Lenders look to digitisation
KUALA LUMPUR: More than half of Asia-Pacific banks, including those in Malaysia, expect to become digitally mature or digital leaders by 2020, according to the EY Global Banking Outlook 2018.
The survey of senior executives at 221 banking institutions across AsiaPacific, Europe, North America and emerging markets found that just four per cent of banks across developed markets in the region viewed themselves as being digitally mature.
Ernst & Young Advisory Services Sdn Bhd partner and Malaysia Financial Services Banking & Capital Markets advisory leader Shankar Kanabiran said i n Malaysia, 66 per cent of banks surveyed aimed to reach digital maturity by 2020.
“All of them are focused on investing in technology in the coming three years, in line with their growth strategies and in order to generate cost-savings and operating efficiencies.
“Over 50 per cent of the banks in Malaysia are also likely to set up partnerships or joint ventures in core markets this year.”
The Malaysian banks surveyed have similarly identified recruiting, developing and retaining talent as one of their top priorities, with digitalisation and other market demands pushing for new or upgraded skills from the workforce, he added.
Financial Accounting Advisory Services( FA AS) Partner and Malaysia Leader Chan Hooi Lam said IFRS 9, or MFRS 9 Financial Instruments, had been in effect in Malaysia since January. “With much more reliable and audit able credit information made available under MFRS 9, it will be critical for banks to improve their digital and technological capabilities to ensure accurate and efficient financial reporting, as well as to take advantage of the available analytics now made possible.”
EY Global Banking and Capital Markets deputy sector leader Jan Bellens said Asia-Pacific has a much higher penetration of digital and mobile technology adoption than many other regions.
All of (the Malaysian banks surveyed) are focused on investing in technology in the coming three years, in line with their growth strategies...
SHANKAR KANABIRAN Ernst & Young Advisory Services partner