BusinessTimes
BANK Islam Malaysia Bhd plans to introduce wealth management services by the third quarter of this year, and hopes its fee-based income business will grow to 10 per cent next year.
Last year, fee-based income only accounted for about five per cent of the bank's business. Bank Islam also plans to introduce unit trusts, will-writing and other structured products for customers.
"Subject to regulatory approval, we hope to launch the service by September," managing director Datuk Zukri Samat said in Kuala Lumpur yesterday after signing a deal with Amanah Raya Bhd (ARB) to provide will-writing services.
Since its soft launch in January this year, about 2,000 customers have signed up.
Zukri said Bank Islam hopes to generate about RM1.5 million from its will-writing services by the end of this year.
"This partnership is most timely, particularly when Malaysian consumers are becoming increasingly discerning and knowledgeable," he said.
Prior to the launch of its complete wealth management service, the will-writing facility will be marketed as a stand-alone service at all its 90 branches nationwide.
Bank Islam card holders will need to pay a fee of RM200 while non-card holders a fee of RM350 for Muslims and RM500 for non-Muslims. This is because Muslims have a ready template according to faraid (distribution of estate) while non-Muslim will-writing depends on the individual.
According to ARB, will-writing penetration in Malaysia is still low. To date, about 60,000 Muslims and 80,000 non-Muslims have drawn up their wills.
Meanwhile, commenting on Bank Islam's plan to expand in the region, Zukri said the bank wants to focus on the domestic market, where it commands about 20 per cent market share in deposits.
"We are continuously in talks for a regional expansion, but there's nothing solid at the moment. We are keen to expand in Southeast Asia within two years," he added.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
