Artificial Intelligence is Transforming Banking, but Human Trust Remains Critical

Malezya Maliye Bakanı II Amir Hamzah Azizan stated that artificial intelligence is radically transforming the banking sector, but with the adoption of this technology, human judgment and trust have become more critical than ever. Speaking at the Asian Institute of Chartered Bankers' Nexus 2026 event held in Kuala Lumpur, the minister emphasized that AI is reshaping banking practices in many areas, from credit assessments to fraud detection. He also noted that this technology is being utilized across a broad spectrum, including customer interaction, market surveillance, internal audit, compliance, cybersecurity, risk modeling, and operational efficiency. He added that AI offers significant opportunities to improve decision-making processes, strengthen early warning systems, and extend financial services to underserved communities. However, the minister warned that the smarter the ledger becomes, the more vigilant one must be against emerging risks and vulnerabilities.

Amir Hamzah strongly emphasized that AI must remain merely a tool guided by human judgment. As financial systems become smarter, he stated that establishing stronger governance and oversight mechanisms is essential. The minister noted that the biggest risk in an AI-powered financial system is not machines making wrong decisions, but the real danger lying in humans being manipulated into making them. Referring to the Malezya Merkez Bankası's 2025 Yıllık Raporu, Amir Hamzah stated that in 2024, Malaysians lost 2,8 milyar ringgit to financial scams. He emphasized that 95 percent of these losses stemmed from transactions carried out with the users' own consent.

The minister stated that victims are being manipulated, deceived, and voluntarily transferring their money through increasingly sophisticated social engineering tactics. Amir Hamzah stressed that this is not a failure of technology, but a failure of trust, noting that at the core of the problem lies the exploitation of human relationships and trust. He said that social engineering, scam accounts, impersonation, phishing, synthetic identities, and AI-generated deceptions are challenging banks' abilities to protect their customers and maintain public trust. In this context, he added that banks must innovate to detect abnormal behavior patterns, strengthen authentication processes, protect vulnerable customers, and respond swiftly to incidents. Amir Hamzah stated that trust is built not merely on brand awareness or customer service, but on effective systems, robust controls, and institutions that act before problems escalate.

The Finance Minister stated that internal audit, risk management, and compliance units should no longer be seen as ordinary back-office functions, but rather valued as an integral part of the banking sector's trust architecture. He emphasized that these functions ensure that AI models remain explainable, data is reliable, controls work effectively, and boards of directors can manage technology with confidence. Looking ahead, Amir Hamzah stated that future banking professionals will need to develop expertise in data, behavioral risk, AI governance, sustainability, and ethics, in addition to finance. He added that while technology will continue to reshape financial services, banks must never lose sight of the humans behind every financial transaction. He stated that it must not be forgotten that banking is fundamentally based on human relationships, because behind every account, application, and data point is a real person.

Amir Hamzah stated that this human-centric approach is not merely an emotional sentiment, but rather a fundamental pillar upon which the entire banking industry stands. In his speech, he argued that despite the vast opportunities presented by AI, the ethical and security risks this technology could bring must be carefully managed. He emphasized that as banks embrace technological advancements, they must adopt a proactive stance to ensure no disruptions occur that would undermine their customers' trust. He stated that in the future financial ecosystem, not only algorithms, but also the humans auditing and guiding these algorithms must act with a high sense of responsibility. Ultimately, he added that the success of the banking sector depends heavily on its ability to balance technological innovation with human trust. Amir Hamzah's remarks once again highlighted how crucial it is to preserve humanity and ethical values in the face of the rapid rise of AI in the financial world.