Digital banking has grown exponentially in the last few years, propelled by the advancements in technology and connectivity that are part of a mobile-first world. According to a KPMG survey, 77% of the 1,220 respondents in Malaysia believe that digital banking is the next evolution in financial services. More than 80% of the respondents are already using the internet banking functions of their banking service providers.

The adoption of digital financing has grown significantly across the world, especially in Southeast Asia. According to a global research firm report, more than 90% of customer interactions in the banking industry have shifted to digital channels such as online, mobile banking, digital wallets and call centres. 

In view of lockdowns and social distancing measures, the pandemic will no doubt accelerate this growth with consumers increasingly requiring access to financial services in the new normal. 

To cater for the growing demand, many nations are issuing digital banking licences. Malaysia is a part of that movement, and is currently accepting applications until June 30, 2021.

When it comes to making this paradigm shift to digitalisation of banking, it pays to be ahead of the curve. This is something OneConnect Financial Technology, a leading technology-as-a-service (TaaS) platform for financial institutions, is able to offer customers.

Backed by China-based, Fortune 500 company Ping An Group’s 32 years of experience in the financial industry and an extensive track record as a tech enabler, OneConnect — as a single strategic tech partner — is able to bring its breadth and depth of banking experience and proven solutions to journey with its clients on their digital road map. Armed with a full suite of digital banking and other market-ready solutions, such as digital lending and cloud-based core banking systems, , the tech giant affords the convenience of making the digital shift seamless and efficient.

OneConnect provides digital solutions that include artificial intelligence (AI), big data analytics, blockchain and cloud technology for financial institutions. Listed on the New York Stock Exchange, its international footprint has grown rapidly. Today, it is present in nearly 20 countries and territories where it counts major banks and insurance companies among its clients.

OneConnect embraces a strong culture of innovation and invested US$182.3 million, or more than 35% of its revenue, on R&D last year alone. 

Parent company OneConnect powers Ping An OneConnect Bank (PAOB) in Hong Kong with its advanced technologies. The company has been granted a virtual banking licence by the Hong Kong Monetary Authority to operate a full digital bank and, through PAOB, offers digital banking services to small and medium enterprises (SMEs) in Hong Kong.

Launched in September 2020, the digital bank offers virtual banking services, from account opening, funds transfers to lending services. Trade SME in Hong Kong can enjoy a fast and seamless account opening experience, without any minimum account balance requirements, and a range of banking services anytime, anywhere.

PAOB is the first virtual bank in Hong Kong to roll out an alternative credit scoring model that utilises AI to crunch data provided by Tradelink Electronic Commerce to conduct highly efficient and accurate credit assessments to better serve trade SMEs. Opening an account and obtaining loans have become a breeze for the trade SMEs. 

The secret sauce is its Digital Bank-In-A-Box — its full-stack digital banking solution that includes end-to-end frictionless account opening and onboarding, smart lending and a new generation digital core banking system solution — allowing digital banks to jump-start and get ahead in the digital race. 

The one-stop solution is not only intelligent but also designed to reduce costs while generating new revenue and increasing productivity. Additionally, the cloud platform is highly adaptive and flexible by design, allowing modular deployment and customisation. This allows customers to scale according to their needs.

PAOB was a winner at the FinTech Awards 2020 for “Outstanding Virtual SME Banking Services”, acknowledging its achievements in providing virtual SME banking services in Hong Kong. Its “Trade-Connect Loan” feature recorded the fastest drawdown time of just 2.5 business days. PAOB’s efficient and timely services break through the traditional constraints of loan approvals, which can take up to a few weeks.

For customer onboarding, PAOB has increased its operational efficiency through technology enablement. For a sole proprietor, the in-app data input time is less than 25 minutes while an SME account can be opened in just six steps.

On local shores, OneConnect has launched OneConnect Smart Technology (Malaysia) Sdn Bhd to better serve financial institutions as the country leaps into the digital economy. Offering full-stack digital banking solutions and AI capabilities, OneConnect has collaborated with leading local banks to launch two firsts in Malaysia.

OneConnect has partnered with one of the largest banks in Malaysia to develop an omni-channel platform that enables both fully digital self-service as well as Relationship Manager(RM)-assisted loan applications. Launched in August last year as Malaysia’s first AI-powered SME financing mobile app, the app automates and simplifies the onboarding process, whereby SMEs only need to submit their MyKad and bank statements via their mobile phones to apply for loans. The app also incorporates the smart interview feature which allows SMEs to complete financing applications, which include interviews and site inspections, virtually through their mobile phones. This allows the bank to serve SMEs more efficiently by reducing back-office processes and operating costs.

It has also partnered with one of the country’s top banks to develop the first app launched by a bank in Malaysia that delivers a truly digital onboarding experience, making it the first eKYC solution approved by Bank Negara for launch in Malaysia in October 2020. Powered by OneConnect’s eKYC solution, the app lets customers open bank accounts and perform banking tasks safely anytime, anywhere, without having to visit a physical branch amid the ongoing pandemic.

With its impressive track record and innovative solutions that are driven by deep customer insights and backed by large-scale testing of real-world applications, incumbent banks and digital bank licence applicants can look forward to tapping into OneConnect’s extensive banking expertise to strengthen their technology capabilities in the digital banking race.

“Malaysia is a key growth engine for OneConnect. With the country being home to five local banks that are in the top 20 largest banks in Southeast Asia, and Bank Negara Malaysia’s move to embrace financial inclusion and digital banking such as the granting of new digital banking licences and publishing eKYC guidelines, significant digital transformation in banking and financial services is expected to take place within the next 5 years.” says George Lee, general manager for business development (Malaysia) at OneConnect.

“We are committed to contributing our deep market knowledge and expertise, as well as hiring a local team to serve the banks and digital bank licence applicants in this transformative landscape in Malaysia.”

OneConnect plans to hire at least 50 local talents to grow a product and engineering team who will provide support for clients in Malaysia and have the opportunities to work on its regional projects.