15th July 2021 - 2 min read
Payment service provider Visa has released new findings from its Visa Consumer Payment Attitudes Study 2021 that point to a readiness among Malaysians to adopt digital banking as a norm. Specifically, Visa highlighted that 74% Malaysians are aware of existing digital banking services, and 65% are interested in using such services.
The country manager for Visa Malaysia, Ng Kong Boon further said that the survey findings indicated that Malaysians are not only open to traditional banks, but also new entrants that will be issued digital banking licences. This is following Bank Negara Malaysia’s (BNM) move to soon provide five digital banking licences to eligible applicants.
“They [the survey participants] have expressed interest in the digital banking services provided by renowned brands (71%), financial services brands (65%), and even new start-ups (60%). We believe it will take the collective effort of the government, existing traditional banks, and institutions applying for digital banking licences to create better financial inclusion for all, not just the affluent, but also the underserved and unserved population,” said Ng.
Additionally, the study showed that 78% of Malaysians are motivated to switch to a digital bank for better rewards, whereas 72% said that they would do so to enjoy the lower costs provided via digital banking. Survey respondents also shared that they are most interested in using digital banking services for the following transactions:
Visa attributed this openness to digital banking services to a number of reasons, chief of which is the new societal norm to avoid crowds and limit face-to-face interaction. In fact, 43% of the survey participants have said that they are currently limiting their banking activities to only online banking services, preferring not to visit any bank branches.
Aside from that, digital banks also appealed to Malaysians because these services provided more efficiency, convenience, accessibility, and security. “Having access to the same type of services at traditional banks but via digital channels allows consumers to bank at a place and time of their choice without being tied to the limitations of banking hours and long queues,” said Visa in a statement.
Visa’s Consumer Payment Attitudes Study 2021 took place between August to September 2020, polling 7,526 consumers from eight countries, including Malaysia, Singapore, and Thailand. It was conducted to understand the behaviours of consumers and identify areas where Visa can drive greater adoption of digital payments.
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