Strategies Used by Maybank to Differentiate Themselves

Learn about the strategies implemented by Maybank to differentiate themselves from competitors in terms of self-service technologies, such as the introduction of computerized ATM machines and internet banking portal.

SERVICE MARKETING
Mohammad Amimul Ehsan
ID - 2025299660

1. Explain the strategies that have been used by Maybank to differentiate themselves from
those of competitors, in terms of self-service technologies.
In this era of globalization, Banking has become the unseen hand of development that has
shaped the modern business world in Malaysia. Since the independence from 1957 financial
services industry of Malaysia has gained significant milestone. It is very important to
differentiate your product or service in the market or to be the first mover in your segment to
capture the larger portion of the market. Maybank has taken this first mover advantages to
initiate some of the new methods and services of banking that has helped them to achieve
success.
We all know the benefits of ATM although we don’t appreciate enough its value and how it has
made our life much easier. But think about a time when there was no service as such and
people had to stand in queue to transact money. Maybank was the pioneer in technological
advancement at banking sectors and introduced the first computerized ATM machines for their
users.
In the 1990s, Maybank launched the first computerized telephone service known as Maybank
Autophone and, through collectively with Malaysia Airways (MAS), to provide domestic flight
passengers the benefit of ticketless tour via MAS electronic Ticketing (MASET).
Maybank launched the internet banking portal known as maybank2u.com where customers can
pay and view about their credit card and debit card services.
Maybank went the extra mile to be the first financial institution in Malaysia to offer on-line
cellular banking service via short messaging offerings (SMS) and M2U cell offerings through
GPRS or 3G smartphones. These improvements are the reflections of Maybank’s commitment
to high quality alternate in growing more value for its clients. Also, Maybank introduced
Maybank2u Pay in 2013 which delivers fast, easy, convenient and reliable shopping experience
to online shoppers.
2. How do individual customers engage in the value-creation process with Maybank?
During the initial phase of its creation, customers could only access the M2U on home
computers and laptops. In 2011, Maybank released M2U mobile Apps for iPad, iPhone, Android
and windows for its users with the hope of increasing its market percentage, enhance its online

value and improve its leadership within the online banking industry (Maybank2U.com 2015a).
These multiple channels have allowed clients to increase their technology-mediated self-service
platforms. As a result, M2U active users grew via 17.0% to 2.15 million in 2012 in conjunction
with the range of cell banking customers by an amazing 135.2 %. Maybank released a variety of
revolutionary products via M2U.
Maybank refers to the M2U as a one-stop all in center which presents “the convenience of an
all-in-one banking solution, all at one forestall” (Maybank2U.com2015b). With M2U, clients
enjoy services as they are able to personalize and customize their personal banking transactions
at their personal comfort. For instance, clients take care of their daily transactions by checking
their account statements and transferring money from their bank accounts without problems
while not having to visit the branch and having to queue up. but, in engaging in cash transfers,
it's crucial that customers double check all of their details such as account name, number,
amount, branch etc. Before they transfer any money as if any disputes arise bank cannot be
held responsible.
Besides funds transfer, customers are able to pay bills such as utility bills, loan instalments,
credit card payments, summons, insurance premiums, and other payments to various creditors
or merchants of their choice.
3. What are some initiatives taken by Maybank to recover their service failures?
Maybank surveys indicate that customers are sometimes dissatisfied with problems for TAC
system issues, security issues, phishing, and others. To make matters worse, the response and
feedback on customer complaints was sometimes not tracked properly. To solve this problem,
in July, 2012, Maybank launched a project called "G.I.F.T." (Join and Follow Through) whereby
all complaints are routed to a centrally managed unit called, the Customer Feedback and
Resolution Management (CFRM) team. With the implementation of the GIFT project,
complaints received through different contact points are recorded in a centralized system. This
allows the CFRM to focus relentlessly on resolving complaints by providing status updates until
the issues are fully resolved (Maybank 2012).
4. How does customer value co-creation via M2U benefit Maybank and its customers?

