StarSpecialTHE STAR Sunday 25 May 2014

Choosing the right savings option > 4

MONEY & YOU

Your essential financial tools

Banking made accessible to all > 6

2 MONEY & YOU StarSpecial, Sunday 25 May 2014

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SOUTHERNPROPERTYStarSpecial

THE STAR Thursday 30 January 2014

Rise ofthe south

Supplement Team – Email: supp@thestar.com.my

03-7966 8237jychia@thestar.com.my

03-7966 8227kamariah@thestar.com.my

The customer at the helmTHE decade leading into the

21st century saw a major shift in banking tectonic

plates. Now, in this century, the individual has become the force driving the direction and nature of the banking business, spurring a revolution in the way banks make business decisions and plan their future business.

The introduction of the Internet saw business communications and transactions going virtual, particularly in the banking industry. This means that the individual is now armed and empowered with information, giving him the power to direct his own finances and investments.

What was a two-way relationship between the bank and the customer is now a multi-entity communication system connecting financial and non-financial institutions and evolving transactions into non-tangible and complex connectivity.

What this means is that the banking industry now involves agents, consultants, telecommunication providers, governmental bodies and many other industries that are all interconnected, providing not only basic products but pre-sales services, advice, post-sales service, the power of first impressions, long-term relationships and loyalty, ideas, networking and a host of other things.

“Traditional banks are now facing stiff competition from alternative financial intermediaries. To thrive in a competitive landscape, it is more than just setting financial targets, it is about creating value,” says Nor Shahrizan Sulaiman, head of product management at Maybank Islamic Berhad.

Going online

Online banking first started in the early 1980s, however it was in the 1990s that the concept fully took off. According to the World Bank, in the year 2000, 6.8 people out of a hundred worldwide were Internet users. That number jumped dramatically to 35.5 in 2012; that is more than a three-fold increase.

Banks had a choice to make. They could conform and adapt to change or go obsolete. But that also meant diverting the volume of effort, cost, manpower and overheads into digital channels.

This was a slow, uphill task, but a necessary one. Making these changes has certainly paid off in a major way, as the Internet has now become a powerful banking tool.

This online tool has the power to attract potential customers and investors, draw online

traffic, change lifestyles, opinions and preferences, and may have potential that has not even been discovered yet. This has resulted in banks having to deal with a considerable increase in virtual activity and traffic.

Banks have reported a drop in traffic and routine transactions at

their brick and mortar locations and this number is rapidly reducing, which means fewer people are travelling to bank branches to carry out transactions.

In an interview with local radio station BFM last year, Winston Emmanuel Jeyaprakash, deputy chief executive officer (retail banking) of Bank Simpanan Nasional (BSN), revealed that the bank’s outlook towards opening traditional brick and mortar branches has somewhat reduced as a direct result of the rising popularity of Internet banking.

Evidence of this is can be further seen in the emergence of fully online operated banks that are subsidiaries of large traditional banking groups, such as the Leeds-based first direct Bank in the United Kingdom, a subsidiary of HSBC.

Customer experience

Though the trend is towards online banking, the move online cannot be embraced by every single person across the globe. For this to take place, access to the Internet in terms of coverage, facilities, lifestyle, Internet security as well as national policies need to be addressed and facilitated.

Moreover, in some parts of the world where basic needs such as access to clean water and

electricity still have not been met, access to the Internet, let alone Internet banking, will remain low on the priority list. Chances are, there will come a time when the world is divided into countries that have only virtual banks and those with brick and mortar outlets.

The divide, much like that of poverty, would mean that whole populations will be left behind as the bandwagon of Internet banking rides off in various directions, evolving and growing as it moves swiftly along.

However, for customers who have access to the Internet, such as those in much of Malaysia, the banking experience has evolved completely.

A single screen now makes up for an entire branch and customers have become their own bankers and key decision makers with matters relating to their finances.

