Maybank firming up agency roster

The agencies are believed to have been awarded the brief following a five-way pitch, which included incumbents Euro RSCG and Grey, as well as Dentsu, M&C Saatchi and BBDO.

Grey declined comment.

The news comes on the heels of the bank - which has led Malaysia's banking industry for three-and-a-half decades - retaining its media agency Carat Malaysia. Carat has worked on the account since 2000. Maybank's account has been estimated at US$4 million a year.

While Maybank's enterprise loans portfolio grew 10 per cent in the past year as the bank scooped the business of a quarter of the Singapore projects launched in Malaysia, the group has also been nursing a major drop in fees for home loan services.

It recently slashed rates for standard off-the-shelf mortgage packages, which it claims are the cheapest in the market, after rival financial institutions ABN Amro and UOB introduced low interest packages for home buyers.

According to a source: "The fall in home loans has been 30 to 40 per cent for the bank as it has seen a fall in fees for these services. Its online business is relatively strong - consumers can pay bills and check out overseas services. But there have also been developments in the credit card sector; most banks are offering waivers for membership (or annual) fee. It's very competitive at the moment."

The cut-throat market has driven Maybank and its 400 branches to focus on below-the-line activities and attract new customers through online banking services, such as bill payments. "The majority of the advertising spend will be towards direct marketing and below-the-line activities. The bank will also target staff through events and focus on its business partners," said the source. "I have no idea yet how the business is split, who gets what (between Grey and BBDO), but the contract is believed to have started this month," added the source.

Additional reporting by Amy White.