Process, product innovations top two focus areas in M’sian financial services industry

KUALA LUMPUR: Process and product/service innovations are the top two areas of focus for the Malaysian financial services industry ( FSI), according to a new study launched by the the Asian Institute of Finance (AIF) yesterday.

The study revealed that 90 per cent of leaders in the Malaysian FSI agree that innovation is important for the sustainability of their organisations, while around 48 per cent said their companies were quick to innovate to gain first- mover advantage.

Malaysia is ranked 37 on a list of 127 countries in the latest Global Innovation Index rankings reported in 2017.

“However, much remains to be done to achieve the long-term objective of becoming one of the top 20 nations in terms of economic development, social advancement and innovation,” said AIF in a statement here.

The report also suggested that over the next three years, the majority of Malaysian financial institutions ( FIs) will invest in digitalising their businesses with a focus on mobile devices as the key channel for consumers.

“It also revealed that opportunities for FIs and financial technology ( fintech) start-ups to collaborate remain largely untapped, with strong interest shown by both parties to work together to create gamechanging innovation across financial services,” it said.

The study, entitled “Fostering Innovation: A Perspective from the Financial Services Industry and FinTech in Malaysia”, aims among others to provide better clarity on the current state of play regarding innovation in the FSI and what the future looks like for the industry for the next three years.

Over 50 senior managers including C- suite executives and 247 junior to middle-level employees in the Malaysian FSI took part in the online survey. It also includes interviews and focus group discussions with FSI leaders and fintech companies. — Bernama