People can now carry out banking activities round-the-clock and can be more involved with options, the moving of funds and the purchase of banking products.

There are challenges for the individual though. For an individual to fully appreciate the freedom and power of Internet banking, he must continue to gain better understanding of banking issues and emerging trends in the industry to better manoeuvre

— Yunos Abd Ghani, Deputy Chief Executive Officer (community banking) of BSN

Customers no longer look for banks and their services. It is banks that reach out to customers. This is the way of the 21st century.

What was a two-way relationship between the bank and the customer is now a multi-entity communication system connecting financial and non-financial institutions and evolving transactions into non-tangible and complex connectivity.

his banking world, albeit with the help of knowledgeable bank officers who can be accessed via the telephone, or face-to-face if one is still that way inclined.

Shifting priorities

The ICT revolution in banking means that banks have to change their priorities. Managing finances of the customers was always on top of the list and is of course still very important, though in a different way. It is now about anticipating needs and humanising financial services.

To stay ahead of the curve, banks have to get out of their comfortable swivel chairs and stretch their hands as far as they can to engage their consumers and potential customers.

“Customers no longer look for banks and their services. It is banks that reach out to customers. This is the way of the 21st century,” says Yunos Abd Ghani, deputy chief executive officer (community banking) of BSN.

Customer relations today have become a two-pronged, if not multi-pronged strategy: physically, with brick and mortar outlets, corporate booths and campaigns, and presence in the virtual arena.

Another priority shift is where banks are not trying to engage just customers and financing but rather loyalty. Patronage has taken precedence and in the long haul, this means revenue and business opportunities for banks.

This means enhancing customer experience no matter how trivial the transaction. Customers usually feel more satisfied when the transaction can be carried out with minimal hassle and satisfied customers are the ultimate goal. Simply put, a price value on a loyal patron is 10 times greater than involuntarily creating non-advocators.

> TURN TO PAGE 3

A single screen now makes up for an entire branch and customers have become their own bankers and key decision makers with matters relating to their finances.

StarSpecial, Sunday 25 May 2014 MONEY & YOU 3

Security and transparencyin 21st century banking

> FROM TO PAGE 2

THE 21st century is also about overall transparency and security measures taken by institutions. Although online banking is old news, not many consumers realise the mountain of data it amasses.

Habits, preferences, hangout spots, life changing events, even your bus routes are all available for scrutiny by marketing strategists. There is even software and people whose job is to analyse data to predict customer movements and decisions.

There is always an underlying fear that all this priceless information is being mined by organisations. Therefore, financial institutions that are big on security and are transparent with their governance and policies but not with their customer information will gain customer loyalty and following.

Studies have shown that the handling of transparency has been directly related to quality and the overall prestige of an institution.

Consumers are typically now considering the handling of transparency and security as an added advocating factor for banks. Even exclusivity and overprotective behaviour are attractive factors for consumers to stay loyal to an institution.

This is not an incentive but a way for banks to show protectiveness over its patrons so that they feel safe and secure, and are more willing to invest emotionally and whole-heartedly in the bank.

Syariah-compliant banking

In the mid-20th century, economists believed that the only way forward and the only solution for financial intermediation was the interest system, and that anything that was otherwise was a hindrance to the world’s financial system.

This perception has now changed as many economists believe that an interest-free system will not only enhance growth but reduce financial crises if applied properly. Islamic banking is at the core of such a system.

Malaysia has some of the largest shares of global Islamic banking assets in the world.

This arm of finance is growing 50% faster than conventional banking with some of the largest institutions located in Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, Oman, Malaysia and the United Kingdom.

Maybank Islamic at a glanceAS Malaysia’s largest Islamic bank, Maybank Islamic offers Syariah-compliant financial products and services to customers in consumer banking, business banking, wealth management and international business. It is also a wholly owned subsidiary of Maybank Group, dominating market share in almost all key segments.

