Dagang NeXchange Berhad Annual Report 2018

28 Dagang NeXchange Berhad Annual Report 2018 Corporate Profile Focused on digitisation and automation, DNeX, through Dagang Net Digital Platform offers: • Enhanced capability to provide advance Duty & Permit Payment • Halal Settlement & Payment • Trade Finance riding on Blockchain technology • Electronic application of marine cargo insurance and settlement • Takaful Exchange myPayment myPayment is DNeX’s proprietary online payment platform that allows users to prepare, submit and settle payments, anytime and anywhere. myPayment was developed in-house to facilitate online payments for Customs duties, Importation GST, and permit fees. This modular-based application is also available for various bill settlements including transaction fees, prepaid top-up, and any other general payments in favour of any registered billers. myPayment provides users real-time tracking on payments, and ensures the money reaches its destination safely and securely. Financial Technology Financial Technology (“Fintech”) is a new industry that uses technology to improve activities in financial services. The use of smartphone for mobile banking, investing services and digital assets are examples of technologies aiming to make financial services more accessible to the general public. At present, a report on Fintech Malaysia 2018 indicated that Malaysia has 85.7% internet penetration and 85.1% online banking penetration. While financial institutions (“FIs”) are still debating whether Fintech is a threat or an opportunity, it is becoming clear not taking a step into Fintech is bad business strategy. Fintech, when used correctly, offers top opportunities for: • Differentiation • Cost reduction • Customer retention Meanwhile, the emergence of blockchain technology will complement Fintech by offering easy and secure transfer of monies, as well as acting as the linchpin of further document transfers associated with trade; from initial contract signatures to bills of lading, customs declarations, and so on. Blockchain, when combined with logistics tracking, regulatory, and every changing tax rules, will present an innovative capability to serve the customers in a financially safe and risk-managed environment.