throughout Malaysia, including seven kiosks and has plans to open two more branches this year.

Both companies are subsidiaries of DRB-Hicom Group Bhd, which currently holds 70% of Bank Muamalat and 32% in Pos Malaysia. DRB will reduce its Bank Muamalat stake to 30% in accordance with Bank Negara requirements.

Redza said the bank wanted to have either a post office in a banking environment or a bank in a post office.

“However, a bank in a post office is more challenging in terms of regulatory requirements.

[The Malaysian Reserve, Jan 17, 2013]