Malaysia will be almost cashless by 2025, predicts CIMB Group Chairman Nazir Razak in an article he wrote titled \u201cThriving in a Disrupted World\u201d.<\/p>\n
If his predictions comes true, Nazir said bank branches will become a rare sight and automated teller machine (ATM) will seem as retro as phone booths are today.\u00a0<\/p>\n
\u201cRobotics and artificial intelligence will have displaced a large percentage of asset managers and credit analysts, and maybe even investment bankers.\u00a0<\/p>\n
\u201cPeer-to-peer interactions between customers themselves will have disintermediated banks in more and more ways,\u201d he said in the statement.\u00a0<\/p>\n
Similarly, he added, blockchain and its automated ledger functions, as well as cryptocurrencies, will have proliferated new methods of trade finance and money transfers that bypass banks altogether.\u00a0<\/p>\n
Nazir explained that these are predictions based on technologies everyone already know about and there will definitely be others with equally profound consequences on banking as we know it.<\/p>\n
\u201cThe biggest threats to banks are coming from giant platform companies.<\/p>\n
\u201cDigital technology has brought the marginal cost of new customers for Apple, Google and the likes to zero. China\u2019s two largest platforms, Alibaba and Tencent, have taken the lead with payments, and then built on their customer base and data to challenge in other areas of banking.\u00a0<\/p>\n
\u201cThey have both set up licensed banks to provide consumer loans with near-instant credit decision-making by analysing the massive accumulated customer behavioural data in their possession,\u201d he said.\u00a0<\/p>\n
Beyond platform companies, he added,\u00a0 ecosystem players and fintechs are not to be taken for granted.\u00a0<\/p>\n
\u201cGrab, AirAsia and almost every telco company are strong brands with large proprietary customer bases that are moving into payments and will want to venture into other financial products.\u00a0<\/p>\n
\u201cFintechs, on the other hand, are entrepreneurial companies sprouting everyday all over the world, trying to find the next banking product or service that can be made cheaper or more efficient. Lest we forget, Alipay was a little fintech not long ago at all,\u201d Nazir said.\u00a0<\/p>\n
By 2025, Nazir predicts that quite a number of today\u2019s banking brands in Malaysia and ASEAN will be barely visible.\u00a0<\/p>\n
The most important historical lesson from past industrial revolutions, he said, is that businesses that do not respond to the disruptive challenges, or get the answers horribly wrong, would not survive.\u00a0<\/p>\n
\u201cIt is game on and banks must respond. It is already late, but better late than too late.<\/p>\n
\u201cBanks that will thrive are those that are able to hang on to their customers. It is not easy, and it starts with a better understanding of banks\u2019 value proposition vis-\u00e0-vis customers\u2019 needs today and tomorrow.<\/p>\n
\u201cBanks must make banking fun again,\u201d Nazir concluded.\u00a0<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Malaysia will be almost cashless by 2025, predicts CIMB Group Chairman Nazir Razak in an article he wrote titled \u201cThriving in a Disrupted World\u201d. If his predictions comes true, Nazir said bank branches will become a rare sight and automated teller machine (ATM) will seem as retro as phone booths are today.\u00a0 \u201cRobotics and artificial […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"class_list":["post-1398","post","type-post","status-publish","format-standard","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=1398"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1398\/revisions"}],"predecessor-version":[{"id":4968,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1398\/revisions\/4968"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=1398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=1398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=1398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}