As an entity operating on a dual-banking platform, Maybank Islamic is regarded as the most successful Islamic subsidiary bank leveraging on its parent bank’s infrastructure and resources. An acknowledged industry icon, Maybank Islamic continues to lead the industry through the development of new, innovative and internationally accepted propositions.

Its diversified product and service range is available at 16 branches and co-located at more than 400 Maybank branches.

Serving more than four million customers nationwide, Maybank Islamic continues to expand its customer reach via Maybank Group’s distribution channels across the country.

With continuous support from its parent bank combined with a strong commitment delivered by skilled and experienced staff, Maybank Islamic has successfully strengthened the identity and achievements of the Maybank Group in Islamic banking, both domestically and internationally.

Maybank Islamic is recognised for making waves in the banking and financial services industry and garnered an array of awards this year. Looking ahead, Maybank Islamic is set to revolutionise the Islamic banking industry.

They are soon to see changes in consumer demographics as more customers from various backgrounds and ethnicities are drawn to Islamic finance.

Studies have shown that the handling of transparency has been directly related to quality and the overall prestige of an institution.

Nor Shahrizan Sulaiman, head of product management at Maybank Islamic Berhad.

Speaking at the Minggu Saham Amanah 2014 in Kelantan recently, Prime Minister

Datuk Seri Najib Razak said that Maybank Islamic Berhad, the Islamic finance

arm of Maybank Group, is Malaysia’s leading Islamic bank and the world’s third largest Islamic bank. It is also rapidly growing in terms of total assets, which now stand at RM127bil.

A key focus for Maybank Islamic is emphasis on syariah governance and its robust risk management framework.

This is a continuous focus and drive across the group. Maybank

Islamic’s aspiration to become a global player in the industry

is backed by its Shariah Centre of Excellence.

This initiative aims to serve as a

comprehensive and practical source of reference for industry players, legal, regulatory and academic fraternities contributing to the debate and development of the industry.

Moving forward, Maybank Islamic Berhad will continue to leverage on its position as the leading bank in Asean countries to further intensify cross-border linkages within the region, especially between Malaysia, Indonesia, Singapore and Brunei as well as between other Asean countries, the Middle East and key financial centres across the world.

“For us at Maybank Islamic, value creation is all about being client- and community- centric and it is with this that we define our mission to ‘Humanising Financial Services’. Humanising financial services is about providing convenient access to financial services, having fair terms and pricing, advising customers based on their needs and being at the heart of the community. This is the promise that we strive to deliver across the markets we operate in domestically and regionally. We believe that only by successfully serving our clients and communities can we realise our aspiration to be a Global Leader in Islamic Finance,” says Nor Shahrizan.

The challenge that banks face in the near future is integrating all these delivery channels into one steady flow of channel or an “omnichannel”.

Since the Internet and online revolution is relatively new to this century, blurring the lines of disparity and narrowing gaps between institutions, channels, consumers and strategies and services within the banking industry will prove advantageous

to all entities in this potentially volatile sector. As colossal and diverse as financial holding companies get in the future, staying personal and providing a single master view of consumers for personalisation and for industrial purposes is the way forward.

With all these increases in knowledge and new forward and formidable ways in thinking, this century should yield far less crashes and depressions than the previous one.

4 MONEY & YOU StarSpecial, Sunday 25 May 2014

Another innovative offering by Maybank Islamic is the Premier Mudharabah Account-i (PMA-i).

Saving money is a lifelong process that should be cultivated from a young age. To this end, Maybank Islamic has introduced Yippie-i and imteen-i, which, in addition to attractive rates, offer cash rewards for children and teenagers’ excellent academic achievements.

Choosing the right savings optionBUILDING a savings account

is important for individuals and businesses in this time

and age.To quote American author

Napoleon Hill, saving money is the foundation of all financial success, and this includes making investments.

It is only with savings that you gain the capital to invest. Simply put, the process of saving involves putting aside cash and keeping it in safe and liquid securities accounts.

