Malaysian banks today launched a three-month campaign to prod customers to switch to Internet banking while allaying fears over security risks.

The Association of Banks in Malaysia chairman, Rozali Mohamed Ali, said statistics showed that less than two percent of customers access Internet banking services in Malaysia, compared to nine percent in Singapore, South Korea and Japan, eight percent in Hong Kong and seven percent in Taiwan.

Banks have invested large amounts of resources o­n the new technologies but there is low acceptance due to concerns over inherent risks and unfamiliarity with the new channels, he said.

A campaign, themed "Make the Switch" to a new banking lifestyle, will seek to allay such fears, boost awareness and encourage customers to embrace electronic banking, he said.

"The campaign is designed to stress to our customers that these products and services offer them greater convenience and flexibility to manage their finances and to conduct banking transactions when they need it and from wherever they are, safely and securely," he said.

1 million customers

Central bank governor Zeti Akhtar Aziz, launching the campaign, said 12 domestic and foreign banks have offered Internet services, while five have provided mobile banking services.

There are an estimated o­ne million Internet banking customers but she urged banks to be more proactive and innovative in payment services to "accelerate our progress o­n this front."

The campaign involves advertisements and introduction of new Internet products and services by individual banks, officials said.