PETALING JAYA: While the emergence of financial technology (fintech) was seen as the crucial catalyst in spearheading transformation in the field of financial services, a whopping 82% of Malaysian financial institutions saw fintech as a threat to their businesses.
The figure was notably higher than their global counterparts as only 67% of them saw fintech as a threat. Even in neighbouring Singapore, only 73% of the financial institutions felt threatened by the advancement of fintech, according to the Catching the Fintech Wave, a survey report on fintech developments in Malaysia.
The report which was unveiled yesterday, was produced in collaboration between PricewaterhouseCoopers (PwC) Malaysia and the Asian Institute of Chartered Bankers (AICB).
The survey highlighted the lack of readiness among the financial institutions in embracing Fintech as less than half or 47% of the Malaysian financial institutions said they have placed finTech at the heart of their strategy.
Worth to be noted, the proportion stood in stark contrast to the 60% of financial institutions internationally.
While available statistics indicated that Malaysians customers are ready to embrace fintech and more are open to adopting it, the question boiled down to whether the financial institutions are ready to evolve progressively towards fintech advancements.
PwC Malaysia consulting leader Andrew Chan said: “Fintech is more than just technology; it is about people and how they apply technology around their lives. To build a mobile banking app for instance, you need to consider what customers want, how they consume technology, their concerns around data privacy, how they are influenced by their peers, and other apps they may use for their financial needs.
“More than a digital strategy, financial institutions need a business strategy fit for the digital age. Having the right insights and using them to guide your decision-making can be a critical differentiator between a good business investment and a poor one,” remarked Chan.