KUALA LUMPUR: A global study by Moneythor shows that while many customers join digital banking platforms, only 35% are truly active users.
The study found that 15% of newly acquired customers stop using these services within the first three months.
Moneythor CEO Martin Frick said this silent dropout represents a missed opportunity for banks to build lasting relationships with their clients.
“On a positive note, Malaysia has made real progress in improving its digital banking quality,” he told SunBiz.
According to an independent research firm, Forrester Research, customer experience in Malaysian banks has shown steady improvement over the past two years.
Market research firm Ipsos’ findings support this – overall customer satisfaction in Malaysian retail banking rose from 81% in 2019 to 88% in 2023.
Both studies highlight a significant shift in consumer priorities. Digital banking experiences now matter more than product offerings and pricing.
Frick said customer satisfaction and engagement are increasingly shaped by how confident users feel in managing their finances, how banks communicate, and the level of financial education they receive.
“To boost engagement, banks need to shift from just providing transactions to building genuine relationships. This approach, which we call deep banking, aims to create emotional connections, encourage informed financial choices, and foster long-term loyalty.
“By connecting business value with customer empowerment, banks can turn inactive users into advocates,“ he explained.
Frick noted that as digital-savvy consumers grow accustomed to smooth digital experiences, banks must rethink their traditional methods to stay competitive.
He pointed out that leading platforms such as Spotify, Uber and Netflix now set the standard for engagement by using behavioural data to anticipate needs and customise offerings.
“Spotify, for instance, curates music based on listening habits. Uber meets a need for mobility with minimal friction. Netflix customises content based on how users like to relax.
“Each platform combines behavioural insights, user-friendly design and real-time data analysis to encourage ongoing engagement. These are the same aspects that banks can now provide – driven by artificial intelligence – to create similarly personalised digital experiences,“ he said.
Frick emphasised that AI is bringing about a new era of banking engagement.
With predictive skills and real-time data analysis, banks can offer experiences that are not only relevant but tailored to individual customers.
For example, predictive AI can forecast cash flow and suggest relevant recommendations based on future scenarios.
Along with natural language processing, machine learning and behavioural analytics, banks can now deliver services that feel timely and natural.
Frick mentioned that agentic AI takes this further.
It evolves in real-time, continually learning from a customer’s unique behaviours and preferences, not just from past data but also from ongoing interactions. This enables it to provide proactive, context-specific recommendations that align with an individual user’s unique financial journey.
Ultimately, this “Spotify-fication” of banking means offering a service that is as easy and customised as booking a ride with Uber or selecting a movie on Netflix – transforming banking from a simple transaction into a personalised, behaviour-driven experience.