Customer is a vital part in any organization. Without them it’s not possible for any business to
sustain in the market. Maybank is a well-known bank around the word with many branches.
They are also the pioneer in some aspects of the banking sector. We all know that every new
concept stumbles a little at first but with sheer determination and focus one can overcome this
and achieve excellence.
Low Adoption of M2U – At the beginning M2U couldn’t penetrate the market for obvious
reasons. When it comes to money people are very aware about losing them. As the concept of
internet banking was new to them, they were pretty skeptical about the security that they will
get is enough or not. As a result, customers preferred face to face banking rather then digital
platforms. In response Maybank launched different marketing campaigns to educate the People
about online banking and how it can make their life much easier and faster. Maybank has also
launched a special promotion called "Paybills Promotion" to encourage customers in Sarawak,
East Malaysia to use payment facilities online through M2U. Through this campaign, Maybank
has partnered with Malaysia's leading telecom company, Telekom Malaysia Berhad, to promote
the convenience of paying Telekom bills such as phone bills, TMnet and TM Touch via M2U.
Security and Phishing Issue – The most important thing that a customer face is the safety and
security of their personal information. Quite a few complaints have received that customer are
getting short messages on their phone and at email sent out by phishing scam. To avoid them
Maybank would send out constant reminders to its consumers to not to share any code, pin or
information with others. Maybank also collaborated with other institutions to build awareness,
conduct campaigns among customers.
Transaction System Delay – TAC number is basically a code sent by the bank to customer when
they are trying to conduct a transaction online. Delaying TAC number has been a major issue by
the Maybank complained by several customers. When one TAC number is not coming
customers requests for another then another numbers which make it quite complicated and
complex for the customers. Because one a new TAC number comes it voids the previous one
hence to complete the transaction customer needs to start from the beginning which is quite
frustrating and annoying for the consumers. To remedy this situation, Maybank ensures that its
online system is effectively monitored. The bank performs daily maintenance of the system
during certain parts of the day (usually at midnight). During the maintenance period, all ATM
transactions and M2U services are unavailable. However, a pre-notification would be given to
customers advising them to plan their transactions in advance

5. With the given future outlook, specify a detailed plan that would help Maybank achieve its
objective to remain the most preferred online banking platform in Malaysia.
In today’s world it’s very important to have a solid strategy for the future decisions of the
company. Below I am listing a detailed plan for Maybank to follow to be the most preferred
bank in Malaysia.
Simplify Financial Concepts with Videos - Due to the exceptionally short attention span, it is
rare for your clients to read long paragraphs while distributing technical information on
financial plans. Even if they did, most of the information might not make sense to them.
According to research, over 50% of site visitors leave a site within 15 seconds. To avoid this,
many companies share short videos on their website. With eye-catching graphics, an easily
understandable script and enjoyable background music, these videos are perfect for grabbing
your clients' attention while simplifying complex financial concepts. You can also harness the
power of influencer marketing to get your brand across to customers. According to one report,
"92% of consumers trust the advice of others, even people they don't know, for branded
content."
Make Your Website the Main TouchPoint for Customers - The digital generation wants to have
minimal interaction with business representatives to resolve their issues while using a product
or service. A large percentage of Gen Z participants in a PwC survey said they preferred finding
information online and solving problems on their own. So instead of increasing your customer
support staff, you should invest in technology that provides 24/7 access and self-help options
on your website. Live chat technology can be a great feature to dramatically increase the
customer experience. According to Forrester, 44% of online consumers say having a live person
answer their questions when making an online purchase is one of the most important features
a website can offer. Some financial websites also include an FAQ section that answers the
questions most frequently asked by customers. Data shared during live chats can also serve as a
repository of useful information that could be used to build the FAQ section or even train a
chatbot to engage customers 24/7.

Create a YouTube Channel for Information Rich Content - According to a study, 72% of
consumers prefer using a video to learn more about a product or service than any other
channel. HDFC promoted their PayZapp with YouTube and it was a huge success. They created a
short 28 second video with a famous celebrity, which shows how users can use PayZapp in their
daily life in a very recognizable and fun way. Maybank can follow this technique as well. About
68% of consumers think educational and informative content is more valuable. This is ideal for
finance brands that can create educational content, tutorials, and data-driven content to help
users and promote their services. Research reports that videos between 16 and 120 seconds
drive nearly 50% of all YouTube views. So, keep your videos short and sweet, but full of useful
information for users. Another winning strategy could be to host live Q&A sessions and
webinars on your YouTube channel, to spread financial awareness and also share information
about your products.
Email Marketing - Despite so many advances in technology, email marketing remains one of the
most engaging marketing channels for delivering valuable information to customers. According
to the data, businesses generate a return of $38 on average for every $1 spent on email
marketing. Now you can get the most out of email by integrating it with your other marketing
channels, automating your sales cycle and supporting development efforts. Email integration
can help you create individual customer profiles that can help you better understand your
customers' spending and saving habits. With this information, you can create personalized
messages that are relevant to your customers instead of sharing one-off emails that may irritate
some users.