1. Students Name: Lecturers Name: Unit Title: Submission Date: Topic: Management Skills & Entrepreneurship

2. Table of content ContentSlide Introduction………………………………………………………….………………..3 The opportunity gap in the market…………….………………………………….…..4 The new venture concept…………….…………………………………………..……5 Examples of products and services to be offered……………………………..….…….6 Why I am confident that this new business would be feasible…………..………….….7 The requirements for the new business start-up…………………………….…….……8,9 The management skills needed to make the bank successful………....……………......10 How the new venture will work to achieve positive financial results…………..……..11 Time it will take the company to achieve positive financial results………….……….12 The conditions which must prevail to avoid the banks failure……………………….13,14 Conclusion……………………………………………………….…………………….15 References…………………………………………………………………………….16

3. Introduction  This presentation presents the opportunities that exist within the Malaysian banking industry.  It illustrates how the opportunities will be exploited by setting up a microfinance bank.  The bank to be set up will mainly use several strategies in order to benefit from opportunities that exist in the countries banking sector.

4. The opportunity gap in the market  The presence of the unbanked.  The absence of banks that offer affordable financial services.  The absence of banks that target low income earners as well as small businesses.  The absence of microfinance banks that provide multiple products in their portfolio.

5. The new venture concept  Setting up a bank that targets the unbanked.  The bank will offer affordable financial services.  The bank will target low income earners as well as small businesses.  The bank will provide multiple products in its portfolio.

6. Examples of products and services to be offered by the bank.  Free account opening.  Free deposits as well as withdrawals.  Mobile money/banking.  Bank agency services.  Stock brokerage services.  Mutual funds and unit trust investments.  Sale and purchase of government bonds.

7. Why I am confident that this new business would be feasible.  The unbanked will have access to convention banking services.  Affordable financial services will be easily accepted by target low income earners as well as small businesses.  The provision of multiple products in the banks portfolio will enable it to benefit from economies of scope.

8. The requirements for the new business start-up In order for one to set up a bank is Malaysia, an investor must adhere to the Financial Services Act 2013.  The applicant must be a financially sound licensed financial institution with strong reputation and track record in a specific area of business.  The applicant must be regulated and supervised by a competent regulatory authority.  The applicant must have strong support from reputable shareholders that are able to provide sustainable support.

9. …requirements continuation.  The applicant must have a comprehensive business plan and a strong value proposition in the specialized areas of expertise.  The applicant must have expatriate employees with the required knowledge and technology.  The new bank must maintain a minimum capital of RM300 million.  The new commercial bank may have a foreign equity interest of up to 100%.

10. The management skills needed to make the bank successful include,  People management skills.  Creating and maintaining a business oriented and customer focused organizational culture.  Creating and communicating the mission, vision, goals and objectives of the organization.  Setting up and implementing a business strategy.  Good leadership, supervision and communication skills.

11. My proposed business model to explain how the new venture will work to achieve positive financial results Price: Providing products that are cheap. This strategy will help attract low income earners as well as those with small businesses. Product: Providing multiple products. This will enable the company to benefit from economies of scope. Promotion: Awareness will be created to communicate about the companies affordable products and services to the banks target market. Place: Convenience such as mobile banking and expansive ATM network coverage will help attract the unbanked.

12. The time it will take the company to achieve positive financial results  The banks will first need to seek regulatory approval before offering its services.  Once approval has been granted and initial operations have began, the company will being to advertise and the public will begin expressing interest in the banks services.  The bank will then pass through three stages, which are, “Introduction, development and growth stage”.  To attain the development stage, it will take 4 years, while to attain the growth stage will take 8 years.

13. The conditions which must prevail to avoid the banks failure.  Large capital base.  Product acceptance.  Large customer and high deposit rates.  Low cost business environment.

14. …conditions continuation.  A risk free business environment.  Market product and service awareness.  Satisfied customers.  The presence of opportunities within the marketplace.

15. Conclusions This presentation has illustrated the opportunity that exists within the banking sector of Malaysia. The opportunity identified is the lack of affordable banking services for low income earners, the unbanked as well as owners of small businesses. Setting up a bank that offers multiple products, accessibly at an affordable price would ensure that opportunities of providing affordable banking products to the identified market are exploited. With the presence of a financial institution that provides affordable banking services, the identified target market will be encouraged to open bank accounts with this institution as well as be able to access bank products and services at an affordable price and accessibly. The banking strategy that has been identified in this assignment will also attract middle income customers who want access to affordable banking services.

16. References Jikon Lai 2012 Financial Crisis and Institutional Change in East Asia Palgrave Macmillan Leonardo Martinez-Diaz 2011 Rt-Globalizing in Hard Times Z Cornell University Press René Bösch 2012 Banking Regulation Sweet & Maxwell Rene Bosch Homburger 2014 Banking Regulation Jurisdictional Comparisons Retrieved from http://www.rahmatlim.com/Lists/PublishedArticle/Attachments/1/Banking%20 Regulation%20-%20Malaysia.pdfhttp://www.rahmatlim.com/Lists/PublishedArticle/Attachments/1/Banking%20 Kevin Gallagher 2013 Skills Development for Business and Management Students: Study and Employability OUP Oxford Paul Mason 2015 PostCapitalism: A Guide to Our Future Penguin Books Limited Joe Pimbley, Laurel McDevitt 2014 Banking on Failure: Fixing the Fiasco of Junk Banks, Government Bailouts, and Fiat Money Maxwell Consulting, LLC