Survey, CIOSEA News, ETCIO SEA
Confidence in digital banking is growing in Malaysia, but consumers want a better online experience and more personalized offerings, according to the new Asia-Pacific-focused Bank of the Future survey by Capco, the global technology and management consultancy.
Capco surveyed 999 consumers in Malaysia focusing on Kuala Lumpur (46% of respondents) and selected urban areas to gauge their attitudes towards banking services at a time of rapid change in the retail banking industry. The findings are part of a larger survey of nearly 5,000 consumers across five key markets in the Asia-Pacific region.
Asked to identify areas where banks should focus to deliver a better online experience, Malaysian respondents chose mobile apps (61%), simple and clear navigation (60%) and money transfers (60%).
Banking services that are more adapted to customers’ individual needs also emerged as a key regional theme in the survey. Almost seven in 10 (68%) Malaysian respondents said they would at least consider sharing the personal data required to facilitate such enhanced personalisation, including 28% who said they would ‘definitely’ share such data.
Of those willing to share their data, respondents said they would allow access to location data (47%), life event data (46%) and health test data (41%). There was more reticence about wearables data (33% of respondents) and social media data (32%), and the least popular choice was data from other bank accounts (22%).
Key themes emerging from the Malaysia survey include:
1. Malaysian respondents are concerned about sustainability – 39% said the sustainability credentials of banking services, such as their stance on climate action, are “extremely important”, a markedly higher percentage than respondents to our Hong Kong survey (27% of respondents), for example, but lower than in Thailand (52%).
2. Increasing trust in digital banking over the past two years – 78% of respondents in Malaysia said their confidence in mobile and digital banking has increased over the past two years, including 28% who said they were “significantly more confident”. Three-quarters (75%) of respondents now use mobile apps to access banking services, underscoring the extent to which the future of banking is digital. Other digital channels surveyed included desktop/laptop (59%) and wearables (9%); non-digital channels included branches (41%), telephone (41%) and post (15%).
3. Consumers are open to the idea of banking in the metaverse – 30% of those questioned were ‘definitely’ interested in buying banking services via the ever-new metaverse. The Metaverse, which has the potential to become a significant banking channel over the next decade, is a more attractive option for the younger age groups surveyed, with the percentage of respondents stating a ‘definite’ interest rising to 37% among 25- 34 years. old.
Paul Sommerin, partner and APAC head of digital and technology at Capco, said: “Our research indicates that banking customers are looking for intuitive, transparent and frictionless digital experiences. Malaysian consumers are willing to consider sharing different types of data to unlock personal products and services that align with their individual needs and values.Banks have an opportunity to rethink their role in customers’ daily lives, and in particular explore how hyperpersonalization can more effectively adapt banking services within customers’ lifestyles to meet their aspirations and concerns. “
The survey was conducted online during September and October 2022 and collected responses from a total of 4,889 respondents across five Asia Pacific markets. Individual sample sizes – Hong Kong: 707; Greater Bay Area (formerly Hong Kong): 1,293; Singapore: 1,000; Thailand: 890; Malaysia: 999. Survey respondents were drawn from six age groups – 18-24, 25-34, 35-44, 45-54, 55-64 and 65+ – and sample sizes were representative of age-related demographics in each market.