Maybank eyes more Islamic banking

Maybank Philippines Inc. (MPI), a member of the Malaysian Maybank Group, a leading financial services group ranked No. 4 in the Association of Southeast Asian Nations (ASEAN) by assets, is looking to set up more Islamic banking branches as it reviews where to best position them alongside some of its other branches in the Philippines.

This was revealed last week by Maybank’s head of virtual banking, Paolo Salceda, in an interview on the sidelines of the relaunch of the bank’s upgraded Maybank2U PH (M2U) mobile app, which Salceda said would also include, in the future, access for its Islamic banking clients to open accounts.

Maybank started offering Islamic banking in its Zamboanga branch in August but the bank is now studying the possibility of setting up more Islamic banking windows alongside its existing 60 branches in the country.

According to Maybank’s definition, Islamic banking refers to a banking facility that complies with Islamic law, also known as Shariah law. The Shariah principle is a framework of Islamic law to guide all aspects of life, including rituals/worship (ibadat), family matters (munakahat), financial transactions (muamalat) and the punishment of crimes (jinayat).

The underlying principles that govern Islamic banking are mutual risk and profit-sharing between parties, the assurance of fairness for all and transactions based on an underlying business activity or asset that is compliant with Islamic principles.

These principles are supported by Islamic banking’s core values, whereby activities that cultivate entrepreneurship, trade and commerce, and bring societal development or benefit, are encouraged. Activities that involve interest (riba), gambling (maisir) and speculative trading (gharar) are prohibited.

Maybank Philippines is offering Islamic banking to provide Shariah-compliant products to Filipinos, offering alternative banking opportunities in the local market where such services are not yet available.

According to Maybank, its customers benefit from Shariah-compliant investments with profit certainty, no hidden charges and adherence to Shariah requirements. The bank’s Islamic banking is available even to non-Muslims.

The underlying Shariah contract offered by Maybank Philippines under its deposit products is a Commodity Murabahah, a type of contract involving a cost-plus sales arrangement.

In a Commodity Murabahah deposit, customers deposit their money with Maybank Philippines. Instead of earning interest, the bank will use the deposits to buy and sell commodities (as deemed fit by the bank) from a commodity trader at a profit. A portion of this profit is then shared with the customer, providing a return on their deposit in a Shariah-compliant manner.

M2U relaunch

According to Salceda, the M2U app relaunch introduces several new features, with a refined user interface and performance improvements designed to provide users with a safer, more seamless and engaging experience. The app is available on both iOS and Android platforms.

Maybank Philippines was one of the pioneers in the mobile banking space, introducing the original Maybank2U PH mobile app in 2014, and complementing this with the introduction of iSave, the first digital deposit account, in 2018.

This time around, Maybank Philippines is elevating the digital banking experience with the launch of the optimized M2U, which comes with advanced security features, an enhanced user experience, personalized banking and seamless access to new services.

The new M2U app comes with Secure2U, an enhanced two-factor authentication option that allows real-time, in-app verification and authorization to safeguard transactions from fraud. Secure2U has a unique device-binding feature, which limits the authorization only to the nominated device.

The new M2U interface has been redesigned to be more intuitive so daily banking transactions are made easy and effortless. Plus, users enjoy the same M2U experience when outside the Philippines, and even across one’s Maybank2U applications in Southeast Asia.

Likewise, the new M2U app will be the hub for all the new services and features which Maybank will introduce. From one-touch digital account application to debit card services and accessing exclusive offers, M2U is designed to adapt to the customer’s ever-changing needs and evolving priorities.

In his keynote message last Wednesday during the relaunch of the app, Maybank Philippines chairman of the board, Anthony Brent Elam, pointed out that “Today, convenience is everything. In our fast-paced world, people need banking that fits their lifestyle – not the other way around. We’ve listened closely to our customers’ feedback and upgraded our app to meet your expectations for convenience, security and innovation. This upgrade is part of our broader mission to put you, our valued customers, at the center of everything we do. Our goal is to build the most advanced and user-friendly mobile banking experience in the industry. This is humanizing financial services for you.”

Maybank Philippines OIC-president and CEO Patrick Dennis Solosa added that the reason behind the update is the bank’s commitment to always provide convenience, security and innovation at their clients’ fingertips, “and this advanced version of the M2U app is a testament to that vision. We have reimagined the app with enhanced features, stronger account security protection, a more intuitive interface and cutting-edge technology to make digital banking simpler, faster, safer and more seamless than ever before.”

In the Philippines, Maybank maintains a “phygital” proposition that combines physical accessibility through its network of 60 branches, 15 lending centers, nine premier wealth centers, nine branch lites, and close to 80 onsite and offsite ATMs nationwide, with digital capabilities through its M2U mobile and internet banking platforms.

MPI’s financial services and products include lending, deposit-taking, electronic banking, credit card, cash management services, wealth management, remittances, trust and fiduciary accounts and treasury products and services.