Common accounts to use to build savings include current accounts, savings accounts, investment accounts as well as fixed deposit accounts.

Investment, on the other hand, is the process of using money to buy an asset that will generate an acceptable return over time. An investment may include anything from real estate to stocks or small businesses.

Building savings

Broadly speaking, savings fall into two categories – planned and unplanned savings proceeds.

Planned savings proceeds involve the planning of your future financial goals for things such as an upcoming wedding, downpayment for your dream home, funds for your children’s education or a retirement plan.

Unplanned savings proceeds are about equipping yourself for unpredictable life circumstances, both bad and good.

This may include paying off unexpected medical bills or having readily available cash to invest in the stock market during an economic downturn.

In Islamic finance, savings opportunities are just as attractive as conventional banking, especially with the wide range of contracts made permissible under Islamic banking pillars where products are offered as deposit

• Cash rewards for academic excellence such as SPM, STPM and tertiary level examination• Savings account for children and teenagers below 18 years old• Up to RM70,000 Personal Accident Takaful Coverage, with medical expenses coverage

• Convenience of opening and managing your account from online via Maybank2u.com• High multi-tiered indicative dividend rates with no minimum balance

• Savings account for senior citizens and retirees• Multi-tiered dividend rates, credited on a monthly basis• Free Service Charges for Foreign Telegraphic Transfer (FTT)

• An online-based current account with the convenience of a checking facility• No introducer is required• Multi-tiered dividend rate, credited on a monthly basis• Complimentary Personal Accident Takaful Coverage plus medical benefit

• Higher tiered indicative dividend rates• Comes with exclusive Maybank Private Banking Debit Card• Complimentary Personal Accident Takaful Coverage plus medical and funeral expenses• Access to Maybank Private Banking Centres nationwide

• Higher dividend as account balance increases• Enjoy one-month General Investment Account-i indicative dividend rates for deposits above RM50,000 (subject to no withdrawal within the month)• Up to RM70,000 Personal Accident Takaful Coverage, with medical expenses coverage

• Provides immediate returns upon deposit placement.• Complimentary Personal Accident Takaful Coverage plus medical and funeral expenses

Yippie-i

Maybank2u Savers-i

Golden Savers Savings Account-i

net Current Account-i

Private Banking Account-i

Premier Mudharabah Account-i

Profit Now! Account-i

Accounts Highlights

Term

Curr

ent

Savi

ngs

and investment accounts.

Options to consider

Saving money is a lifelong process that should be cultivated from a young age. To this end, Maybank Islamic has introduced Yippie-i and imteen-i, which, in addition to attractive rates, offer cash rewards for children and teenagers’ excellent academic achievements.

Besides that, Maybank Islamic’s innovative savings products are also available for working professionals and golden retirees.

These include Personal Savers-i, a savings account that can be open

with a minimum deposit of RM10 at any Maybank One Solution kiosks; Maybank2U Savers-i, an online savings account that gives you the convenience of opening an account online; and Golden Savers Savings Account-i, a specially tailored savings account for senior citizens and retirees that includes rewards of higher dividends as the account balance grows.

Other savings products include the Profit Now! Account-i (PNA-i), which is an Islamic fixed-term deposit based on the syariah concept of murabahah (cost-plus sale) that uses a syariah-compliant commodity as the underlying asset for sale and purchase

Maybank Islamic Deposit Accounts

The Premier Mudharabah Account-i is a current account with high multi-tiered indicative dividend rates.transactions. This one of its kind savings account provides immediate returns to customers on the first day of their deposit placement, unlike other term deposits that only give returns upon maturity.

Another innovative offering by Maybank Islamic is the Premier Mudharabah Account-i (PMA-i), a hybrid account that pays dividend based on the syariah concept of wadiah (safe custody) and mudharabah (profit sharing) and is packaged to provide more equitable profit sharing between the bank and customers, such as the one-month General Investment Account-i indicative dividend rates for deposits above RM50,000.

