KUALA LUMPUR: Malaysian consumers need to be equipped with a higher level of digital literacy to improve access to wealth literacy and wealth creation solutions that will be fundamental to the growth of their personal wealth, said HSBC Malaysia.

       "Digital banking is expected to grow by more than 20 per cent annually through 2025; however, individuals who lack the necessary financial or digital literacy are at risk of falling behind.

       "As more processes become automated and financial institutions are using financial technology to deliver financial services to consumers and businesses through digital devices, people need to have a digital-first, growth mind-set to thrive and grow their personal wealth,” it said in a statement today.

       Apart from the need to boost digital literacy, HSBC also listed two other emerging wealth trends observed in Malaysia.

       One is gaps in customers intergenerational wealth transfer plans with customers dipping into current savings which will inevitably impact what they pass on.

       Another is the increasing interconnectedness and interplay between financial, physical and mental well-being.

       On the latter, it cited a 2021 HSBC survey of over 10,000 participants that found that 75 per cent of respondents felt their mental health and financial position are connected.

       HSBC Malaysia head of wealth and personal banking Renee Bullock-Cann said the pandemic is prompting a re-think of many aspects of society including the way wealth is accumulated, preserved and passed on.

       "In particular, we’re seeing challenges around wealth transfer, sections of society who need to increase their digital literacy, and wealth being part of a wider approach to wellness, than a means to itself,” she said.

       She said that HSBC continues to integrate wealth management solutions and wealth insights on mobile

       banking to give customers a more convenient and robust banking experience.

       Other than managing their accounts online, customers can access and invest in unit trusts at their fingertips via EZinvest -- a unit trust investment platform available on the bank’s mobile app.

       "HSBC digital roll-out plans also include a wealth dashboard on mobile, investment account opening service, electronic Know Your Customer (eKYC), local and international open payments, card servicing capabilities and loyalty programmes,” she added. - Bernama