Citation

Aw, Aaron Teik Hong and Sook, Fern Yeo and Lim, Siow Chun and Surbakti, Herison and Almo, Aldwin Torres and Ng, Jiao Yuan (2025) Customer Preference for Digital versus Traditional Banking in Malaysia: A Pilot Machine Learning Analysis of GX Bank. In: 2025 12th International Conference on Soft Computing & Machine Intelligence (ISCMI), 21-23 November 2025, Rio de Janeiro, Brazil.

Text 33.pdf - Published Version Restricted to Repository staff only Download (1MB)

Abstract

This paper presents an exploratory pilot study on Malaysian customer preferences between traditional banks and GX Bank where the latter is the first fully operational digital bank in Malaysia, and it is officially launched on November 30, 2023. Security perceptions, level of confidence, financial products and user-friendliness were assessed in a structured survey of 100 respondents. Logistic regression with cross-validation and reliability testing were applied in the analysis of the responses. The findings indicated that security and confidence were stronger predictors of preference towards digital banking than the financial products/services and user-friendliness. The receiver operating characteristic area under the curve (ROC-AUC) performance ranging from 0.45 to 0.60 in predictive performance was observed, which was modest due to the small sample size as well as the complexity of the adoption behavior. Irrespective of these limitations, this exploratory study contributes one of the first machine learning-based baselines on GX Bank adoption, provides methodological details on small-scale applications, and highlights practical implications on ways to strengthen trust and confidence in digital banking services. The findings offer a foundation for future extensive studies that will further explore customer behavior in the evolving financial system of Malaysia.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	Digital banking, customer preference, logistic regression, machine learning, Malaysia
Subjects:	H Social Sciences > HG Finance > HG1501-3550 Banking > HG1710-1710.5 Electronic funds transfers
Divisions:	Faculty of Artificial Intelligence & Engineering (FAIE)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	20 Apr 2026 05:14
Last Modified:	20 Apr 2026 05:14
URII:	http://shdl.mmu.edu.my/id/eprint/15795

Downloads

Edit (login required)