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Malaysian banks should offer digital solutions to become integral in consumers' lives

Paul Ng, Accenture Financial Services head for Malaysia | Sept. 23, 2015
Banks need to look at new revenue sources and going digital is the way to do this efficiently and effectively, says Paul Ng of Accenture.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach. 

Malaysian banks should be offering more innovative mobile banking solutions given how digitally savvy Malaysian consumers already are today.  Think about it: Malaysia has a mobile phone penetration of more than 148 percent, according to industry statistics, which means that many Malaysians have more than one phone.

Furthermore, 98% of consumers use at least one online channel to learn about products and services, according to the Global Consumer Pulse Survey in which Accenture in which 23,666 consumers in 33 different countries via the internet; 944 were from Malaysia.

As many as 62% of the Malaysian consumers surveyed said they use mobile devices provide enhanced and tailored experience.

In other words they thought internet and mobile solutions worked. Think about it: have you ever heard someone excitedly say that they were planning to spend their lunch hour (or any spare time) queuing up at a bank. No. But if a person can do banking on the phone (or internet) they can do so at their convenience.

Malaysians are embracing digital solutions and banks should be keeping pace. It is time for Malaysian banks to become truly innovative about the digital services they offer customers.

Banks need to create value-added services for their customers so that they become "An Everyday Bank" which is one that is embedded into the day-to-day digital life of their customers. Digital technologies (such as SMAC - social, mobile, analytics and cloud) create new opportunities to provide better experiences for consumers.

For example, Turkish bank's Garanti's highly sophisticated mobile app that provides customers with personalised offers and advice based on their location and spending history. It uses GPS and Foursquare to inform customers if they are close to a store with a special offer, provides saving suggestions, and estimates how much customers will have in their account for the rest of the month based on past spending. It can be used for money transfers and card-less cash withdrawals and integrates with FB, Twitter.

Polish online bank's mBank is another case study worth checking out. It offers a very innovative mobile app that provides its customers with similar location/past-spending based personalized offers. In addition, it recently launched a "Quick Loan" app that allows its customers to obtain a loan, and to have the money transferred directly into their accounts within minutes. Customers just need to log into the app, enter the amount they need and select the number of instalments, and in a few seconds they know if the loan is approved or not; they can then confirm the agreement with their PIN code, and money is immediately available in their account.


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