highlighted how Malaysians are willing to adopt AI and emerging technologies
for banking-based services as long as issues on privacy and security are
resolved. This is based on a new research done by Unisys Corporation.
A recent study showed that Malaysian consumers are willing
to allow banks to share data for Open Banking-based services but would only do
so if privacy objections and security concerns are overcome. They are also willing
to adopt bank services that are based on emerging technologies like artificial
intelligence (AI) and machine learning.
This new research from Unisys Corporation, Unisys APAC
Banking Insights – Banking on the CX Factor is a study on how consumers feel
about banks using AI to assess eligibility for credit cards and home loans, as
well as get feedback on their sentiment toward Open Banking.
47% of Malaysian respondents listed long queues as their top
annoyance. 20% of the Malaysian respondents do not like repeating themselves.
12% replied that they are annoyed by being unable to complete an “online”
Unisys Asia Pacific Vice-President for Financial Services Mr
Richard Parker said, “With bank queues as the top annoyance for Malaysian bank
customers, there is a huge opportunity for Malaysian banks to move more
customer interactions to digital channels, including mobile.”
He added, “Malaysians are keen to use digital services but
they seek a seamless Omni channel relationship so that they can start a
transaction in one place and pick it up in another without having to start
over. In addition to relieving pressure on the branches, artificial intelligence
and machine learning technologies can be used to help banks deliver targeted
and relevant online services across all channels.”
Depending on the type of transaction, Malaysian bank
customers are very interested with tech innovations that will enable digital
bank services. The survey reveals that 52% of Malaysian consumers are
comfortable with software and algorithms being used by their banks to assess
online credit card applications. On the one hand, only 39% are willing to use these
for home loans transactions.
Mr Parker explained, “There is a great opportunity for
Malaysia's banks to use smart software to lead decision making for commodity
products such as credit cards. Consumers are less willing to use this for life
events such as home loan applications which involve larger financial amounts
and emotional involvement. But, Malaysian consumers are poised to lead this
adoption in Asia Pacific.”
Open Banking is a growing initiative in the financial
services sector that allows banks to share data with other organisations in
order to offer new services to customers and new revenue streams for the banks.
Countries have varying regulations pertaining to Open
Banking but there exists agreements among members of the Association of Southeast Asian
Nations (ASEAN), to which Malaysia is included, as part of the ASEAN
Banking Integration Framework (ABIF) 1.
The opinions of Malaysians regarding Open Banking are almost
equal. 40% are supportive to having their personal data shared while 38% are
against it. Concerns cited were privacy and security. Malaysia recorded the
highest level of desire to keep personal information private.
Mr Parker said, "For Open Banking to take
off in Asia, banks must address customer concerns about how they protect
customer data, not just in the bank, but across all of the departments,
partners and agencies in the value chain. Doing business in the 21st century
requires dynamic software that adapts to business trends and evolves with security