Impact of Digital Environment on Banking Industry in Malaysia

The technology is moving forwards at a rapid pace and it is making sure that all its fellow fields take full use of it. The customer of this modern world desires to get the products and services conveniently and quickly and the technology is making sure it happens.

Banking has not been uninfluenced from this boom in technology. It’s getting faster, easier, and more user friendly day by day. The continuous expansion of information technology has aided banks to become more customer-friendly. Today, we’ll take a quick look at how the introduction of digital environment has cemented its place in banking industry in Malaysia.

The Digitisation of Banking – The Beginning

Since the introduction of a digital platform into banking, the world has seen a huge difference in banking sector. Internet banking first made its entrance into the world during the early 80s, but the first of its biggest impacts were seen during the 2000s when the world welcomed this new trend with arms open.

The Rise of Internet Banking in Malaysia

After the early hiccups on the way, internet banking came up as a revolutionary practice in the field of financing. In the early 2000s, Maybank became the first bank to implement internet banking in Malaysia through its own web portal www.maybank2u.com. It wasn’t long before other banks followed suit.

…and there was no going back!

Malaysia saw most of its banks and financial institutions joining this wave of change within years. It soon became a common practice as consumers got over old-school banking. During this time, mobile banking also came into picture. These creative and modern methods provided solidity to the digital environment in the field of banking.

How did Digital Banking become so Popular?

The following reasons can answer this question:

●     It’s faster: This is undoubtedly one of the biggest reasons behind the success of digital environment in banking sector. You can find products and services on the go. The processes take lesser time and saves your precious time.

●     It’s convenient: With all options in your smartphone in your pocket, it has become easier for you to manage your funds from home. No more going to the bank’s branch to get balance update, transfer funds, or pay bills.

●     It is transparent: conventional banking has its perks, but it has some limitations too. You can keep a track of your activities on your accounts and products anywhere, anytime now with mobile and internet banking. There is no doubt that the transparency associated with digital banking has contributed a lot to its popularity.

●     It is safe: Just before digital banking became popular, there were concerns about the safety risks associated with it. But the latest improvements in technology have eradicated any such cases. Any transaction made online, passwords entered, and other actions performed are secured by high level safety measures.

Effects of Digital Environment on Banking Sector

●     Digital banking has given birth to several innovative and creative financial solutions and products. This includes social media banking, product personalisation, and video chat advisory among many others.

●     Digital banking has also helped in maintaining the liquidity of currency in the form of digital money.

●     The recent advancements in digital banking have also seen customer satisfaction levels climbing higher than ever with time-saving payment and transaction methods.

●     These innovative digital tools have simplified the banking and financing processes and fast forwarded them to their end results.

●     The era of digital banking has also seen the rise of many Fintechs that rely on  technological advancement and is directed to the end user. This includes multiple financing apps that help you manage your funds, keep you updated on the latest financial trends, and help you keep a track of your financial standing by calculating your credit score.

Digital banking – The future

In 2018, digital banking is a very common practice with almost 100% of banks offering the same. This prominent financial platform is showing its dominance all around the world. With multiples inventions and new businesses in Fintech, it is absolutely certain that the digital banking has a brighter future.