Almost every industry that makes up our daily ecosystem has been flipped upside down by digitalization. More and more Ebanking mobile malaysia have progressed. The digitalization theme changes all aspects of people’s daily lives, including financial and banking activities. More and more we hear that Bank A will transform into a digital bank, followed by Bank B, then Bank C, and so on. Like Hong Leong Bank. So what is the impact of this mass conversion trend on the banking world?
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Digitalization In Banking Industry Malaysia
Almost every industry that makes up our daily ecosystem has been flipped upside down by digitalization. More and more Ebanking mobile malaysia have progressed. The digitalization theme changes all aspects of people’s daily lives, including financial and banking activities. More and more we hear that Bank A will transform into a digital bank, followed by Bank B, then Bank C, and so on. Like Hong Leong Bank. So what is the impact of this mass conversion trend on the banking world?
Digitalization in banking is actually not a new thing in Malaysia. Since a decade ago, several banks in Indonesia have provided digital services, such as internet or mobile banking. However, such digital services still do not seem to meet the criteria for digital banking which is currently trendy.
Ebanking Mobile Malaysia Have More To Offer
Despite the various different definitions, the consensus of the financial world tends to see digital banks as banks that place digitalization as the main product and the core of their operational system. And, this is different from conventional banks which offer digital products as auxiliary products, accompanying their main conventional products, both savings and credit.
The transformation to digital banking from conventional banks requires a complete overhaul of the core banking system; includes an overhaul from a waterfall/phased to agile/iterative system, from a centralized system to a decentralized microservices system, and so on. Likewise, the possibility of closing branches that are no longer required by the digital banking system.
In fact, in its advanced version, digital banking is able to perform credit analysis using Artificial Intelligence on big data, which is said to be able to produce credit scores that are more accurate and unbiased; replacing the current manual credit analysis that relies on credit analysts and surveyors.
The Effects Towards Customers Ebanking Mobile Malaysia
Customers also feel the pleasure, by being offered the convenience of banking transactions only through the application, up to tempting deposit rates that reach twice the interest on conventional bank deposits.
However, is digital banking the panacea that solves all problems? It doesn’t seem that easy. Digital banking seems easier to talk about than to do. The non-optimal operation of digital banking can actually cause its own problems.
Even now, we can monitor the claims of several digital banking customers who are frustrated with customer service, experience login failures or lose access, and some even claim to have lost money for transfers they didn’t make.
Behind the chaos, there may be a fierce digital battle. Due to its digital infrastructure, digital banking is naturally exposed to the online world which is often the target of hacking attempts by hackers. If digital banking is not prepared for these attacks, one or two cases can prompt the bank to suddenly pull the safety brake and make access to customer accounts difficult; however, it may inadvertently reduce the convenience of the legitimate account holder.
The Transformation to Digital Bank Like Hong Leong Bank
Several banks in Malaysia like Hong Leong Bank have or are currently transforming into digital banks. The success of several global digital banks seems to have triggered this trend in the country, especially small and medium scale banks to participate in the transformation into digital banks.
Large-scale banks seem reluctant to join in, because the transformation requires a complete overhaul of the core banking system, and such an overhaul could disrupt the stability of operations that are currently running smoothly.