Deloitte's Gorki said regulators like Bank Negara and the Monetary Authority of Singapore play a key role in enhancing digital literacy.
PETALING JAYA: While banks in Malaysia have made strides in digitalisation, experts say there is still much to be done, particularly in harnessing alternative data to enhance financial inclusion.
Amazon Web Services (AWS) head of financial services industry (FSI) for Malaysia and the Philippines, Taruni Ramamurthi, highlighted the role of alternative data in improving financial inclusion.
“We have different products for different segments. A student needs a different product.
“An ageing population needs a different product.
“Alternative data allows banks to design purpose-built and customised products that are truly useful,” she said during a panel session organised by Bank Islam Malaysia Bhd yesterday on how digital innovation can drive social finance and financial inclusion.
Taruni emphasised that data alone is not enough – its value lies in how it is processed and applied.
“We used to say data is the new oil because it helped businesses drive efficiency.
“But like crude oil, its value only comes when it is processed.
“If you’re just storing data without processing it, it holds little value. Expanding data coverage and utilising it effectively is key,” she said.
She cited an example from Thailand, where a local bank launched a food delivery platform connecting small food vendors with tuk-tuk drivers.
The platform then leveraged transaction data for credit scoring, enabling better access to credit for those previously underserved by traditional banking systems.
Deloitte partner and lead for artificial intelligence or AI and data in the FSI for South-East Asia, Gautam Gorki, said digital adoption must be approached thoughtfully to avoid excluding certain demographics.
“One bank in the region started closing branches as digital adoption rose significantly.
“But it soon realised it was losing elderly customers, particularly in areas where branches had shut.
“The lesson here is that financial institutions must be mindful of such decisions, as they risk excluding specific segments of society,” he said.
He suggested that financial literacy programmes and interoperability across multiple digital and traditional banking channels could help mitigate such issues.
“Regulators like Bank Negara and the Monetary Authority of Singapore play a key role in enhancing digital literacy.
“When central banks lead such initiatives, they carry a different level of impact on society.”
Gautam also noted that the Covid-19 lockdowns had acted as a catalyst for accelerating digital adoption, forcing both businesses and consumers to adapt rapidly to digital channels.
Other speakers at the panel included MesinKira group chief executive officer and founder Syed Omar Almohdzar, and Bank Islam group chief information security officer Anthony Tai Yu Kun.
The session was moderated by Fintech News Malaysia chief editor Vincent Fong.
At the event yesterday, Bank Islam Malaysia wholly owned subsidiary BIMB Holdings
Sdn Bhd also inked a partnership with Reldyn Tech Sdn Bhd to establish a technology financial entity called Finodyn Sdn Bhd.
Finodyn aims to advance the Syariah-compliant digital finance landscape by offering a cutting-edge financial technology platform, software and services to the market.
While BIMB Holdings will have a 40% stake in the joint venture, Reldyn will own the controlling 60% stake.
Finodyn will adopt a business-to-business model, focusing on delivering financial and banking platforms that offer syariah-compliant financial solutions, consulting, maintenance and support services to diverse businesses and organisations.
The joint venture is expected to be executed in three strategic phases.
The first phase, spanning up to two years, will focus on product and infrastructure development.
This will be followed by an accelerated sales phase aimed at driving market penetration.
