Malaysian banks to shift focus on investing in digitalisation
66% of banks eye digital maturity by 2020.
According to EY Global Banking Outlook 2018, 66% of Malaysian banks surveyed aim to reach digital maturity by 2020, echoing similar aspirations to other markets in the region and the world.
Partner and Malaysia Financial Services Banking & Capital Markets Advisory Leader, Ernst & Young Advisory Services Sdn Bhd, Shankar Kanabiran said, "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% of the banks in Malaysia are also likely to set up partnerships or joint ventures in core markets this year."
Shankar added, "All of the banks surveyed in Malaysia have similarly identified recruiting, developing and retaining talent as one of the top priorities, with digitalization and other market demands pushing for new or upgraded skills from the workforce."
Further commenting on the banking landscape in Malaysia, Chan Hooi Lam, Partner and Malaysia Leader for Financial Accounting Advisory Services (FAAS) said that the IFRS 9 or MFRS 9 has been effective in the country since its implementation at the start of 2018.
“With much more reliable and auditable 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,” Chan said.