The Malta Financial Services Authority (MFSA) has published feedback following a thematic review examining how credit institutions are adopting digital solutions across their service delivery. The review focused on how digital channels are being used to improve the customer experience, while also assessing the operational readiness of banks to support secure and accessible services.
Review Scope and Context
The MFSA reviewed a sample of credit institutions active in the local retail market. The exercise considered publicly available information, data provided by the institutions, and supervisory meetings focused on digital service features, customer engagement, and future plans.
Main Observations
- Onboarding and Access to Services
Most institutions do not yet offer full digital onboarding, though many have this under development. Where onboarding is available, it often involves hybrid processes combining online forms with in-branch appointments. Only two institutions reported having fully automated onboarding, which is primarily used by younger customers.
- Digital Channels and Usage
All institutions provide internet and mobile banking services, with usage increasing steadily. Mobile banking in particular saw higher growth in transaction volume, indicating a shift in customer preferences. However, certain basic functions — such as outward payments or card management — are still not available across all mobile apps.
- ATM Services and Branch Trends
Use of ATMs has stabilised, with some banks expanding features such as contactless withdrawals and ID verification. Over-the-counter transactions have continued to decline, with digital alternatives now preferred for routine payments and transfers.
- Security and Customer Notifications
The MFSA noted inconsistencies in how transactions are reflected in digital account statements. Customers are not always clearly informed whether payments are pending, blocked, or settled. The Authority expects real-time notifications and clear presentation of account information across all platforms.
- AI and Chatbots
Use of artificial intelligence remains limited, with only a few institutions deploying AI for chatbots and fraud detection. Others are exploring how AI could support personalised services and operational efficiency, but adoption is still in early stages.
- Customer Support and Inclusivity
The review highlighted the need for digital services to remain accessible to all customers, including those less familiar with online tools. Several institutions are improving their websites and digital guidance materials, but the MFSA expects more progress in ensuring clarity and ease of use.
Expectations and Recommendations
The MFSA expects credit institutions to focus not just on the functionality of digital services, but on the full customer journey, from onboarding to ongoing support. Institutions are encouraged to:
- Enhance digital channels without compromising service quality for in-branch clients
- Improve the consistency and clarity of transaction data across platforms
- Introduce real-time notifications as a standard feature
- Ensure digital channels are secure, user-friendly, and supported by accessible help features
- Develop long-term strategies for the use of AI and automation where appropriate
The MFSA's thematic review reflects the sector's progress in digital service delivery while pointing to areas that need further development. Institutions are reminded that digitalisation is not simply a matter of technology, but of maintaining trust, accessibility, and efficiency across all touchpoints.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
