Kuala lumpur: 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.
According to BERNAMA News Agency, the rate of AI adoption among Malaysian financial institutions (FIs) is encouraging. AICB’s 2025 Workforce Survey found that 57 percent of FIs indicated they are in the early stages of AI adoption, although the pace differs depending on each institution’s readiness. Edward Ling noted during a media roundtable at the 15th International Conference on Financial Crime and Counter Terrorism Financing (IFCTF) that the focus has shifted from building awareness to adoption and implementation.
Ling highlighted that AICB’s Chief Risk Officers’ (CRO) Forum, supported by Bank Negara Malaysia (BNM), has spearheaded Malaysia’s first AI Governance Framework for financial services. The recently launched industry-led initiative is designed to help banks integrate technology responsibly and ensure public trust in the financial system remains intact. The CROs developed a comprehensive AI governance framework to guide Malaysia’s financial industry in adopting AI responsibly, underscoring the industry’s commitment to maintaining trust in the financial system.
Ling emphasized the future of banking will be defined by how effectively the workforce adapts and upskills for an AI-driven era. AICB’s Future Skills Framework (FSF), along with the newly launched FSF Xcel, plays a pivotal role in helping financial professionals identify skill gaps. FSF Xcel, Malaysia’s first digital skills assessment platform for the financial sector, helps professionals identify skill gaps, benchmark capabilities, and chart personalized learning pathways based on real-time data.
With more than 40,000 employees expected to see their roles evolve due to automation and technological augmentation, and 67 percent of institutions reporting moderate proficiency in key digital skills, there is a need for targeted upskilling. Ling noted that the role of the compliance officer is evolving, with professionals now expected to become technologists and data storytellers, applying advanced digital literacy, data interpretation, and analytical capabilities to strengthen governance and safeguard the financial system’s integrity.
Meanwhile, Oracle Financial Services senior vice president for finance, risk, and compliance product development, Jason Wynne, stated that AI is helping FIs address the root causes of financial crime. Oracle’s proprietary multi-agent AI Investigators transform case investigation workflows, enhancing investigation quality, accuracy, and speed by autonomously surfacing critical insights, building case evidence, and generating recommendations.
Wynne emphasized that the future of compliance is a collaboration between humans and AI, grounded in explainability, agility, and control. Oracle’s enterprise-scale analytics platform enables behavioral models tailored to identify high-risk indicators and red flags. Oracle’s solutions integrate seamlessly with its financial services applications, embedding a data-driven decision-making approach that reinforces the shared goal of future-proofing the financial ecosystem.
The IFCTF 2025, organized by AICB and its Compliance Officers’ Networking Group, took place from Nov 4-6, 2025, at the Malaysia International Trade and Exhibition Centre (MITEC), Kuala Lumpur. Supported by BNM, the Securities Commission Malaysia, and the Labuan Financial Services Authority, the three-day conference brought together over 1,200 banking and compliance professionals and more than 50 global experts to explore how technology is transforming compliance, risk management, and financial crime prevention.