By first quarter of next year, Bank Negara is expected to award up to five digital banking licences. The central bank received a total of 29 applicants, comprising a healthy mix of fintech institutions, e-commerce providers and conglomerates vying for one of the five DB licenses on the table.
PETALING JAYA: Stiff competition from digital banks (DBs) could lead to a possible consolidation among traditional players in the local banking industry.
In the near term, the target markets of DBs on micro loans are beyond the radar of most banks. However, as DBs’ presence matures in the long term, it could possibly be targetting larger-sized conventional products such as personal loans and hire purchase.
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