Covering Disruptive Technology Powering Business in The Digital Age

New research from Unisys Corporation into Malaysia’s banking industry reveals that Malaysian consumers are willing to embrace new bank services based on emerging technologies such as artificial intelligence (AI) and machine learning. They are also willing to support data sharing in an Open Banking environment, but only if privacy and security concerns are addressed.

Unisys APAC Banking Insights – Banking on the CX Factor is a study about the attitudes of banking customers in Malaysia, Australia, Hong Kong, the Philippines and Taiwan. This year’s report explores how consumers feel about banks using AI to assess eligibility for credit cards and home loans, as well as sentiment toward banks sharing data with non-bank entities to offer new services – known as Open Banking.

Customer Frustrations

The top annoyance for Malaysian bank customers is long queues, cited by 47 percent of respondents – the second highest of the five countries surveyed, behind the Philippines. Twenty percent of Malaysians are annoyed by having to repeat themselves. Only 12 percent are annoyed by being unable to complete an “online” service online.

“With bank queues 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. Malaysians are keen to use digital services but they seek a seamless omnichannel 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,” says Richard Parker, vice president financial services, Unisys Asia Pacific.

Balancing Artificial Intelligence with the Human Touch

The survey reveals that Malaysian bank customers have a strong appetite for tech innovations to enable digital bank services – depending on the type of transaction. Fifty-two percent of Malaysian consumers are comfortable with their bank using software and algorithms to assess online credit card applications. While only 39 percent are willing to use this for home loans it is the second highest level of willingness of the five countries surveyed, behind the Philippines.

“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,” says Mr Parker.

Readiness for Open Banking

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. Regulations for Open Banking vary between countries, such as agreements among members of the Association of Southeast Asian Nations (ASEAN) as part of the ASEAN Banking Integration Framework (ABIF)¹ that includes Malaysia.

Forty percent of Malaysians support their bank sharing their personal data with other companies to access financial products, the second highest support in Asia Pacific. However, almost as many, 38 percent don’t support it, citing concerns about privacy and security. Malaysia recorded the highest level of desire to keep personal information private.

“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 concerns. Unisys’ Retail Banking Delivery platform, Elevate™, is secured with Unisys’ Stealth^®, an identity-based microsegmentation security software that allows banks to microsegment and conceal critical assets and establish encrypted channels for secure user, application and system communication,” says Mr Parker.

Unisys is helping helping banks to address these concerns with Elevate^TM , an end-to-end, digital banking software platform and suite of applications designed to help financial institutions deliver an instantly secure, omnichannel banking experience to their customers. Importantly, this means customers will be able to pay their bills on the go, transfer funds and apply for loans and mortgages anytime, anywhere – regardless of whether they are doing so on a mobile device or tablet, via an internet browser or inside a branch. The platform incorporates a high-level of security, as built-in adaptive biometric and data analytics securely identify customers, authenticate access and validate transactions.

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