Benefits of banking with Maybank Islamic

Maybank Islamic’s proposition is to assist customers to reach their financial goals. To this end, Maybank Islamic has packaged most of its savings products with the benefit of a complimentary personal accident takaful coverage.

This coverage provides medical benefits to customers in the event of unforeseen medical incidents or accidents. Its products and offerings were also created with the customers’ convenience in mind, including providing widespread ATM networks and ease of online access. This is in line with Maybank Group’s mission to humanise financial services.

Maybank Islamic’s savings products are made available at more than 400 Maybank and Maybank Islamic branches nationwide for immediate application.

n For more information on Maybank Islamic products, services and ongoing campaign and offerings, please call1300 88 6688 or visit www.maybankislamic.com.my

imteen-i

StarSpecial 5Sunday 25 May 2014

6 MONEY & YOU StarSpecial, Sunday 25 May 2014

• Deposits• Cash withdrawals• Bill payments• Purchase of e-SSP• Cashless transactions• Prepaid top-ups for Celcom and Maxis users

There are six transactions that can be made at the POS machines:

Banking madeaccessible to all

GOING cashless and paperless has become a necessity for many businesses since the

introduction of the Internet in the 1990s. The 21st century brought about many revolutionary changes and this trend will certainly not be ending soon.

The recently released Financial Sector Blueprint 2011-2013 by Bank Negara Malaysia highlights many financial areas that need to be addressed.

Among them is the financial inclusion for greater shared prosperity that aims to enable all strata of society, especially the underserved, to have access to essential financial services.

Upholding this mandate is the BSN Registered Agent Bank (Ejen Bank Berdaftar – EBB BSN) by Bank Simpanan Nasional (BSN) launched in-line with the Prime Minister’s announcement of this banking agents’ initiative during the 2011 Budget speech.

Yunos Abd Ghani, deputy chief executive officer (community banking) of BSN, says that in accordance with the government’s objectives, the bank launched the EBB in June 2012. He adds that the EBB is an extension of BSN’s banking services where essential consumer banking services are provided.

“There is a physical location, a bank agent and a point-of-sales machine placed at the designated location,” Yunos says.

Spreading across the country

EBBs are placed in numerous areas where BSN believes that there is a need for financial service provision.

Initially, EBBs were placed every 10km as BSN wanted a wider coverage of agents but now EBBs are placed where there is a need for them. This is especially true in rural areas where brick and mortar bank branches are scarce and the nearest one is many kilometres away.

This unavailability of financial services forces many communities

to travel many hours to perform possibly one simple transaction.

This creates a host of personal issues such as running out of cash at hand, taking time off work and gathering their families to run financial errands.

To date, there are three times more agents in the rural areas than in urban areas. Yunos points out that rural areas may not necessary mean the lower income range.

“They may be of the higher income group and if they are, it is a misfortune that better financial services and consulting are not being provided to them,” he says.

So far, the state with the highest recorded number of agents is Johor and the second highest is Selangor.

BSN has various products targeted at different segments and although for EBB the target are those in rural areas, they have many in-town agents as well.

“Urbanites have many choices. However, we still have many agents in town and they are placed in areas where communities are clearly lacking large financial institutions and support,” says Yunos.

Most of these agents are kedai runcit (sundry shop) owners as these establishments serve as a meeting point for many people.

The agents are provided training and are also required to have an account with BSN. They then undergo a series of inspections by BSN.

Their current and past financial statuses, BRIS and background, business performance and financial capabilities are thoroughly scrutinised before they are

appointed as EBB agents. “Of course, these inspections

are basic and not from a professional accountant’s point of view.

“As long as they are financially stable, they are eligible to become agents,” Yunos says.

Their premises also go under scrutiny as Internet connection and proper site management is a must. The legitimacy of these agents is not taken for granted as they are to become representatives of BSN.

