The pandemic is driving a digitally driven mindset around financial services
Kuala Lumpur, Malaysia, Aug.30, 2021 / PRNewswire / –
The pandemic has sparked a digitally-focused mindset in Malaysia when it comes to opening bank accounts.
- 3 in 5 Malaysians expect to answer 10 questions or less or they will abandon a request
- 57% of consumers are more likely to open an account digitally than a year ago
- 30% of Malaysians say financial institutions ask too many questions
FICO’s digital banking survey in 2021 shows that people in the Malaysia expect a smooth banking experience when it comes to opening an account through a mobile app or website, with three in five expect to answer 10 questions or less or they will abandon the process. Three in 10 Malaysians give up if asked more than five questions.
“The pandemic is driving a digitally-focused mindset in the Malaysia with 57% of consumers more likely to open an account digitally than a year ago “, noted Aashish Sharma, Senior Director of Decision Management Solutions for FICO in Asia Pacific. “The number of consumers who prefer to open bank accounts digitally has grown to 42% and continues to rise, which is important in a country with a strong branch culture. “
More information: https://www.fico.com/en/solutions/account-opening
Turning friction into momentum
The survey found that consumers’ patience with account apps varied by product. Malaysians had the highest expectations of completing applications in 10 questions or less, for Buy Now Pay Later products (67%), savings accounts (67%), and transaction accounts (62%).
It is interesting to note that this expectation was significantly higher than in the other countries of the survey. For example, just 41% of UK consumers and 51% of Australian consumers should answer 10 questions or less when opening a transaction account.
Overall, Malaysian consumers want digital experiences that reduce friction and inconvenience. They expect their main bank to know them, 72 percent want prove your identity online and 30% of Malaysians say financial institutions ask too many questions.
“Where there is friction there are opportunities, as the quote says” Sharma said. “Either you solve it for your customers today, or a competitor will do it tomorrow. Consumers want banks to find answers to enforcement questions through technological approaches such as enhanced identity checks, transaction history analysis, open banking, and government databases. “
Mortgages deserve a closer look
The survey showed that increased friction and security are deemed appropriate by consumers when it comes to applying for and integrating specific high-value financial products.
Despite relatively high levels of ease and confidence in the demand for everyday online financial products such as checking accounts, savings, loans and credit cards, more than half (61%) of customers surveyed ‘expect greater rigor in mortgage loan applications. .
Research has shown that only 25% of Malaysians would apply for a mortgage digitally, compared to the survey average of about one in three (34 percent). In all countries except United States and in the United Kingdom, branch openings are preferred over online methods. South Africa was a modest outlier with 43 percent of customers preferring online mortgage applications.
Almost two in five Malaysians surveyed said they were ready to answer 11 to 20 or more questions when it came to applying for a mortgage online.
Do not change the channel
Malaysians who open an account digitally prefer to complete the process entirely in any channel of their choice, be it a smartphone or a website. If customers are asked to leave the channel to prove their identity, many of them will drop the request, either by waiving the total opening of an account, or by contacting a competitor. Of those who do not immediately give up, up to one 25% more will delay the process.
The investigation revealed that any disruption is significant. Asking people to scan and email documents or use a separate identity portal causes almost as much dropout as asking them to visit branches or post documents.
This survey was conducted in January 2021 by an independent research company meeting research industry standards. 1,000 Malaysian adults were interviewed, as well as 13,000 consumers in the United States, UK, Canada, South Africa, Australia, New Zealand, Indonesia, The Philippines, Thailand, Vietnam, Brazil, Colombia and Mexico.
FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
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