Privacy and security still mar open banking adoption.
Two in five (40%) of Malaysians have expressed openness to having their personal banking data shared, according to a survey by Unisys.
However, a greater number are still hesitant in adopting AI for their banking needs, citing privacy and security concerns.
“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,” said Unisys Asia Pacific vice president for financial services Richard Parker.
Nearly half (47%) of Malaysian respondents listed long bank queues as their top annoyance which could be solved by greater adoption of technology. A fifth of respondents are annoyed at having to repeat themselves to customer service representatives whilst 12% have expressed frustration over inability to complete a service online.
However, their attitudes towards tech may change depending on the type of transaction offered. Half (52%) of customers are comfortable with banks deploying software for online credit card applications. A lesser percentage (39%) are willing to use it for larger life events like home loan transactions which have higher financial and emotional involvement.
“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,” he added.
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