Deutsche Bank launches instant payments in Malaysia
Malaysia is slowly evolving from relying on a cheque-based payment infrastructure, to one where an instant credit clearing system can process a payment instantly at a lower cost
Deutsche Bank is now able to process payments using Malaysia’s instant credit clearing system, DuitNow for corporate clients. Duitnow is an initiative aligned with the ambitions of ASEAN 2025, which include creating a regional real-time payment ecosystem.
This real-time fund transfer platform will allow Deutsche Bank’s corporate clients to make payments and receive funds nationwide, processing end-to-end payments within 20 seconds using the “any-ID” or proxy principle.
DuitNow allows for the use of any-ID, where corporates no longer have to maintain the bank details of their employees, as their National ID number on file with their human resources is all they need to remit salaries or reimbursements out to them. Even if employees change their bank accounts, the funds will automatically be routed to their preferred account linked to their National ID number.
Corporates in the telecommunications industry will no longer need to have cash in-house or issue cheques to repay deposits as they will only need a mobile phone number to pay back deposits. Insurance companies equally will be able to pay out urgent claims using the accepted proxy of their clients on file.
Jacqueline William, head of global transaction banking, Malaysia at Deutsche Bank, says: “We are supportive of the government’s efforts to modernize the payments infrastructure in Malaysia and will continue to invest in such initiatives.”
Instant Payment by proxy has already been introduced in Singapore, Thailand and Malaysia with the goal of facilitating the first cross-border flows within ASEAN in the next 12 months.
15 May 2019