TRENDS DESCRIPTION IMPACT The banking and financial services landscape is rapidly being reshaped by digital technology with the growth of online banks, e-payment systems and the rise of the FinTech companies, as consumers embrace online banking and e-commerce. The COVID-19 pandemic has rapidly accelerated the shift towards online transactions as consumers demanded non-touch options and movement restrictions made online shopping a more convenient option. The traditional banking model also continued to face disruption from the rise of the FinTech’s start-ups, which have continued to drive innovation in the industry by leveraging on their greater agility and a regulatory landscape that has fast-evolved to accommodate them. Rapid digitalisation has also seen a rise in cybersecurity risks, with the total number of cyber-attacks reaching a new global all-time high in 2021, as criminals developed new attack tools and exploited the rapid shift to online services. • Banks have had to respond to the surge in demand for onl ine ser v i ces by developing new strategies and products and increasing their capacity to handle digital transactions. • The rapid shift to digital f i nance d r ove s t r ong demand for our online and mobile offerings. More than 90% of BIMB’s transactions are now conducted through electronic channels. The number of our Internet Banking users rose by 22%, to 1.5 million during the year, with the total number of internet banking transactions rising by 50%. • Our GO by Bank Islam mobile banking app saw a 79% surge in user numbers, to reach 849,000 users, and the total number of transactions on the app tripled to reach 47 million. • Malaysia, like many other countries, saw a rise in the number and intensity of cyber threats during the year. National cybersecurity agency, MyCert, received more than 10,000 reports of cybersecurity incidents in 2021, with 71% of them related to fraud. Trend 3 DIGITALISATION Note: 1. Non-Financial Transaction involves no monetary movement e.g. balance enquiry, add favourite account, change password, change transaction limit, download e-statement, etc. 2. Financial Transaction involves monetary movement e.g. transfer to own account, DuitNow Transfer, TH transfer, SSPN transfer, etc. Total Non-Financial Transaction Volume (Million) Total Financial Transaction Volume (Million) Total Financial Transaction Value (Billion) 20’ 21’ 14 47 GO BY BANK ISLAM MOBILE BANKING APP 20’ 21’ 98 147 INTERNET BANKING 20’ 21’ 20’ 21’ 484 584 167 454 GO BY BANK ISLAM MOBILE BANKING APP INTERNET BANKING 20’ 21’ 5.7 5.7 16.5 GO BY BANK ISLAM MOBILE BANKING APP 20’ 21’ 28.8 40.1 INTERNET BANKING BANK I SLAM MALAYS IA BERHAD 48 OPERATING ENVIRONMENT & KEY MARKET TRENDS
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