The appeal that personal banking subsides quickly after the pandemic
KUALA LUMPUR, Malaysia, March 16, 2021 / PRNewswire / –
- 61 percent of Malaysian consumers prefer to use digital channels in financial distress to get in touch with their bank.
- 27 percent of Malaysians prefer communication via internet banking; 18 percent use their mobile banking app.
- 28 percent of Malaysians rather with just one primary bank with another 43 percent They said they were ‘more in agreement’ that this was their preference.
A recent survey by global analytics software company FICO found that 61 percent of Malaysian consumers prefer to use digital channels in financial distress to get in touch with their bank. The survey conducted in December 2020, at the height of the global COVID-19 pandemic, shows the willingness of consumers to embrace digital banking and the opportunities banks offer to further develop their offering.
The widespread use of high-speed internet in Malaysia meant that 27 percent of Malaysians preferred to use online banking to communicate about hardship cases; 18 percent used their mobile banking app; 8 percent preferred telebanking; 6 percent communicated via email and 2 percent wanted to use virtual conference technology.
“The risk of infection and social distancing requirements made branch visits less attractive last year and accelerated the shift to digital banking channels worldwide.” said Aashish Sharma, Risk Life Cycle and Decision Management for FICO in Asia Pacific. “Being able to provision and manage numerous channels based on customer preferences and deliver a seamless and engaging experience is a challenge that will remain. Investing in customer management and communication tools that encompass these channels and product silos that can personalize and improve Decision making is key to the success of digital banking. “
Customers’ attitudes towards new banking technologies like debt collection automation can lead to some interesting preferences and behaviors.
“It is noteworthy that in difficult times some customers prefer to solve the problem via intelligent, automated online services like ours FICO® Customer communication services (CCS) to avoid the embarrassment of speaking to an agent about outstanding credit. If customers prefer digital channels in difficult times, their most difficult times, I believe we can expect a further decline in branch banking. ” explained Sharma.
Importance of maintaining banking relationships
Banks still have a data and relationship advantage over fintech challengers. The survey found that across Asia Pacific, every third consumer preferred to have all banking transactions done by a single bank. In Malaysia that was a bit lower at 28 percent, With another 43 percent say they ‘rather agreed’ they want to do business with just one primary bank.
“Managing multiple bank accounts or financial products with different lenders can often be a complex, time-consuming and costly process for the average bank customer.” said Sharma. “Today’s users of digital banking are looking for more control and transparency over their financial position.”
When asked about their willingness to try a fintech or challenger bank, 19 percent of Malaysians said they were inclined to match one competitor with another 41 percent relatively open to the idea.
“To consolidate and strengthen the commitment of the major banks, lenders must offer digital banking capabilities that compete with the challengers to ensure the durability and viability of long-term customer relationships.” Sharma. added.
The most attractive reasons to change banks
When asked about the reasons for switching to a competitor, 73 percent of Malaysian consumers said their main purpose is to provide improved personalization and control of their digital banking service. The survey defined this as the ability to view transaction history, update personal information, reset passwords, and other such features. Interestingly, personalization and control were also the main drivers behind the switch Asia Pacific (31%).
Other top switching drivers across Asia Pacific was; the ability to control a payment card (Set, lock / unlock transaction limits); the ability to set up recurring payments; and improved security features B. Biometrics and two-factor authentication.
FICOs Promotion of new experiences in digital banking Survey was conducted in December 2020 with an online, quantitative survey of 5,000 consumers over borne in ten countries and regions published on behalf of FICO by an independent research company. The countries surveyed were Australia, Hong Kong, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam.
FICO (NYSE: FICO) supports decisions that help people and businesses around the world succeed. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 U.S. and foreign patents on technologies that help companies profitability, customer satisfaction, and growth in the financial services, manufacturing, telecommunications, healthcare, retail, and many other industries. With FICO solutions, companies in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud to lending to making sure millions of airplanes and rental cars are in the right place at the right time.
Learn more at www.fico.com.
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