Deutsche Bank announced on Tuesday (May 14) that it is tapping Malaysia‘s instant credit clearing system, DuitNow, to process payments for corporate clients.
In a press release, Deutsche Bank said the real-time fund transfer platform changes how corporate clients make and receive funds in Malaysia. “We are supportive of the government’s efforts to modernize the payments infrastructure in Malaysia and will continue to invest in such initiatives. DuitNow stands to greatly benefit our corporate clients by increasing the speed of local payments,” said Jacqueline William, head of global transaction banking for Malaysia.
According to Deutsche Bank, DuitNow moves the country from a check-based payment infrastructure to one in which an instant credit clearing system can process payments instantly. The system also enables the processing of payments at a cheaper rate.
DuitNow enables payments via the Any ID concept. With that payment scheme, companies no longer have to provide their employees’ bank to pay their earnings or reimburse their expenses. Instead, all they need are their national ID numbers. If employees change their bank accounts, the funds are automatically routed to the account linked to their national IDs.
Deutsche Bank noted that its telecommunication industry clients will no longer have to keep cash on hand to issue checks and repay deposits; all they will need is a mobile phone. The bank added that DuitNow enables insurance companies to pay claims in an expedited manner and in the way customers prefer.
Instant payment by proxy is available in Singapore, Thailand and Malaysia, setting the stage for the first cross-border money flows within ASEAN in the next 12 months. DuitNow is one of the steps to make that a reality, Deutsche Bank said in the press release.