Financial institutions must do more than follow regulations if they hope to maintain consumer trust, particularly as digital banking becomes more prevalent, speakers at the Bank Negara Malaysia Sasana Symposium said today.

“Fair treatment means more than giving someone a stack of terms and conditions. It means making sure they actually understand what’s being offered,” said Jay Khairil Jeremy Abdullah, CEO of Bank Simpanan Nasional.

He said banks have a responsibility to assess a customer’s risk profile before offering financial products, especially when it comes to investments. Mis-selling, he warned, often happens when frontline staff are under pressure to meet sales targets and fail to explain key product features.

Jay also spoke about efforts to include underserved communities, citing a programme in Terengganu where inmates nearing release are trained and later offered interest-free microfinancing to rebuild their lives. “Financial services should be accessible to everyone, not just those who are already in the system. We’re not just here to serve the profitable,” he said.

Sujatha Sekhar Naik, an independent director at the Financial Markets Ombudsman Service (FMOS), raised concerns about inconsistent sales practices across the financial sector. She said consumers are often confused when the same product is marketed differently depending on who is selling it, whether banks or capital market intermediaries.

“Whether it’s a unit trust or an investment scheme, the protection should be the same. But the delivery channels come with different standards, and that’s where things fall through the cracks,” she said.

She added that many consumers do not know where to go when something goes wrong. The creation of a single dispute resolution body, she said, now allows the public to seek redress for monetary losses of up to RM250,000 without cost. “It’s free, it’s accessible, and it focuses on fairness. You don’t need to be a lawyer to be heard,” she said.

Sujatha urged consumers to keep documentation of all financial transactions and communication with service providers. She said many disputes boil down to what was said or promised at the point of sale.

“The frontline is the weakest link. Often, the sales pitch doesn’t match the product,” she said.

Jay acknowledged that complaints can be uncomfortable, but they are also essential. “If a customer complains, it means they haven’t given up on you. That’s a chance to fix what’s broken,” he said.

He also warned against relying on chatbots or unofficial channels when lodging complaints, and encouraged customers to use official websites, branches or emails.

Sujatha said consumers who are still unsatisfied after using formal complaints channels can take their case to court or the small claims tribunal, but urged them to engage fully with the existing redress process first.

“If your only tool is a hammer, every problem looks like a nail. But dispute resolution isn’t about hammering the other side. It’s about finding a way forward,” she said.

She added that cases reviewed by FMOS often lead to wider changes at financial institutions, such as tightening internal processes or re-evaluating how products are sold. “The real protection starts when the product is being designed, not just when it’s sold,” she said.

The speakers also reminded consumers that protecting their rights comes with responsibility, and that both financial institutions and the public have a role in building a fairer, more transparent financial system.

• TAGS:
• Bank Negara Malaysia
• Bank Simpanan Nasional
• Digital Banking
• Financial Markets Ombudsman Service
• Jay Khairil Jeremy Abdullah
• Sasana Symposiu
• Sujatha Sekhar Naik