How Digitisation Will Change the Banking Industry Forever

Financial technology (fintech) is steadily transforming the way we interact with our banks regarding various transactions. The wave of digital transformation is everywhere and there are many reasons why Malaysian banks have embraced digital banking – acquiring customers, reduce cost, managing the brand image of the bank etc. Here we look at some of the revolutionary technologies that are taking the banking industry by storm: Machine Learning and Artificial Intelligence (AI): Financial organizations are increasingly using chatbots to improve their customer service, while machine learning is being used to check fraud and improve personalisation. While Al Rajhi Banking and Investment Corp (M) Bhd has implemented AI to keep a check on money laundering besides bringing down the cost and arresting human errors as well. Robotic Process Automation (RPA): In an effort to enhance the customer experience, banks are increasingly leveraging RPA in order to automate their processes. CIMB Bank Malaysia, for example, has recently introduced RPA in many of its banking operations, which not only reduced the turnaround time, but also improved the efficiency. This resulted in better productivity besides providing seamless digital banking experience. Blockchain Technology: OCBC Bank in Malaysia has leveraged the power of blockchain solution to boost efficiency, security and transparency along with cost reduction as well. This technology allows inter-bank payments between banks without the need of a payment intermediary. Apart from embracing different technology, banks are ushering innovative ways to re-define banking forever. Some of them are mentioned here: Online services: With the advent of smartphones and tablets, people prefer to do banking transactions on the go. Hence, online services should be readily available for customers. For example, RHB Bank introduced RHB Pay Anyone that allows them to transfer money to anyone just by using mobile numbers or email which not only saves time, but is also hassle-free. Seamless transactions: As online banking continues to grow in leaps and bounds each day, banks understand that they need to prepare for the huge volume of transactions that takes place daily. Tighter security: Security is a big issue when it comes to dealing with customer data and banks understand well. Banks are slowly embracing the PIN & Pay feature to tighten the security of their customers. This system do not require any signature as customers just have to enter their PIN to continue purchases through their debit/credit cards. The wave of digital transformation is everywhere and industry experts predict that digital banking will be the norm in future.