61% of Malaysians prefer to use digital channels to engage with their bank during financial hardship - Survey

KUALA LUMPUR – A recent survey by global analytics software firm FICO has revealed that 61% of Malaysian consumers prefer to use digital channels to engage with their bank during financial hardship.

The poll conducted in December 2020, during the height of the global COVID-19 pandemic, demonstrates the willingness of consumers to embrace digital banking and the opportunities that exist for banks to further develop their offering.

The high level of high-speed internet penetration in Malaysia meant that 27% of Malaysians preferred to communicate about hardship via online banking, 18% used their mobile banking app, 8% preferred telebanking, 6% communicated via email and 2% wanted to use virtual conference technology.

Customer attitudes to new technology from banks such as debt collection automation can yield some interesting preferences and behaviors.

Importance of Maintaining Banking Relationships

Banks still have a data and relationship advantage when compared to fintech challengers. The survey revealed that across the Asia Pacific, one in three consumers preferred to have all their banking needs serviced by one bank. In Malaysia, this was slightly lower at 28%, with a further 43% saying that they ‘somewhat agreed’ they would like to deal with just one primary bank.

When asked about their willingness to try a fintech or challenger bank, 19% of Malaysians said that they were inclined to consider a competitor with a further 41% relatively open to the idea.

Most Appealing Reasons to Switch Banks

When asked about the reasons they would make the switch to a competitor, 73% of Malaysian consumers said their number one reason would be to secure improved personalization and controls in their digital banking service. The poll defined this as the ability to view transaction history, update personal details, reset passwords and other such functions. Interestingly, personalization and control was also the top reason for switching across the Asia Pacific (31%).

Other top switching drivers across the Asia Pacific were; the ability to control a payment card (set transaction limits, lock/unlock), the ability to set up recurring payments, and improved security features such as biometrics and two-factor authentication.