- The Malaysian banking industry is boosting AI adoption to enhance compliance, fraud detection, and risk governance, based on a new industry-developed AI governance framework supported by Bank Negara Malaysia (BNM).
- Edward Ling, CEO of the Asian Institute of Chartered Bankers (AICB), stated that 57% of Malaysian financial institutions are in the early stages of AI application, indicating a shift from “awareness-raising” to “practical implementation.”
- The Chief Risk Officer (CRO) Forum of the AICB has established the first AI Governance Framework for Malaysia’s financial services, aiming to ensure responsible AI integration, maintain public trust, and ensure financial system safety.
- AICB is also deploying the Future Skills Framework (FSF) and the FSF Xcel platform – the first digital skills assessment tool for the financial industry, helping employees identify competency gaps and learning pathways based on real-time data.
- Approximately 40,000 banking employees are projected to change roles due to automation and augmented technology. 67% of organizations noted that digital skill proficiency is only at an average level, emphasizing the need for intensive training.
- AICB suggests that the role of compliance officers is transforming: they must become “data engineers and data storytellers,” clearly understanding how AI operates to enhance supervision.
- Jason Wynne (Senior Vice President of Oracle Financial Services) stated that Oracle’s multi-agent AI Investigators solutions can automatically analyze, gather evidence, and provide recommendations, accelerating and improving the accuracy of fraud investigations.
- Oracle has implemented AI solutions for over 200 global financial institutions, integrating directly into the financial application ecosystem, helping to model risk behavior and reduce false alerts.
- The International Conference on Financial Crime and Anti-Terrorism Financing (IFCTF 2025) takes place from November 4–6 in Kuala Lumpur, gathering over 1,200 experts and 50 international speakers to discuss the role of AI in compliance and financial crime prevention.
📌 The Malaysian banking industry is boosting AI adoption to enhance compliance, fraud detection, and risk governance, based on a new industry-developed AI governance framework supported by Bank Negara Malaysia. Malaysia is entering a boom phase of AI application in banking, with 57% of financial institutions in the initial deployment stage and over 40,000 personnel impacted by automation. The role of compliance officers is transforming: they must become “data engineers and data storytellers,” clearly understanding how AI operates to enhance supervision.
