Japan’s Seven Bank is establishing its fourth overseas group company in Malaysia, with plans to deploy ATMs in 7-Eleven stores across the country.
Based in Kuala Lumpur, the joint venture has a capital investment of RM13.2 million.
Seven Bank holds a 50.1% majority stake, while 7-Eleven Services Sdn. Bhd., and two local investment firms, HQZ Credit Sdn. Bhd. and SMRT Holdings Berhad, own the remaining shares.
The bank said in a filing,
“In addition, given that the amount of cash in circulation has increased every year, we regard the country as one of the promising Asian markets. Particularly, as for lifestyle habits in Malaysia, the proportion of people who pay in cash on a daily basis exceeds 70%, with the average number of withdrawals using ATMs being high compared with Japan and other Asian countries.
In addition, while the total number of ATMs currently stands at around 15,000 or so throughout the nation, the number of ATMs per 1 million population amounts to 446. For these reasons, Seven Bank has judged that growth potential is expected in the ATM business in this country.”
The new subsidiary, Abadi Tambah Mulia Internasional Malaysia, will focus on deploying banknote-recycling ATMs in regions with fewer bank branches and existing ATMs, particularly in areas underserved by traditional banking services.
By installing ATMs in 7-Eleven stores, which have been a staple in Malaysia for about 40 years, Seven Bank aims to integrate financial services with retail convenience.
This move by Seven Bank follows a growing trend of non-bank ATMs in Malaysia, exemplified by Euronet’s recent acquisition of the MEPS ATM network, making it the largest non-bank ATM operator in the country.
Additionally, the launch of Malaysia’s first Independent ATM Deployer (IAD) by Silverlake Axis and Safeguards Corporation further highlights this shift.
