Banks in Malaysia are keeping up with some of the most popular global trends in fintech, with compliance and lending being the two components that they are looking to tap into, according to Alvin Gan, Executive Director of Management Consulting for IT-enabled Transformation at KPMG in Malaysia.
In addition to those two sectors, regulation tech (regtech) is also gaining popularity among banks.
However, the technology that gained popularity among banks varied depending on the functionalities that the bank wants to focus on.
” … In the lending space, some banks are hoping to use Artificial Intelligence for quicker search functions. Alternative data scoring is also something financial players are looking at,” Gan explained as cited in the e27 Malaysia Fintech Report 2019.
Between 2015 and 2016, banks in Malaysia began its efforts to tap into the fintech community by running incubation programmes or hosting hackathons.
However, the report stated that as the fintech industry grew, banks “started worrying.”
“Regulatory uncertainty, pressure on margins, loss of market share and increased customer churn rate, and information security and privacy risks were some of their major concerns,” it detailed.
The report further explained that banks gradually realised that fintech can be a source of advantage and opportunity if played right. They started adopting various financial technologies to enhance their products and customer experience to the point where, today, all leading banks in Malaysia have embraced fintech.
Some of the most notable collaborations between banks and fintech startups in the country included Maybank and Grab, HongLeong Bank and WeChat as well as Kuwait Finance House and MoneyMatch.
To learn more details about fintech in Malaysia, including its history and leading companies, feel free to check out the e27 Malaysia Fintech Report 2019.
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