KUALA LUMPUR: While digital banks are disruptors relative to traditional banks and will intensify competition, their impact will be limited in the next three years, given the regulatory restrictions on their asset size, that is, not more than RM2 billion, said RAM Rating Sdn Bhd (RAM Ratings).
The credit rating agency said the entry of digital banks is expected to spur more financial innovation and accelerate the digital transformation of the Malaysian banking industry, but on the whole, the assets of the five digital banks would only represent 0.3 per cent of the industry’s.