Banks are increasingly facing pressures on their revenues, largely driven by shifting consumer demands, the rise of fintech, and foreign banks getting full licenses in Malaysia under the Asean Banking Integration Framework.

In response to these pressures Wira Othman said “The new reality in banking is disruption.

“I call upon the sector to rise up to the challenge by investing in technology and innovation or start evaluating commercially viable ways to collaborate with these fintech startups in order to remain competitive in this new and changing landscape.”

Quoting recent studies from Gallup which states that more than half of Malaysian banking consumers are indifferent towards their primary banks, Wira Othman drew attention to this point to illustrate the industry’s need for an overhaul to remain relevant.

He also stressed upon the Malaysian government’s commitment towards transforming the financial services sector, citing recent sweeping reforms in regulatory frameworks for fintech, equity crowdfunding, peer-to-peer lending and robo-advisory carried out by agencies under Ministry of Finance like, Bank Negara Malaysia and Securities Commission respectively.