KUALA LUMPUR (July 18): Malaysians have little patience for complicated and inefficient account opening processes even as consumers place high value in good fraud protection, according to a survey by analytics company Fico.

The survey also found that nearly two-thirds of Malaysians expect to answer 10 questions or less or they will abandon a personal bank account application, Fico said in a statement. One in three consumers will drop out of the application process if they’re asked more than five questions, the company said.

“Fico’s research shows a growing demand for seamless account opening experiences,” said Aashish Sharma, Apac segment leader for risk lifecycle and decision management. “Financial institutions that can streamline their processes will be best positioned to retain customers and improve satisfaction.”

The study, conducted in November 2023 by an independent research company, surveyed 1,001 Malaysian adults, along with about 12,000 other consumers in Canada, US, Brazil, Colombia, Mexico, the Philippines, Indonesia, India, Singapore, Thailand, UK and Spain.

Access to banking services is high in Malaysia where 96% of adults have an active deposit account while internet banking penetration rate exceeds 100% with nearly all Malaysians owning a smartphone, according to Bank Negara Malaysia’s statistics.

Identity checks by Malaysian banks have intensified in direct response to identity theft in the country with about half of Malaysians noticing more identity checks when they log in to bank accounts or making an online purchase, the survey showed.

About one in three of the respondents suspected that their identity has been fraudulently used to open an account and only 7% confirmed that it has, Fico flagged.

However, frustration with identity checks appears to exceed fraud worries with three in 10 bank customers having either stopped or reduced use of existing personal bank accounts and credit cards, citing the cumbersome and time-consuming identity verification processes, Fico noted.

Malaysian consumers also show varying levels of patience when opening different accounts. The survey found that 41% of the respondents were most likely to abandon savings accounts or personal bank accounts due to complex or time-consuming identity checks.

Close to one in three have abandoned credit card applications from onerous processes while nearly one in four have been frustrated enough to abandon mortgage loan applications, Fico added.