A new online study launched today by the Asian Institute of Finance (AIF) reveals that the FinTech industry in Malaysia is perceived as trustworthy by 92% of Malaysian consumers. This is translated into high adoption levels –
with four out of five consumers having used FinTech in the past year.
The report revealed that the top three key drivers that will establish trust for FinTech adoption are (i) strong company brand and reputation; (ii) data protection and compliance; and (iii) support by government institutions.
Meanwhile, consumers also consider the Malaysian financial services industry (FSI) to be trustworthy. A key driver of this is the high proportion of consumers (70%) who perceive their financial services providers being able to fulfil their service-related commitments and promises.
The study showed that ethically-related factors such as having consumer interests at heart, is an area where trust should be built, with 57% of consumers perceiving this to be a lesser priority among their financial services providers.
Approximately 1,000 Malaysian online consumers participated in the survey. AIF’s study, entitled: ‘Consumer Trust in the Digital Economy: A Perspective from the Financial Services Industry & FinTech in Malaysia’, measures consumer awareness and the trust levers FinTech stakeholders should embrace to ensure continuous consumer
engagement within the FinTech ecosystem.
Reiterating the report’s conclusions, Tan Sri Dato’ Dr Mohd Munir Abdul Majid, Chairman of Bank Muamalat Malaysia Berhad said, “The pressure exerted by the digital economy on the financial services industry is awesome. In responding to a heavily demand driven business model, FSIs and financial technopreneurs must not cut corners and slip up”.
“Trust will be lost if there is rampant misselling and systemic damage to the financial system,” he added.
Meanwhile, Jaya Kohli, AIF’s Director of Strategy, Policy Development and Research, said, “This report offers valuable insights from the end-consumer into the Malaysian digital economy; FinTech adoption, the impact of digitalisation within the FSI and the role of trust for consumer advocacy. The 4IR era can only advance effectively if establishing consumer trust remains a priority for everyone in the ecosystem. This research offers a pragmatic approach towards establishing and enhancing trust for the future.”