Malaysia nears universal accounts but formal borrowing lags at 15%

Progress is driven by habits established early in Malaysians’ financial journeys.

Whilst the majority of Malaysians now own a financial account, only half have money saved at a formal financial institution and even less have secured loans, according to a study by Mastercard and GXBank.

Nearly 9 in 10 or 89% of Malaysians now hold a financial account, according to a whitepaper by Mastercard and GXBank, based on transactional data of 39,000 GXBank customers between November 2023 and December 2024.

However, only 52.5% have saved money at a formal financial institution, and just 15% have borrowed from one.

The research suggests that progress is driven less by income or demographic background and more by the habits consumers build, particularly during the early stages of their financial journey, said Mastercard and GXBank.

The first 60 days of a consumer’s relationship with a financial service or institution can be critical in establishing lasting financial habits, they said.

“During their first 60 days, debit card transactions grew by 250% among active GXBank customers, alongside growth in QR payments, P2P payments and deposits,” the two organisations said.

“The research indicates that adoption is most effective when consumers have had time to become comfortable with their initial product,” they added.

They highlighted the importance of clear onboarding, intuitive experiences and proactive in-app guidance to make customers comfortable with digital tools.

Rewards such as cashback and bonus interest can encourage consumers to repeat everyday financial behaviors. The study found that 38% of disengaged customers cited declining rewards as a reason for reduced activity.

Consumers who placed 10% to 20% of their deposits into a goal-based savings tool
progressed further along their financial journey 22% more often, Mastercard and GXBank said.

Those saving 15% or more were 31% less likely to move backwards, they said.

Consumers who adopted multiple complementary products within the same month were four times more likely to reach what Mastercard and GXBank called the “financial security” stage.