Data reveal that mobile banking and internet banking usage and also the customers have expanded considerably in recent months. While the change to online and mobile banking is inevitable, how large and rapid is it? A detailed examination of Bank Negara Malaysia’s statistics reveals that the growth is occurring at a higher rate than before the Covid-19 shutdown period.
Individual online banking members increased to 33.6 million in July 2020, up from 30.8 million in January 2020. This corresponds to a 9% increase, which is three times the 3% growth for the same seven-month period in 2019. The internet banking penetration rate to population rose to 107.4%, compared with 92.8% in July 2019 and 88.2% in July 2018.
The Future of Banking is Shaped By Mobile Banking
The Covid-19 pandemic has transformed Malaysian consumer banking behaviour, highlighting a higher need for connectivity and technology to help people struggling to adjust to the new normal.
Product purchases have progressively shifted online since the implementation of the Conditional Movement Control Order (CMCO), while the use of real cash has been steadily declining. According to Bank Negara Malaysia figures, consumer internet banking volume and transaction value increased by around 20% in 2020 alone.
Hence, the availability of e-commerce and shops online platforms such as Lazada and Shopee, society are depending on them and thus, many online banking transactions are made during the lockdown. Eventually, this behavior will lead to normality in the present days.
As a result, banking customers are progressively turning away from traditional bank offices in favour of online and mobile banking as safety remains a fundamental worry that has influenced the way we do things. While these changes in customer behaviour have been occurring for the previous decade, the epidemic has undoubtedly shortened years of banking digitization processes to a few months.
Protect your business digitally from Covid-19 side effects
Business automation and digitalization are unavoidable processes that small and medium-sized firms (SMEs) must deal with in order to remain competitive. However, SMEs are also fighting on another front: surviving the economic impact of Covid-19, which has depleted their resources significantly.
To address this issue, Budget 2021 recommended a number of initiatives to encourage SMEs to embrace automation and digitalization. The government recognises the importance of digital transformation and the role it plays in our economy by decreasing the barrier to entry via subsidies and initiatives to safeguard businesses from the impact of Covid-19.
Contactless Banking is The Way of The Future in The New Normal
Personal banking is seen by many people as a bureaucratic procedure that necessitates documentation, time, and effort for the purpose of security and clarity. Given technology advances over the last decade, these processes should not be at the expense of convenience.
As the banking business advances from one generation to the next, so do banking clients’ expectations from reduced wait times at actual bank branches to improved parking facilities, for example. Consumers are becoming more time and cost-conscious, and they want greater convenience to assist them manage their hectic schedules. For example, there are even a lot of e-banking mobile Malaysia that eventually helps and do the exact same functionality whilst at the bank. Came with a lot of vouchers to redeem and also cashback that makes people fall in love with it more.
The Covid-19 pandemic, on the other hand, has introduced layers of complexity to the bureaucratic procedure, increasing wait time and diminishing convenience, all of which are diametrically opposed to consumer needs. Customers must now follow Covid-19 standard operating procedures (SOPs), wear face masks, practice social distance, and register for contact tracing.