Malaysian banks must move faster on AI, says Twimbit
Pix by Nabila Adlina Azhari
KUALA LUMPUR: Malaysian banks must hasten the integration of artificial intelligence (AI) and boost their digital capabilities to satisfy growing customer desires, according to Twimbit CEO Manoj Menon. In a study, Malaysia achieved a score of 3.93 out of five, placing it second among six countries evaluated. The country also topped the list for customer service experience among the banks examined, with its digital banking performance showing consistent growth over recent years.
However, Menon highlighted that Malaysian banks still need to enhance their digital experience to match the evolving expectations and capabilities of the regional market. The adoption of AI-driven features for consumers within Malaysia's banking sector remains limited, with some regional banks leading in areas such as in-app chatbots and AI-driven recommendations.
Menon identified three key trends that will shape the industry in the coming years: digital intelligence, accelerated AI adoption, and the seamless integration of banking services into everyday digital platforms. Banks will leverage customer data to analyze spending habits, predict financial requirements, and offer tailored suggestions at appropriate times.
They must move beyond merely providing digital access and focus on delivering personalized and predictive services. Menon emphasized that the challenge is not just about technology but also about designing services around customer needs. Banks must determine which processes can be automated without sacrificing essential human interaction and identify which aspects require human touch.
Banks will increasingly become integrated into third-party applications and super apps, allowing consumers to access financial services through non-banking platforms like Grab, TikTok, and WhatsApp. As AI adoption expands, banks will face increasing pressure to balance innovation with security and regulatory compliance, particularly in safeguarding customers' funds against growing scam risks.
To address these challenges, forward-thinking banks are separating technology spending into separate budgets for improvement and innovation. Improvement budgets will focus on enhancing existing features, security, and reliability, while innovation budgets will finance experiments, proof-of-concepts, and emerging technologies, enabling banks to strengthen current services while exploring new capabilities.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