As of this month, BSN has more than 5,000 agents across Malaysia, exceeding the target set by Bank Negara.

“Our agents are an extension of BSN. They are their own branch. We are planning to give them more responsibilities in the near future,” says Yunos.

The service cuts down the customer’s travel time and is seen as a huge advantage.

BSN hopes that the money that is saved on travelling expenses will create a savings culture among the community.

EBB also encourages suburbanites to move away from their traditional way of saving, which is to store physical cash in a money box, and start saving responsibly.

“We want to ensure that everyone moves into the paperless era together,” says Yunos.

Ensuring smooth operations

Bank Negara and BSN have also carried out impromptu visits to premises of EBB agents, ensuring that everything is running smoothly and also getting feedback from customers and agents.

“Generally, we have received positive feedback. Agents have reported a spike in traffic and sales in their stores and we are very happy for them,” says Yunos.

BSN’s EBB has garnered awards for its innovative approach to banking. It was awarded the German Karlsruhe Sustainable Finance Award 2013.

This award was presented to EBB for its corporate social responsibility factor of expanding its business while safe-guarding the community and the environment.

EBB was also presented The Malaysia Greentech Award 2013 for significantly reducing carbon dioxide emissions as it has encouraged less travelling and the usage of less paper and petrol among the community.

In addition, BSN EBB was certified a Top 5 Finalist at the ICT Innovation Award Category last year at the Malaysian Public Sector Innovation Awards (AISA) 2013 and is also listed this year in The Malaysia Book of Records as the Largest Network of Banking Agents in Malaysia.

Customer approaches agentand requests transaction

*Only withdrawal requires both Mykad and bank card. For deposit, either use a BSN bank

card or manually input an account number

Agent chooses one of six transactions from a drop-down menu from the POS terminal

Customer receives receipt

*Both deposit via bank card and withdrawal transactions will show account balance on the

printed receipt (customer copy only)

Customer con�rms identi�cation

*Customer con�rms identi�cation via biometric and personal identi�cation number (PIN) veri�cation (this is a debit card process)

Agent proceeds withthe transaction

Banking transactions are carried out online and in real-time

BSN EBB transaction between an agent and a customer

1

2

34

5

6

Urbanites have many choices. However, we still have many agents in town and they are placed in areas where communities are clearly lacking large financial institutions and support.— Yunos Abd Ghani, Deputy Chief Executive Officer (community banking) of BSN

StarSpecial 7Sunday 25 May 2014

8 MONEY & YOU StarSpecial, Sunday 25 May 2014

Healthy wealth managementTHE term “wealth

management” came about in the 1990s to describe

a complex series of services similar to financial planning. The phrase has also been adopted by accountants, estate planners, lawyers and some finance specialists. These experts cater mostly to high-net-worth clients.

Unlike professions such as accountancy, taxation or auditing, which involve specialised fields of study where professionals are provided official certifications by governing bodies who supervise the field, wealth managers are yet to require official certifications.

However, the Investment Management Consultants Association (IMCA), the governing body that awards the CIMA certification (Certified Investment Management Analyst), began offering a certification for wealth management in 2007 known as the Certified Private Wealth Advisor (CPWA).

The certification recognises individuals who specialise in the life cycle of wealth – accumulation, preservation and protection and distribution.

They identify and analyse challenges faced by high-net-worth clients and how to develop specific strategies to minimise taxes, monetise and protect assets, maximise growth and transfer wealth.

What is wealth management?

Wealth management is a system that involves the effort of both experts and clients to design and adopt ideas to manage and grow the clients’ wealth.

Wealth comes in many different forms – hard cash, properties, shares, luxury items, businesses, lands and others.

Managing it, however, involves collective consultative processes that build a specific portfolio for owners. It is a slow and painstaking process that requires the clients’ trust and the consultants’ patience.

