KUALA LUMPUR, Nov 10 — Malaysia’s banking industry is accelerating the use of artificial intelligence (AI) to strengthen compliance, risk management and fraud detection.
However, this must be done responsibly, with strong human oversight, said Asian Institute of Chartered Bankers (AICB) chief executive Edward Ling.
He said the rate of AI adoption among Malaysian financial institutions (FIs) is encouraging, as AICB’s 2025 Workforce Survey found that 57 per cent of FIs indicated they are in the early stages of AI adoption, although the pace differs depending on each institution’s readiness.
“A few years ago, our focus was on building awareness. Today, the landscape has evolved, and the conversation has shifted beyond awareness; we are firmly in the adoption and implementation phase,” he said during a media roundtable held recently in conjunction with the 15th International Conference on Financial Crime and Counter Terrorism Financing (IFCTF).
He highlighted that AICB’s Chief Risk Officers’ (CRO) Forum, supported by Bank Negara Malaysia (BNM), has also spearheaded Malaysia’s first AI Governance Framework for financial services.
Recently launched, the industry-led initiative is designed to help banks integrate technology responsibly and ensure public trust in the financial system remains intact.
“The CROs have come together to develop a comprehensive AI governance framework that will guide Malaysia’s financial industry in adopting AI responsibly, safely and in a future-ready manner, underscoring the industry’s commitment to maintaining trust in the financial system.
“As financial institutions accelerate their use of AI, those seeking to exploit technology are also becoming more sophisticated, and at times, they may move faster than us. This is precisely why Malaysia must begin its AI journey on the right footing, with clear safeguards and strong governance in place,” he added.
Ling said the future of banking will be defined by how effectively the workforce adapts and upskills for an AI-driven era.
He added that AICB’s Future Skills Framework (FSF), together with the newly launched FSF Xcel — Malaysia’s first digital skills assessment platform for the financial sector — plays a pivotal role in helping financial professionals identify skill gaps and prepare for the industry’s accelerating digital transformation.
“We introduced the FSF in July last year to identify current and emerging skills required for banking professionals. To make the framework more actionable, AICB has now launched FSF Xcel, an AI-driven platform that helps professionals identify their skill gaps, benchmark their capabilities and chart personalised learning pathways based on real-time data,” he said.
With more than 40,000 employees expected to see their roles evolve due to automation and technological augmentation, and 67 per cent of institutions reporting moderate proficiency in key digital skills, this…
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