According to Malaysia Electronic Payment System Sdn Bhd (MEPS), the real-time interbank funds transfer (IBFT) service fee will be set at a ceiling of 50 sen, from the current fee of between RM1 to RM4 per transaction. The  fee  will  be  applicable  for  ATM,  Internet  and  mobile  banking transactions  effective  1  June  2015,  whereby  all  participating  banks  will carry out the implementation.

Meanwhile, the limit per transaction will also be increased from RM5,000 currently to RM10,000 by 30 June 2015 and further raised to RM30,000 early 2016. The move is part of a bid to support Bank Negara Malaysia’s (BNM) aim to increase the number of e-payment transactions per capita from 72 (in 2014) to 200 and reduce cheques from 177m (in 2014) to 100m p.a. by 2020. (Source: TheEdge Financial Daily)

Comments:  Given  that  the  Interbank  Funds  Transfer  (IBFT)  is  still  not  a highly popular means of E-payment in the country, we are of the view that the  reduction  in  fees  will  not  negatively  impact  the  banks’  fee  income significantly. Meanwhile, in the longer term, greater volumes will continue to drive fee income growth among the banks. Maintain  NEUTRAL  on the banking  sector.

Source: Affin Hwang Capital Research - 21 May 2015