Deciding to involve a wealth manager in planning your finances is an important step.

It requires you to entrust the management of your wealth to someone else.

However, leaving your wealth to stagnate or deplete would be less desirable but this is most likely the case for most people.

What wealth managers do is enhance wealth while providing a valued experience for clients. In addition to learning about the many financial areas, those undergoing the CPWA certification study family dynamics.

This includes the study of anthropology and building relationships based on shared experience.

This is particularly important if the wealth involves a few generations of a family.

The difference between wealth managers and financial advisors is that wealth managers are a niche group of people.

They have cultivated specific tools and skills over the years and have a relatively small number of clients.

They can also apply distinctive

designs and have a better skill set compared to other more common models.

Wealth as a tool

A common mistake that people make is to see income as a figure to make purchases with.

Having wealth does not necessarily translate into profitability.

Rather than just perceiving wealth as a product of a toil-and-reap process, money can be considered a tool with which you can gain profit.

In this circumstance, having professional help will evolve this tool into a working design that will snowball into a self-sustaining model. The process often involves a lifestyle change for clients as well.

Even those who do not fall within the high-net-worth bracket should consider getting consultancy aid since the nature of wealth management allows it to be adaptable as a tool to manage one’s situation even when in deficit.

Most banks offer wealth management services catered to high-net-worth individuals. There are also private, stand-alone wealth management firms that not only act as advisors but as executors of clients’ instructions pertaining to their finances.

The biggest challenge for a wealth manager is to understand the financial needs of the clients.

It is important for clients to understand the role of wealth advisors to ensure their credibility and market value.

Experts need to convince middle-income and low-income earners of their skills, as these earners have the potential to become higher-income earners.

This creates business opportunities and expands networks, which is the perception of wealth management that the industry is aiming for.

This is important because their relationship with clients is not usually a short-term one and the advice and information given need to be accepted by clients with trust and understanding.

There is no one way to manage wealth because people’s lifestyles differ and different people require different aspects of their wealth to be managed, including tax management, risk assessments, retirement planning, portfolio management, estate planning, generational legacy, trust fund managements and specialised services for executives and small business owners.

The role of a wealth management consultant

Deciding to involve a wealth manager in planning your finances is an important step. It requires you to entrust the management of your wealth to someone else. However, leaving your wealth to stagnate or deplete would be less desirable but this is most likely the case for most people.

Behavioural issues

Humans are generally protective of their finances, therefore a new concept such as wealth management may not be easily accepted as it is still largely unexplored and remains unknown to many people.

As a result, finances are normally made stagnant or spent, not giving much return to its owners if not put in a bank or invested with little or no returns.

K. Gunesegaran, financial planner and money coach from Wealth Street Sdn Bhd, was recently a guest on BFM (a Malaysian radio station) and spoke about how to keep emotions in check when dealing with money.

He suggested that adhering to a certain behavioural portfolio regardless of the market’s response and adopting a shared behavioural framework that clients and investors can agree on and adopt in any finance management context offer a good solution to the behavioural issue surrounding wealth management.

Instead of just spending your money, invest it wisely to get returns.

Rather than just perceiving wealth as a product of a toil-and-reap process, money can be considered a tool with which you can gain profit.

Towards a bright future

As Malaysia readies itself for the increase urbanisation of its cultures and communities, the growth of wealth will mean more opportunities for the wealth management field to develop.

By substantiating certification and licensing as well as educating the changing demographics about wealth management, the field will gain more recognition within the finance industry.

Creating a niche market of professionals is also a better option than generalising the industry’s talent.

For example, a wealth manager who specialises in real estate or the ICT industry would prove to be better than a general wealth manager in certain contexts.

Scouting for a niche specialist wealth manager, especially if the wealth involved is derived from or being invested into a certain industry, would then be a better approach to handling wealth.

However, as a client, the first step is to better understand how you would like to use and invest your money before seeking professional help.